Agenda Packet — Redding City Council, January 17, 2023 (part 3 of 4)

GASB Statement No. 97
In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2022.

We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
 Investments are reported using GASB Statement No. 72, Fair Value Measurement and Application, this statement defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, are recorded at fair value in the Statements of Net Position and are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:
 Level 1 – Inputs are unadjusted, quoted prices for identical assets and liabilities in active markets at the measurement date.
 Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.  Management’s estimate of the investment fair market value is based on information provided by the State of California for the City’s investment in Local Agency Investment Fund, and based on market price provided by US Bank, the trustee for investments in Medium Term Corporate Notes, Federal Agency Bonds, and Mutual Funds.

 Management’s estimate of the depreciation on capital assets is based on the industry standard and past experience on actual useful life of the asset groups.

Packet Pg. 657 Attachment: 2022 Redding ACFR AU-C 260 Letter (9B--Reports from Independent Auditors for the year ended June 30, 2022) To the Honorable Mayor and Members of the City Council
of the City of Redding
Redding, California

Page 3 ends

 Management’s estimate of the net OPEB and the net pension liabilities is based on the actuarial valuations for each Plan of total pension/OPEB liability and is based on audited financial statements on fiduciary net position for the CalPERS plans and the PARS Plan. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

As part of our audit, we evaluated the key factors and assumptions used to develop the accounting estimates described above and in determining that it is reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users.

The most sensitive disclosures affecting the financial statements were:
 Note 1 – Summary of Significant Accounting Policies
 Note 15 – Joint Ventures
 Note 18 – Retirement Plans
 Note 19 – Other Postemployment Healthcare Benefits
 Note 22 – Commitments and Contingencies
The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no misstatements identified during our audit that management had to correct and none of the misstatements detected as a result of audit procedures were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report.

We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are communicated to us in the management representation letter dated December 16, 2022.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the governmental unit’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts.

Packet Pg. 658 Attachment: 2022 Redding ACFR AU-C 260 Letter (9B--Reports from Independent Auditors for the year ended June 30, 2022) To the Honorable Mayor and Members of the City Council
of the City of Redding
Redding, California

Page 4 ends

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Information in Documents Containing Audited Financial Statements We applied certain limited procedures to the Management Discussion and Analysis (“MD&A”), Budgetary Principles, Schedules of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual - General Fund, Schedules of Changes in Net Pension Liability and Related Ratios, Schedules of Plan Contributions, Schedules of Changes in Net OPEB Liability and Related Ratios, and Schedule of Contributions, which are Required Supplementary Information (“RSI”) that supplement the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the Combining and Individual Non-major Fund Financial Statements, Budgetary Comparison Schedules as listed in the table of contents, and Schedule of Passenger Facility Charges Collected and Expended and Interest Collected, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the Introductory and the Statistical Sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Restriction on Use
This information is intended solely for the use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
Walnut Creek, California
Packet Pg. 659 Attachment: 2022 Redding ACFR AU-C 260 Letter (9B--Reports from Independent Auditors for the year ended June 30, 2022) City of Redding
Redding, California
Single Audit, Passenger Facility
Charges Program, and
Independent Auditors’ Reports
For the Year Ended June 30, 2022
DRAFT 12.29.2022
Packet Pg. 660 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent DRAFT 12.29.2022
Packet Pg. 661 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent City of Redding
Table of Contents
Page
Single Audit:

Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................. 1 Independent Auditors’ Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance ........................................ 3 Schedule of Expenditures of Federal Awards ............................................................................................................ 7 Notes to the Schedule of Expenditures of Federal Awards ...................................................................................... 10 Schedule of Findings and Questioned Costs ........................................................................................................... 11 Passenger Facility Charges:

Independent Auditors’ Report on Compliance with Requirements Applicable to the Passenger Facility Charge Program and on Internal Control Over Compliance ..................................... 13 Schedule of Passenger Facility Charges Collected and Expended and Interest Collected ....................................... 16 Notes to the Schedule of Passenger Facility Charges Collected and Expended and Interest Collected .................. 18 Schedule of Findings and Questioned Costs ............................................................................................................ 19 DRAFT 12.29.2022
Packet Pg. 662 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent This page intentionally left blank.

DRAFT 12.29.2022
Packet Pg. 663 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditors’ Report
To the Honorable Mayor and Members of City Council
of the City of Redding
Redding, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Redding, California (the “City”) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 16, 2022.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered The City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of The City’s internal control. Accordingly, we do not express an opinion on the effectiveness of The City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

DRAFT 12.29.2022
Packet Pg. 664 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent To the Honorable Mayor and Members of City Council
of the City of Redding
Redding, California

Page 2 ends

2 Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City's basic financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Walnut Creek, California
December 16, 2022
DRAFT 12.29.2022
Packet Pg. 665 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent

REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL

CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Independent Auditors’ Report
To the Honorable Mayor and Members of City Council
of the City of Redding
Redding, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Redding, California’s (the “City”) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2022. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

DRAFT 12.29.2022
Packet Pg. 666 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent To the Honorable Mayor and Members of City Council
of the City of Redding
Redding, California

Page 2 ends

4 Auditors’ Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, and the Uniform Guidance we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

DRAFT 12.29.2022
Packet Pg. 667 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent To the Honorable Mayor and Members of City Council
of the City of Redding
Redding, California

Page 3 ends

5 Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.

Accordingly, this report is not suitable for any other purpose.

Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 16, 2022, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Walnut Creek, California
December 16, 2022
DRAFT 12.29.2022
Packet Pg. 668 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent 6 This page intentionally left blank.

DRAFT 12.29.2022
Packet Pg. 669 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent City of Redding
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2022
See accompanying Notes to the Schedule of Expenditures of Federal Awards 7 Assistance Grant Amount
Listing Identification Federal Provided to
Number Number Expenditures Subrecipients
U.S. Department of Housing and Urban Development
CDBG - Entitlement Grants Cluster:

Direct Programs:

Community Development Block Grant 14.218 B-19-MC 060-033 $ 92,385 92,385 $ Community Development Block Grant 14.218 B-20-MC 060-033 30,776 296,313 Community Development Block Grant 14.218 B-21-MC 060-033 41,022 220,044 COVID-19 - Community Development Block Grant 14.218 B-20-MCW 060033 - 608,457 Total CDBG - Entitlement Grants Cluster 164,183 1,217,199 Community Development Block Grant - States 14.228 21-DRMHP-21008 323,087 - COVID-19 - Emergency Solutions Grant Program 14.239 20-ESGCV1 - 340,290 HOME Investment Partnership 14.239 M15-MC060238 - 11,422 HOME Investment Partnership 14.239 M17-MC060238 - 17,826 HOME Investment Partnership 14.239 M18-MC060238 - 46,700 HOME Investment Partnership 14.239 M19-MC060238 - 284,206 HOME Investment Partnership 14.239 M20-MC060238 - 347,881 HOME Investment Partnership 14.239 M21-MC060238 - 120,106 COVID-19 - HOME Investment Partnership 14.239 M21-MP060238 - 1,856 Total HOME Investment Partnership - 829,997
Housing Vouchers Cluster:

Section 8 Housing Choice Vouchers 14.871 CA 106 - 9,767,291 COVID-19 - Section 8 Housing Choice Vouchers 14.871 CA 106 - 137,709 Emergency Housing Vouchers (EHV) 14.871 CA 106 - 243,199 Total - Program 14.871 10,148,199 -
Mainstream Vouchers 14.879 CA 106 298,575 -
Total Housing Vouchers Cluster 10,446,774 -
Family Self-Sufficiency (FSS) Program:

FSS Coordinator 14.896 FSS21CA3628 15,072 -
FSS Coordinator 14.896 FSS22CA4181 39,240 -
Total Family Self-Sufficiency (FSS) Program 54,312 -
Total U.S. Housing and Urban Development 13,211,659 164,183 U.S. Department of Justice
Direct Programs:

COVID-19 - Coronavirus Emergency Supplemental Funding Program 16.034 2020-VD-BX-0874 25,128 - Bulletproof Vest Partnership Program 2019 16.607 19097427 13,231 - Bulletproof Vest Partnership Program 2020 16.607 19097427 8,400 - Total - Program 16.607 - 21,631
Edward Byrne Memorial Justice Assistance Grant 16.738 2019-DJ-BX-0686 577 - Edward Byrne Memorial Justice Assistance Grant 16.738 2020-DJ-BX-0227 8,269 - Edward Byrne Memorial Justice Assistance Grant 16.738 15PBJA-21-GG-01252-JAGX 24,968 - Total - Program 16.738 - 33,814
Asset Seizure Program 16.922 N/A 58,267 -
Total U.S. Department of Justice - 138,840
Federal Grantor/Pass - Through
Grantor/Program Title
DRAFT 12.29.2022
Packet Pg. 670 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent City of Redding
Schedule of Expenditures of Federal Awards (Continued)
For the Year Ended June 30, 2022
See accompanying Notes to the Schedule of Expenditures of Federal Awards 8 Assistance Grant Amount
Listing Identification Federal Provided to
Number Number Expenditures Subrecipients
U.S. Department of Transportation
Airport Improvement Program:

Direct Programs:

COVID-19 - CARES Act Muni 20.106 3-06-0194-053-2020 465,279 - COVID-19 - CARES Act Benton 20.106 03-06-0308-22 4,175 - Runway 16 Blast Pad Design/Taxi 20.106 03-06-0194-52 13,611 - Terminal Loop Design 20.106 03-06-0194-52 6,256 -
Coronavirus Response and Relief Supplemental Appropriations 20.106 3-06-0194-055-2021 422,713 - Coronavirus Response and Relief Supplemental Appropriations - Benton 20.106 3-06-0308-024-2021 10,900 - Airport Rescue Grant - American Rescue Plan Act (ARP) 20.106 3-06-0194-058-2021 68,641 - Airport Layout Plan Drawing Set Update 20.106 3-06-0308-023-2021 216,613 - Runway Pavement Preservation / MAGVAR (Slurry Seal) Phase 1 20.106 3-06-0308-025-2021 70,382 - Airport Drainage Study 20.106 3-06-0308-026-2021 43,157 - Reconstruct Terminal / Airport Loop Access Road (Woodrum Circle) - Phase 2 20.106 3-06-0194-054-2021 1,089,312 - Preliminary Design Concept Study for RW 16-34, RW 12-30, Taxiway Connectors, MAGVAR Imp. 20.106 3-06-0194-057-2021 475,124 - Total - Airport Improvement Program 2,886,163 -
Highway Planning and Construction Cluster:

Passed through the California Department of Transportation:

FHBP study 5068-34 Sacramento / Olney 20.205 HBRR 5068-34 31,297 - FHBP study 5068-35 Eastside / Canyon 20.205 HBRR 5068-35 49,278 - FHBP study 5068-36 Eastside Olney 20.205 HBRR 5068-36 8,220 - FHBP study 5068-37 Canyon / ACID 20.205 HBRR 5068-37 14,225 - FHBP study 5068-38 Westside / Canyon 20.205 HBRR 5068-38 17,746 - FHBP study 5068-39 Girvan / Olney 20.205 HBRR 5068-39 75,137 - FHBP study 5068-45 Old Alturas / Churn Creek 20.205 HBRR 5068-45 54,832 - Intersection Old Oregon/Oasis 20.205 HSIP 5068-30 9,487 - Shoulder widening on Old Oregon Trail for recovery area and bike lanes 20.205 HSIP6-02-002 5068-52 51,656 - Hartnell Avenue Ped Improvements 20.205 HSIP7-02-002 5068-54 72,702 - Churn Creek/Maraglia Safety Improvements 20.205 HSIPL-5068(57) 1,368,286 - Enhanced Pedestrian Crossings 20.205 HSIPL-5068(62) 78,066 - Diestelhorst Bridge to Downtown via Benton 20.205 ATPL-5068(055) 38,996 - Pedestrian Improvements on Bidwell and North Bonnyview Road 20.205 SRTSL-5068 (048) 96,820 Downtown to Turtle Bay Non-Motorized Improvements 20.205 RPSTPL 5068 (061) 62,822 - Shasta Street Railroad Crossing Project 20.205 STPLR-7500(254) 49,144 Girvan Road Railroad Crossing Project 20.205 STPLR-7500(225) 3,950,789 - Victor/Cypress Active Transportation Program 20.205 HSIPL-5068(64) 54,784 - Total Highway Planning and Construction Cluster 6,084,287 - Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research Program:

Passed through the Shasta Regional Transportation Agency:

OWP WE 702.04 Sustainable Development Incentive Program 20.505 SRTA (OWP 2017-2018) 393,490 - Federal Transit Cluster:

Direct Program:

COVID-19 - Federal Transit—Formula Grants (CARES Act) 20.507 CA-2020-061 1,325,333 - Federal Transit—Formula Grants 20.507 CA-2020-192 157,391 - Federal Transit—Formula Grants 20.507 CA-2021-109 1,646,132 - Total - Program 20.507 3,128,856 -
Bus and Bus Facilities Formula Program 20.526 CA-2020-061 393,477 - Total Federal Transit Cluster 3,522,333 -
Federal Grantor/Pass - Through
Grantor/Program Title
DRAFT 12.29.2022
Packet Pg. 671 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent City of Redding
Schedule of Expenditures of Federal Awards (Continued)
For the Year Ended June 30, 2022
See accompanying Notes to the Schedule of Expenditures of Federal Awards 9 Assistance Grant Amount
Listing Identification Federal Provided to
Number Number Expenditures Subrecipients
U.S. Department of Transportation (Continued)
Highway Safety Cluster:

Passed through California Office of Traffic Safety:

Selective Traffic Enforcement Program (STEP) 20.600 PT21122 - 11,001 Selective Traffic Enforcement Program (STEP) 20.600 PT22061 - 10,984 Total Highway Safety Cluster - 21,985
Minimum Penalties for Repeat Offenders for Driving While Intoxicated Program:

Passed through California Office of Traffic Safety:

Selective Traffic Enforcement Program (STEP) 20.608 PT21122 - 22,841 Selective Traffic Enforcement Program (STEP) 20.608 PT22061 - 14,990 Total - Program 20.608 - 37,831
Total U.S. Department of Transportation - 12,946,089
U.S. Department of Treasury
State and Local Fiscal Recovery Fund:

Passed through the State of California:

State and Local Fiscal Recovery Fund 21.027 SLT-3272 - 1,760,987 Passed through the State of California:

California Water and Wastewater Arrearage Payment Program 21.027 CWWAPP - 229,477 California Arrearage Payment Program 21.027 CAPP2021-01 - 1,143,413 Total - State and Local Fiscal Recovery Fund - 3,133,877 Total U.S. Department of Treasury - 3,133,877
U.S. Department of Homeland Security
Passed through the California Department of Boating and Waterways:

Small Water Craft Safety Program 97.012 C8962309-1 - 30,619 Direct Programs:

Disaster Grants - Public Assistance 97.036 FEMA-4382-DR-Carr Fire - 331,048 Hazard Mitigation Grant Program 97.039 HMGP 4382-149-27F - 114,029 Hazard Mitigation Grant Program 97.039 HMGP 4382-143-27F - 60,805 Total - Program 97.039 - 174,834
Homeland Security Grant Program:

Passed through the County of Shasta:

Homeland Security Grant Program (HSGP) 97.067 19HSGP - 63,235 Homeland Security Grant Program (HSGP) 97.067 20HSGP - 31,500 Total Homeland Security Grant Program - 94,735
Total U.S. Department of Homeland Security - 631,236
Total Expenditures of Federal Awards $ 164,183 30,061,701 $ Grantor/Program Title
Federal Grantor/Pass - Through
DRAFT 12.29.2022
Packet Pg. 672 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent City of Redding
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2022
10 Note 1 – Reporting Entity
The financial reporting entity, as defined by the Governmental Accounting Standard Board (“GASB”), consists of the primary government, which is the City of Redding, California (the “City”), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

Note 2 – Basis of Accounting
Funds received under the various grant programs have been recorded within the general fund, enterprise funds and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.

Note 3 – Schedule of Expenditures of Federal Awards
The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California, County of Shasta, and Shasta Regional Transportation Agency is included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, or results of operations of the City.

Note 4 – Indirect Cost Rate
The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.

DRAFT 12.29.2022
Packet Pg. 673 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent City of Redding
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2022
11 Section I – Summary of Auditors’ Results
Financial Statements
Type of report the auditors issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None Reported Noncompliance material to financial statements noted? No Federal Awards
Internal control over major programs:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None Reported Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No
Identification of major programs:

Assistance
Listing Number(s) Name of Federal Program or Cluster Expenditures

20.205 Highway Planning and Construction Cluster $ 6,084,287

21.027 State and Local Fiscal Recovery Fund 3,133,877
Total Expenditures of All Major Federal Programs $ 9,218,164 Total Expenditures of Federal Awards $ 30,061,701
Percentage of Total Expenditures of Federal Awards 30.66% Dollar threshold used to distinguish between type A and type B program $901,851 Auditee qualified as low-risk auditee in accordance with 2 CFR 200.520? Yes DRAFT 12.29.2022
Packet Pg. 674 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent City of Redding
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2022
12 Section II – Financial Statement Findings
A. Current Year Findings – Financial Statement Audit
No findings were noted on the City’s financial statement audit for the year ended June 30, 2022.

