Redding City Council
February 17, 2022

REDDING CITY COUNCIL SPECIAL MEETING
Civic Center Council Chambers
777 Cypress Avenue, Redding, CA
THURSDAY, FEBRUARY 17, 2022, 2:00 P.M. to 5:00 P.M.

NOTICE AND AGENDA

NOTICE IS HEREBY GIVEN that a Special Meeting of the Reddin g City Council is hereby called by the undersigned and under the authority vested in her by Section 54956 of the Government Code of the State of California. The meeting is to take place at the date, time, and location listed above.

This meeting will incl ude teleconference participation by Vice Mayor Michael Dacquisto (Government Code Section 54953). In addition to the meeting location above, members of the public may participate in the meeting from the following teleconference location:

Hacienda Encantada
Carreterra Transpeninsular Km 7.3 A-4, 23410
Cabo San Lucas, BCS, Mexico

Business to be transacted at said meeting, and the only business to be transacted is as follows:

1. See Attached Agenda

_______________________
Kristen Schreder, Mayor

Dated: February 14, 2022

Redding City Council February 17, 2022

Agenda
Special Meeting - Budget Workshop
Redding City Council
Council Chambers (Doors open 30 minutes prior)
777 Cypress Avenue
Redding, CA

February 17, 2022
2:00 PM to 5:00 PM
The City Council Chambers are fully open to the public in compliance with current guidelines from the California Department of Public Health regarding indoor meetings.

1. CALL TO ORDER - MAYOR KRISTEN SCHREDER

2. ROLL CALL

3. CITY OF REDDING BUDGET WORKSHOP

3A. Consider City of Redding mid-year budget review.

Recommendation
Accept the Fiscal Year 2021 -22 Mid -Year Budget Report for the City of Redding.

3B. Consider approval of new expenditures for the City of Redding General Fund.

Recommendation
Approve increase of City of Redding General Fund expenditures; and direct staff to prepare a budget resolution for future consideration as part of the mid -year budget update to appropriate the necessary funds.

If anyone wishes to address the City Council on any item considered at this meeting before or during Council’s consideration of that item, please fill out a blue Speaker Request Form, located in the lighted alcoves at the back of the Council Chambers, and submit it to the City Clerk. The City Council will allocate up to a maximum of three minutes per speaker for each agenda item. Staff reports are available on -line at the City’s web site at www.cityofredding.org or in the Public View binder located on the podium at the north side of the Chambers.

PLEASE SILENCE YOUR CELL PHONES. THANK YOU.

Redding City Council February 17, 2022

3C. Consider City of Redding Expenditure Plan for use of Coronavirus State and Local Fiscal Recovery (SLFR) Funds.

Recommendation
Approve City of Redding Expenditure Plan for use of SLFR Funds; and direct staff to develop budget resolutions for future consideration to appropriate the necessary funds.

4. ADJOURNMENT

Pursuant to the Brown Act, non -confidential materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for inspection during normal business ho urs at the Office of the City Clerk, 3 rd Floor, City Hall, 777 Cypress Avenue, Redding, California.

City Council Meetings will be televised live on Shasta Community Access Channels via Charter/Spectrum Cable channel 181. Additionally, the meeting can be viewed online at the following: http://scac.cablecast.tv:8080/CablecastPublicSite/watch/4?channel=1. Video of the City Council meetings can also be viewed on the City’s web site at http://www.cityofredding.org/. Open the City’s meetings and agendas portal; Click on tab named "Meetings Videos" and select Redding City Council under “Available Archives 2022” select the desired date, then click on “video” to view the meeting.

In compliance with Title II of the Americans with Disabilities Act, the City of Redding will make available to persons with disabilities modifications or accommodations including auxiliary aids or services necessary to partici pate in public meetings. A person needing assistance should contact the Redding City Clerk by telephone at (530) 225 -4447 or in person, or by mail at 777 Cypress Avenue, 3 rd Floor, Redding, California 96001 at least three (3) working days in advance.

The City of Redding will ensure that no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination under any of its projects, activities, services, or business opportunities on the basis of race, colo r, national origin, age, sex, or disability, as afforded by Title VI of the Civil Rights Act of 1964 and related statutes as amended. All persons, regardless of their citizenship status, are covered under this regulation.

Questions, complaints, or request s for accommodations or additional information may be forwarded to the ADA & Title VI Coordinator at 777 Cypress Avenue, Attn: Personnel Dept., Redding, California 96001, Phone (530) 225-4065.

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Accept the Fiscal Year 2021-22 Mid-Year Budget Report for the City of Redding.

Fiscal Impact

There is no fiscal impact to accepting th e report. Recommended changes will be presented to the City Council (Council) on a budget resolution at a future meeting.

Alternative Action

The Council could choose to reject the report and request additional information.

Background/Analysis

The City of Redding (City) has expended $49,129,046 from the General Fund through December 31, 202 1. This level of expenditure represents 4 3.9 percent of total appropria tions, and is $5,329,736 or 9.8 percent below staff’s cash flow estimate of $54,458,782 through December 31, 2021.

General Fund revenue as of December 31, 202 1, totals $38,436,758 which is $4,735,894 or 14.0 percent above staff’s cash flow projection of $33,700,864. Staff is recommending a variety of changes to revenue estimates due to performance of tax revenues during the first six months of the fiscal year. See attached report for full breakdown of recommended revenue changes.

General Fund Reserves

After completion of the annual audit , staff is recommending a change to the cash balance as of July 1, 202 1. Staff is recommending an increase of $ 0.7 million for a total of $1 9.3 million for the beginning cash for Fiscal Year 2021-22.

MEETING DATE: February 17, 2022
ITEM NO. 3A
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 3A--Consider City of Redding mid-year budget review.

Greg Robinett, Finance
Officer
Packet Pg. 4
Report to Redding City Council February 14, 2022
Re: 3A--City of Redding Mid-Year Budget Review Page 2

Through December 31, 2021, the General Fund Cash Balance was $ 8,339,598, or an 8.8 percent cash reserve as measured by Council Policy.

General Fund Overtime

The City of Redding General Fund overtime expense totals $ 4,213,891 through December 31, 2021. This is $2,273,366 above staff’s cash flow estimate of $1,194,525.

The expenditures year-to-date compared to the year-to-date budget are l isted below, of which, the four largest overtime budgets are Fire, Police, Parks, and Streets:

• The Fire Department had overtime expenses through December 31, 2021, of $3,118,634 compared to a total overtime budget of $1,160,700;
• The Police Department had overtime expenses thr ough December 31, 202 1, of $1,003,472 compared to a total overtime budget of $736,500; • The Community Services Department had overtime expenses thr ough December 31, 2021, of $33,591 compared to a total overtime budget of $3,500. • The Public Works Department had overtime expenses thr ough December 31, 202 1, of $45,637 compared to a total overtime budget of $35,000; and • All other General Fund Departments had overtime expenses through December 31, 2021, of $12,556 compared to an overtime budget of $4,825.

Although some of the aforementioned expenses are either over budget o r nearly over budget, there a re no additional budget requests at this time. Each department has ad equate savings in areas such as personnel charges and /or additional cross charges to other City de partments, to offset the excess costs.

Council Priority/City Manager Goals

• Budget and Financial Management – “Achieve balanced and stable Ten Year Financial Plans for all funds.”
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improv e public trust.”

Attachments
Mid-Year Budget Update including charts and graphs for FY 21-22 Packet Pg. 5
Cash Flow
Estimate Actual Actual Actual Estimate Actual Actual Actual Revenue FYE 2022 FYE 2022 FYE 2021 FYE 2020 FYE 2022 FYE 2021 FYE 2020 FYE 2019 Sales tax $14,641,209 $16,302,827 $15,034,020 $13,819,314 $26,275,00 0 $30,189,084 $25,859,713 $25,319,127 Property tax 956,719 1,036,245 969,835 812,552 21,378,340 22,820,856 2 1,182,617 19,949,318 Transient Occupancy Tax 2,934,003 4,522,271 3,225,767 3,483,350 5,90 0,450 5,915,535 5,352,432 6,837,195 Internal Departments 7,007,292 7,007,305 6,204,585 9,390,330 12,409, 170 13,090,570 11,537,660 12,295,180 Revenue from Other Governments 1,555,556 921,993 1,645,246 1,998,65 2 5,042,710 2,929,851 4,309,727 2,495,001 Other 6,606,085 8,646,117 8,231,550 7,682,002 11,251,160 14,679,657 16,362,005 12,779,277 Total Revenue $33,700,864 $38,436,758 $35,311,003 $37,186,200 $82,25 6,830 $89,625,553 $84,604,154 $79,675,098 The above revenue chart excludes transfers
Cash Flow
Estimate Actual Actual Actual Budgeted Actual Actual Actual Expenditures FYE 2022 FYE 2022 FYE 2021 FYE 2020 FYE 2022* FYE 2021 FY E 2020 FYE 2019 Police $20,368,520 $19,640,078 $17,458,690 $16,376,513 $39,954,620 $3 5,049,109 $31,641,369 $30,416,588 Fire 11,649,131 13,946,829 16,148,577 11,814,550 23,904,730 28,526,09 1 21,774,444 21,701,221 Public Works 8,620,143 4,652,162 3,307,127 3,817,910 18,951,770 7,221 ,574 6,889,613 6,944,744 Development Services 3,177,824 2,577,202 2,456,234 2,254,499 6,487,1 20 5,319,892 4,556,208 4,370,305 Community Services 4,798,736 3,324,980 2,789,325 2,864,056 9,680,285 5,936,020 5,550,231 5,343,197 Other 5,844,428 4,987,795 5,321,939 4,412,885 13,018,260 10,132,220 9, 533,422 9,868,543 Total Expenditures $54,458,782 $49,129,046 $47,481,892 $41,540,413 $ 111,996,785 $92,184,906 $79,945,287 $78,644,598 *Includes carryover amount of $10,716,875 from prior year's budget.