B. Prior Year Findings – Financial Statement Audit
No findings were noted on the City’s financial statement audit for the year ended June 30, 2021.

Section III – Federal Award Findings
A. Current Year Findings and Questioned Costs – Major Federal Award Program Audit No findings or questioned costs were noted on the City’s major federal programs for the year ended June 30, 2022.

B. Prior Year Findings and Questioned Costs – Major Federal Award Program Audit No findings or questioned costs were noted on the City’s major federal programs for the year ended June 30, 2021.

DRAFT 12.29.2022
Packet Pg. 675 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent

REPORT ON COMPLIANCE WITH REQUIREMENTS

APPLICABLE TO THE PASSENGER FACILITY CHARGE PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE
Independent Auditors’ Report
To the Honorable Mayor and Members of City Council
of the City of Redding
Redding, California
Report on Compliance for the Passenger Facility Charge Program Opinion on the Passenger Facility Charge Program
We have audited City of Redding, California’s (the “City”) compliance with the types of compliance requirements identified as subject to audit in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration (Guide), that could have a direct and material effect on the City’s passenger facility charge program for the year ended June 30, 2022.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its passenger facility charge program for the year ended June 30, 2022.

Basis for Opinion on the Passenger Facility Charge Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Guide. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the passenger facility charge program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

DRAFT 12.29.2022
Packet Pg. 676 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent To the Honorable Mayor and Members of City Council
of the City of Redding
Redding, California

Page 2 ends

14 Auditors’ Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the passenger facility charge program as a whole.

In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Guide, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of the passenger facility charge program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the passenger facility charge program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the passenger facility charge program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

DRAFT 12.29.2022
Packet Pg. 677 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent To the Honorable Mayor and Members of City Council
of the City of Redding
Redding, California

Page 3 ends

15 Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Schedule of Passenger Facility Charges Collected and Expended and Interest Collected We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2022, and have issued our report thereon dated December 16, 2022 which contained an unmodified opinion on those financial statements.

Our audit was conducted for the purpose of forming our opinions on the City’s financial statements. The accompanying Schedule of Passenger Facility Charges Collected and Expended and Interest Collected, as required by the Guide, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Passenger Facility Charges Collected and Expended and Interest Collected is fairly stated in all material respects in relation to the basic financial statements as a whole.

Walnut Creek, California
December 16, 2022
DRAFT 12.29.2022
Packet Pg. 678 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent City of Redding
Schedule of Passenger Facility Charges Collected and Expended and Interest Collected For the Year Ended June 30, 2022
See accompanying Notes to the Schedule of Facility Charges Collected and Expended and Interest Collected 16 Cumulative Total September 30, December 31,
June 30, 2021 2021 2021
Unexpended (over expended) passenger facility $ - $ (168,268) $ (88,603) charges and interest, beginning of period
Revenues: Amount Approved
Passenger facility charges collected 4,140,977 79,665 89,287 Interest collected - 19,779 -
Total passenger facility charge revenue 4,559,200 $ 4,160,756 79,665 89,287 Expenses:

Project Number/Project Name Amount Approved
Completed and Closed Applications 3,440,457 $ 3,440,457 - - Open Projects
Application 17-05-C-00-RDD
001-Aircraft Rescue and Fire Fighting Vehicle Acquisition 68,676 68,676 - - 002-Airport Master Plan Update 44,832 44,800 - -
003-ADA Passenger Loading Ramp 4,984 4,984 - -
004-Airport Pavement Management System Study 4,735 4,735 - - 005-T-Hangar Taxilane Reconstruction 458,672 394,850 - - 006-West Tie Down Apron Reconstruction 323,278 313,730 - - 007-Airccraft Rescue and Fire Fighting Station Modifications 1,735 1,735 - - 009-Environmental Assessment Parallel Runway 32,690 187 - - 013-PFC Application/Administration Costs 150,000 54,870 - - Total passenger facility charge revenue expenditures 4,329,024 - - Unexpended (over expended) passenger facility
charges and interest, end of period (168,268) $ (88,603) $ 684 $ For the Quarter Ended
DRAFT 12.29.2022
Packet Pg. 679 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent City of Redding
Schedule of Passenger Facility Charges Collected and Expended and Interest Collected (Continued) For the Year Ended June 30, 2022
See accompanying Notes to the Schedule of Facility Charges Collected and Expended and Interest Collected 17 For the Year Ended
March 31, June 30, June 30, Cumulative Total
2022 2022 2022 June 30, 2022
Unexpended (over expended) passenger facility 684 $ 126,445 $ $ (168,268) $ - charges and interest, beginning of period
Revenues:

Passenger facility charges collected 125,761 108,605 403,318 4,544,295 Interest collected - - - 19,779
Total passenger facility charge revenue 125,761 108,605 403,318 4,564,074 Expenses:

Project Number/Project Name
Completed and Closed Applications - - - 3,440,457
Open Projects
Application 17-05-C-00-RDD
001-Aircraft Rescue and Fire Fighting Vehicle Acquisition - - - 68,676 002-Airport Master Plan Update - - - 44,800
003-ADA Passenger Loading Ramp - - - 4,984
004-Airport Pavement Management System Study - - - 4,735 005-T-Hangar Taxilane Reconstruction - - - 394,850
006-West Tie Down Apron Reconstruction - - - 313,730
007-Airccraft Rescue and Fire Fighting Station Modifications - - - 1,735 009-Environmental Assessment Parallel Runway - - - 187
013-PFC Application/Administration Costs - - - 54,870
Total passenger facility charge revenue expenditures - - - 4,329,024 Unexpended (over expended) passenger facility
charges and interest, end of period $ 126,445 $ 235,050 $ 235,050 $ 235,050 For the Quarter Ended
DRAFT 12.29.2022
Packet Pg. 680 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent City of Redding
Notes to the Schedule of Facility Charges Collected and Expended and Interest Collected For the Year Ended June 30, 2022
18 Note 1 – Reporting Entity
The accompanying Schedule of Facility Charges Collected and Expended and Interest Collected includes all the Passenger Facility Charges (“PFC”) and the interest earnings thereon collected by the City from July 1, 2021 through June 30, 2022. The City currently collects $4.50 per enplaned passenger. The current approval for charges as approved by the Federal Aviation Administration (“FAA”) is expected to end on February 1, 2025.

Note 2 – Basis of Accounting
The Schedule of Facility Charges Collected and Expended and Interest Collected was prepared on the accrual basis of accounting. PFCs are recorded as revenue when earned and expenditures for debt service and approved capital projects are recorded as expenditures are made. Expenditures are made in accordance with an approved FAA application.

DRAFT 12.29.2022
Packet Pg. 681 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent City of Redding
Passenger Facility Charge Program
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2022
19 Section I – Summary of Auditors’ Results
A. Current Year Findings and Questioned Costs – Passenger Facility Charge Program No findings or questioned costs were noted on the City’s compliance with requirements of the passenger facility charge program for the year ended June 30, 2022.

B. Prior Year Findings and Questioned Costs – Passenger Facility Charge Program No findings or questioned costs were noted on the City’s compliance with requirements of the passenger facility charge program for the year ended June 30, 2021.

DRAFT 12.29.2022
Packet Pg. 682 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent 20 This page intentionally left blank.

DRAFT 12.29.2022
Packet Pg. 683 Attachment: Draft 2022 Single Audit, Passenger Facility Charges Program, and Independent Auditors' Reports (9B--Reports from Independent

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following relative to the City Attorney’s Office:
(1) Approve the addition of a full time Assistant City Attorney; and (2) Adopt Resolution approving and adopting the 78th Amendment to City Budget Resolution No. 2021-078 appropriating $50,980 to the City Attorney’s Office for the addition of a full-time Assistant City Attorney.

Fiscal Impact
The salary and benefit cost for the remainder of Fiscal Year 2022-23 is estimated to be $50,980.

For a full fiscal year, the cost of the new position is estimated to be $203,900 and the funding will be budgeted in the next budget cycle. It is estimated that having an additional attorney on staff will reduce the utilization of contract attorneys, providing an estimated $100,000 in savings, and will make the net cost of the new position approximately $103,900 per year.

Alternative Action
The City Council (Council) could choose to decline adoption of the resolution, and direct staff to continue to use contract attorneys.

Background/Analysis
For years, the City Attorney’s office was staffed by three full-time attorneys. In 2019, an Assistant City Attorney retired and City Attorney DeWalt chose not to fill that position in order to remain fiscally conservative. That decision has remained a low-cost option for the General Fund, but recently, workload has increased, the State and Federal regulatory climate has become more complicated, and additional claims and lawsuits have caused the City of Redding (City) to rely more on contract attorneys. Staff recommends that the Council consider increasing the City Attorney staffing to lower the City’s reliance on contract attorneys, diversify the knowledge base MEETING DATE: January 17, 2023
ITEM NO. 9.1(a)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.1(a)--Consider adoption of Resolution approving a new Assistant City Attorney position within the City Attorney's Office.

Barry Tippin, City Manager
Packet Pg. 684
Report to Redding City Council January 11, 2023
Re: 9.1(a)--Consider Resolution approving new Assistant City Attorney position Page 2 of the City Attorney’s Office, potentially reduce the City Attorney’s budget over time, and improve the opportunity for succession planning, which is a key goal of the Council.

Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.

Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
• Government of the 21st 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
^Resolution
Packet Pg. 685
RESOLUTION NO. 2023-___

A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 78 TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2021-078
APPROPRIATING $50,980 FOR FISCAL YEAR 2022-23 FOR A FULL-TIME ASSISTANT CITY ATTORNEY POSITION IN THE CITY ATTORNEY’S OFFICE

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2021-078 be and is hereby amended as follows:

FUND DIVISION DESCRIPTION INCREASE DECREASE
111 422 City Attorney $50,980
THAT account titles and numbers requiring adjustments by this Resolution are as follows:

USE SOURCE

OF FUNDS OF FUNDS
Decrease (Increase) Beginning Balance
111-427-01-0001-01 Beginning Balance $ 50,980
Increase(Decrease) Expenditures
111-422-0111-01 Full Time Regular $ 41,040
111-422-0171-01 Worker's Comp 290
111-422-0173-01 Group Insurance 5,070
111-422-0175-01 Retirement Program 3,990
111-422-0177-01 Medicare 590
Total $ 50,980 $ 50,980
PERSONNEL FY 2022-23
Assistant City Attorney 1 FTE
THAT the purpose is to appropriate $50,980 for fiscal year 2022-23 for a full-time assistant City Attorney position in the City Attorney’s Office.

Packet Pg. 686 Attachment: ^Resolution (9.1(a)--Consider Resolution approving new Assistant City Attorney position) I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 17th day of January, 2023, and was duly adopted at said meeting by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

MICHAEL DACQUISTO, Mayor
ATTEST: FORM APPROVAL:

PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney
Packet Pg. 687 Attachment: ^Resolution (9.1(a)--Consider Resolution approving new Assistant City Attorney position)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept the City of Redding Annual Comprehensive Financial Report for the fiscal year ended June 30, 2022.

Fiscal Impact
There is no fiscal impact for accepting the Annual Comprehensive Financial Report.

Alternative Action
The City Council could reject the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2022, and provide alternate direction to staff.

Background/Analysis
The audit of the City of Redding for the fiscal year that ended June 30, 2022, has been completed. The City of Redding received an unmodified opinion from the auditor, The Pun Group, LLP, a firm of Certified Public Accountants, on the report as presented. The Annual Comprehensive Financial Report (ACFR) is available for review in the City Clerk’s Office.

It should also be noted that the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Financial Reporting to the City of Redding for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. This was the 38th consecutive year that the City of Redding has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principals (GAAP) and applicable legal requirements.

MEETING DATE: January 17, 2023
ITEM NO. 9.10(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.10(a)--Consider acceptance of the City of Redding Annual Comprehensive Financial Report for the year ended June 30, 2022.

Allyn Feci Clark, Director of
Finance/City Treasurer
Packet Pg. 688
Report to Redding City Council January 11, 2023
Re: 9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021 Page 2 A Certificate of Achievement is valid for a period of one year only. Staff believes the current annual comprehensive financial report continues to meet the Certificate of Achievement Program requirements, and the ACFR will again be submitted for consideration for GFOA’s award program.

Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.

Council Priority/City Manager Goals
• This is a routine operational item occurring on an annual basis.

Attachments
ACFR - FY Ended June 30, 2022
Packet Pg. 689

CITY OF

REDDING

CALIFORNIA
Annual Comprehensive

FINANCIAL REPORT
Fiscal Year Ended June 30, 2022
Packet Pg. 690 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) i

CITY OF REDDING

REDDING, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
Prepared by:

FINANCE DEPARTMENT

Packet Pg. 691 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) ii
This page intentionally left blank
Packet Pg. 692 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Introductory
Section
iii
Packet Pg. 693 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) iv
This page intentionally left blank

Packet Pg. 694 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
v
Page

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ v Transmittal Letter ........................................................................................................................................................... ix Certificate of Achievement for Excellence in Financial Reporting – GFOA ............................................................... xvi Organization Chart ..................................................................................................................................................... xvii Directory of City Officials ........................................................................................................................................ xviii

FINANCIAL SECTION
Independent Auditors’ Report on Financial Statements ........................................................................................... 3 Management’s Discussion and Analysis (Required Supplementary Information – Unaudited) ........................... 7 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ................................................................................................................................. 28 Statement of Activities and Changes in Net Position ....................................................................................... 30 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ............................................................................................................................................. 36 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .............................................................................. 39 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................... 40 Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position ............................................................................. 41 Proprietary Fund Financial Statements:

Statement of Net Position .......................................................................................................................... 44 Statement of Revenues, Expenses, and Changes in Net Position .............................................................. 48 Statement of Cash Flows ........................................................................................................................... 50 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position .......................................................................................................... 56 Statement of Changes in Fiduciary Net Position ....................................................................................... 57 Notes to the Basic Financial Statements ............................................................................................................. 59 Index to Notes to the Basic Financial Statements ............................................................................................ 61 Required Supplementary Information (Unaudited):

Budgetary Principles ............................................................................................................................................. 143 Schedule of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual:

General Fund .................................................................................................................................................. 144 Schedules of Changes in Net Pension Liability and Related Ratios - Public Employees Retirement System Miscellaneous Plan (CalPERS) ......................................................... 146 Packet Pg. 695 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
vi
Page
FINANCIAL SECTION (Continued):

Required Supplementary Information (Unaudited):

Schedules of Plan Contributions - Public Employees Retirement System Miscellaneous Plan (CalPERS) .................................................................................................................... 148 Schedules of Changes in Net Pension Liability and Related Ratios - Public Employees Retirement System Safety Plan (CalPERS) .................................................................... 150 Schedules of Plan Contributions - Public Employees Retirement System Safety Plan (CalPERS) ................................................................................................................................. 152 Schedules of Changes in Net Pension Liability and
Related Ratios - Public Agency Retirement Services Enhancement Plan (PARS) ...................................... 154 Schedules of Public Agency Retirement Services Retirement Enhancement Plan Contributions All Tiers (PARS) ................................................................................................................... 156 Schedules of Changes in Net OPEB Liability and Related Ratios ..................................................................... 158 Schedule of Contributions-OPEB ....................................................................................................................... 160 Supplementary Information:

Non-Major Governmental Funds:

Combining Balance Sheet ............................................................................................................................ 166 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 168 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

Parking Special Revenue Fund .............................................................................................................. 170 Street Maintenance Special Revenue Fund ............................................................................................ 171 Community Development Special Revenue Fund ................................................................................. 172 Housing Special Revenue Fund ............................................................................................................. 173 General Special Revenue Fund .............................................................................................................. 174 Library Special Revenue Fund .............................................................................................................. 175 General Capital Projects Fund - Major Fund ......................................................................................... 176 Non-Major Enterprise Funds:

Combining Statement of Fund Net Position ................................................................................................. 178 Statement of Revenues, Expenses, and Changes in Fund Net Position ....................................................... 181 Combining Statement of Cash Flows ........................................................................................................... 182 Internal Service Funds:

Combining Statement of Net Position .......................................................................................................... 186 Combining Statement of Activities and Changes in Net Position ................................................................ 189 Combining Statement of Cash Flows ........................................................................................................... 190 Fiduciary Funds:

Combining Statement of Fiduciary Net Position .......................................................................................... 194 Other Supplementary Information:

Supplementary Information Regarding Passenger Facility Charges .................................................................. 199 Schedule of Passenger Facility Charges Collected and Expended and Interest Collected For the quarters ended September 30, 2021, December 31, 2021, March 31, 2022, and June 30, 2022 ............................................................................................................. 200 Packet Pg. 696 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
vii
Page

STATISTICAL SECTION
Index .......................................................................................................................................................................... 205 Financial Trends:

Net Position by Component – Last Ten Fiscal Years ......................................................................................... 206 Changes in Net Position – Last Ten Fiscal Years ............................................................................................... 208 Fund Balances of Governmental Funds – Last Ten Fiscal Years ....................................................................... 213 Changes in Fund Balance of Governmental Fund – Last Ten Fiscal Years ....................................................... 214 Revenue Capacity:

General Governmental Tax Revenues by Source – Last Ten Fiscal Years ........................................................ 217 Revenue Base – Own Source Revenue – Last Ten Fiscal Years ........................................................................ 218 Electric Utility Rates – Last Ten Fiscal Years .................................................................................................... 220 Principal Electric Utility Payers – Last Ten Fiscal Years ................................................................................... 223 Debt Capacity:

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ............................................................................ 224 Computation of Direct and Overlapping Debt .................................................................................................... 227 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................................... 228 Wastewater Revenue Bond Coverage – Last Ten Fiscal Years .......................................................................... 230 Water Revenue Bond Coverage – Last Ten Fiscal Years ................................................................................... 232 Electric Revenue Bond Coverage – Last Ten Fiscal Years ................................................................................ 234 Demographic and Economic Information:

Demographic Statistics – Last Ten Fiscal Years ................................................................................................ 235 Principal Employers in the Greater Redding Metropolitan Area – Last Ten Fiscal Years ................................. 236 Full-Time City Budgeted Employees by Function/Program – Last Ten Fiscal Years........................................ 237 Operating Information:

Capital Assets Statistics by Function/Program – Last Ten Fiscal Years ............................................................ 239 Operating Indicators by Function/Program – Last Ten Fiscal Years .................................................................. 240 Supplemental Historical Information:

Statement of Physical Condition of Airport Assets ............................................................................................ 245 History and Statement of Physical Condition of Electric Utility System Assets ................................................ 246 History and Statement of Physical Condition of Storm Drainage Utility System Assets ................................... 249 History and Statement of Physical Condition of Wastewater Utility System Assets ......................................... 251 History and Statement of Physical Condition of Water Utility System Assets .................................................. 254 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Compliance .................................................................. 259 Packet Pg. 697 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) viii
This page intentionally left blank
Packet Pg. 698 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) ix
December 16, 2022
Honorable Mayor, Members of
City Council, and City Manager
City of Redding, California 96001
Honorable Members:

In accordance with State and local statutes, the City of Redding (City) hereby submits the Annual Comprehensive Financial Report for the year ended June 30, 2022. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe that the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and result of operations of the City in accordance with generally accepted accounting principles; and that all disclosures necessary to enable the reader to gain maximum understanding of the City’s financial affairs have been made.