July through December Amounts Total For Fiscal Year
Comparison of General Fund Revenues and Expenditures (Budgetary Basis) Report for the Period July through December, 2021
REVENUE COMPARISON
July through December Amounts Total For Fiscal Year
EXPENDITURE COMPARISON
Packet Pg. 6
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid- $0
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Sales Tax Property Tax TOT Other Gov. Internal Other
General Fund Revenues Through December 2021
(In Thousands)
Budget
Actual
Prior Year
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Police Fire Public Works Development Services Community Services Oth er Expenditures General Fund Expenditures Through December 2021
(In Thousands)
Budget
Actual
Prior Year
Packet Pg. 8
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid- City of Redding – Mid-Year Budget Report
Fiscal Year 2021-22

MID-YEAR BUDGET REPORT

Fiscal Year 2021-2022

Packet Pg. 9
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review) City of Redding – Mid-Year Budget Report
Fiscal Year 2021-22

INTRODUCTION

The Finance Division has completed its mid-year budget review for fiscal year 2021-2022 and respectfully submits this report for the City Council’s review. This mid-year budget report is submitted in-lieu of the typical monthly financial report.1

This report compares actual expenditures and revenues through December 31, 2021, to budget projections (or subsequent revisions, if applicable). The report focuses primarily on the General Fund, but also includes a brief review of revenues and expenditures for each enterprise fund, i.e., the Water, Wastewater, Storm Drainage, Electric, Airport, Solid Waste, and internal service funds. In the interest of time and space, we have not included information regarding all individual internal service funds or special revenue funds; however, staff would be pleased to provide this additional information upon request.

GENERAL FUND

REVENUES

Overview

General Fund revenue as of December 31, 2021, totals $38,436,75 8 which is $4,735,894 or 14.0 percent above staff’s cash flow projection. Total revenue represents 114.0 percent of the annual budget estimate, as amended by Council resolution. Below is a further discussion of various revenues for the General Fund.

Sales Tax

Sales tax revenue for the first six months of FYE 2022 totals $ 16,302,827 or $1,661,618 (11.3 percent) above staff’s amended cash flow estimate of 14,641,209. Staff i s recommending amending the sales tax projection as a result of the performance over the first six mo nths. Staff is recommending an increase of Sales tax for 2021-22 to $32 million and $33.2 million for 2022 -23. These revenues were originally budgeted at $28.4 million and $29.2 million in fiscal year 2021-22 and fiscal year 2022-23 respectively.

Property Tax

Property tax revenue through December 31, 2021, totals $1,036,245 or $79,526 (8.3 percent) above staff’s cash flow estimate of $956,719. The bulk of the property tax revenue is received in two installments from the county, one in January and one in May. Staff is not recommending any changes at this time to property tax revenue.

Transient Occupancy Tax

Transient Occupancy Tax (TOT) revenue for six months of FYE 2022 totals $4,522,271 or $1,588,268 (54.1 percent) above staff’s cash flow estimate of $2,934,003. Staff is recommending increasing the projection for TOT due to the performance over the first six months of the fiscal year. Staff is recommending an increase of Sales tax for fiscal year 2021-22 from $5.4 million to $7.2 million and for fiscal year 2022-23 from $5.6 million to $7.5 million.

1Please refer to Appendix A for a detailed summary of General Fund revenues and expenditures.

Packet Pg. 10
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review) City of Redding – Mid-Year Budget Report
Fiscal Year 2021-22

Other Taxes

Other taxes (Business License Tax, Real Property Transfer Tax, Franchise Tax, and Cannabis Tax) revenue for the first six months of FYE 2022 totals $2,238,612 or $225,860 (11.2 percent) above staff’s cash flow estimate of $2,012,752. No changes are being recommended to other taxes at this time.

Building Related Fees

Revenues from building related fees total $2,219,045 for the first six months of FYE 2022 or $537,011 (31.9 percent) above staff’s adjusted cash flow estimate of $1,682,034. No changes are being recommended to building related fees at this time.

Revenue from Other Governmental Agencies

Revenue from Other Governmental Agencies total $921,993 for the first six months of FYE 2022 or $633,563 (40.7 percent) below staff’s cash flow estimate of $1,555,556. The decrease from the cash flow estimate is representative of timing of grant related revenues. No adjustment to revenues from other governmental agencies is recommended at this time.

Revenue from Internal Departments

Revenue from internal departments for the first six months of F YE 2022 totals $7,007,305 which is $13 above staff’s cash flow projection. Revenues from internal depa rtments are trending as expected and no changes to revenues from internal departments are being recommended at this time.

Late Fees

Revenues from late fees total $665,129 for the first six months of FYE 2022 or $184,867 (21.8 percent) below staff’s cash flow estimate of $849,996. Staff is not recommending any changes to the estimate at this time.

All Other General Fund Revenues

Revenue from all other General Fund revenues total $3,523,331 f or the first six months of FYE 2022 or $1,462,028 (70.9 percent) above staff’s cash flow estimate of $2,061,303. Staff is not recommending any changes to the estimate at this time.

EXPENDITURES

Overview

General Fund appropriations through December 31, 2021, total $1 11,996,785 which is an increase of $15,457,215 or 16.0 percent, since the budget was adopted by the City Council on June 15, 2021. Of this increase $10,716,875 is from carryover from the prior year (primarily relating to grants and projects).

The City has expended $49,129,046 from the General Fund through December 31, 2021. This level of expenditure represents 43.9 percent of total appropriations and is $5,329,736 or 9.8 percent below staff’s Packet Pg. 11
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review) City of Redding – Mid-Year Budget Report
Fiscal Year 2021-22

cash flow estimate of $54,458,782 through December 31, 2021.

The following section provides a more detailed analysis of expe nditures by each major department or functional area.

Police

The Police Department’s budget, including the grant division, totals $39,954,620, or 35.7 percent of total General Fund appropriations. The Police Department has expende d $19,640,079 or 49.2 percent of its budget, as of December 31, 2021.

Fire

The Fire Department’s budget totals $23,904,730, or 21.3 percent of total General Fund appropriations. The Fire Department has expended $13,946,829 or 58.3 percent of its budget, through December 31, 2021.

Public Works

The Public Works Department’s General Fund budget (Public Works Engineering, Transportation and Engineering, and Streets) totals $18,951,770 or 16.9 percent of total General Fund appropriations. The Transportation and Engineering Department’s General Fund has expended $4,652,162 or 24.5 percent of its budget, through December 31, 2021.

Development Services

The Development Services Department’s General Fund budget (Plan ning, Building, Permit Center, and Engineering & Design) totals $6,487,120 or 5.8 percent of total General Fund appropriations. The Department has expended $2,577,202 or 39.7 percent of its budget, through December 31, 2021.

Community Services

The Community Services Department’s General Fund budget (Recreation, Parks and Community Services Administration) totals $9,680,285, or 8.6 percent of total General Fund appropriations. The department has expended $3,324,980 or 34.3 percent of its budget, through December 31, 2021.

Non-Departmental/Debt Service

The budgets for the Non-Departmental, Animal Regulation and Debt Service divisions total $7,010,160, or

56.3 percent of total General Fund appropriations. Expenditure s through December 31, 2021 total $2,030,785 or 29.0 percent of the amount budgeted for this purpose.

General Government

The current budgets for general government departments and divisions (i.e., City Council, City Clerk, City Treasurer, City Manager, City Attorney, Finance, Purchasing, Personnel and Midtown) total $6,008,100, or

5.4 percent of total General Fund appropriations. These departm ents and divisions have expended $2,957,010 or 49.2 percent of their budgets, through December 31, 2021.

Packet Pg. 12
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review) City of Redding – Mid-Year Budget Report
Fiscal Year 2021-22

ENTERPRISE FUNDS

WATER UTILITY FUND

Expenditures

Appropriations from the Water Utility Fund total $38,220,540. Expenditures through December 31, 2021 total $9,973,353 or 26.1 percent of total appropriations. Expenditures are substantially lower than budget as a result of capital outlay and debt service being substantially below the 50 percent mark as of December 31, 2021. Excluding capital outlay and debt service, the Water Utility expended 43.0 percent of its budget. No adjustments to the Water Utility’s budget are being requested.

Revenue

Revenue in the Water Utility Fund through December 31, 2021 totals $14,682,590. This level of revenue represents 61.6 percent of the estimate contained in the amended FYE 2022 budget. No changes are being recommended at this time.

WASTEWATER UTILITY FUND

Expenditures

Appropriations from the Wastewater Utility Fund total $44,370,7 00 through December 31, 2021.

Expenditures to date total $12,056,219 or 27.2 percent of total appropriations. The ratio of expenditures to appropriations is low because expenditures related to capital projects are low at this point in time. Excluding capital outlay and debt service, the Wastewater Utility expended 44.4 percent of its budget. No adjustments to the Wastewater Utility’s budget are being requested.

Revenues

Revenue in the Wastewater Utility Fund through December 31, 202 1 totals $16,510,525. This level of revenue represents 49.2 percent of the estimate contained in the amended FYE 2022 budget. No changes are being recommended.

STORM DRAINAGE UTILITY

Expenditures

Appropriations from the Storm Drainage Utility Fund total $2,57 8,070 through December 31, 2021.

Expenditures to date total $669,800 or 26.0 percent of total appropriations. Excluding capital outlay, the Storm Drainage Utility expended 42.5 percent of its FYE 2022 amended budget.

Revenue

Revenue in the Storm Drainage Utility Fund totals $1,498,770 through December 31, 2021. This level of Packet Pg. 13
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review) City of Redding – Mid-Year Budget Report
Fiscal Year 2021-22

revenue represents 67.5 percent of the estimate contained in the amended FYE 2022 budget. No changes are being recommended.

ELECTRIC UTILITY

Expenditures

Appropriations from the Electric Utility Fund total $187,242,411 through December 31, 2021. Expenditures to date total $84,414,752, or 45.1 percent of total appropriations. Excluding capital outlay and debt service, the Electric Utility expended 50.2 percent of its FYE 2022 amended budget.

Revenue

Revenue in the Electric Utility Fund totals $85,262,615 through December 31, 2021. This level of revenue represents 60.3 percent of the estimate contained in the amended FYE 2022 budget. No changes are being recommended.

AIRPORTS FUND

Expenditures

Appropriations from the Airports Fund total $15,371,320 for FYE 2022. Expenditures through December 31, 2021 total $2,132,592, or 13.9 percent of total appropriations, through December 31, 2021. The ratio of expenditures to appropriations is low because expenditures rela ted to capital projects are low. Excluding capital outlay, the Airports fund has expended 42.2 percent of its FYE 2022 amended budget. No revisions are recommended at this time.

Revenues

Revenue in the Airports Fund totals $1,684,135 through December 31, 2021, excluding grant revenue. This level of revenue represents 65.8 percent of the estimate contained in the amended FYE 2022 budget. No changes are being recommended.

SOLID WASTE FUND

Expenditures

Appropriations for the Solid Waste Fund total $26,989,150 for FYE 2022. Expenditures through December 31, 2021 total $11,134,562 or 41.3 percent of total appropriations. Without capital outlay, the Sold Waste Fund expended 45.5 percent of its FYE 2022 amended budget. No changes are being recommended.

Revenues

Revenue in the Solid Waste Utility Fund totals $11,725,219 Dece mber 31, 2021. This level of revenue represents 50.9 percent of the estimate contained in the amended FYE 2022 budget. No changes are being recommended.

Packet Pg. 14
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review)

Mid-Year Budget Report

APPENDIX A

COMPARATIVE SUMMARY OF GENERAL FUND REVENUES AND

EXPENDITURES

For the Period

July 2021 through December 2021
Packet Pg. 15
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review)

Year End Budget Report

Section One

Actual Revenues Compared to Cash Flow Estimates

Packet Pg. 16
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review) RVR213A CITY OF REDDING 10:11:31 1/07/2022Finance Department MONTH OF DEC. 2021COMPARATIVE SUMMARY OF ACTUAL REVENUESGENERAL FUNDS ----------------- Current Month ------------------ ------------------ Year to Date ------------------Monthly Over YTD OverProjection Actual (Under) % Projection Actual (Under) %___________ ___________ ___________ _____ ___________ ___________ ___________ _____GENERAL FUNDTAXESProperty Taxes 6,935 - (6,935) 0.0 956,719 1,036,245 79,526 108.3Sales Tax-Nondedicated 2,356,564 2,610,848 254,284 110.7 14,641,209 16,302,827 1,661,618 111.3Transient Occupancy Tax 440,702 630,608 189,906 143.0 2,934,003 4,522,271 1,588,268 154.1Viacom Cablevision - - - - 456,180 442,761 (13,419) 97.0Pacific Gas & Electric Co. - - - - - - - -Business License Tax 72,916 114,964 42,048 157.6 437,496 446,157 8,661 101.9Real Property Transfer Tax 29,166 42,308 13,142 145.0 174,996 324,771 149,775 185.5Commercial Cultivation Cannabis - - - - 69,080 89,384 20,304 129.3Retail Cannabis Business Tax - - - - 875,000 932,655 57,655 106.5Other Commercial Cannabis Business Tax - - - * - 2,884 2,884 *___________ ___________ ___________ _____ ___________ ___________ ___________ _____Total Taxes 2,906,283 3,398,728 492,445 116.9 20,544,683 24,099,955 3,555,272 117.3___________ ___________ ___________ _____ ___________ ___________ ___________ _____LICENSES AND PERMITSAnimal Licenses 3,333 2,541 (792) 76.2 19,998 20,872 874 104.3Building Permits 131,410 120,820 (10,590) 91.9 788,460 652,711 (135,749) 82.7Engineering Encroachment Permit 7,500 4,741 (2,759) 63.2 45,000 171,807 126,807 381.7Electical Permits 15,931 22,629 6,698 142.0 95,586 123,330 27,744 129.0Transportation Permit 775 1,038 263 133.9 4,650 3,049 (1,601) 65.5Plumbing Permits 8,866 8,437 (429) 95.1 53,196 42,032 (11,164) 79.0Mechanical Permit 15,816 15,562 (254) 98.3 94,896 110,782 15,886 116.7Engineering Grading Permits 833 487 (346) 58.4 4,99813,052 8,054 261.1 ___________ ___________ ___________ _____ ___________ ___________ ___________ _____Total Licenses and Permits 184,464 176,255 (8,209) 95.5 1,106,784 1,137,635 30,851 102.7___________ ___________ ___________ _____ ___________ ___________ ___________ _____FINES, FORFEITS, AND PENALTIESTraffic Safety Fines 86,413 72,806 (13,607) 84.2 330,827 500,936 170,109 151.4Code Enforcement Fines 12,166 343,186 331,020 820.8 72,996 594,656 521,660 814.6Other Fines & Fees 4,416 10,134 5,718 229.4 26,496 43,249 16,753 163.2___________ ___________ ___________ _____ ___________ ___________ ___________ _____Total Fines, Forfeits & Penalties 102,995 426,126 323,131 413.7 430,319 1,138,841 708,522 264.6___________ ___________ ___________ _____ ___________ ___________ ___________ _____REVENUE FROM INTERNAL DEPARTMENTSFixed Reimbursements 410,879 410,880 1 100.0 2,465,274 2,465,280 6 100.0Fixed Reimbursement Public Works Admin 74,240 74,240 - 100.0 445,440 445,440 - 100.0Fixed Reimbursement NDPES 37,497 37,498 1 100.0 224,982 224,985 3 100.0In-lieu Payment from 821--Muni Airport 19,583 19,583 - 100.0 117,498 117,500 2 100.0In-Lieu Payment from Division 854-Electric 455,333 455,333 - 100.0 2,731,998 2,732,000 2 100.0advances from internal department - - - - 1,022,100 1,022,100 - 100.0___________ ___________ ___________ _____ ___________ ___________ ___________ _____Total Revenue from Internal Departments 997,532 997,534 2 100.0 7,007,292 7,007,305 13 100.0___________ ___________ ___________ _____ ___________ ___________ ___________ _____ * Unbudgeted revenue1
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Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid- RVR213A CITY OF REDDING 10:11:31 1/07/2022Finance Department MONTH OF DEC. 2021COMPARATIVE SUMMARY OF ACTUAL REVENUESGENERAL FUNDS(continued)----------------- Current Month ------------------ ------------------ Year to Date ------------------Monthly Over YTD OverProjection Actual (Under) % Projection Actual (Under) %___________ ___________ ___________ _____ ___________ ___________ ___________ _____GENERAL FUNDREVENUE FROM OTHER GOVERMENTAL AGENCIESState Grant Operating for General Gov't 37,065 28,318 (8,747) 76.4 198,850 34,440 (164,410) 17.3Federal Grant-Operating-General Gov't 172,251 43,467 (128,784) 25.2 644,468 112,531 (531,937) 17.4Shasta County Grant - Operating - Police 51,624 6,715 (44,909) 13.0 292,364 86,065 (206,299) 29.4SHASTA CO OPERATING REIMB-POLICE 6,000 - (6,000) 0.0 24,000 14,190 (9,810) 59.1STATE LEGISLATIVE REVENUE OPERATING-POLICE 7,277 8,810 1,533 121.0 43,662 53,791 10,129 123.1Reimbursement of Mandated Costs 4,750 - (4,750) 0.0 28,500 58,448 29,948 205.0POST Grant - Operating - Police 4,750 12,097 7,347 254.6 28,500 39,894 11,394 139.9Home Owner Property Tax Relief 12,750 21,755 9,005 170.6 76,500 21,755 (54,745) 28.4Motor Vehicle In-Lieu Tax - - - - - - - -School District Contrib-Operating-Police 22,327 7,367 (14,960) 32.9 133,962 359,998 226,036 268.7Redding Rancheria Payment 9,959 - (9,959) 0.0 59,754 59,755 1 100.0Contribution RABA - Operating - Police 2,083 2,083 - 100.0 12,498 12,500 2 100.0Buckeye Fire Service Dist-Operating-Fire - - - * - 5,000 5,000 *Buckeye Fire District - Capital - Fire - 55,000 55,000 * - 55,000 55,000 *SHASCOM - Payroll 2,083 - (2,083) 0.0 12,498 8,626 (3,872) 69.0___________ ___________ ___________ _____ ___________ ___________ ___________ _____Total Revenue - Other Government Agencies 332,919 185,612 (147,307) 55.7 1,555,556 921,993 (633,563) 59.2___________ ___________ ___________ _____ ___________ ___________ ___________ _____OTHER REVENUESLate Fees 141,666 142,226 560 100.3 849,996 665,129 (184,867) 78.2Contributions - Operating - General Gov't 7,820 10,200 2,380 130.4 54,660 25,304 (29,356) 46.2Developer Contributions 2,931 - (2,931) 0.0 2,931 20,519 17,588 700.0Compensation - Loss & Property Damage - 39 39 * - 190 190 *Miscellaneous Receipts 34,577 214,115 179,538 619.2 158,107 403,318 245,211 255.0Reimbursement 21,174 - (21,174) 0.0 127,044 288,962 161,918 227.4___________ ___________ ___________ _____ ___________ ___________ ___________ _____Total Other Revenues 208,168 366,580 158,412 176.0 1,192,738 1,403,422 210,684 117.6___________ ___________ ___________ _____ ___________ ___________ ___________ _____CHARGES FOR CURRENT SERVICESPlanning Permits (Subdivisions) 36,872 70,502 33,630 191.2 221,232 341,396 120,164 154.3Building Plan - Record Fees 1,538 1,645 107 106.9 9,228 9,645 417 104.5Building Plan - Check Fees 46,120 47,323 1,203 102.6 276,720 330,647 53,927 119.4Fees for Outside Plan Checks 95 - (95) 0.0 570 25,565 24,995 485.0Plan Check Fees - Fire Department 6,250 10,824 4,574 173.1 37,500 42,103 4,603 112.2Engineering Land Development Fees 8,333 25,483 17,150 305.8 49,998 352,926 302,928 705.8Technology Surcharge 10,134 15,209 5,075 150.0 60,804 101,537 40,733 166.9Cannabis Application & Permit Fees 39,570 - (39,570) 0.0 237,420 151,405 (86,015) 63.7Sale of Publications 7 - (7) 0.0 42 111 69 264.2Animal Shelter Fees 583 833 250 142.8 3,498 3,100 (398) 88.6Inspection Fees 241 294 53 121.9 1,446 3,087 1,641 213.4Fingerprint Fees 833 321 (512) 38.5 4,998 2,739 (2,259) 54.8Fire Permits & Fees 24,166 2,476 (21,690) 10.2 144,996 12,327 (132,669) 8.5* Unbudgeted revenue2 Packet Pg. 18
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid- RVR213A CITY OF REDDING 10:11:31 1/07/2022Finance Department MONTH OF DEC. 2021COMPARATIVE SUMMARY OF ACTUAL REVENUESGENERAL FUNDS(continued)----------------- Current Month ------------------ ------------------ Year to Date ------------------Monthly Over YTD OverProjection Actual (Under) % Projection Actual (Under) %___________ ___________ ___________ _____ ___________ ___________ ___________ _____GENERAL FUNDCHARGES FOR CURRENT SERVICESDUI - Emergency Response 6,149 (638) (6,787) 10.3 36,894 34,647 (2,247) 93.9Swimming Pool Receipts 11,666 2,625 (9,041) 22.5 69,996 15,868 (54,128) 22.6RAC Swim Shop / Rental 2,833 - (2,833) 0.0 16,998 19 (16,979) .1RAC Admission 9,166 - (9,166) 0.0 54,996 2,554 (52,442) 4.6RAC Swim Team 916 - (916) 0.0 5,496 2,748 (2,748) 50.0Swimming Pool Concession 4,583 - (4,583) 0.0 27,498 3,271 (24,227) 11.8Other Charges & Fees 10,000 133,668 123,668 336.6 60,000 1,665,355 1,605,355 775.5Recreation Sports 40,247 12,814 (27,433) 31.8 241,482 112,136 (129,346) 46.4Bad Debt Writeoff (8,107) 43,474 51,581 536.2 (48,642) (777,408) (728,766) 598.2___________ ___________ ___________ _____ ___________ ___________ ___________ _____Total Charges for Current Services 252,195 366,853 114,658 145.4 1,513,170 2,435,778 922,608 160.9___________ ___________ ___________ _____ ___________ ___________ ___________ _____REVENUE FROM THE USE OF MONEY & PROPERTYRental - Land or Facility 42,432 32,739 (9,693) 77.1 254,592 184,223 (70,369) 72.3SHASCOM Base Rent - Police Portion 6,122 - (6,122) 0.0 36,732 74,413 37,681 202.5Investment Income 9,833 5,591 (4,242) 56.8 58,998 33,192 (25,806) 56.2Fiscal Agent Investment Income - - - * - 1 1 *___________ ___________ ___________ _____ ___________ ___________ ___________ _____Total Revenue - Use of Money & Property 58,387 38,330 (20,057) 65.6 350,322 291,829 (58,493) 83.3___________ ___________ ___________ _____ ___________ ___________ ___________ _____TOTAL GENERAL FUND 5,042,943 5,956,018 913,075 118.1 33,700,864 38,436,758 4,735,894 114.0=========== =========== =========== ===== =========== =========== =========== =====RVR213A 10:11:31 1/07/20223 Packet Pg. 19
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-