The Pun Group, a firm of licensed certified public accountants has issued an unmodified opinion on the City of Redding’s financial statements for fiscal year ended June 30, 2022.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.

PROFILE OF THE CITY
The City of Redding is a general law city, incorporated under the laws of the State of California in 1887. A council of five members elected at large for alternating four-year terms governs the City. The Mayor, ViceMayor, City Manager, and City Attorney are appointed by the City Council. The City Clerk and City Treasurer are also elected officials and serve four-year terms.

Redding is the county seat for Shasta County and is located on the Sacramento River approximately 160 miles north of Sacramento, the state capital, and 150 miles east of the Pacific Ocean at the northernmost end of the Sacramento Valley. The City has an estimated population of 92,963 and encompasses approximately 60 square miles within the corporate limits. Extracting timber and the processing of wood by-products; along with agriculture, tourism, medical services, and government have historically been the pillars of the local economy.

Over the past few decades, there has been a general shift toward a service-based economy.

This report includes all of the funds of the City. Financial information for separate legal entities related to the City of Redding includes the Redding Housing Authority, Redding Area Bus Authority, the Redding Joint Powers Financing Authority and the Redding Capital Services Corporation. All are accounted for in the City’s financial statements in accordance with Governmental Accounting and Financial Reporting Standards. Component unit financial reports are on file with the City. Under California State law all redevelopment agencies were dissolved.

The Redding Redevelopment Agency was dissolved on January 31, 2012 and all excess assets were transferred to, and continue to be accounted for, in a private purpose trust fund.

Packet Pg. 699 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) x

REPORTING ENTITY AND ITS SERVICES
City Council members in separate sessions serve as the governing board of the Redding Joint Powers Financing Authority and the Redding Capital Services Corporation. All five members of the City Council sit on the eightmember governing board of the Redding Area Bus Authority and the six member Housing Authority’s board.

City staff provides accounting and administrative services to all four agencies. Additional detail is provided in Note 1, Subparagraph A of the financial statements.

Redding is a full-service city. This includes public safety (police and fire), highways and streets, public improvements, planning and zoning, recreation and parks, library, airports, convention and auditorium facility, utilities (electric, water, wastewater, storm drainage, and solid waste collection and disposal), and general administrative services.

LOCAL ECONOMY
The growth and health of an area’s economy can be determined by monitoring a wide variety of indicators. Listed below are some of these indicators in the Redding area.

Population Characteristics - The City was one of the fastest growing cities in California between 1970 and 1990, growing to 66,432 residents in 1990 from 16,659 in 1970. However, lately the City’s population growth has slowed. From 2000 to 2010 the City’s population grew by an average of 1.11 percent and from 2010 to 2020 grew by an average of .35 percent. During the last year the chart below shows the City’s population decreased .08 percent. The City’s population represents approximately 51% of Shasta County’s population. The following table indicates population growth for the City and Shasta County from 1970 to 2022:

Year Population
Annualized
Percent
Change over
Interval Population
Annualized
Percent
Change over
Interval
1970 16,659 --- 77,640 ---
1980 41,995 9.69% 119,449 4.40%
1990 66,432 4.69% 147,036 2.10%
2000 80,865 1.99% 163,256 1.05%
2010 89,861 1.11% 177,223 0.85%
2020 93,611 0.35% 182,155 0.23%
2021 * 93,879 * 0.02% * 182,020 * -0.01%
2022 92,963 -0.08% 180,531 -0.07%
* Revised
City of Redding Shasta County
Source: 1970-2020 data from U.S. Census; 2021-2022 estimates from the California State Department of Finance as of May 1 (January 1, 2022 report).

The City’s population, over the next 10 years, is projected to increase by approximately 513 an increase of approximately .6%. The Redding area is expected to contribute approximately 48% of the total Shasta County population because of a variety of factors that will support urban development, including utilities (wastewater, storm drainage, water, electric, and solid waste), employment, regional shopping, transportation services, and reduced commuting.

Packet Pg. 700 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) xi
Housing Costs - Housing in the City is less costly than in many other urban areas in the State of California and on the West Coast. The following table sets forth the median price of housing in other urban areas of California as compared to Shasta County, in which Redding is the largest city, as of June 2022:

Region Median Home Price
Shasta County $395,000
Sacramento $560,000
Los Angeles $860,230
Orange County $1,265,000
San Francisco $1,900,000
Source: California Association of Realtors
Industry and Employment - Extracting timber and the processing of wood by-products, together with agriculture, tourism, medical services, and government, have historically been the major sectors of employment in the City. However, the City’s economic base has diversified to a regional service economy supported by retail and wholesale trade plus educational, recreational, medical, and government services for an area covering several counties.

The major non-local government employers in the City and the County include those in medical services, and retail services. Major employers in the City of Redding, their products or services, and the approximate number of their respective full-time employees as of June 2022 are listed in the following table:

Employer Product/Services Employees
Mercy Medical Center Medical Facilities/Services 1,894
Shasta County (*) County Services 1,835
City of Redding (**) City Services 943
Shasta Regional Medical Center Medical Facilities/Services 860 CA Transportation Department Highways, Freeways, etc. 757 Redding Rancheria Casino/Redding Rancheria 733
Shasta Union High School District Education 493
Shasta Community Health Medical Services 475
Shasta Community College (*) Education 429
Wal Mart Retail 413
(* ) Full –time equivalent positions. This includes employees who work outside of the City. (**) Full-time budgeted positions
Source: Derived from the Employment Development Department’s (EDD) listing of the top employers in Shasta County.

Packet Pg. 701 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) xii
According to the State Employment Development Department, the unemployment rate of the City’s metropolitan area was 4.0 percent on June 30, 2022. The following table sets forth the number and rate (expressed as a percentage) of unemployed persons living within the City’s metropolitan area for the month of June 2013 through June 2022:

Fiscal Year
Ending
June 30
Labor
Force
Unemployment
Number Rate
2013 75,061 8,972 12.0%
2014 74,813 7,204 9.6%
2015 74,189 5,806 7.8%
2016 74,408 5,237 7.0%
2017 74,089 4,358 5.9%
2018 73,795 3,778 5.1%
2019 72,829 3,502 4.8%
2020 72,305 7,226 10.0%
2021 73,899 5,041 6.8%
2022 73,465 2,913 4.0%
Source: State Department of Employment
All numbers revised annually to source.

Construction Activity - For the calendar year ending December 2021, 5,350 building permits were issued, with a total permit valuation of $166,234,829. This represents a 2% decrease in the number of permits from the previous calendar year. Permit activity had been increasing steadily over the past three years, likely as a result of increased construction for repairing widespread damage throughout the City caused by wildfire, snow, and hail events. As those reconstructions have begun to slow down the number of permits issued has seen a slight decrease. Multifamily permits have increased due to increased available grant funding for affordable housing. Commercial permits have steadily increased the last four years as well.

The following table sets forth the value and number of permits for new single and multiple family dwellings and businesses located in the City for the last four calendar years:
2018 2019 2020 2021
Single Family Units 114 223 205 152
Value Single Family* $28,703,596 $65,182,744 $59,870,685 $43,241,115 Multi-Family Units 0 91 4 244
Multi-Family Permits** 0 7 1 3
Value Multi-dwellings*** $0 $9,220,325 $518,276 $38,036,402 Number of Permits 31 8 24 37
Value Business*** $16,747,229 $27,756,921 $35,760,718 $46,433,721 Total Permits*** 4,043 5,146 6,769 5,350
Value Total all
Permits*** $86,442,448 $157,668,086 $169,693,251 $166,234,829 * Value of new construction only.
** Includes hotel and apartment units - "R" occupancies. *** Numbers Revised
Source: City of Redding Development Services Department Packet Pg. 702 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) xiii
Commerce - The City is a regional center of commerce for several Northern California counties. This is evidenced by its many shopping centers and malls. Support for retail sales is derived from a retail trade area population of approximately 127,300 in the primary trade area and approximately 257,000 in the secondary trade area. The primary trade area consists of the metropolitan urban area, including the cities of Redding, Shasta Lake, Anderson, and Red Bluff. The secondary trade area consists of Shasta, Trinity, and Tehama counties.

Taxable transactions in the City were approximately $2.6 billion in calendar year 2021, a 13.12% increase over the same period for 2020.

Taxable Taxable Transactions
Transactions Percentage
Year (in Thousands) Increase (Decrease)
2012 $1,840,953 6.24%
2013 $1,924,122 4.52%
2014 $1,943,607 1.01%
2015 $1,992,806 2.53%
2016 $2,022,557 1.49%
2017 $2,118,481 4.74%
2018 $2,198,010 3.75%
2019 * $2,348,783 6.86%
2020 * $2,306,959 -1.78%
2021 $2,609,629 13.12%
* Revised
Source: California Department of Tax and Fee Administration Transportation - The City enjoys a strategic location on U.S. Interstate Highway 5, the principal transportation artery running north-south from Mexico to Canada. The City is also bisected by State Highway 299 and State Route 44, key east-west transportation arteries in Northern California.

The City is served by the Union Pacific Railroad and Amtrak for rail transportation. Greyhound serves the City with bus service. United Express Airlines provides air service from Redding Municipal Airport to San Francisco and Los Angeles, California. Alaska Airlines provides air service from Redding Municipal Airport to Seattle, Washington. Avelo Airlines provides air service from Redding Municipal Airport to Burbank, California.

Redding Area Bus Authority (RABA) is the City’s multi-bus transportation system and offers thirteen different fixed routes, rural service and demand response (curb-to-curb) services. RABA had a total ridership of 360,045 over the fiscal year which is an average total monthly ridership of approximately 30,004. Ridership over the past three fiscal years has declined following the onset of the Coronavirus pandemic.

Utilities - Electricity, solid waste collection and disposal, water, storm drainage, and wastewater services are provided by enterprise operations owned and operated by the City. Natural gas is provided by Pacific Gas and Electric Company (PG&E); basic telephone service by AT&T.

Packet Pg. 703 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) xiv
Community Services - Youth in the area attend school at one of 39 elementary schools, 9 middle/junior high schools, 16 charter schools, 1 regional occupation programs and 12 high schools. There are several higher educational institutions in the immediate area offering bachelor and master’s degrees: Chico State University Center for Regional and Continuing Education (located in the Health Science & University Center, downtown Redding), National University, Simpson University, and Shasta Bible College & Graduate School. Shasta Community College, a two-year institution, offers both day and evening courses to over 10,135 students. In addition, there are several Vocational & Technical schools offering a diverse range of programs.

The City’s parks system includes 56 developed parks and facilities, encompassing over 597 developed acres. This system includes nearly 180 acres of natural area parks, 40-plus miles of City-owned trails, and 16 special purpose facilities. Among these special purpose facilities are the Redding Civic Auditorium, which hosts cultural/performing arts programs, conferences, and conventions; the Redding Aquatic Center; the Redding Big League Dreams Sports Park; the California Soccer Park; the Senior Citizens Center; the Martin Luther King Jr.

Community Center, the Benton Dog Park; three boat ramp facilities that provide access to the Sacramento River; and almost 1,000 acres of natural open space.

The City serves as the primary medical center for Northern California. The City’s two general care hospitals serve approximately 330,000 people in Shasta, Tehama, Trinity, Siskiyou, and Lassen counties. The two largest hospitals have a total of 492 beds and employ approximately 2,754 full-time staff members. In addition, the City also has several specialized hospitals.

LONG-TERM FINANCIAL PLANNING
The City has long-range financial plans (typically ten years) for all of its major funds. On August 4, 2020 Council Policy 412 was revised to change the minimum cash reserve balance from 5% to 10%. It is the policy of the City Council that all major funds except the Electric Utility maintain a minimum of 10% of expenditures in cash reserves in all years of their financial plans. Due to the dynamic industry, it is Council policy that the Electric Utility maintains a minimum of 1.80x Debt Service Coverage (DSC) without reserves and maintains unrestricted cash reserves of 150 days of cash on hand. All of the City’s long- range financial plans meet these criteria.

ACCOUNTING SYSTEM AND BUDGETARY CONTROL
The City’s accounting records are maintained on the modified accrual basis for governmental fund types and on the accrual basis for proprietary fund types. In developing the City’s accounting system, consideration is given to the adequacy of internal accounting controls which are designed to provide reasonable, but not absolute, assurance regarding:

1. The safeguarding of assets against losses from unauthorized use or disposition.

2. The reliability of financial records for preparing financial statements and maintaining accountability of assets.

The concept of reasonable assurance recognized that the cost of a control procedure should not exceed the benefits likely to be derived and that the evaluation of costs and benefits require estimates and judgments of management.

All internal control evaluations occur within the above framework. We believe the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

Budgetary control is maintained at the department and fund level. The City Manager may transfer appropriations between divisions within a department within a fund; however, any revision that increases total fund expenditures without providing additional revenue to cover the total expenditure must be approved by City Council.

The City utilizes the encumbrance system as a management control technique to assist in controlling expenditures.

Packet Pg. 704 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) xv

FEDERAL GRANTS SINGLE AUDIT APPROACH
The City of Redding is required to undergo a single audit in conformity with the provisions of the Single Audit Act of 1984, U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, and the OMB’s Uniform Guidance. This report has been prepared under the “single audit” concept. Under this approach, one agency is recognized as the cognizant agency or oversight agency of the Office of Management and Budget. In the case of the City of Redding, the State of California acts as the single audit oversight agency. The financial report will be reviewed by the oversight agency for compliance with all Federal grant requirements, and notification of the results will be provided to other Federal agencies. A separate schedule of Federal financial assistance is available upon request.

As a recipient of Federal, State, and County financial assistance, the City of Redding is responsible for implementing an adequate internal control structure to ensure compliance with applicable laws and regulations related to those programs. The results of the City of Redding’s single audit for the fiscal year ended June 30, 2021, provided no instances of material weaknesses in the internal control structure or significant violation of applicable laws and regulations.

CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Redding for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. This was the 38th consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report.

This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

ACKNOWLEDGMENTS
I would like to take this opportunity to thank the members of the Audit Committee and the City Council for their cooperation and support in conducting the financial operations of the City in a responsible and progressive manner. Appreciation is also expressed to all City departments who contributed information provided in this financial report and the Finance Department’s staff who made this presentation possible. It is the combined effort of all participants that resulted in the issuance of this document.

Allyn Feci Clark, CPA, CPFO
Director of Finance/City Treasurer

Packet Pg. 705 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Redding
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
xvi
Packet Pg. 706 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding Organization Chart
City Clerk
Reprographics Records Management
City Clerk
Pamela Mize
City Attorney
Barry DeWalt
City Manager
Barry Tippin
City Council City Treasurer City Treasurer Allyn Clark
Electorate
City Attorney
Parks Recreation Administration Building Maint.Communications Administration Redding Power Distribution Energy Services Resource Group Customer Service Field Services Administration
Suppression Prevention
Permit Center BuildingPlanning
Electric
Nick Zettel
Community
Services
Kim Niemer
Development
Services
Jeremy Pagan
Admin/Services
Field Operations
Investigations Services Grants
Public Works
GIS Police I/T Staff Info. Technology
Engineering Transportation Streets Solid Waste
Fleet Maintenance P/W AdministrationStorm Drains Electrical Technician Water Wastewater Kelley Martinez
(Interim)
Financial
Services
Bill Schueller Chuck Aukland
Police
PersonnelVolunteer Svcs.Risk Mgmt.

City Manager
Sheri DeMaagd
Assistant City Manager
FinancePurchasingTreasurer
Allyn Clark
Information
Technology
Anthony Van Boekel
Fire
Jerrod
Vanlandingham
Housing
Steve Bade
Economic DevelopmentInnovation.

Code Enforcement
Personnel
Assistant City Manager
Steve Bade
Airports
xvii
Packet Pg. 707 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) xviii

MUNICIPAL OFFICIALS
City Council
Mayor ..................................................................................... Kristen Schreder Vice Mayor ................................................................................ Mark Mezzano Council Member .................................................................. Michael Dacquisto Council Member ............................................................................. Erin Resner Council Member ............................................................................ Julie Winter Administrative Personnel
City Manager ................................................................................ Barry Tippin Assistant City Manager ........................................................... Sheri DeMaagd Assistant City Manager ................................................................... Steve Bade City Attorney ............................................................................... Barry DeWalt City Clerk ......................................................................................Pamela Mize City Treasurer ......................................................................... Allyn Feci Clark Director of Community Services ................................................... Kim Niemer Director of Development Services .............................................. Jeremy Pagan Director of Electric .......................................................................... Nick Zettel Director of Financial Services ................................................ Allyn Feci Clark Director of Information Technology ..................................... Tony Van Boekel Director of Personnel (Interim) ................................................. Kelly Martinez Director of Public Works ......................................................... Chuck Aukland Fire Chief ....................................................................... Jerrod Vanlandingham Police Chief ................................................................................. Bill Schueller Packet Pg. 708 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Financial
Section
1 Packet Pg. 709 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2 This page intentionally left blank
Packet Pg. 710 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2121 North California, Suite 290
Walnut Creek, California 94596
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members
of the City Council of the City of Redding
Redding, California
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Redding, California (the “City”), as of and for the year ended June 30, 2022, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

We did not audit the Investment in Joint Ventures of the Transmission Agency of Northern California, which collectively represent the following percentages of assets, net position, and revenues of the following opinion units as of June 30, 2022:

Those statements were audited by other auditors whose report has been furnished to us, and our opinions, insofar as it relates to the amounts included for investment in joint ventures, are based solely on the report of the other auditors.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter
Implementation of New GASB Pronouncements
As discussed in Note 1 to the basic financial statements, the City implemented Governmental Accounting Standards Board (“GASB”) Statement No. 87, Leases during the year. Our opinion is not modified with respect to this matter.

Opinion Unit Assets Net Position Revenue
Business-type Activities 0.80% 1.31% 0.46%
Major Enterprise Fund:

Electric Utility 1.99% 4.87% 0.75%
3 Packet Pg. 711 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) To the Honorable Mayor and Members
of the City Council of the City of Redding
Redding, California

Page 2 ends

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
4 Packet Pg. 712 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) To the Honorable Mayor and Members
of the City Council of the City of Redding
Redding, California

Page 3 ends

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Principles, Schedules of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual - General Fund, Schedules of Changes in Net Pension Liability and Related Ratios, Schedules of Plan Contributions, Schedules of Changes in Net OPEB Liability and Related Ratios, and Schedule of Contributions, as listed in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and Individual Non-major Fund Financial Statements and Budgetary Comparison Schedules, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Schedule of Passenger Facility Charges Collected and Expended and Interest Collected is presented for purposes of additional analysis as specified in the Passenger Facility Charge Guide for Public Agencies, issued by the Federal Aviation Administration, and is not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Non-Major Fund Financial Statements, Budgetary Comparison Schedules, and Schedule of Passenger Facility Charges Collected and Expended and Interest Collected are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 5 Packet Pg. 713 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) To the Honorable Mayor and Members
of the City Council of the City of Redding
Redding, California

Page 4 ends

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 16, 2022, on our consideration of City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Walnut Creek, California
December 16, 2022
6 Packet Pg. 714 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
7 As management of the City of Redding (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ending June 30, 2022. The management’s discussion and analysis is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the City’s financial activity, (c) identify changes in the City’s financial position (its ability to address future challenges), (d) identify any material deviations from the financial plan (approved budget), and (e) identify individual fund issues or concerns.

We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal (beginning on page ix) and the financial statements (beginning on page 25).

USING THIS FINANCIAL REPORT/OVERVIEW OF REPORT
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements to provide the reader further understanding of the City.

Government-Wide Financial Statements
The government-wide financial statements are designed to provide the readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The government-wide financial statements consist of the following parts:

Statement of Net Position: This statement presents information on all of the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources with the difference reported as net position.

Net Position = (Assets + Deferred Outflows of Resources) – (Liabilities + Deferred Inflows of Resources) Over time, the change in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

Statement of Activities: This statement presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flow in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities), from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, police, fire, public works, planning, recreation and culture, and community development. The business-type activities of the City include electric, water, wastewater, transportation (airport and bus), storm drainage, solid waste, and convention center. Also included in the government-wide financial statements are the Redding Housing Authority, Redding Area Bus Authority (RABA), and the Redding Joint Power Financing Authority. While these agencies are legally separate agencies, their governing boards consist entirely of City Council members or in the case of RABA, the majority of the board members are members of the City Council. They function for all practical purposes as departments of the City, and therefore have been included as an integral part of the primary government.

Packet Pg. 715 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
8 The government-wide financial statements can be found on pages 27-31 of this report.

Fund Financial Statements
A fund is a group of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories as follows:

Governmental Funds: These funds are used to account for essentially the same functions reported as government activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains eleven individual governmental funds. Information is presented separately in the governmental fund balance sheet and in governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund and General Capital Project Fund, which are considered to be major funds.

Data from the other nine governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget.

The basic governmental fund financial statements can be found on pages 35-41 of this report.

Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Electric Utility, Water Utility, Wastewater Utility, Solid Waste Utility, Airport Fund, Storm Drainage Utility, Redding Area Bus Authority, and the Convention Center Fund.

Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for centralized activities and services performed by certain departments for other departments of the City. The City has five internal service funds: the Equipment Fund to account for all maintenance of the motorized fleet and communication system; the Information Systems Fund to account for the data processing activities of the City; the Risk Management Fund to account for the self-insurance activities of the City; the Communications and the General Support Services Fund which accounts for mail, printing, records management, public relations and building maintenance activities; and the Municipal Utilities Support Fund, which accounts for the administrative management function of the municipal utilities and some public works. Because these services predominantly benefit governmental rather than business-type functions, they have been included within government activities in the government-wide financial statements.

Packet Pg. 716 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
9 Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Electric Utility, Water Utility, Wastewater Utility and Solid Waste Utility, which are considered to be major funds of the City. Data from the other enterprise funds is combined into a single aggregated presentation. The internal service funds are also combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the non-major enterprise funds and internal service funds is provided in the form of combining statements elsewhere in this report.

The basic proprietary fund financial statements can be found on pages 43-53 of this report.

Fiduciary Funds: The City maintains custodial funds and a Private-purpose Trust Fund (Successor Agency to the Redding Redevelopment Agency). These funds are used to account for resources held for other parties outside the government. These funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City’s own programs.

The basic fiduciary fund financial statements can be found on pages 55-57 of this report.

Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 59-140 of this report.

Other Information: In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information, supplementary information, statistical information and certain other supplemental historical information that may be useful to the users of the City’s financial statements. This information can be found in the last four sections of this report.

Packet Pg. 717 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
10 FINANCIAL HIGHLIGHTS
Government-Wide Financial Highlights
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $757 million (See Analysis of Statement of Activities and Changes in Net Position on page 12).
 $687 million represents the City’s investment in capital assets, less (1) accumulated depreciation, (2) related outstanding debt used to acquire those assets, and (3) related deferred charge on refunding.  $106 million is available for the City’s ongoing obligations related to programs with external restrictions.  ($35.9) million represents the unrestricted deficit and is primarily the result of the City’s unfunded pension and Other Postemployment Benefits (OPEB) obligations.
 The City’s total debt decreased by $16.9 million (net of bond premiums and discount and excluding deferred charges) during the year ending June 30, 2022. The City made $14.6 million in regular scheduled debt payments.
 The City’s total net position increased by $34.1 million over the prior year.  The $20 million increase in net investment in capital assets represents the capital assets less accumulated depreciation/amortization, outstanding principal of capital debt, original issue premiums on outstanding capital debt, related deferred inflows, plus original issue discounts on outstanding capital debt, related deferred outflows.
 The $2.4 million decrease in restricted net position represents the change in resources that are subject to external restrictions on their use.
 The $16 million increase in unrestricted net position is the change in resources available to fund City programs to citizens and debt obligations to creditors.

Governmental Funds Financial Highlights
The City’s governmental funds’ combined ending fund balance of $102.6 million was a decrease of $6 million from the prior year ending fund balance of $108.6 million. Amounts available for spending include Restricted, Assigned and Unassigned Fund Balances; these totaled $99.4 million, or 96.9 percent of fund balance. Of this amount:
 $74.0 million is restricted by law or externally imposed requirements.  $10.1 million is assigned or constrained by the City Council’s ‘intent” to be used for specific purposes, but are neither restricted nor committed.
 $15.2 million is unassigned fund balance.

Packet Pg. 718 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
11 GOVERNMENT-WIDE FINANCIAL ANALYSIS
2022 2021 2022 2021 2022 2021
Dollar
Change
Percent
Change
Assets:

Current and other assets 196,571$ 187,603$ 260,954$ 262,653$ 457,525$ $ 450,256 $ 1.6% 7,269 Capital assets, net 348,337 337,191 531,217 534,816 879,554 872,007 7,547 0.9% Total assets 544,908 524,794 792,171 797,469 1,337,079 1,322,263 14,816 1.1% Deferred outflow of resources 41,582 37,973 35,871 32,654 77,453 70,627 6,826 9.7% Liabilities:

Current liabilities 44,670 33,104 50,078 48,525 94,748 81,629 13,119 16.1% Long-term liabilities 225,073 278,250 258,105 306,660 483,178 584,910 (101,732) -17.4% Total liabilities 269,743 311,354 308,183 355,185 577,926 666,539 (88,613) -13.3% Deferred inflow of resources 45,380 1,943 34,025 1,264 79,405 3,207 76,198 2376.0% Net position:

Net investment in capital assets 317,743 307,598 368,787 358,579 686,530 666,177 20,353 3.1% Restricted 99,800 99,523 6,782 9,433 106,582 108,956 (2,374) -2.2% Unrestricted (146,176) (157,650) 110,265 105,662 (35,911) (51,988) 16,077 -30.9% Total net position 271,367$ 249,471$ 485,834$ 473,674$ 757,201$ 723,145$ 34,056$ 4.7% Governmental
Activities
Business-Type
Activities Total Total
Summary of Net Position
(in thousands)
As noted earlier, over time, increases or decreases in Net Position may serve as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $757.2 million at the close of the current fiscal year.

Analysis of Summary of Net Position
The City’s total net position increased by 4.7% from a year ago, increasing from $723.1 million to $757.2 million.

Net position from governmental activities increased by $21.9 million or 8.8% and net position from business activities increased by $12.2 million or 2.6%. The $34.0 million increase in net position is primarily due to a decrease in long term liabilities. The negative unrestricted net position at June 30, 2022 is primarily the result of the City’s unfunded pension and OPEB obligations.

The $12.2 million increase in net position from business-type activities is primarily due to funds being accumulated for current and future capital projects, especially in the Electric Utility Fund and Wastewater Utility Fund.

Most of the City’s net position is invested in capital assets (i.e., land, buildings, utility plants, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The restricted net position of $106.6 million represents resources that are subject to external restrictions as to how they may be used. The remaining unrestricted net position deficit of ($35.9) million experienced a positive change of $16.1 million, or (30.9%), from the prior year. This change means more Packet Pg. 719 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
12 resources are available to fund the City’s ongoing obligations to its citizens and creditors. The majority of the negative unrestricted net position is primarily the result of the City’s unfunded pension and OPEB obligations.

Analysis of Statement of Activities and Changes in Net Position 2022 2021 2022 2021 2022 2021
Dollar
Change
Percent
Change
Revenues
Program revenues
Charges for services 18,951 $ 19,302 $ 251,057$ 246,883$ 270,008$ 266,185$ 3,823$ 1.4% Operating grants and contributions 26,365 34,694 11,231 7,387 37,596 (4, 42,081 -10.7% 485) Capital grants and contributions 18,621 27,666 5,308 7,134 23,929 (10,871) 34,800 -31.2% Total program revenue 81,662 267,596 63,937 261,404 331,533 343,066 (11,533) -3.4% General revenue
Sales tax 31,159 31,846 - - 31,846 31,159 687 2.2%
Property tax 22,778 24,231 - - 24,231 22,778 1,453 6.4% Investment earnings (2,242) (6, 341 125) 457 (8, 367) (9, 798 -1148.5% 165) Other 12,611 15,639 - 8 15,639 12,619 3,020 23.9%
Total general revenues 66,889 69,474 (6,125) 465 63,349 (4, 67,354 -5.9% 005) Total revenue 133,411 148,551 261,471 261,869 394,882 410,420 (15,538) -3.8% Expenses:

General government 7,445 7,305 - - 7,445 7,305 140 1.9% Police 38,538 36,227 - - 36,227 (2, 38,538 -6.0% 311)
Fire 27,417 24,061 - - 24,061 (3, 27,417 -12.2% 356)
Public works 12,782 17,139 - - 17,139 12,782 4,357 34.1% Planning 5,530 4,261 - - 5,530 4,261 1,269 29.8%
Recreation and culture 11,436 12,086 - - 12,086 11,436 650 5.7% Community development 10,788 11,713 - - 11,713 10,788 925 8.6% Interest on long-term debt 1,448 1,501 - - 1,448 1,501 -3.5% (53) Electric - 158,141 - 158,676 158,141 158,676 (535) -0.3% Water - 20,379 - 20,163 20,379 20,163 216 1.1%
Wastewater - 24,957 - 25,097 24,957 25,097 (140) -0.6%
Storm drain - 2,024 - 2,530 2,024 2,530 (506) -20.0%
Solid Waste - 24,546 - 27,349 24,546 (2, 27,349 803) -10.2% Transportation - 13,907 - 11,187 13,907 11,187 2,720 24.3% Convention center - 1,222 - 873 1,222 873 349 40.0%
Total expenses 115,649 114,028 245,176 245,875 360,825 359,903 922 0.3% 34,523 16,295 17,762 15,994 34,057 (16,460) 50,517 -32.6% Transfers 4,134 (4, 6,159 (6, 134) 159) - - - 0.0%
Change in net position 40,682 12,161 21,896 9,835 34,057 (16,460) 50,517 -32.6% Net position - beginning 249,471 208,789 473,674 463,839 723,145 672,628 50,517 7.5% Net position - ending 271,367$ 249,471$ 485,835$ 473,674$ 757,202$ 723,145$ 34,057$ 4.7% Increase in net position before
transfers and special item
Statement of Activities and Changes in Net Position
(in thousands)
Governmental
Activities
Business-Type
Activities Total Total
Packet Pg. 720 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
13 Governmental Activities
Revenue Highlights
Total revenues for the governmental activities were $133.4 million. The largest component of total revenue is taxes at $69.3 million, making up 52% of total revenue in the governmental funds. This is consistent with the nature and purpose of governmental funds, particularly in the General Fund, where programs are largely supported by general tax revenues. The largest tax revenues received by the General Fund include sales, property, and transient occupancy.

Some of the key changes in revenues are:

Sales tax increases by 2.2% from the prior year. The increase of $0.7 million is the result of a dynamic economy that is still recovering from the impacts of COVID-19 while beginning to weather the impacts of high inflationary pressure. During fiscal year 2021-22 the average inflation was 7.16% with the latter half of the year being higher than the first half of the year. This has potentially two impacts on sales tax, one of which could help and one could hurt. The cost of goods is increasing which could have a positive impact on sales tax. While the negative impact of people not having as much discretionary income to spend on potential taxable goods could negatively impact sales tax. Additionally, The Fed has responded by increasing interest rates which could weaken the economy, which would further hurt sales tax as less people are employed and less disposable income is being spent.

Property taxes increased by 6.4% from the prior year. The $1.5 million increase is reflective of the rise in property values and the related re-assessment when properties are sold.