Year End Budget Report

Section Two

Comparative Summary of Actual Revenues

Packet Pg. 20
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review) RVR213B CITY OF REDDING 10:11:31 1/07/2022Finance Department MONTH OF DEC. 2021COMPARATIVE SUMMARY OF ACTUAL REVENUESGENERAL FUNDS ------------------ Budget Year -------------------Budget OverAs Amended Actual (Under) %___________ ___________ ___________ _____GENERAL FUNDTAXESProperty Taxes 23,961,450 1,036,245 (22,925,205) 4.3Sales Tax-Nondedicated 28,374,570 16,302,827 (12,071,743) 57.4Transient Occupancy Tax 5,399,530 4,522,271 (877,259) 83.7Viacom Cablevision 912,360 442,761 (469,599) 48.5Pacific Gas & Electric Co. 336,650 - (336,650) 0.0Business License Tax 875,000 446,157 (428,843) 50.9Real Property Transfer Tax 350,000 324,771 (25,229) 92.7Commercial Cultivation Cannabis 138,160 89,384 (48,776) 64.6Retail Cannabis Business Tax 1,750,000 932,655 (817,345) 53.2Other Commercial Cannabis Business Tax - 2,884 2,884 *___________ ___________ ___________ _____Total Taxes 62,097,720 24,099,955 (37,997,765) 38.8___________ ___________ ___________ _____LICENSES AND PERMITSAnimal Licenses 40,000 20,872 (19,128) 52.1Building Permits 1,576,920 652,711 (924,209) 41.3Engineering Encroachment Permit 90,000 171,807 81,807 190.8Electical Permits 191,180 123,330 (67,850) 64.5Transportation Permit 9,300 3,049 (6,251) 32.7Plumbing Permits 106,400 42,032 (64,368) 39.5Mechanical Permit 189,800 110,782 (79,018) 58.3Engineering Grading Permits 10,000 13,052 3,052 130.5___________ ___________ ___________ _____Total Licenses and Permits 2,213,600 1,137,635 (1,075,965) 51.3___________ ___________ ___________ _____FINES, FORFEITS, AND PENALTIESTraffic Safety Fines 610,220 500,936 (109,284) 82.0Code Enforcement Fines 146,000 594,656 448,656 407.2Other Fines & Fees 53,000 43,249 (9,751) 81.6___________ ___________ ___________ _____Total Fines, Forfeits & Penalties 809,220 1,138,841 329,621 140.7___________ ___________ ___________ _____REVENUE FROM INTERNAL DEPARTMENTSFixed Reimbursements 4,930,560 2,465,280 (2,465,280) 50.0Fixed Reimbursement Public Works Admin 890,880 445,440 (445,440) 50.0Fixed Reimbursement NDPES 449,970 224,985 (224,985) 50.0In-lieu Payment from 821--Muni Airport 235,000 117,500 (117,500) 50.0In-Lieu Payment from Division 854-Electric 5,464,000 2,732,000 (2,732,000) 50.0advances from internal department 1,022,100 1,022,100 -100.0 ___________ ___________ ___________ _____Total Revenue from Internal Departments 12,992,510 7,007,305 (5,985,205) 53.9___________ ___________ ___________ _____ * Unbudgeted revenue1
Packet Pg. 21
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid- RVR213B CITY OF REDDING 10:11:31 1/07/2022Finance Department MONTH OF DEC. 2021COMPARATIVE SUMMARY OF ACTUAL REVENUESGENERAL FUNDS(continued)------------------ Budget Year -------------------Budget OverAs Amended Actual (Under) %___________ ___________ ___________ _____GENERAL FUNDREVENUE FROM OTHER GOVERMENTAL AGENCIESState Grant Operating for General Gov't 421,250 34,440 (386,810) 8.1Federal Grant-Operating-General Gov't 1,813,320 112,531 (1,700,789) 6.2Shasta County Grant - Operating - Police 602,120 86,065 (516,055) 14.2SHASTA CO OPERATING REIMB-POLICE 60,000 14,190 (45,810) 23.6STATE LEGISLATIVE REVENUE OPERATING-POLICE 87,330 53,791 (33,539) 61.5Reimbursement of Mandated Costs 57,000 58,448 1,448 102.5POST Grant - Operating - Police 57,000 39,894 (17,106) 69.9Home Owner Property Tax Relief 153,000 21,755 (131,245) 14.2Motor Vehicle In-Lieu Tax 45,000 - (45,000) 0.0School District Contrib-Operating-Police 267,930 359,998 92,068 134.3Redding Rancheria Payment 119,510 59,755 (59,755) 50.0Contribution RABA - Operating - Police 25,000 12,500 (12,500) 50.0Buckeye Fire Service Dist-Operating-Fire - 5,000 5,000 *Buckeye Fire District - Capital - Fire - 55,000 55,000 *SHASCOM - Payroll 25,000 8,626 (16,374) 34.5___________ ___________ ___________ _____Total Revenue - Other Government Agencies 3,733,460 921,993 (2,811,467) 24.6___________ ___________ ___________ _____OTHER REVENUESLate Fees 1,700,000 665,129 (1,034,871) 39.1Contributions - Operating - General Gov't 101,610 25,304 (76,306) 24.9Developer Contributions 20,520 20,519 (1) 99.9Compensation - Loss & Property Damage - 190 190 *Miscellaneous Receipts 365,600 403,318 37,718 110.3Reimbursement 254,090 288,962 34,872 113.7___________ ___________ ___________ _____Total Other Revenues 2,441,820 1,403,422 (1,038,398) 57.4___________ ___________ ___________ _____CHARGES FOR CURRENT SERVICESPlanning Permits (Subdivisions) 442,470 341,396 (101,074) 77.1Building Plan - Record Fees 18,460 9,645 (8,815) 52.2Building Plan - Check Fees 553,450 330,647 (222,803) 59.7Fees for Outside Plan Checks 1,140 25,565 24,425 242.5Plan Check Fees - Fire Department 75,000 42,103 (32,897) 56.1Engineering Land Development Fees 100,000 352,926 252,926 352.9Technology Surcharge 121,610 101,537 (20,073) 83.4Cannabis Application & Permit Fees 474,850 151,405 (323,445) 31.8Sale of Publications 90 111 21 123.3Animal Shelter Fees 7,000 3,100 (3,900) 44.2Inspection Fees 2,900 3,087 187 106.4Fingerprint Fees 10,000 2,739 (7,261) 27.3Fire Permits & Fees 290,000 12,327 (277,673) 4.2* Unbudgeted revenue2 Packet Pg. 22
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid- RVR213B CITY OF REDDING 10:11:31 1/07/2022Finance Department MONTH OF DEC. 2021COMPARATIVE SUMMARY OF ACTUAL REVENUESGENERAL FUNDS(continued)------------------ Budget Year -------------------Budget OverAs Amended Actual (Under) %___________ ___________ ___________ _____GENERAL FUNDCHARGES FOR CURRENT SERVICESDUI - Emergency Response 73,800 34,647 (39,153) 46.9Swimming Pool Receipts 140,000 15,868 (124,132) 11.3RAC Swim Shop / Rental 34,000 19 (33,981) 0.0RAC Admission 110,000 2,554 (107,446) 2.3RAC Swim Team 11,000 2,748 (8,252) 24.9Swimming Pool Concession 55,000 3,271 (51,729) 5.9Other Charges & Fees 120,000 1,665,355 1,545,355 387.7Recreation Sports 483,000 112,136 (370,864) 23.2Bad Debt Writeoff (97,300) (777,408) (680,108) 798.9___________ ___________ ___________ _____Total Charges for Current Services 3,026,470 2,435,778 (590,692) 80.4___________ ___________ ___________ _____REVENUE FROM THE USE OF MONEY & PROPERTYRental - Land or Facility 509,190 184,223 (324,967) 36.1SHASCOM Base Rent - Police Portion 73,480 74,413 933 101.2Investment Income 118,010 33,192 (84,818) 28.1Fiscal Agent Investment Income - 1 1 *___________ ___________ ___________ _____Total Revenue - Use of Money & Property 700,680 291,829 (408,851) 41.6___________ ___________ ___________ _____TOTAL GENERAL FUND 88,015,480 38,436,758 (49,578,722) 43.6=========== =========== =========== =====RVR213B 10:11:31 1/07/20223 Packet Pg. 23
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-