Transient occupancy taxes increased by 32.8% from the prior year. The $2 million increase is a result of the return of normal travel and additional people staying in local hotels relative to the prior fiscal year.

Operating grants and contributions decreased by $8.3 million primarily due to a decrease in operating grant revenue for Community Development of $6.5 million and Recreation and Culture of $1.9 million.

Charges for services decreased by $0.4 million primarily due to a decrease in Community Development fees of $2 million related to project solar rebate and an increase in General Government fees of $1 million related to late fees and an increase in planning fees of $0.6 million.

Capital grants and contributions decreased by $9 million primarily due to capital grants for Public Works.

Expense Highlights
Functional expenses for the year totaled approximately $115.6 million, an increase of $1.6 million from the prior year. The increase is a result of an increases in Public Works streets maintenance projects and planning expenditures.

The largest component of total expenses was for public safety (police and fire), representing $60.2 million or

52.1% of the total. A large portion of public safety costs are funded from general revenues, primarily taxes. In contrast, Public Works expenses, which total $17.1 million, are funded largely from restricted revenues, including gas tax and federal and state grants. These resources pay for street maintenance and improvements, street, sweeping, transportation planning and other related costs.

Packet Pg. 721 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
14 The following graphs show an illustrative picture of where the City funds come from and where they are spent:

Police

31.3%
Fire
Public Works 20.8%

14.8%
Planning

4.8%
Recreation and
Culture

10.5%
General
Government

6.4%
Interest on L/T
Debt

1.3%
Community
Development

10.1%
Expense by Source - Governmental Activities
Capital Grants and
Contributions

13.5%
Sales Tax

23.1%
Property Tax

17.6%
Other Taxes

9.6%
Other

1.7%
Investment
Earnings
-1.6%
Charges by Service

13.7%
Operating Grants
and Contributions

19.1%
Revenues by Source - Governmental Activities
Packet Pg. 722 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
15 Business-Type Activities
Business-type activities increased the City’s net position by $12.2 million. Key elements of this increase are as follows:
 Revenues exceed expenses for electric, water, wastewater, solid waste and storm drain as funds are being accumulated for current and future capital projects.  Expenses exceed revenues for the convention center as the operating transfer from the general fund is not shown as revenue.

The following schedule shows business-type activities revenues and expenses:
2022 2021 2022 2021 2022 2021
Electric 162,911$ 160,224$ 158,141$ 158,676$ $ 4,770 1,548$ Water 26,820 28,401 20,379 20,163 6,441 8,238
Wastewater 34,011 32,920 24,958 25,097 9,053 7,823
Storm drainage 2,473 3,335 2,024 2,530 449 805
Solid waste 26,895 26,106 24,546 27,349 2,349 (1,243)
Transportation 14,291 10,155 13,907 11,187 384 (1,032)
Convention center 196 264 1,222 (1,026) 874 (610)
Investment earnings (6,125) 457 - - (6,125) 457
Transfers (4,134) (6,159) - - (4,134) (6,159)
Other - 8 - - - 8
Total $ 257,338 255,711$ 245,177$ 245,876$ $ 12,161 9,835$ Revenue Expense
Changes in
Net Position
Revenues, Transfers and Expenditures - Business-Type Activities (in thousands)
Typically, business-type activities charge customers for the services provided and the related necessary capital costs. As can be seen from the above graph, charges for services make up the vast majority (91.7%) of the revenues of the business-type activities.

Charges for
Services

91.7%
Investment
Earnings
-2.2%
Capital Grants &
Contributions

1.9%
Operating Grants
& Contributions

4.1%
Revenues by Source - Business-Type Activities
Packet Pg. 723 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
16 Analysis of the Governmental Fund Balances
Nonspendable Restricted Assigned Unassigned Total
General fund $ 141 3,224 $ 10,118 $ 15,242 $ 28,725 $
Major funds
Capital projects - 1,712 - - 1,712
Other governmental funds 72,174 1 - - 72,175
$ 74,027 3,225 $ 10,118 $ 15,242 $ 102,612 $
Governmental Fund Balances
(in thousands)
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources (modified accrual basis of accounting). Such information is useful in assessing the City’s financing requirements. In particular, total fund balance less the non-spendable portion is a useful measure of a government’s resources available for spending at the end of the fiscal year.

At June 30, 2022, the City’s governmental funds reported total fund balance of $102.6 million, a decrease of $6 million in comparison with the prior year’s total ending fund balance. The components of total fund balance are as follows (for more information see Note 20 – Fund Balances):
 Non-spendable Fund Balance, $3.2 million are amounts that are not spendable in form, or are legally or contractually required to be maintained intact, and are made up of (1) prepaid expenses, (2) inventories, and (3) endowments. $2 million for fire trucks is included in prepaid expenses for fire trucks ordered but not received at fiscal year ended June 30, 2022.  Restricted Fund Balance, $74.0 million consists of amounts with constraints put on their use by creditors, grantors, contributors, laws, regulations or enabling legislation. Examples of restrictions on funds are those for (1) purpose of fund, (2) reserves associated with issued bonds, and (3) grants for capital outlay.  Assigned Fund Balance, $10.1 million are resources that are set aside for a particular purpose, and are made up of amounts that reflect resources for specific purposes such as (1) encumbrances, and (2) future expenditures/contingencies.
 Unassigned Fund Balance, $15.2 million represents the residual balance for the City’s governmental funds.

General Fund
The General Fund is the chief operating fund of the City. At June 30, 2022, unassigned fund balance was $15 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 14.3% of the total General Fund expenditures, while total fund balance represents 26.9% of total General Fund expenditures.

The fund balance of the City’s General Fund decreased by $1.8 million during the year ended June 30, 2022.

Packet Pg. 724 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
17 General Fund revenues increased $6.7 million, and expenditures increased by $19.4 million from fiscal year-end 2021 to 2022. The increase in revenue was primarily due to increases in property tax revenue of $1.4 million (6.1%) and increases in sales tax revenues of $0.8 million (2.6%) and increases in other tax revenue of 1.8 million (15.9%). Tax rates were not changed during the year. The increase is also contributed to late fees of $1.4 million and grant revenue of $1.4.

The $19.4 million increase in expenditures is primarily due to an increase in expenditures for Public Safety of $6.5 million, capital outlay of $6 million and Public Works of $3.8 million and General Government of $1.8 million. The expenditures contributing to the increase are primarily due to increases in staffing costs and increased costs of goods affecting internal service fixed charges and operating materials.

Other financing sources increased by $2.8 million. This is primarily due to an increase in net transfers of $2.1 million and increase in gains on sale of assets of $.5 million.

Capital Project Fund
The Capital Project Fund accounts for the financing and construction activities of the City. On June 30, 2022, the restricted fund balance was $1.7 million. Restricted fund balance represents 9.6% of the total Capital Project Funds expenditures.

The fund balance of the City’s Capital Project Fund decreased $5.5 million during the year ended June 30, 2022 primarily due to an increase in capital outlay.

Capital Project Fund revenues decreased $1.9 million and expenditures decreased $1.0 million. The decrease in revenue was primarily due to a decrease in net investment earnings and the increase in expenditures was the result of decreased capital outlay for construction project activity.

General Fund Capital Projects Fund
2022 2021
Dollar
Change
Percent
Change 2022 2021
Dollar
Change
Percent
Change
Total revenue 91,020 $ 84,328$ 6,692$ 7.9% 12,489$ 14,403$ $ -13.3% (1,914) Total expenditures 106,777 87,367 22.2% 17,840 19,410 18,854 (1,014) -5.4% Excess (deficiency)
of revenues (15,757) (3,039) (12,718) 418.5% (5,351) (4,451) (900) 20.2% Other financing
sources (uses) 13,975 11,201 2,774 24.8% (122) (709) 587 -82.8% Net change in fund
balance (1,782) 8,162 (9,944) -121.8% (5,473) (5,160) (313) 6.1% Fund balance
Beginning of year 30,507 22,345 36.5% 7,185 8,162 12,345 (5,160) -41.8% End of year 28,725$ 30,507$ $ -5.8% 1,712 (1,782) $ $ (5,473)$ -76.2% 7,185 Summary of Revenues, Expenditures, and Changes in Fund Balances (in thousands)
Governmental Funds
Packet Pg. 725 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
18 Analysis of Proprietary Funds
Proprietary Funds: The City’s proprietary funds provide the same type of information found in the governmentwide financial statements, but in more detail. The following schedule shows the changes in net position of the major proprietary funds and restricted and unrestricted portions of net position of the major proprietary funds of the City.

Net Position
June 30, 2021
Changes in
Net Position
Net Position
June 30, 2022
Electric Utility $ 133,516 $ (3,143) $ 130,373
Water Utility 114,305 4,525 118,830
Wastewater Utility 153,635 7,733 161,368
Solid Waste Collection/Disposal 20,560 1,854 22,414
Changes in Net Position - Major Proprietary Funds
(in thousands)
Net
Investment in
Capital Assets
Restricted Net
Position
Unrestricted
Net Position
Total Net
Position
Electric Utility 87,101 $ - $ 43,273 $ 130,374 $
Water Utility 69,930 3,419 45,482 118,831
Wastewater Utility 127,529 71 33,768 161,368
Solid Waste Collection/Disposal 19,721 - 2,693 22,414
Net Position - Restricted and Unrestricted
Major Proprietary Funds as of June 30, 2022
(in thousands)
The factors affecting the above changes in net position and other factors regarding the proprietary funds have already been addressed in the discussion of the City’s business-type activities

Packet Pg. 726 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
19 General Fund Budgetary Highlights
The City adopts two one-year budgets every other year. The fiscal year ending June 30, 2022, was the first year of the two-year budget process. Differences between the original General Fund budget and the amended General Fund budget expenditures are shown below:

Original Amended
Increase
(Decrease)
General government $ 8,110 $ 15,788 $ 7,678
Public safety:

Police 38,087 46,346 8,259
Fire 23,767 26,764 2,997
Public works 18,430 20,015 1,585
Planning 6,736 17,316 10,580
Recreation and culture 9,597 13,094 3,497
Principal payments 1,685 1,742 57
Interest payments and bond costs 953 971 18
Total expenditures $ 107,365 $ 142,036 $ 34,671
General Fund Original and Amended Budget
(in thousands)
As shown in the previous table, the General Fund’s original budget was amended to include increase of $34.6 million or approximately 32.3%. The reasons for this increase are as follows:
 The Planning budget increased by $10.6 million primarily due to $2.5 million in ARPA grant funding, $5 million budgeted for fire station design and review project, and $1.7 million for the Stillwater completion project.
 The Police budget increased by $8.3 million primarily due to grants and grant type agreements approved and received after the budget was originally adopted. Of these grants $3.2 million are ARPA grants budgeted for park rangers and the police 8th beat. It is the City policy not to include grant expenditures in the original adopted budget if grant approval has not been finalized. These grants were for traffic enforcement, police officers and school resource officers along with other Police related activities.  The General Government budget increased $7.7 million primarily due to $6.6 million in ARPA grant funding budgeted for project related to city broadband, the riverfront plan, utility assistance, non-profit assistance, and youth programs.
 The Recreation and Culture budget increased by $3.5 million primarily due to $3.1 million in ARPA grant funding budgeted for park upgrades and sport camp scholarships.  The Fire budget increased by $3 million primarily due to mutual aid provided to Cal Fire.  The City does not include rolling stock appropriations in its original budget. It is a Council policy to maintain a rolling stock fund and equipment replacement fund separate from the General Fund from which departments, with the City Manager approval, can transfer funds to the General Fund and amend the adopted budget for the transfers. During the year departments’ budgets were increased by $1.5 million due to rolling stock transfers and $0.2 million due to equipment replacement transfers.

Packet Pg. 727 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
20 Capital Asset and Debt Administration
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2022, totaled $879.6 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, utility plants, collections, generation, distributions and transmissions systems, improvements, machinery and equipment, park facilities, roads, and bridges. The City’s total investment in capital assets for the current year increased by $7.1 million. Investment in capital assets for governmental activities increased $10.9 million or 3.2% and business-type activities decreased $3.7 million or (0.7%).

Major capital asset events during the current fiscal year included the following:
 Developers added an estimated $4.8 million of water, wastewater, electric, storm drainage improvements, parks, streets, sidewalks and traffic signals.
 Electric Utility added $5.8 million on system improvements, $1.8 million on vehicles, $1.5 million on SB901 Tech Solutions, $1.3 million on an emergency communications platform, $1.3 million on a remote communication meter project, and $0.5 million on mobile command center.  The City added $4.8 million on Girvan Road railroad crossing improvements, $2.3 million on the South Bonnyview at I-5 and Bechelli project, $2.0 million on West Street school safe improvements, $1.5 million on Churn Creek Road at Margalia improvements, $1.3 million on other Street improvements, and $1.1 million on bike paths/lane improvements.
 Water Utility added $1.5 million on water line replacement projects, $0.4 million on the pump house replacement, and $0.3 million in meters.
 Wastewater utility added $1.9 million on Biosolid Pyrolysis, $1.5 million on the Block 7 Sewer project, $1.0 million on Biofilter improvements, and $0.8 million on the Locust Lift Station improvements.  Solid Waste added $1.9 million on vehicles and heavy equipment.  Fire added $2.7 million in vehicles. Police added $0.7 million in vehicles and $1.0 million in Radio Communication Equipment.
 Parks added $1.6 million in Caldwell Park improvements, $1.2 million in City trail improvements, and $0.8 million in Redding Aquatic Center Improvements.
 Community Development added $0.2 million in Emergency Sleeping Cabins.  The City deleted assets, net depreciation, of $0.7 million in plant assets, and $0.3 million in land due to property sales.

Packet Pg. 728 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
21 Balance Balance Dollar Percent
June 30, 2022 June 30, 2021 Change Change
Governmental activities:

Capital assets, not being depreciated
Land 36,207 $ 36,322 $ (115) $ -0.3%
Construction in progress 43,134 32,413 10,721 33.1%
Capital assets, being depreciated
Buildings 24,905 26,737 (1,832) -6.9%
Improvements other than buildings 32,554 35,495 (2,941) -8.3% Infrastructure 202,404 199,967 2,437 1.2%
Automotive equipment 6,998 4,519 2,479 54.9%
Furnishings and equipment 1,795 1,739 3.2% 56
Assets under capital lease:

Improvements 51 86 -40.7% (35)
Automotive equipment 290 192 98 51.0%
Governmental activities capital assets, net $ 348,338 $ 337,470 $ 10,868 3.2% Business-type activities:

Capital assets, not being depreciated
Land $ 20,394 $ 20,127 $ 267 1.3%
Construction in progress 34,488 36,015 (1,527) -4.2%
Capital assets, being depreciated
Utility plants 394,488 391,676 2,812 0.7%
Buildings 28,623 30,986 (2,363) -7.6%
Improvements other than buildings 23,034 24,806 (1,772) -7.1% Automotive equipment 20,565 21,519 (954) -4.4%
Furnishings and equipment 9,564 9,687 (123) -1.3%
Assets under capital lease:

Equipment 61 124 -50.8% (63)
Business-type activities capital assets, net $ 531,217 $ 534,940 $ (3,723) -0.7% Total entity-wide capital assets $ 872,410 879,555 $ 7,145 $ 0.8% See Note 6 to the Financial Statements for additional information regarding capital assets.

Changes in Capital Assets, net Depreciation
(in thousands)
Packet Pg. 729 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
22 Long Term Debt
The following schedule shows the changes in long-term debt for the year not including bond discounts and bond premiums (amounts are in thousands).

Balance
June 30, 2021
Additions/
Transfers Reductions
Balance
June 30, 2022
Governmental activities:

Leases payable $ 278 $ 151 $ 91 $ 338
Lease revenue bonds 29,594 1,955 - 27,639
Total government activities 29,872 151 2,046 27,977
Business-type activities:

State loan payable 1,212 - 84 1,128
Revenue bonds 158,316 12,555 - 145,761
Leases payable 124 - 59 65
Total business-type activities 159,652 12,698 - 146,954 Total outstanding long-term debt 189,524 $ $ 151 $ 14,744 $ 174,931 Changes in Long Term Debt
(in thousands)
The City’s total debt decreased by $14.6 million (net of bond premiums and discounts excluding deferred charges) during the fiscal year ending June 30, 2022. The City made $14.7 million in regular scheduled debt payments. The Police department increased lease obligations by $0.15 million.

Currently, the City’s legal debt margin is $276 million. However, this relates only to general obligation type bonds. Other factors such as available revenues, special assessment pledges, etc. will affect the City’s actual capacity to issue future debt.

Additional information on the City’s long-term debt can be found in Note 10 on pages 91-95 of this report.

Deferred Outflows of Resources & Deferred Inflows of Resources Deferred Outflows of Resources
This classification balance, although similar to “assets,” is set apart because these items do not meet the technical definition of being a City asset on the date of these financial statements. In other words, these amounts are not available to pay liabilities in the way assets are available. When all the recognition criteria are met, the deferred outflow of resources will become an expense/expenditure.

There are two primary components of the deferred outflows as reported. The first component is related to the implementation of GASB Statement No. 68 and GASB Statement No. 71 for pension liability reporting. GASB 71 requires that contributions made during the fiscal year to the retirement system be reported as deferred outflows of resources. Other potential deferred outflows of resources are attributable to the various components that impact pension changes and can include investment earnings, changes due to actuarial assumptions, and differences between expected or actual experience.

Packet Pg. 730 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
23 The second component of the deferred outflows of resources is related to the implementation of GASB Statement 75 for Other Post-Employment Benefits (OPEB). GASB 75, much like GASB 68 and 71, requires the recognition of deferred outflows of resources. The deferred outflows of resources are attributable to the various components that impact OPEB liability and can include contributions made after the measurement date (current year contributions), investment earnings, changes due to actuarial assumptions, and the difference between expected and actual experience.

Deferred Inflows of Resources
Deferred inflows of resources are the counterpart to deferred outflows of resources on the Statement of Net Position. Deferred inflows of resources are not technically liabilities of the City as of the date of the financial statements. When all the recognition criteria are met, the deferred inflow of resources will become revenue or an increase to net position.

Deferred inflows of resources can also be impacted by the implementation of GASB 68 for pension liability reporting and GASB 75 for OPEB. Deferred inflows of resources related to pensions represent the net amount attributable to the various components that impact pension changes, and can include investment earnings, changes due to actuarial assumptions, and differences between expected or actual experience. Deferred inflows related to OPEB can include the same components.

Deferred inflows of resources are also impacted by the implementation of GASB 87 for lease reporting. Deferred inflows of resources related to leases represent the deferred revenue related to the present value of lease receivable.

Additional information pertaining to deferred outflows and inflows for pensions and OPEB can be found in notes 18 and 19.

Economic Factors and Next Year’s Budgets and Rates
 The City of Redding has experienced a decrease in population since 2020 of less than one percent per year while the unemployment rate has decreased from 10% in 2020 to 4% in 2022.  Inflationary trends in the region compare favorably to national indices.  Overall tax revenue for the City’s General Fund increased by $4 million during the year. This was primarily due to the increases in sales tax ($0.8 million), property tax ($1.4 million), cannabis tax ($0.3 million), and transient occupancy tax ($2.3 million).
 The City’s General Fund two most major tax revenue sources are sales tax and property tax. Sales tax revenue is budgeted to increase by 3.8% in fiscal year 2022-23. Property tax revenue is budgeted to increase by 5.8% in fiscal year 2022-23.
 Building activity in the City continues to have strong indications with year over year growth through fiscal year 2021-22.
 The future economic activity is uncertain at this time as many experts are predicting a recession in calendar year 2023. The duration and severity of the recession is uncertain as forecasts are from early to late 2023 with predictions from a moderate recession to a painful recession.

All of these factors were considered in preparing and updating the City’s budget for the 2022-23 fiscal year.

Packet Pg. 731 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
24 During the current fiscal year fund balance in the General Fund decreased by $1.8 million to $28.7 million. The City of Redding has a City Council policy that requires major funds, including the General Fund, to prepare and maintain 10-year financial plans that maintain a minimum 10% cash reserve for all years of the plan. The City Council passed a 10-year Financial Plan on June 15, 2021 which maintains this standard for all years. The fund balance is different than cash, which is used as the basis of measurement for the City Council policy (see Note 1 for definitions of fund balance and cash). Any changes to fund balance associated with changes in cash will be analyzed and updated with future revisions to the City of Redding General Fund 10-year plan.

The Electric, Water, Wastewater, and Solid Waste rates will increase either as approved by City Council or at rates proposed to City Council. The current rates for Water, Wastewater and Solid Waste were adopted by City Council on February 4, 2020. The current Electric rates were adopted by City Council on December 7, 2021.

Request for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. This report can be found on the City of Redding website, www.cityofredding.org under Departments, under Finance Department. Questions concerning any information provided in this report or request for additional financial information should be directed to:

The City of Redding - Finance Department
777 Cypress Avenue
Redding, CA 96001
Packet Pg. 732 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Basic Financial
Statements
25 Packet Pg. 733 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 26 This page intentionally left blank
Packet Pg. 734 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021)

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
27 Packet Pg. 735 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 79,884,498 $ 192,862,156 $ 272,746,654 $ Receivables:

Interest 4,908,542 534,610 5,443,152
Accounts, net 2,075,214 24,580,829 26,656,043
Lease 295,144 688,245 983,389
Taxes 6,882,186 - 6,882,186
Intergovernmental 23,106,554 3,859,903 26,966,457
Notes 58,130,731 112,321 58,243,052
Special assessments 321,402 - 321,402
Other 711,463 - 711,463
Inventories 570,708 12,089,026 12,659,734
Prepaid items 2,295,472 1,395,777 3,691,249
Deposits - 157,373 157,373
Total current assets 236,280,240 179,181,914 415,462,154 Noncurrent assets:

Internal balances 13,033,225 (13,033,225) -
Restricted assets:

Cash and investments 2,592,214 10,822,509 13,414,723
Interest receivable 2,068 - 2,068
Power acquisition costs, net - 35,284 35,284
Lease receivable, net 1,761,601 6,925,130 8,686,731
Capital assets:

Land and construction in progress 79,341,431 54,882,301 134,223,732 Depreciable capital assets, net 268,995,988 476,334,965 745,330,953 Investment in JPA - 6,353,828 6,353,828
Storage base gas - 13,570,000 13,570,000
Total noncurrent assets 555,890,792 365,726,527 921,617,319 Total assets 544,908,441 792,171,032 1,337,079,473

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding bonds or debt 212,906 7,347,590 7,560,496 Deferred outflows related to other post employment benefits 15,9 49,359 11,206,418 27,155,777 Deferred outflows related to pensions 25,420,205 17,317,227 42,737,432 Total deferred outflows of resources 41,582,470 35,871,235 77,453,705 (Continued)
See accompanying Notes to the Basic Financial Statements.

City of Redding
Statement of Net Position
June 30, 2022
Primary Government
28 Packet Pg. 736 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 5,650,436 8,965,623 14,616,059
Accrued liabilities 1,629,900 1,071,314 2,701,214
Intergovernmental payable 1,094,455 6,280,147 7,374,602 Accrued interest payable 345,281 593,641 938,922
Unearned revenue 19,142,123 3,216,437 22,358,560
Deposits 279,943 9,496,888 9,776,831
Accounts payable from restricted assets 2,017,706 - 2,017,706 Landfill closing costs, due within one year - 170,370 170,370 Claims and judgements payable, due within one year 7,151,039 - 7,151,039 Compensated absences, due within one year 5,093,888 3,223,756 8,317,644 Long-term debt, due within one year 2,265,598 17,059,746 19,325,344 Total current liabilities 50,077,922 44,670,369 94,748,291 Noncurrent liabilities:

Intergovernmental payable, due in more than one year 292,252 - 292,252 Landfill closing costs, due in more than one year - 2,413,590 2,413,590 Claims and judgements payable, due in more than one year 10,505,901 10,505,901 - Accrued compensated absences, due in more than one year 8,658,255 5,833,511 14,491,766 Long-term debt, due in more than one year 28,541,969 153,088,908 181,630,877 Aggregate other post employment benefits liability 32,267,919 22,672,249 54,940,168 Aggregate net pension liability 144,807,180 74,096,688 218,903,868 Total noncurrent liabilities 225,073,476 258,104,946 483,178,422 Total liabilities 269,743,845 308,182,868 577,926,713

DEFFERED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits 1,180,665 829,564 2,010,229 Deferred inflows related to pensions 42,142,922 25,581,569 67,724,491 Deferred inflows related to leases 2,056,745 7,613,375 9,670,120 Total deferred inflows of resources 45,380,332 34,024,508 79,404,840

NET POSITION
Net investment in capital assets 317,742,758 368,787,712 686,530,470 Restricted for:

Capital outlay - 6,782,510 6,782,510
Debt service 742,437 - 742,437
Housing 19,318,364 19,318,364 -
Community development 47,350,983 47,350,983 -
Public works 18,476,404 18,476,404 -
Public safety 1,799,477 - 1,799,477
Community services 11,089,507 11,089,507 -
Other 1,022,418 - 1,022,418
Total restricted 99,799,590 6,782,510 106,582,100
Unrestricted (deficit) (146,175,614) 110,264,669 (35,910,945) Total net position $ 271,366,734 $ 485,834,891 $ 757,201,625 (Concluded)
See accompanying Notes to the Basic Financial Statements.

Primary Government
City of Redding
Statement of Net Position (Continued)
June 30, 2022
29 Packet Pg. 737 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Operating Capital Total
Charges for Grants and Grants and Program
Functions / Programs Expenses Services Contributions Contributions Revenues Primary government:

Governmental activities:

General government $ 6,483,335 7,444,640 $ 1,981,528 $ - $ 8,464,863 $ Police 1,373,202 36,227,155 1,864,138 76,749 3,314,089
Fire 2,129,621 24,061,217 7,500 519,080 2,656,201
Public works 1,055,233 17,139,094 8,367,534 12,447,868 21,870,635 Planning 5,502,403 5,529,441 215,436 - 5,717,839
Recreation and culture 2,195,853 12,086,281 418,425 5,577,764 8,192,042 Community development 211,765 11,712,568 13,510,325 - 13,722,090 Interest on long-term debt 1,448,241 - - - -
Total governmental activities 18,951,412 115,648,637 26,364,886 18,621,461 63,937,759 Business-type activities:

Electric 158,141,420 159,904,815 1,153,694 1,852,157 162,910,666 Water 25,183,388 20,378,700 1,449,639 186,513 26,819,540 Wastewater 32,707,404 24,957,471 1,066,507 236,924 34,010,835 Storm drainage 2,024,016 2,204,401 - 268,274 2,472,675
Solid waste 24,546,239 26,844,590 40,867 10,000 26,895,457 Transportation 13,906,912 4,016,624 7,519,855 2,754,343 14,290,822 Convention center 1,221,786 196,171 - - 196,171
Total business-type activities 251,057,393 245,176,544 11,230,562 5,308,211 267,596,166 Total primary government $ 270,008,805 360,825,181 $ 37,595,448 $ 23,929,672 $ 331,533,925 $ (Continued)
See accompanying Notes to the Basic Financial Statements.

City of Redding
Statement of Activities and Changes in Net Position
For the Year Ended June 30, 2022
Program Revenues
30 Packet Pg. 738 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Governmental Business-Type
Functions / Programs Activities Activities Total
Primary government:

Governmental activities:

General government $ - 1,020,223 $ 1,020,223 $
Police - (32,913,066) (32,913,066)
Fire - (21,405,016) (21,405,016)
Public works - 4,731,541 4,731,541
Planning - 188,398 188,398
Recreation and culture - (3,894,239) (3,894,239)
Community development - 2,009,522 2,009,522
Interest on long-term debt (1,448,241) - (1,448,241)
Total governmental activities - (51,710,878) (51,710,878) Business-type activities:

Electric - 4,769,246 4,769,246
Water 6,440,840 - 6,440,840
Wastewater 9,053,364 - 9,053,364
Storm drainage - 448,659 448,659
Solid waste - 2,349,218 2,349,218
Transportation - 383,910 383,910
Convention center - (1,025,615) (1,025,615)
Total business-type activities 22,419,622 - 22,419,622
Total primary government 22,419,622 (51,710,878) (29,291,256) General revenues and transfers:

Taxes:

Property taxes, levied for general purpose 24,231,038 - 24,231,038 Transient occupancy taxes 8,266,136 - 8,266,136
Sales taxes 31,845,575 - 31,845,575
Motor vehicle taxes 105,953 - 105,953
Franchise taxes 1,237,911 - 1,237,911
Other taxes 3,646,978 - 3,646,978
Total taxes 69,333,591 - 69,333,591
Investment income (loss) (2,241,966) (6,124,850) (8,366,816) Other 226,659 - 226,659
Gain on sale of assets 2,154,810 - 2,154,810
Transfers (4,134,065) 4,134,065 -
Total general revenues and transfers (10,258,915) 73,607,159 63,348,244 Changes in net position 12,160,707 21,896,281 34,056,988 Net position:

Beginning of year 249,470,453 473,674,184 723,144,637
End of year 271,366,734 $ 485,834,891 $ 757,201,625 $
(Concluded)
See accompanying Notes to the Basic Financial Statements.

City of Redding
Statement of Activities and Changes in Net Position (Continued) For the Year Ended June 30, 2022
and Changes in Net Position
Net (Expenses) Revenues
31 Packet Pg. 739 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
32 Packet Pg. 740 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021)

FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
33 Packet Pg. 741 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
34 Packet Pg. 742 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021)

GOVERNMENTAL FUND

FINANCIAL STATEMENTS
General Fund – This fund is the general operating fund of the City which accounts for all financial resources except those required to be accounted for in another fund.

General Capital Projects Fund – This fund was established to account for the financing and construction activities of the general government.
35 Packet Pg. 743 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) General Non-Major Total
General Capital Projects Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and investments $ 43,115,805 $ 3,504,429 $ 14,489,689 $ 61,109,923 Accounts receivable, net 1,955,609 5,000 37,780 1,998,389 Lease receivable 2,056,745 - 2,056,745 -
Intergovernmental receivable 884,886 19,719,039 2,502,629 23,106,554 Interest receivable 78,632 4,785,861 - 4,864,493
Taxes receivable 6,882,186 - 6,882,186 -
Other receivable 696,771 - 14,692 711,463
Due from other funds 1,786,544 - 1,786,544 -
Prepaid items 2,137,598 - 777 2,138,375
Inventories 179,264 - 179,264 -
Restricted assets:

Cash and investments 907,492 1,536,249 148,473 2,592,214 Interest receivable - 2,068 - 2,068
Interfund receivable 25,000 - - 25,000
Advances to other funds 31,250 - - 31,250
Special assessments receivable - 321,402 - 321,402
Notes receivable - 58,130,731 - 58,130,731
Total assets 60,737,782 24,766,785 80,432,034 165,936,601 (Continued)
See accompanying Notes to the Basic Financial Statements.

City of Redding
Balance Sheet
Governmental Funds
June 30, 2022
36 Packet Pg. 744 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) General Non-Major Total
General Capital Projects Governmental Governmental
Fund Fund Funds Funds

LIABILITIES
Accounts payable 4,498,779 533,510 139,902 5,172,191
Accrued liabilities 1,282,725 23,025 37,357 1,343,107
Intergovernmental payable 557,384 162,183 8,418 727,985 Due to other funds - - 60,037 60,037
Accounts payable from restricted assets - 2,012,506 5,200 2,017,706 Unearned revenue 16,077,508 1,191,487 1,668,847 18,937,842 Deposits 131,470 - 148,473 279,943
Advances from other funds 5,760,767 - 420,694 6,181,461 Total liabilities 3,922,711 28,308,633 2,488,928 34,720,272

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,647,222 19,131,988 5,768,348 26,547,558 Leases 2,056,745 - - 2,056,745
Total deferred inflows of resources: 19,131,988 3,703,967 5,768,348 28,604,303 Fund balances:

Nonspendable 3,224,350 - 777 3,225,127
Restricted 141,236 1,712,086 72,173,981 74,027,303
Assigned 10,117,549 - - 10,117,549
Unassigned 15,242,047 - - 15,242,047
Total fund balances 1,712,086 28,725,182 72,174,758 102,612,026 Total liabilities, deferred inflows of
resources and fund balances $ 24,766,785 60,737,782 $ 80,432,034 $ 165,936,601 $ (Concluded)
See accompanying Notes to the Basic Financial Statements.

Balance Sheet (Continued)
Governmental Funds
June 30, 2022
City of Redding
37 Packet Pg. 745 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
38 Packet Pg. 746 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Statement of Internal
Net Position Service Funds Net
$ 102,612,026

Capital assets (net) have not been included as financial resources in governmental fund activity. $ 348,337,419 $ 8,063,747 340,273,672 Deferred charges have not been included as financial resources in governmental fund activity. 212,906 212,906 - Deferred outflows related to pensions and OPEB have not been included in governmental fund activity. 41,369,564 5,943,888 35,425,676 Long-term debt that has not been included in the governmental fund activity. (30,807,567) (30,807,567) - Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. (345,281) (345,281) -
The net other post employment benefit obligation has not been reported in the governmental funds. (32,267,919) (4,836,105) (27,431,814) Net pension liability is not due and payable in the current period and therefore is not reported in the fund financial statements. (144,807,180) (15,595,700) (129,211,480) Revenue reported as unavailable revenue in the governmental funds is recorded as revenue in the statement of activities. 26,547,558 26,547,558 -
Deferred inflows related to pensions and OPEB have not been included in governmental fund activity. (43,323,587) (5,531,714) (37,791,873) Internal service fund net position included in the governmental activities on the statement of activities. (3,928,399) - 3,928,399 Accrued vacation and other leave not reported in governmental funds, but recorded as expense in the Statement of Activities. (13,752,143) (1,706,655) (12,045,488)

$ 271,366,734
See accompanying Notes to the Basic Financial Statements.