Year End Budget Report

Section Three

Actual Expenditures Compared to Cash Flow Estimates

Packet Pg. 24
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review) EXR214 CITY OF REDDING 10:10:03 1/07/2022Finance Department MONTH OF DEC. 2021ACTUAL EXPENDITURES COMPARED TO CASH FLOW ESTIMATES PAGE 1GENERAL FUND ----------------- Current Month ------------------ ------------------ Year to Date ------------------Monthly Over YTD OverProjection Actual (Under) % Projection Actual (Under) %___________ ___________ ___________ _____ ___________ ___________ ___________ _____CITY COUNCIL 12,916 13,296 380 102.9 80,990 83,052 2,062 102.5CITY CLERK 67,347 72,062 4,715 107.0 427,343 436,072 8,729 102.0CITY MANAGER 78,963 86,095 7,132 109.0 510,325 514,036 3,711 100.7CITY TREASURER 55,412 51,205 (4,207) 92.4 347,239 334,290 (12,949) 96.2CITY ATTORNEY 24,250 36,023 11,773 148.5 173,697 216,705 43,008 124.7CODE ENFORCEMENT 68,627 42,594 (26,033) 62.0 428,234 312,540 (115,694) 72.9FINANCE AND ACCOUNTING 114,797 138,221 23,424 120.4 800,324 820,705 20,381 102.5NON DEPARTMENTAL 267,641 58,302 (209,339) 21.7 1,543,416 663,663 (879,753) 42.9PURCHASING 49,066 43,821 (5,245) 89.3 306,710 291,717 (14,993) 95.1PERSONNEL 43,328 42,637 (691) 98.4 276,753 260,433 (16,320) 94.1PERMIT CENTER 57,956 53,473 (4,483) 92.2 366,137 383,618 17,481 104.7BUILDING & CODE ENFORCEMENT 190,545 158,839 (31,706) 83.3 1,287,837 1,028,686 (259,151) 79.8PLANNING 165,967 133,001 (32,966) 80.1 1,095,616 852,358 (243,258) 77.7POLICE - ADMINISTRATION 247,447 261,432 13,985 105.6 1,866,018 1,671,755 (194,263) 89.5POLICE - FIELD OPERATIONS 1,943,916 2,150,770 206,854 110.6 13,149,692 12,975,760 (173,932) 98.6POLICE - INVESTIGATIONS 380,401 466,838 86,437 122.7 2,393,400 2,605,787 212,387 108.8POLICE - SERVICES DIVISION 350,717 190,203 (160,514) 54.2 2,361,728 2,107,456 (254,272) 89.2POLICE INFORMATION TECHNOLOGY STAFF (7,178) (59,548) (52,370) 829.5 (19,852) (2,738) 17,114 13.7POLICE GRANTS 109,970 30,315 (79,655) 27.5 617,534 282,058 (335,476) 45.6ANIMAL REGULATION 73,519 73,210 (309) 99.5 441,114 438,880 (2,234) 99.4FIRE - ADMINISTRATION 142,391 138,608 (3,783) 97.3893,303 809,010 (84,293) 90.5FIRE - SUPPRESSION 1,643,550 2,446,329 802,779 148.8 10,173,744 12,559,098 2,385,354 123.4FIRE - PREVENTION 89,337 82,888 (6,449) 92.7 582,084 578,721 (3,363) 99.4PUBLIC WORKS-ENGINEERING 84,122 138,171 54,049 164.2 720,303 667,049 (53,254) 92.6ENGINEERING AND DESIGN 17,277 40,490 23,213 234.3 104,372 328,748 224,376 314.9TRANSPORTATION/ENGINEERING (3,070) 4,255 7,325 138.5 (8,679) 38,084 46,763 438.8STREETS-GENERAL AND ADMINISTRATIVE 369,702 270,219 (99,483) 73.0 2,151,481 1,909,944 (241,537) 88.7STREETS-CONSTRUCTION CAPITAL OUTLAY 507,055 140,803 (366,252) 27.7 5,652,666 1,708,337 (3,944,329) 30.2PARKS 447,180 220,983 (226,197) 49.4 3,141,322 2,034,390 (1,106,932) 64.7RECREATION 206,379 104,729 (101,650) 50.7 1,299,122 954,589 (344,533) 73.4COMMUNITY SERVICES ADMINISTRATIVE DIVISION 51,881 54,991 3,110 105.9 358,292 336,001 (22,291) 93.7MIDTOWN MALL 1,114 263 (851) 23.6 10,284 1,773 (8,511) 17.2GENERAL FUND DEBT SERVICE 708 3,984 3,276 562.7 926,233 926,469 236 100.0___________ ___________ ___________ _____ ___________ ___________ ___________ _____Total - General Government 7,853,233 7,689,502 (163,731) 97.9 54,458,782 49,129,046 (5,329,736) 90.2=========== =========== =========== ===== =========== =========== =========== =====EXR214 10:10:03 1/07/2022 Packet Pg. 25
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review)

Year End Budget Report

Section Four

Actual Expenditures Compared to Budget

Packet Pg. 26
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review) EXR58 CITY OF REDDING 10:10:27 1/07/22Finance Department MONTH OF DEC. 2021ACTUAL EXPENDITURES COMPARED TO BUDGET PAGE 1GENERAL FUNDBudget Prior Year Current Year-to-Date Encumbrances Unencumbered %As Amended Appropriations Expenditures Expenditures Outstanding Balance Obligated______________ ______________ ______________ ______________ ______________ ______________ _________CITY COUNCIL 165,050.00 - 13,296.10 83,052.47 250.00 81,747.53 50.4CITY CLERK 906,340.00 9,980.00 72,062.25 436,071.57 5,005.96 475,242.47 48.1CITY MANAGER 1,052,340.00 8,420.00 86,095.49 514,035.93 - 546,724.07 48.4CITY TREASURER 702,290.00 4,010.00 51,205.46 334,290.49 54.05 371,955.46 47.3CITY ATTORNEY 356,180.00 5,420.00 36,022.51 216,704.79 - 144,895.21 59.9CODE ENFORCEMENT 870,700.00 36,540.00 42,594.31 312,540.39 596.40 594,103.21 34.5FINANCE AND ACCOUNTING 1,514,470.00 84,380.00 138,220.67 820,705.32 50,120.88 728,023.80 54.4NON DEPARTMENTAL 3,352,390.00 120,360.00 58,302.36 663,663.20 392,390.64 2,416,696.16 30.4PURCHASING 624,620.00 6,730.00 43,820.69 291,716.61 79.08 339,554.31 46.2PERSONNEL 567,790.00 80.00 42,636.97 260,433.25 - 307,436.75 45.8PERMIT CENTER 747,840.00 110.00 53,472.65 383,617.90 13,031.20 351,300.90 53.0BUILDING & CODE ENFORCEMENT 2,414,120.00 123,160.00 158,839.38 1,028,685.66 51,046.64 1,457,547.70 42.5PLANNING 2,136,450.00 158,200.00 133,000.97 852,357.98 84,572.67 1,357,719.35 40.8POLICE-ADMINISTRATION 3,155,030.00 158,410.00 261,432.47 1,671,755.20 142,127.03 1,499,557.77 54.7POLICE-FIELD OPERATIONS 25,459,790.00 157,050.00 2,150,770.03 12,975,759.92 149,729.99 12,491,350.09 51.2POLICE-INVESTIGATIONS 4,877,050.00 ( 4,140.00) 466,837.69 2,605,787.32 6,578.15 2,260,544.53 53.6POLICE-SERVICES DIVISION 4,567,260.00 6,550.00 190,202.57 2,107,456.34 3,368.50 2,462,985.16 46.1POLICE I/T STAFF ( 19,770.00) - ( 59,548.45) ( 2,738.30) - ( 17,031.70) 13.8POLICE GRANTS 1,384,360.00 213,030.00 30,314.74 282,058.43 102,780.82 1,212,550.75 24.0ANIMAL REGULATION 882,250.00 - 73,210.09 438,879.81 414,900.52 28,469.67 96.7FIRE-ADMINISTRATION 1,814,990.00 6,110.00 138,607.73 809,009.71 12,741.25 999,349.04 45.1FIRE-SUPPRESSION 20,772,240.00 147,570.00 2,446,329.44 12,559,098.13 672,136.60 7,688,575.27 63.2FIRE-PREVENTION 1,142,310.00 21,510.00 82,887.69 578,721.09 25.00 585,073.91 49.7P/W-ENGINEERING 1,441,060.00 129,390.00 138,171.40 667,048.65 79,171.17 824,230.18 47.5ENGINEERING AND DESIGN 207,350.00 710.00 40,489.64 328,747.54 344.00 ( 121,031.54) 158.1TRANSPORTATION/ENGINEERING ( 8,990.00) - 4,254.98 38,084.43 - ( 47,074.43) 0.0STREETS - GENERAL & ADM 4,457,910.00 15,280.00 270,219.33 1,909,943.93 237,528.45 2,325,717.62 48.0STREETS - CONSTRUCTION 4,582,050.00 8,127,010.00 140,802.74 1,708,337.24 2,935,433.85 8,065,288.91 36.5PARKS 5,195,170.00 1,070,935.00 220,983.28 2,034,390.22 449,613.96 3,782,100.82 39.6RECREATION 2,603,810.00 22,890.00 104,729.18 954,588.79 10,148.58 1,661,962.63 36.7COMMUNITY SERVICES ADMIN DIV. 703,900.00 83,580.00 54,991.24 336,000.91 - 451,479.09 42.6MIDTOWN MALL 13,380.00 3,600.00 263.01 1,773.35 3,600.00 11,606.65 31.6GENERAL FUND DEBT SERVICE 2,638,180.00 - 3,983.56 926,469.04 - 1,711,710.96 35.1______________ ______________ ______________ ______________ ______________ ______________ _____Total - General Government 101,279,910.00 10,716,875.00 7,689,502.17 49,129,047.31 5,817,375.39 57,050,362.30 49.0============== ============== ============== ============== ============== ============== =====EXR58 10:10:27 1/07/22 Packet Pg. 27
Attachment: Mid-Year Budget Update including charts and graphs for FY 21-22 (3A--City of Redding Mid-Year Budget Review)

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Approve increase of City of Redding General Fund expenditures ; and direct staff to prepare a budget resolution for future consideration as part of the mid -year budget update to appropriate the necessary funds.