Net position of governmental activities
City of Redding
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
Fund balances governmental funds
Amounts reported for governmental activities in the Statement of Net Position are different because:
39 Packet Pg. 747 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) General Non-Major Total
General Capital Projects Governmental Governmental
Fund Fund Funds Funds
REVENUES:

Property taxes $ 24,196,056 $ - $ - $ 24,196,056
Sales and use taxes 31,594,559 - 272,517 31,867,076
Other taxes 13,151,025 - - 13,151,025
Special assessments 12,009 - 916,718 928,727
Licenses and permits 2,449,623 - 45,766 2,495,389
Intergovernmental revenues 4,357,614 7,847,034 21,118,161 33,322,809 Charges for services 5,697,087 - 1,660,488 7,357,575
Fines, forfeitures, and penalties 1,290,823 - 77,648 1,368,471 Use of money and property 8,349,455 - - 8,349,455
Net investment earnings (loss) (1,400,341) (22,004) (194,078) (1,616,423) Other 1,322,337 4,663,822 141,449 6,127,608
Total revenues 91,020,247 12,488,852 24,038,669 127,547,768 EXPENDITURES:

Current:

General government 8,780,522 709 - 8,781,231
Community development - - 12,106,454 12,106,454
Public safety:

Police 38,735,356 - 56,048 38,791,404
Fire 25,884,481 - - 25,884,481
Public works 9,089,981 745,558 880,663 10,716,202
Planning 5,843,580 - - 5,843,580
Recreation and culture 5,724,530 433,961 2,533,696 8,692,187 Capital outlay 9,934,226 15,921,835 167,106 26,023,167
Debt service:

Principal 1,741,918 270,000 34,631 2,046,549
Interest and fiscal charges 1,042,605 467,788 3,298 1,513,691 Total expenditures 106,777,199 17,839,851 15,781,896 140,398,946 Excess (deficiency) of revenues
over (under) expenditures (15,756,952) (5,350,999) 8,256,773 (12,851,178) OTHER FINANCING SOURCES (USES):

Sale of assets 1,529,810 - 625,000 2,154,810
Long-term debt issued 151,196 - - 151,196
Transfers in 14,374,184 - 937,161 15,311,345
Transfers out (2,079,843) (122,048) (8,553,136) (10,755,027) Total other financing sources (uses) 13,975,347 (122,048) (6,990,975) 6,862,324 NET CHANGE IN FUND BALANCES (1,781,605) (5,473,047) 1,265,798 (5,988,854) Fund balances:

Beginning of year 30,506,787 7,185,133 70,908,960 108,600,880 End of year $ 28,725,182 $ 1,712,086 $ 72,174,758 $ 102,612,026 See accompanying Notes to the Basic Financial Statements.

City of Redding
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2022
40 Packet Pg. 748 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Net change in fund balances - total governmental funds $ (5,988,854) Governmental funds reported acquisition of capital assets as part of capital outlay expenditures. However, in the government-wide Statement of Activities and Changes in Net Position, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This was the amount of capital assets recorded in the current period. 26,023,167
In the Statement of Activities, donated assets are reported as a capital contribution. 2,122,564 Transfer of capital assets between governmental, enterprise, and internal service funds. (422,253) Depreciation expense on capital assets was reported in the government-wide Statement of Activities and Changes in Net Position, but it did not require the use of current financial resources. Therefore, depreciation expense, net of internal service funds of $1,230,665 was not reported in the in governmental funds. (15,495,759) Disposal of capital assets is reported in the government-wide Statement of Activities and Changes in Net Position, but it does not require the use of current financial resources. Therefore, it is not reported as expenditures in governmental funds.
- Net book value of the assets disposed (307,893)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental funds. 4,546,732
In the Statement of Activities, the other post employment benefit expense that does not require the use of financial resources is not reported as revenue or expenditure. (1,518,868) Repayment of long-term liabilities was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Principal payment of long-term debt 2,046,549
Amortization of bond premium 130,904
Amortization of bond discounts (3,988)
Proceeds from debt are a financing source in the governmental funds, but a liability in the Statement of Net Position (151,196) Interest expense on long-term debt is accrued in the government-wide Statement of Activities and Changes in Net Position. The following amount represented the change in accrued interest from the prior year and amortization of interest expense. (28,907)
Compensated absences in the Statement of Activities is reported as an expense but is not reported in the governmental funds. (1,216,390)
In the Statement of Activities, pension expense that does not require the use of current financial resources is not reported as revenue or expenditure. 12,929,495
Net income (loss) before transfers and contributions - internal service funds (801,039) Less: portion allocated to business activities 32,017
Change in net position of governmental activities $ 21,896,281 See accompanying Notes to the Basic Financial Statements.

Amounts reported for governmental activities in the Statement of Activities were different because:

City of Redding
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances of Government-Wide Statement of Activities and Changes in Net Position For the Year Ended June 30, 2022
41 Packet Pg. 749 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
42 Packet Pg. 750 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Major Enterprise Funds:

Electric Utility – This fund was established to account for the operations of the City’s electric utility, a selfsupporting activity which renders a service on a user-charge basis to residents and businesses.

Water Utility – This fund was established to account for the operations of the City’s water utility, a selfsupporting activity which renders a service on a user-charge basis to residents and businesses.

Wastewater Utility - This fund was established to account for the operations of the City’s wastewater utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

Solid Waste Collection/Disposal - This fund was established to account for the operations of the City’s solid waste collection and disposal, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

Internal Service Funds:

These funds are used to account for interdepartmental operations where it is the stated intent that costs of providing services to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments.

PROPRIETARY FUND

FINANCIAL STATEMENTS
43 Packet Pg. 751 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Solid Waste
Electric Water Wastewater Collection/
Utility Utility Utility Disposal
ASSETS
Current assets:

Cash and investments $ 69,023,386 $49,647,074 37,453,563 $ $ 27,800,804 Accounts receivable, net 16,362,983 2,602,270 3,045,621 2,449,463 Lease receivable 97,832 - - -
Intergovernmental receivable 186,339 - - -
Interest receivable 183,192 144,995 109,055 74,364
Interfund receivable 67,649 - - -
Prepaid items 1,376,631 3,048 3,358 11,246
Inventories 10,948,854 1,004,091 21,681 -
Deposit 95,373 21,000 41,000 - - Total current assets 98,058,068 53,706,649 40,674,278 30,335,877 Noncurrent assets:

Restricted assets:

Cash and investments 3,768,543 643 3,931,611 -
Total restricted assets 3,768,543 643 3,931,611 -
Capital assets:

Land 5,240,780 508,799 2,984,167 1,697,818
Construction in progress 14,045,467 5,220,883 11,189,433 478,415 Depreciable capital assets, net 175,525,825 64,550,124 166,434,775 17,553,713 Capital assets 194,812,072 70,279,806 180,608,375 19,729,946 Other assets:

Power acquisition costs, net 35,284 - - -
Advances to other funds 6,007,110 - - -
Lease receivable, net current 412,369 - - -
Investment in JPA 6,353,828 - - -
Storage base gas 13,570,000 - - -
Note receivable 112,321 - - -
Total other assets 26,078,543 412,369 - -
Total noncurrent assets 220,891,258 74,460,718 184,539,986 19,729,946 Total assets 318,949,326 128,167,367 225,214,264 50,065,823

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 6,504,667 12,973 825,317 -
Deferred outflows related to other post employment benefits 7,309,734 757,754 1,045,702 1,759,613 Deferred outflows related to pensions 11,255,969 1,319,568 1,677,118 2,646,184 Total deferred outflows of resources 25,070,370 2,090,295 3,548,137 4,405,797 (Continued)
See accompanying Notes to the Basic Financial Statements.

Enterprise Funds
City of Redding
Statement of Net Position
Proprietary Funds
June 30, 2022
44 Packet Pg. 752 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Governmental
Activities
Non-Major Internal
Enterprise Service
Funds Total Funds
ASSETS
Current assets:

Cash and investments $ 8,937,329 $ 192,862,156 $ 18,774,575 Accounts receivable, net 120,492 24,580,829 76,825
Lease receivable 590,413 688,245 -
Intergovernmental receivable 3,673,564 3,859,903 -
Interest receivable 23,004 534,610 44,049
Interfund receivable - 67,649 83,851
Prepaid items 1,494 1,395,777 157,097
Inventories 114,400 12,089,026 391,444
Deposit 157,373 - -
Total current assets 13,460,696 236,235,568 19,527,841
Noncurrent assets:

Restricted assets:

Cash and investments 3,121,712 10,822,509 -
Total restricted assets 3,121,712 10,822,509 -
Capital assets:

Land 9,962,746 20,394,310 110,810
Construction in progress 3,553,793 34,487,991 74,907
Depreciable capital assets, net 52,270,528 476,334,965 7,878,030 Capital assets 65,787,067 531,217,266 8,063,747
Other assets:

Power acquisition costs, net - 35,284 -
Advances to other funds 6,007,110 - 3,312,699
Lease receivable, net current 6,512,761 6,925,130 -
Investment in JPA 6,353,828 - -
Storage base gas 13,570,000 - -
Note receivable 112,321 - -
Total other assets 6,512,761 33,003,673 3,312,699
Total noncurrent assets 75,421,540 575,043,448 11,376,446 Total assets 88,882,236 811,279,016 30,904,287

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 4,633 7,347,590 -
Deferred outflows related to other post employment benefits 333,615 11,206,418 2,390,385 Deferred outflows related to pensions 418,388 17,317,227 3,553,503 Total deferred outflows of resources 756,636 35,871,235 5,943,888 (Continued)
See accompanying Notes to the Basic Financial Statements.

City of Redding
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2022
Enterprise Funds
45 Packet Pg. 753 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Solid Waste
Electric Water Wastewater Collection/
Utility Utility Utility Disposal

LIABILITIES
Current liabilities (payable from current assets):

Accounts payable 4,529,590 768,164 931,051 1,033,088
Accrued liabilities 707,563 76,519 97,672 152,848
Accrued interest payable 393,544 2,318 176,958 -
Claims and judgements payable - - - -
Intergovernmental payable 5,399,301 4,189 25,659 40,651 Due to other funds - - - -
Interfund payables - - - -
Unearned revenue - 20,465 - 140,959
Deposits 2,074,255 - - 7,334,594
Accrued compensated absences, due with in one year 2,059,498 238,748 281,639 586,564 Landfill closure costs, due with in one year - - - 170,370 Long-term debt, due with in one year 10,808,080 731,415 5,349,838 9,042 State loan, due with in one year - - - -
Total current liabilities 25,971,831 1,841,818 6,862,817 9,468,116 Long-term liabilities:

Accrued compensated absences, due in more than one year 3,757,169 385,392 498,415 1,090,895 Landfill closure costs, due in more than one year - - - 2,413,590 Advances from other funds - - - -
Claims and judgements, due in more than one year - - - - Long-term debt, due in more than one year 103,408,368 2,248 48,555,121 - State loan, due in more than one year - - - -
Aggregate net OPEB liability 14,788,676 1,533,050 2,115,611 3,559,958 Aggregate net pension liability 48,468,583 5,254,395 6,885,326 11,450,799 Total long-term liabilities 170,422,796 7,175,085 58,054,473 18,515,242 Total liabilities 196,394,627 9,016,903 64,917,290 27,983,358

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits 541,110 56,093 77,409 130,257 Deferred inflows related to pensions 16,710,369 1,843,695 2,399,121 3,943,632 Deferred inflows related to leases - 510,201 - -
Total deferred inflows of resources 17,251,479 2,409,989 2,476,530 4,073,889

NET POSITION
Net investment in capital assets 87,100,934 69,929,983 127,528,733 19,720,904 Restricted for:

Capital projects 3,419,120 - 71,635 -
Unrestricted (deficit) 43,272,656 45,481,667 33,768,213 2,693,469 Total net position (deficit) $ 130,373,590 $ 118,830,770 $ 161,368,581 $ 22,414,373 (Continued)
See accompanying Notes to the Basic Financial Statements.

Enterprise Funds
City of Redding
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2022
46 Packet Pg. 754 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Governmental
Activities
Non-Major Internal
Enterprise Service
Funds Total Funds

LIABILITIES
Current liabilities (payable from current assets):

Accounts payable 1,703,730 8,965,623 478,245
Accrued liabilities 36,712 1,071,314 286,793
Accrued interest payable 20,821 593,641 -
Claims and judgements payable - - 7,151,039
Intergovernmental payable 810,347 6,280,147 658,722
Due to other funds 1,726,507 1,726,507 -
Interfund payables 83,851 83,851 92,649
Unearned revenue 3,055,013 3,216,437 204,281
Deposits 88,039 9,496,888 -
Accrued compensated absences, due with in one year 57,307 3,223,756 598,359 Landfill closure costs, due with in one year - 170,370 - Long-term debt, due with in one year 75,888 16,974,263 - State loan, due with in one year 85,483 85,483 -
Total current liabilities 7,743,698 51,888,280 9,470,088 Long-term liabilities:

Accrued compensated absences, due in more than one year 101,640 5,833,511 1,108,296 Landfill closure costs, due in more than one year - 2,413,590 - Advances from other funds 3,125,787 3,125,787 43,811
Claims and judgements, due in more than one year - - 10,505,901 Long-term debt, due in more than one year 80,215 152,045,952 - State loan, due in more than one year 1,042,956 1,042,956 - Aggregate net OPEB liability 674,954 22,672,249 4,836,105 Aggregate net pension liability 2,037,585 74,096,688 15,595,700 Total long-term liabilities 7,063,137 261,230,733 32,089,813 Total liabilities 14,806,835 313,119,013 41,559,901

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits 24,695 829,564 176,949 Deferred inflows related to pensions 684,752 25,581,569 5,354,765 Deferred inflows related to leases 7,103,174 7,613,375 - Total deferred inflows of resources 7,812,621 34,024,508 5,531,714

NET POSITION
Net investment in capital assets 64,507,158 368,787,712 8,063,747 Restricted for:

Capital projects 3,291,755 6,782,510 -
Unrestricted (deficit) (779,497) 124,436,508 (18,307,187) Total net position (deficit) $ 67,019,416 $ 500,006,730 $ (10,243,440) Net position reconciliation to statement of net position:

Net position of proprietary funds $ 500,006,730
Less business-type portion of the internal service fund (14,171,839) Net position of business-type activities $ 485,834,891
See accompanying Notes to the Basic Financial Statements. (Concluded) City of Redding
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2022
Enterprise Funds
47 Packet Pg. 755 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Solid Waste
Electric Water Wastewater Collection/
Utility Utility Utility Disposal
OPERATING REVENUES:

User fees and charges 123,439,749 $ 24,730,653 $ 32,688,109 $ 25,578,674 $ Wholesale sales 30,351,930 257,437 - -
Rental charges 138,000 - - -
Other operating revenue 5,856,359 21,387 1,626 1,264,036 Total operating revenues 25,009,477 159,786,038 32,689,735 26,842,710 OPERATING EXPENSES:

Cost of power, water, and transportation 62,709,514 1,939,889 - - Maintenance, operations, and administration 76,350,195 14,274,265 15,852,694 22,540,591 Depreciation and amortization 14,213,295 3,928,806 7,530,265 2,787,403 Total operating expenses 20,142,960 153,273,004 23,382,959 25,327,994 OPERATING INCOME (LOSS) 4,866,517 6,513,034 9,306,776 1,514,716 NONOPERATING REVENUES (EXPENSES):

Net investment earnings (loss) (2,187,380) (1,605,195) (1,248,594) (778,939) Interest expense (4,740,195) (99,653) (1,656,898) (357) Intergovernmental revenues 1,143,413 270,154 - 40,867
Gain (loss) on disposal of assets (425,959) (188,969) 10,600 90,573 Other non-operating revenues (expenses) (120,749) 1,087,642 1,071,376 11,880 Total nonoperating revenues (expenses) (536,021) (6,330,870) (1,823,516) (635,976)

INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS 4,330,496 182,164 7,483,260 878,740 Capital contributions 2,139,110 460,621 249,724 975,691 Transfers in - 4,000 - -
Transfers out (5,464,000) (269,685) - -
Change in net position (3,142,726) 4,525,432 7,732,984 1,854,431 NET POSITION:

Beginning of year 133,516,316 114,305,338 153,635,597 20,559,942 End of year $ 130,373,590 $ 118,830,770 $ 161,368,581 $ 22,414,373 (Continued)
See accompanying Notes to the Basic Financial Statements.