Fiscal Impact

Should all of the items li sted in the attached Recommendation for Increased Budget Expenditures report be approved , the impact to the General Fund will be approximately $500,000 for Fiscal Year ending 2022 and $6 million for Fiscal Year ending 2023. The balance of the items will be incorporated as part of future budgets.

Background/Analysis

With the economic uncertainty created by the COVID 19 pandemic, the current adopted budget assumed modest growth in General Fund revenues. The reality is that revenues have outpaced the budgeted amounts significantly and there is expectation that moderate growth will continue after budget adjustments are made. These positive results have provided an opportunity to make some significant budget adjustments to improve the City of Redding’s (City) service delivery.

The attached recommendations contain numerous items to be funded over the next six years with brief descriptions for each funding request. The information below provides a more detailed description of each request.

POLICE DEPARTMENT ($1.5 MILLION/YEAR; $9 MILLION 6-YEAR TOTAL)

For the Police Department, the budget change , in combination with the recommendations for the American Rescue Plan Act of 2021 funding, would allow for the hiring of nine new Officers.

MEETING DATE: February 17, 2022
ITEM NO. 3B
FROM:

***APPROVED BY***
[email protected]

[email protected]
SUBJECT: 3B--Consider approval of new expenditures for the City of Redding General Fund.

Barry Tippin, City
Manager/Development
Services Director
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Report to Redding City Council February 14, 2022
Re: 3B--Consider approval of new General Fund expenditures Page 2

Four of the Officers would be dedicated to the City Parks, Trails , and Open spaces and five would be used to re -create an eighth patrol beat. This change will increase opportunities for proactive policing, re-prioritize patrol time for Officers assigned to the Neighborhood Police Unit, work to reduce response times to calls for service, and allow for more initiatives as sought by the community. This change will increase the number of sworn Officers on staff to 119, returning the department to levels the City had in 2008. In addition, the department intends to hire an Executive Assistant for Command Staff, who will also assist with coordinating training with the Shield Training Center and support additional staff to research and respond to Public Records Act requests as required by State Law – SB1421 & SB16.

The budget changes would allow for the process to begin the implementation of a Body Worn Camera Program; this would bring RPD into uniformity with comparable cities of similar size to Redding. Other funding would be used to replace and upgrade the various firearms used by RPD as well as increase funding for vehicle purchases and replacements, all of which serve to improve safety for Redding Police Officers and the community.

FIRE DEPARTMENT ($2.2 MILLION/YEAR; $13.2 MILLION 6-YEAR TOTAL)

For the Fire Department, the budget recommendations will continue the commitment of the City Council (Council) to improve the capabilities of the Redding Fire Department. If approved, and the SAFER Grant is received, these changes will support inc reased staffing for a new Station 9 , which will significantly help reduce call volume to other stations and improve response times for fire suppression and medical emergencies. Other key funding recommendations will support equipment replacement, better al ign rolling stock budgets with apparatus needs , and assist with processing new developments and public outreach.

DEBT SERVICE ($0.6 MILLION/YEAR; $3.6 MILLION 6-YEAR TOTAL)

A key component of the public safety recommendation is for the Council to decide that a bond issuance is required in order to build, rebuild, or reconstruct the City’s fire stations. As the Council is aware , there is significant deferred maintenance with the existing fire stations.

Addressing this need , combined with a new Station 9 wi ll likely cost at least $25 million. The only feasible way to address the high capital cost is through a bond which also ensures future residents, who will benefit from the stations, will assist with funding the construction. Lacking the bond, staff recomm ends that the Council direct staff to return at a later date with a different expenditure plan for the current budget surplus.

An effective way to offset the cost of this bond debt is to forgive the loan from the Redding Electric Utility (REU) to the Gene ral Fund which was used to pay for a portion of the replacement of soccer fields . The community benefits more from the loan forgiveness than repayment. With repayment, REU would receive approximately $350,000 per year which represents about 0.23 percent of its revenue. Repayment would not reduce rates, affect bond ratings or any other financial metric. In fact, an annual payment of $350,000 is the approximate cost of a single day of operation for REU. Contrarily, $350,000 in the General Fund will fully fund two police officers along with all of their equipment for an entire year.

The material impact of funding Station 9, and making improvements to other existing stations, is the added protection this offers businesses and residents which could also result in a better Insurance Services Office fire rating, perhaps better options for insurance coverage, and possibly lower insurance rates, as well.

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Report to Redding City Council February 14, 2022
Re: 3B--Consider approval of new General Fund expenditures Page 3

CITY MANAGER ($96,000/YEAR; $575,000 6-YEAR TOTAL)

The downtown redevelopment is occurring at lightning speed. With the redevelopment , two additional discussions are taking place; one regarding parking and one regarding the creation of a property/business improvement district (PBID). A City contribution of an initial $ 200,000 would help maintain the public assets while the PBID is in the formation stage.

The Economic Development Corporation (EDC) is focused on growing, diversifying and maintaining a balanced economy, thereby leading to more economic stability and sustainability for our region. The EDC is responsible for retaining and expanding the primary industry base in Shasta County with a focus on economic development and competitive vitality. The City currently provides $86,000 per year to the EDC , and an additional $75,000 per year would allow for the EDC to hire additional staff which would provide more benefit to our community.

COMMUNITY SERVICES ($390,000/YEAR; $2.3 MILLION 6-YEAR TOTAL)

The Community Services Department has a broad role and responsibility for the City. Most of the department is funded by the General Fund and augmented by grants and donations. Key responsibilities include maintaining the City’s building facilities and its parks and trails. The department, like many in the General Fund, has been understaffed for years. This budget surplus provides the opportunity to add staff resources and funding to continue to maintain the facilities.

This request is for one Building & Facilities Mechanic II and one Gardener. Additionally, $300,000 is requested to repair the Council Chamber roof and $250,0 00 per year is requested to begin proactive repair work on City facilities. Lastly, the Nur Pon open space needs security enhancements. In partnership with Dignity Health, $60,000 will be used toward funding the installation of perimeter fencing.

DEVELOPMENT SERVICES ($100,000/YEAR; $640,000 6-YEAR TOTAL)

The Development Services Department is responsible for facilitating development in our community. This includes new construction as well as remodeling, upgrades , and replacement of private infrastructure . During the Great Recession , staffing in Development Services was reduced as the demand for services dwindled. As development activity has increased, adding staff has been slow and deliberate. Even this request is less than what is needed to handle the current workload, but it will certainly help. The department makes use of consultant help and improved technology to increase production and efficiency , but additional staffing is needed to improve turn-around time for projects.

PUBLIC WORKS ($112,000/YEAR; $670,000 6-YEAR TOTAL)

The Public Works Department is a large and diverse entity. Most of the divisions within the Public Works Department are Enterprise Funds and/or have funding sources other than the General Fund. Two needs, however, have been identi fied that require General Fund contributions. First, is a Mechanic II. As the City’s fleet of vehicles grow s, so does the need to properly staff the Fleet Division. One additional mechanic will assist in reducing the vehicle maintenance backlog, improve th e timeliness of required inspections , and reduce downtime of key equipment.

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Report to Redding City Council February 14, 2022
Re: 3B--Consider approval of new General Fund expenditures Page 4

The Airport continues to grow and gain momentum in the acquisition of new air service. To keep up with service level expectations and to position the Airport for future grant opp ortunities, it is recommended that the General Fund assist the Airport by providing $1.23 million as noted on the attached document; $650,000 of which should be reimbursed by future Federal Aviation Administration Grants.

Staff is recommending that the Ge neral Fund Reserve remain above 14 percent for this budget adjustment. The required reserve by Council Policy, is 10 percent and this additional capacity in the General Fund will allow for future adjustments during normal budget processes.

Additionally, the recommended changes represent a significant workload for staff and there is not much room to accomplish more prior to the next budget adoption.

Though the items included in this request are substantive, these requests do not provide for all the services the community needs and deserves. This is simply due to funding. The City is large and sparsely populated when compared to other similarly sized communities, which increases the cost per capita to serve residents. Chico for example, has a population of 95 ,000 people across

34.5 square miles compared to the City of Redding at 95,000 people over 62 square miles. Below is a brief summary of what additional needs could be funded with additional revenue:

POLICE DEPARTMENT ($4.5 million)
• Five Officers for Beat No. 9 $850,000 annually
• Seven Detectives (2 nighttime and others to resolve backlog) $1.5 million annually • Other Misc. Administrative Staff and Equipment $750,000 annually • County Assistance for Mental Health and Criminal Detention $1.5 million annually

FIRE DEPARTMENT ($4.9 million annually)
• Fire Station No. 10 Staffing $2 million annually • Additional Rolling Stock $1 million annually
• Dedicated Fire Dispatcher $900,000 annually
• Paramedics at Key Fire Stations $2 million annually • Fire Resiliency Programs $1 million annually

PUBLIC WORKS ($4 million annually)
• Airport Division - non-aeronautic improvements $500,000 annually • Storm Drain Utility- enhanced maintenance $1 million annually • Streets Division -road maintenance $4 million annually

COMMUNITY SERVICES ($3 million annually)
• Enhanced Building Maintenance $1.5 million annually • Enhanced Park Maintenance $1.5 million annually

GENERAL IMPROVEMENTS/ENHANCEMENTS ($3 million annually)

COMMUNITY ENHANCEMENTS-Over Time
• Airport Terminal Acceleration $10 million
• Fire Station No. 10 $7.5 million
• New Amphitheater $1 million
• Additional Trails and Parks $5 million
• Park Marina and Civic Improvements $50 million
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Report to Redding City Council February 14, 2022
Re: 3B--Consider approval of new General Fund expenditures Page 5

• Additional Overcrossing of I-5 $10 million

Council Priority/City Manager Goals

• Budget and Financial Management – “Achieve balanced and stable 10 -year Financial Plans for all funds.”

• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.”

• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”

• Government of the 21 st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”

• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community

Attachments
Recommendation for Increased General Fund Expenditures
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Recommendation for Increase Budget Expenditures
02/17/22
Current Expenses  95,189,000$   94,910,000$      96,211,000$      98,016,000$      99,081,000$      101,287,000$ Payroll Increase Just Approved 500,000 $         500,000$           ‐ $                    ‐ $                    ‐ $                    ‐ $ Approved Expenses  485,000$         6,100,404$        4,046,039$        3,621,573$        6,893,233$        8,912,811$ Total Expenses 96,174,000 $   101,510,404$   100,257,039$   101,637,573$   105,974,233$   110,199,811$ Ending Cash 16,466,000 $   13,486,596$      13,901,557$      16,029,984$      16,950,751$      16,925,940$ Cash Reserve as % 17.1% 13.3% 13.9% 15.8% 16.0% 15.4%
Cash Required 10% 9,617,400 $     10,151,040$      10,025,704$      10,163,757$      10,597,423$      11,019,981$ Net Available w/ 10% Reserve 6,848,600 $     3,335,556$        3,875,853$        5,866,227$        6,353,328$        5,905,959$ Department Description 2021 ‐22 2022 ‐23 2023 ‐24 2024 ‐25 2025 ‐26 2026 ‐27 Explanation Administration Bond  for Fire Station Reconstruction/Replacements and New ‐$                 1,000,000$        1,000,000$        1,000,000$        1,000,000$        1,000,000$        $25 million+/‐ spread cost over 30 years (major reconstruct + new Stations 1,3 & 9) Administration  Forgive Soccer Park loan ‐$                 ‐ $                    (350,000)$          (350,000)$          (350,000)$          (350,000)$          Loans for Radio, soccer park and more already built into the 10‐year plan City Manager Downtown  Street Maintenance ‐$                 100,000$           100,000$           ‐ $                    ‐ $                    ‐ $                    $200k initially to support Downtown in the absence of an assessment district and potentially City Manager EDC  contribution ‐$                 75,000$             75,000$             75,000$             75,000$             75,000$             EDC Annual contribution to additional full‐time EDC staff to assist initiatives Community Services 610 ‐Gardener ‐$                 86,986$             89,596$             92,283$             95,052$             97,904$             Aid in increasing maintenance in Parks (still behind staffing levels of 2008) Community Services 891 ‐Bldg/Fac Mechanic II ‐$                 49,764$             51,257$             52,795$             54,378$             56,010$             Needed to maintain aging facilities Community Services 610 ‐Nur Pon Security Fencing 60,000 $           ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    Fencing project with Dignity Health for Nur Pon Open Space Area Community Services 891 ‐Council Chambers Roof ‐$                 300,000$           ‐ $                    ‐ $                    ‐ $                    ‐ $                    Current roof has developed multiple leaks and is in poor condition Community Services Additional  GF Facility Major Maintenance ‐$                 250,000$           250,000$           250,000$           250,000$           250,000$           Increase the work on deferred maintenance of GF facilities Development Services 432 ‐Plans Examiner ‐$                 44,230$             45,557$             46,924$             48,331$             49,781$             Needed to assist with current workload (reduced by 50% assuming permit fee offset) Development Services 434 ‐Associate Planner ‐$                 51,268$             52,806$             54,390$             56,022$             57,703$             Needed to assist with current workload (reduced by 50% assuming permit fee offset) Development Services 432 ‐1/2 Clerk II to Full Time ‐$                 24,459$             25,193$             25,949$             26,727$             27,529$             Needed to assist with current workload (reduced by 50% assuming permit fee offset) FIRE 462 ‐Generator Replacement station 2 ‐$                 50,000$             ‐ $                    ‐ $                    ‐ $                    ‐ $ The generator at station 2 needs to be replaced. This was requested in the last budget but was not approved.

FIRE 462 ‐CAD to CAD Interface ‐ $                 200,000$           ‐ $                    ‐ $                    ‐ $                    ‐ $                    Working with Shascom, RPD &  Cal Fire for more seamless dispatch FIRE 462 ‐Replace engine 45 ‐ type 3 ‐$                 500,000$           ‐ $                    ‐ $                    ‐ $                    ‐ $                    Due to age FIRE 462 ‐SCBA ‐$                 500,000$           ‐ $                    ‐ $                    ‐ $                    ‐ $                    In 2023 all SCBA equipment will be past expiration. (assume $500,000 in grants) FIRE 462 ‐Rolling Stock ‐$                 ‐ $                    250,000$           450,000$           450,000$           450,000$ Need to increase allocation to avoid falling behind even further.  This is likely not enough especially if a new station is approved.

FIRE 462 ‐Rolling Stock ‐$                 ‐ $                    ‐ $                    ‐ $                    945,000$           ‐ $                    New engine for station 9 FIRE 462 ‐Rolling Stock ‐$                 ‐ $                    ‐ $                    ‐ $                    ‐ $                    2,000,000$        New Ladder Truck for Engine 9 FIRE 462 ‐Equipment Replacement ‐$                 ‐ $                    150,000$           245,000$           245,000$           245,000$ Allocation Currently $300K year 1 and $85K year 2. Some of the above ie SCBA would offset costs but long term request in budget was $330K and this would provide that funding. More stations and staffing would increase this need.

FIRE 463 ‐Snr Fire Protection Plans Examiner ‐ $                 ‐ $                    119,458$           123,042$           126,733$           130,535$ A Senior Fire Protection Plans Examiner is needed to fulfill Fire Department obligations for Fire/Life Safety plan reviews and associated new construction inspections for new development and tenant improvements of existing construction within the community.

FIRE 463 ‐Fire Prevention Specialist ‐ $                 84,343$             89,843$             92,538$             95,314$             98,174$ The Fire Prevention Specialist is would fulfill the public education obligations of the Department to reduce community risk.  In addition to existing need, the Fire Prevention Specialist could help fulfill the CPAW recommendation to provide parcel level inspections within the FHFHSZ of the community and increase the frequency with which weed abatement complaints and fuel reduction projects are currently handled.

FIRE 462 ‐PPE for new hires ‐ $                 110,000$           ‐ $                    ‐ $                    ‐ $                    ‐ $ In 2022 we will have the largest RFD Fire Academy with 11 new hires. This is the cost to purchase all PPE and Equipment for the new hires.

FIRE  Safer Grant for QRV/Station 9 ‐$                 520,000$           400,000$           400,000$           2,031,000$        2,091,930$ New QRT per the SAFER Grant application.  Early years offset by grant until 25/26 after which the GF must fully fund.

Packet Pg. 33
Attachment: Recommendation for Increased General Fund Expenditures (3B--Consider approval of new General Fund expenditures) Recommendation for Increase Budget Expenditures
02/17/22
Current Expenses  95,189,000$   94,910,000$      96,211,000$      98,016,000$      99,081,000$      101,287,000$ Payroll Increase Just Approved 500,000 $         500,000$           ‐ $                    ‐ $                    ‐ $                    ‐ $ Approved Expenses  485,000$         6,100,404$        4,046,039$        3,621,573$        6,893,233$        8,912,811$ Total Expenses 96,174,000 $   101,510,404$   100,257,039$   101,637,573$   105,974,233$   110,199,811$ Ending Cash 16,466,000 $   13,486,596$      13,901,557$      16,029,984$      16,950,751$      16,925,940$ Cash Reserve as % 17.1% 13.3% 13.9% 15.8% 16.0% 15.4%
Cash Required 10% 9,617,400 $     10,151,040$      10,025,704$      10,163,757$      10,597,423$      11,019,981$ Net Available w/ 10% Reserve 6,848,600 $     3,335,556$        3,875,853$        5,866,227$        6,353,328$        5,905,959$ Department Description 2021 ‐22 2022 ‐23 2023 ‐24 2024 ‐25 2025 ‐26 2026 ‐27 Explanation Police 442 ‐Police Officer (2) Park Rangers ‐$                 307,000$           316,210$           325,696$           335,467$           345,531$           (2) Park Rangers ‐ Full‐Time Peace Officers working in COR Parks and trails .

Police 442 ‐Police Officer (2) Park Rangers ‐$                 307,000$           316,210$           325,696$           335,467$           345,531$           (2) Park Rangers ‐ Full‐Time Peace Officers working in COR Parks and trails .

Police 442 ‐Police Officer (5) Police Officers ‐$                 ‐ $                    ‐ $                    ‐ $                    ‐ $                    863,828$ (5) Police Officers to add one additional beat (8). RPD has been operating with 7 beats since the recession of 2008. Adding an additional beat will increase minimum shift staffing, improve response times, proactivity, and increase officer safety.  First 3 1/2 years funded by ARPA
Police 442 ‐(60) Patrol rifles and Surpressors 125,000 $         ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $ DRMO program (1033) rifles are Vietnam era military surpless. Replace all rifles and add surpressors to protect hearing in OIS.

Police 442 ‐Rolling Stock Ongoing 300,000 $         150,000$           150,000$           150,000$           150,000$           150,000$ Need to prepare to meet our long term rolling stock needs without having to dedicate additional one time funding. This matches the identified need at budget time. Acknowledging any approval of additional bodies could increase this and approval of one time funding could potentially slightly improve the current situation.

Police 441 ‐PRA Evidence Tech Supervisor ‐$                 100,325$           103,335$           106,435$           109,628$           112,917$           SB14/16 Compliance Technician/Body Camera Program Technician Supervisor Police Executive  Assistant ‐$                 40,461$             41,675$             42,925$             44,213$             45,539$             For 3rd Captain.  Partially paid for by agreement (Shasta College/Shield) Police  Body worn cameras ‐$                 ‐ $                    750,000$           750,000$           750,000$           750,000$           develop and implement body‐worn camera program Public Works 810 ‐Mechanic II ‐$                 19,568$             19,900$             19,900$             19,900$             19,900$             Eliminate overdue inspections and reduce down time Public Works 821 ‐Master Drainage Study at RDD ‐$                 580,000$           ‐ $                    (522,000)$          ‐ $                    ‐ $ Runway Safety Area  work is congress priority and FAA will hold other projects.  Needed prior to RSA design.  90.66% of these costs will come back to the GF in a construction grant.

Federal FY24 est.

Public Works Concept  & Budget Study for new Terminal ‐$                 500,000$           ‐ $                    ‐ $                    ‐ $                    ‐ $                    Needed to apply for terminal expansion grants Public Works 821 ‐Enviromental for Runway Safety Area ‐$                 150,000$           ‐ $                    (135,000)$          ‐ $                    ‐ $ Pre‐funded by Airport/City.  90.66% will come back in a construction grant as these are eligible funds.  Federal FY24 est.
485,000$         6,100,404$        4,046,039$        3,621,573$        6,893,233$        8,912,811$        30,059,060$ Packet Pg. 34
Attachment: Recommendation for Increased General Fund Expenditures (3B--Consider approval of new General Fund expenditures)

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Approve the City of Redding E xpenditure Plan for the use of SLFR Funds; and direct staff to develop budget resolutions for future consideration to appropriate the necessary funds.

Fiscal Impact

The City of Redding ( City) received $18,693,433 in funding from the State and Local Fiscal Recovery Funds (SLFRF). To date, the City Council (Council) has appropriated $1.1 million of these funds for use in matching the State of California’s (State) utility arrearage program, which leaves $17,593,433 available for allocation to other projects.

Alternative Action

The Council could choose to not approve staff’s recommendation and instead direct that the funds be slated for funding other items that will comply with the Final Rule for the SLFRF.

Background/Analysis

On March 11, 2021, President Joe Biden signed into law H.R. 1319 – American Rescue Plan Act of 2021. The total bill was a $1.9 trillion -dollar package and included $350 billion dollars in funding for state, local, ter ritorial, and Tribal governments referred to as the SLFRF. The City was allocated $18,693,433 as a result of the passage of the bill. This funding is provided in two equal tranches from the Treasury Department. The first tranche was received in May of 2021 and the second tranche will be received in May of 2022. The SLFRF requires obligation of recovery funds by December 31, 2024, and expenditure of funds by December 31, 2026.

MEETING DATE: February 17, 2022
ITEM NO. 3C
FROM:

***APPROVED BY***
[email protected]

[email protected]
SUBJECT: 3C--Consider City of Redding Expenditure Plan for use of Coronavirus State and Local Fiscal Recovery (SLFR) Funds.

Barry Tippin, City
Manager/Development
Services Director
Packet Pg. 35
Report to Redding City Council February 14, 2022
Re: 3C--Consider Expenditure Plan for use of Coronavirus SLFR Funds Page 2

The SLFRF is intended to provide relief to local governments to enable them t o continue to support public health response and lay the foundation for a strong and equitable economic recovery. The United States Department of the Treasury has released the Final Rule governing the use of the funds. Under that rule, recipients of funding may use SLFRF to:

• Replace lost public sector revenue
• Support the COVID-19 Public Health and Economic Response • Provide premium pay for eligible workers performing essential work • Invest in water, sewer and broadband infrastructure

While the SLFRF provides a wide variety of potential uses available to the local government it is important to note there are some restricted uses. The restricted uses include:

• Pension deposits
• Debt service
• Reduce taxes or delay a tax increase
• Replenishing reserves
• Using for non-federal match for other federal programs • Paying settlements or judgements

On August 4,2021 staff met with a group of stakeholders to discuss possible uses of the SLFRF funding. After considerable discussion the group consensus was that the funding be used to support the youth in our community and to fund deferred maintenance of City facilities. With this input, and with an eye toward current City Council priorities, the recommended expenditures are as follows:

SLFRF Available $17,593,433
SLFRF Category Description Explanation

REPLACING LOST

PUBLIC SECTOR
REVENUE Provision
of Gov't Services
Non-Profit Assistance $ 700,000 Provide the funding to the Community Foundation for
distribution (Colt -45's, YMCA,
Hope Park etc.)
Stillwater Business Par k
Infrastructure
$ 2,500,000 Assist with funding needed
roadway improvements
Street Maintenance $ 1,000,000 Pavement repair in income eligible census tract
Youth Programming $ 310,000 Develop and implement
collaborative programming to
provide direct exposure for local
youth to a variety of career
pathways available within the City
of Redding organization, and in the
community at large

RESPONDING TO

PUBLIC HEALTH

AND ECONOMIC

IMPACTS OF
COVID-19
Disproportionately
South City Park Infrastructure
and Programming

$ 3,000,000 Infrastructure and programming to
re-activate South City Park
Packet Pg. 36
Report to Redding City Council February 14, 2022
Re: 3C--Consider Expenditure Plan for use of Coronavirus SLFR Funds Page 3

Impacted
households and
Communities

MLK Center Upgrades and
Enhancements
$ 560,000 MLK Center upgrade
Sports Scholarships for
Underprivileged Youth
$ 100,000 Assistance to underprivileged
youth to reengage them after the
pandemic

RESPONDING TO

PUBLIC HEALTH

AND ECONOMIC

IMPACTS OF
COVID-19
Public Sector
Capacity
5 Officers to Create an Eighth
Patrol Beat
$ 3,210,900 (5) Police Officers to add one
additional beat (8). RPD has been
operating with 7 beats since the
recession of 2008. Adding an
additional beat will increase
minimum shift staffing, potentially
improve response times, increase
proactive policing, and potentially
increase officer and commu nity
safety. Only funded to 12/2026

RESPONDING TO

PUBLIC HEALTH

AND ECONOMIC

IMPACTS OF
COVID-19
Responding to the
Public Health
Emergency
COVID Tests for OSHA and
Other Pandemic Related
Expense
$ 195,000 COVID testing, track and trace and
other adminis trative efforts &
reporting software through
Origami

WATER AND
SEWER

INFRASTRUCTURE
Additional Eligible
projects
Storm Drain Upgrades $ 2,000,000 Improve storm drain systems

BROADBAND

INFRASTRUCTURE
Citywide Backbone Fiber Ring
- WiFi - Smart City
$ 4,000,000 Assist with funding broadband
Citywide
$ 17,576,000 Totals

Many other eligible expenses require documentation of the impact from the pandemic. A small business, for instance, would need to demonstrate that there is remaining impact associa ted with the pandemic. With the strong economy in Shasta County, that would be difficult to document and would require a fair amount of staff effort to administer the program. The Council has quite a bit of flexibility in how this money is allocated and staff is prepared to complete necessary research regarding eligibility of substitute items.

Packet Pg. 37
Report to Redding City Council February 14, 2022
Re: 3C--Consider Expenditure Plan for use of Coronavirus SLFR Funds Page 4

Council Priority/City Manager Goals

• Budget and Financial Management – “Achieve balanced and stable 10 -year Financial Plans for all funds.”
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Government of the 21 st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”

Attachments
SLFRF Funding Recommendations
Packet Pg. 38
Funding Recommendations for SLFRF
ARPA (less Utility a$17,593,433
ARPA Approvals 4,860,000 $          7,607,500$          3,345,525$         869,241$         893,668$         ‐ $                        Description ARPA Category Description 2021 ‐22 2022 ‐23 2023 ‐24 2024 ‐25 2025 ‐26 2026 ‐27 Explanation 1 Non ‐Profit Assistance 700,000 $             ‐ $                      ‐ $                     ‐ $                  ‐ $                  ‐ $ Provide the funding to the Community Foundation for distribution (Colt‐45's, YMCA, Hope Park etc.)
Stillwater Business Park Infrastructure ‐$                      ‐ $                      2,500,000$         ‐ $                  ‐ $                  ‐ $                       Assist with funding needed roadway improvements Street Maintenance ‐$                      1,000,000$          ‐ $                     ‐ $                  ‐ $                  ‐ $                       Pavement repair in income eligible census tract Youth Programming (actual programming TBD) 150,000 $             40,000$               40,000$               40,000$           40,000$           ‐ $                       $150K one‐time start up, $40K annually thereafter 2 South  City Park Infrastructure and Programming ‐$                      3,000,000$          ‐ $                     ‐ $                  ‐ $                  ‐ $                       Infrastructure and Programming to Re‐Activate South City Park MLK Center upgrades and enhancements 10,000 $               550,000$             ‐ $                     ‐ $                  ‐ $                  ‐ $                       MLK Center upgrade Sports Scholarships for Underprivileged youth ‐$                      100,000$             ‐ $                     ‐ $                  ‐ $                  ‐ $ Assistance to underprivileged youth to reengage them after the pandemic
35  Officers to create an eighth patrol beat ‐$                      767,500$             790,525$             814,241$         838,668$         ‐ $ (5) Police Officers to add one additional beat (8). RPD has been operating with 7 beats since the recession of 2008. Adding an additional beat will increase minimum shift staffing,  improve response times, proactivity, and increase officer safety.  Only funded to 12/2026
4 Covid  Tests for OSHA and Other Pandemic related expense ‐$                      150,000$             15,000$               15,000$           15,000$           ‐ $                       COVID Testing & Reporting Software through Origami 5 Storm  Drain Upgrades ‐$                      2,000,000$          ‐ $                     ‐ $                  ‐ $                  ‐ $                       Improve storm drain systems 6 Citywide  Backbone Fiber Ring ‐ WiFi ‐ Smart City 4,000,000 $          ‐ $                      ‐ $                     ‐ $                  ‐ $                  ‐ $                       Assist with Funding Broadband Citywide 4,860,000$          7,607,500$          3,345,525$         869,241$         893,668$         ‐ $                       Totals $       17,575,934
Category
1 REPLACING LOST PUBLIC SECTOR REVENUE Provision of
Gov't Services
2 RESPONDING TO PUBLIC HEALTH AND ECONOMIC IMPACTS
OF COVID‐19
Disproportionately Impacted households and Communities
3 RESPONDING TO PUBLIC HEALTH AND ECONOMIC IMPACTS
OF COVID‐19
Public Sector Capacity
4 RESPONDING TO PUBLIC HEALTH AND ECONOMIC IMPACTS
OF COVID‐19
Responding to the Public Health Emergency
5 WATER AND SEWER INFRASTRUCTURE
Additional Eligible projects
6 BROADBAND INFRASTRUCTURE
Packet Pg. 39
Attachment: SLFRF Funding Recommendations (3C--Consider Expenditure Plan for use of Coronavirus