Enterprise Funds
City of Redding
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2022
48 Packet Pg. 756 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Governmental
Activities
Non-Major Internal
Enterprise Service
Funds Total Funds
OPERATING REVENUES:

User fees and charges $ 3,711,322 $ 210,148,507 $ 75,101,741 Wholesale sales 30,609,367 - -
Rental charges - 138,000 -
Other operating revenue 2,867,246 10,010,654 80,571
Total operating revenues 6,578,568 250,906,528 75,182,312 OPERATING EXPENSES:

Cost of power, water, and transportation 4,133,599 68,783,002 - Maintenance, operations, and administration 8,528,665 137,546,410 74,170,534 Depreciation and amortization 4,443,998 32,903,767 1,230,665 Total operating expenses 17,106,262 239,233,179 75,401,199 OPERATING INCOME (LOSS) (10,527,694) 11,673,349 (218,887) NONOPERATING REVENUES (EXPENSES):

Net investment earnings (loss) (304,743) (6,124,851) (585,917) Interest expense (49,408) (6,546,511) (4,105)
Intergovernmental revenues 6,356,253 7,810,687 1,244
Gain (loss) on disposal of assets 23,202 (490,553) 5,659 Other non-operating revenues (expenses) 472,149 2,522,298 967 Total nonoperating revenues (expenses) 6,497,453 (2,828,930) (582,152)

INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS (4,030,241) 8,844,419 (801,039) Capital contributions 4,076,605 7,901,751 3,429,027
Transfers in 1,411,237 1,415,237 1,130
Transfers out (235,000) (5,968,685) (4,000)
Change in net position 1,222,601 12,192,722 2,625,118
NET POSITION:

Beginning of year 65,796,815 487,814,008 (12,868,558)
End of year $ 67,019,416 $ 500,006,730 $ (10,243,440)
Change in net position reconciliation to statement of activities:

Change in net position of proprietary funds $ 12,192,722 Add internal service funds income - business-type activity (32,015) Change in net position of business-type activities $ 12,160,707 (Concluded)
See accompanying Notes to the Basic Financial Statements.

City of Redding
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
For the Year Ended June 30, 2022
Enterprise Funds
49 Packet Pg. 757 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Electric Water Wastewater
Utility Utility Utility
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 155,655,638 $ 25,548,287 $ 32,814,182 $ Cash paid to suppliers (100,680,916) (13,693,411) (12,615,253) Cash paid to employees (44,550,075) (4,348,709) (5,598,969) Other income received 5,856,359 21,387 1,626
Net cash provided by (used in) operating activities 7,527,554 16,281,006 14,601,586

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Intergovernmental revenue received 1,143,413 270,154 12,800 Advances from other funds - - -
Repayment of advances from other funds - - -
Advances to other funds (1,379,971) (144,594) -
Repayment of advances to other funds 89,332 - -
Transfers in 4,000 - -
Transfers out (5,464,000) (268,555) -
Other revenue, contributions - - -
Net cash provided by (used in) noncapital financing activities (138,995) (5,611,226) 12,800

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Capital grant received - 274,108 -
Proceeds from sale of assets 32,409 15,385 10,600
Purchase of capital assets (14,138,755) (3,367,107) (5,886,565) Interest paid (5,330,570) (56,679) (2,371,905)
Principal paid on long-term debt (7,455,000) (700,584) (4,374,324) Cash collected for future capital outlay 73,586 913,775 1,058,681 Net cash provided by (used in) capital
and related financing activities (2,921,102) (26,818,330) (11,563,513) CASH FLOWS FROM INVESTING ACTIVITIES:

Net investment earnings (loss) (2,143,757) (1,659,265) (1,279,426) Rents received 173,867 - 12,695
Net cash (used in) investing activities (2,143,757) (1,485,398) (1,266,731) Net increase (decrease) in cash and cash equivalents (18,292,307) 2,982,059 1,784,142 CASH AND CASH EQUIVALENTS:

Beginning of year 87,316,336 50,433,558 39,601,032
End of year $ 69,024,029 $ 53,415,617 $ 41,385,174
Reconciliation to statement of net position:

Cash and cash equivalents $ 69,023,386 $ 49,647,074 $ 37,453,563 Restricted cash and cash equivalents 643 3,768,543 3,931,611 $ 69,024,029 $ 53,415,617 $ 41,385,174
See accompanying Notes to the Basic Financial Statements. (Continued) Enterprise Funds
City of Redding
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
50 Packet Pg. 758 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Governmental
Activities
Solid Waste Non-Major Internal
Collection/ Enterprise Service
Disposal Funds Total Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 29,811,091 6,800,990 $ 250,630,188 $ 75,412,991 Cash paid to suppliers (18,165,682) (10,312,208) (155,467,470) (61,031,379) Cash paid to employees (9,977,666) (1,668,202) (66,143,621) (11,958,225) Other income received 1,264,036 36,878 7,180,286 -
Net cash provided by (used in) operating activities 2,931,779 (5,142,542) 36,199,383 2,423,387

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Intergovernmental revenue received 108,543 6,087,405 7,622,315 1,244 Advances from other funds 1,726,507 - 1,726,507 56,250
Repayment of advances from other funds (1,886,876) - (1,886,876) (92,693) Advances to other funds - (1,524,565) - -
Repayment of advances to other funds - - 89,332 162,881 Transfers in 1,411,237 - 1,415,237 -
Transfers out (235,000) - (5,967,555) (4,000)
Other revenue, contributions - - - 575
Net cash provided by (used in) noncapital financing activities 108,543 7,103,273 1,474,395 124,257

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Capital grant received 10,000 3,611,941 3,896,049 -
Proceeds from sale of assets 110,225 32,800 201,419 6,650 Purchase of capital assets (2,369,295) (3,378,450) (29,140,172) (175,298) Interest paid (357) (41,539) (7,801,050) (4,105)
Principal paid on long-term debt (9,192) (158,372) (12,697,472) - Cash collected for future capital outlay - 404,428 2,450,470 - Net cash provided by (used in) capital
and related financing activities (2,258,619) 470,808 (43,090,756) (172,753) CASH FLOWS FROM INVESTING ACTIVITIES:

Net investment earnings (loss) (804,823) (315,717) (6,202,988) (602,522) Rents received 1,880 30,844 219,286 -
Net cash provided (used) by investing activities (802,943) (284,873) (5,983,702) (602,522) Net increase (decrease) in cash and cash equivalents (21,240) 2,146,666 (11,400,680) 1,772,369 CASH AND CASH EQUIVALENTS:

Beginning of year 27,822,044 9,912,375 215,085,345 17,002,206 End of year $ 27,800,804 $ 12,059,041 $ 203,684,665 $ 18,774,575 Reconciliation to statement of net position:

Cash and cash equivalents $ 27,800,804 $ 8,937,329 $ 192,862,156 $ 18,774,575 Restricted cash and cash equivalents 3,121,712 - 10,822,509 - $ 27,800,804 $ 12,059,041 $ 203,684,665 $ 18,774,575
See accompanying Notes to the Basic Financial Statements. (Continued) City of Redding
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
Enterprise Funds
51 Packet Pg. 759 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Electric Water Wastewater
Utility Utility Utility

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) to net cash provided by (used in) 6,513,034 $ $ 4,866,517 $ 9,306,776 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Other non-operating revenue and expense
Depreciation and amortization 14,213,295 3,928,806 7,530,265 (Increase) decrease in accounts receivable 1,725,959 560,197 126,073 (Increase) decrease in inventories (1,411,702) (94,442) 2,066 (Increase) decrease in prepaid items 305,475 52,048 58,084 (Increase) decrease in investment in JPA (1,207,042) - - (Increase) decrease in deposits (95,373) (250) -
Increase (decrease) in accounts payable (733,904) 6,095 (949,962) Increase (decrease) in accrued liabilities (1,327,783) (178,663) (215,765) Increase (decrease) in claims and judgements payable - - - Increase (decrease) in deposits liability 1,057,096 - - Increase (decrease) in intergovernmental payable 2,213,489 (13,912) 21,433 Increase (decrease) in unearned revenue - - -
Increase (decrease) in accrued compensated absences 492,794 55,749 87,132 Other post employment benefits related items 735,482 (21,647) (25,729) Pension related items (6,199,814) (1,632,944) (1,338,787) Total adjustments 9,767,972 2,661,037 5,294,810
Net cash provided by (used in) operating activities $ 16,281,006 $ 7,527,554 $ 14,601,586

SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES:

Plant contributed from developers $ 2,139,110 $ 285,788 $ 249,724 Non-cash change in deposits - - -
Transfer in of capital assets 265,685 - -
Total non-cash capital and related financing activities $ 2,139,110 $ 551,473 $ 249,724 (Continued)
See accompanying Notes to the Basic Financial Statements.

Enterprise Funds
City of Redding
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
52 Packet Pg. 760 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Governmental
Activities
Solid Waste Non-Major Internal
Collection/ Enterprise Service
Disposal Funds Total Funds

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) to net cash provided by (used in) 1,514,716 $ (10,527,694) $ 11,673,349 $ (218,887) $ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Other non-operating revenue and expense - 36,878 36,878 392 Depreciation and amortization 2,787,403 4,443,998 32,903,767 1,230,665 (Increase) decrease in accounts receivable 75,637 211,351 2,699,217 36,930 (Increase) decrease in inventories - (9,660) (1,513,738) (92,369) (Increase) decrease in prepaid items 112,090 21,332 549,029 627,203 (Increase) decrease in investment in JPA - - (1,207,042) - (Increase) decrease in deposits - - (95,623) -
Increase (decrease) in accounts payable (43,392) 730,739 (990,424) (101,925) Increase (decrease) in accrued liabilities (309,150) (68,384) (2,099,745) (307,825) Increase (decrease) in claims and judgements payable 193,720 - 193,720 1,041,730 Increase (decrease) in deposits liability 939,248 11,070 2,007,414 (7) Increase (decrease) in intergovernmental payable (38,450) 147,877 2,330,437 19,745 Increase (decrease) in unearned revenue - (86) (86) 193,756 Increase (decrease) in accrued compensated absences 26,860 1,966 664,501 274,409 Other post employment benefits related items 83,599 71,336 843,041 457,452 Pension related items (2,410,502) (213,265) (11,795,312) (737,882) Total adjustments 5,385,152 1,417,063 24,526,034 2,642,274 Net cash provided by (used in) operating activities $ 2,931,779 $ (5,142,542) $ 36,199,383 $ 2,423,387

SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES:

Plant contributed from developers $ 975,691 $ 788,510 $ 4,438,823 $ - Non-cash change in deposits (975,691) (975,691) - 3,429,027 Equipment transfers 268,555 - 534,240 1,130
Total non-cash capital and related financing activities $ 1,057,065 - $ $ 3,997,372 $ 3,430,157 (Concluded)
See accompanying Notes to the Basic Financial Statements.

Enterprise Funds
City of Redding
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
53 Packet Pg. 761 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
54 Packet Pg. 762 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Custodial Funds
These funds are custodial in nature and do not involve measurement of results of operations. They are used to account for assets held in an agency capacity for others and therefore cannot be used to support the City's programs. This includes the Special Deposits Fund, Integrated Public Safety System (IPSS) Fund, and Enterprise Anderson Groundwater Fund. These funds use the economic resources measurement focus.

The Successor Agency to the Redding Redevelopment Agency Private-purpose Trust Fund ("Successor Agency")
This fund is used to account for monies received from the Shasta County Auditor-Controller for the repayment of the enforceable obligations of the former Redding Redevelopment Agency. These funds are restricted for the sole purpose of payment of items on an approved Recognized Payment Obligation Schedule (ROPS).

FIDUCIARY FUND

FINANCIAL STATEMENTS
55 Packet Pg. 763 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Successor Agency
Custodial Private-Purpose
Funds Trust Fund
ASSETS
Cash and investments $ 8,225,701 $ 4,200,197
Restricted cash and investments - 6,755,004
Interest receivable 14,478 15,309
Accounts receivable, net 86,538 -
Intergovernmental receivable 151,853 23,202
Capital assets:

Land - 175,877
Construction in progress 2,380,119 -
Depreciable capital assets, net 117,888 -
Net capital assets 2,498,007 175,877
Total assets 10,976,577 11,169,589

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 30,517
Total deferred outflows of resources - 30,517

LIABILITIES
Accounts payable 45,436 -
Accrued liabilities 10,538 -
Accrued interest payable - 239,778
Intergovernmental payable 144,595 -
Unearned revenue - 2,601,952
Deposits payable 7,151,277 -
Long-term debt - 14,605,200
Total liabilities 7,351,846 17,446,930

NET POSITION (DEFICIT)
Restricted for:

Individuals, organizations, and other governments 3,624,731 - Held in trust - (6,246,824)
Total net position $ 3,624,731 $ (6,246,824)
See accompanying Notes to the Basic Financial Statements.

City of Redding
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
56 Packet Pg. 764 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Successor Agency
Custodial Private-Purpose
Funds Trust Fund
ADDITIONS:

Property taxes $ - $ 3,893,390
Intergovernmental revenues 1,231,694 -
User fees 94,820 -
Net investment earnings (loss) (21,436) 49,404
Sale of property - 377,328
Total additions 1,305,078 4,320,122
DEDUCTIONS:

Administrative costs 962,921 250,000
Payment on recognized obligation payment schedule - 1,159,427 Software maintenance and support 75,155 -
Project payments 335,739 -
Loss on property disposal - 244,573
Depreciation 72,272 -
Total deductions 1,446,087 1,654,000
Net change in net position (141,009) 2,666,122
NET POSITION:

Beginning of period 3,765,740 (8,912,946)
End of period $ 3,624,731 $ (6,246,824)
See accompanying Notes to the Basic Financial Statements.

City of Redding
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
57 Packet Pg. 765 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
58 Packet Pg. 766 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 59 NOTES TO THE BASIC

FINANCIAL STATEMENTS
Packet Pg. 767 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 60 This page intentionally left blank

Packet Pg. 768 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Index to Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
61 Note 1 – Summary of Significant Accounting Policies ...................................................................................... 63 A. Reporting Entity .................................................................................................................................. 63 B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation ............................. 64 C. Cash and Investments .......................................................................................................................... 68 D. General Receivables and Property Taxes Receivable ......................................................................... 69 E. Inventories ........................................................................................................................................... 69 F. Capital Assets ...................................................................................................................................... 69 G. Leases .................................................................................................................................................. 70 H. Pensions ............................................................................................................................................... 72 I. Other Postemployment Healthcare Benefits (OPEB) .......................................................................... 72 J. Vacation and Sick Pay ......................................................................................................................... 73 K. Unearned Revenue ............................................................................................................................... 73 L. Long-Term Obligations ....................................................................................................................... 73 M. Net Position ......................................................................................................................................... 73 N. Fund Balances ..................................................................................................................................... 74 O. Spending Policy ................................................................................................................................... 74 P. Use of Estimates .................................................................................................................................. 75 Q. New Governmental Accounting Standards Implemented for the Year Ended June 30, 2022 ............. 75 R. Upcoming Governmental Accounting Standards Implementation ...................................................... 76 Note 2 – Cash and Investments ............................................................................................................................ 77 A. Demand Deposits ................................................................................................................................. 78 B. Investments .......................................................................................................................................... 79 C. Investments in Local Agency Investment Fund .................................................................................. 79 D. Risk Disclosures .................................................................................................................................. 80 Note 3 – Governmental Notes Receivable ........................................................................................................... 81 Note 4 – Lease Receivable..................................................................................................................................... 82 Note 5 – Interfund Activities ................................................................................................................................ 84 A. Due From and Due To Other Funds .................................................................................................... 84 B. Interfund Receivable and Payable ....................................................................................................... 84 C. Advances To and From Other Funds ................................................................................................... 84 D. Internal Balance Summary .................................................................................................................. 86 E. Transfer In and Out ............................................................................................................................. 86 Note 6 – Capital Assets ......................................................................................................................................... 88 A. Governmental Activities ...................................................................................................................... 88 B. Business-Type Activities ..................................................................................................................... 89 Note 7 – Power Acquisition Costs ........................................................................................................................ 90 Note 8 – Storage Base Gas .................................................................................................................................... 90 Note 9 – Unavailable Revenue .............................................................................................................................. 90 Packet Pg. 769 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Index to Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
62 Note 10 – Long Term Debt ................................................................................................................................... 91 Note 11 – Pledged Revenue................................................................................................................................... 96 Note 12 – Compensated Absences…………………………………………………………………………. ....... 98 Note 13 – Self Insurance………………………………………………………………………. ........................... 99 Note 14 – Individual Fund Disclosures ............................................................................................................... 100 Note 15 – Joint Ventures ..................................................................................................................................... 101 A. M-S-R Public Power Agency ............................................................................................................. 102 B. M-S-R Energy Authority .................................................................................................................... 103 C. Transmission Agency of Northern California .................................................................................... 103 D. Balancing Authority of Northern California ...................................................................................... 104 E. Contingent Liability ............................................................................................................................ 105 Note 16 – Postclosure Care Costs ....................................................................................................................... 106 Note 17 – Public Transportation Modernization Improvement and Service Enhancement Account (PTMISEA) Grant Information ......................................................................................................... 106 Note 18 – Retirement Plans ................................................................................................................................. 107 A. Summary............................................................................................................................................. 107 B. CalPERS ............................................................................................................................................. 111 C. PARS .................................................................................................................................................. 120 Note 19 – Other Postemployment Healthcare Benefits ..................................................................................... 126 Note 20 – Fund Balances ..................................................................................................................................... 135 Note 21 – Net Investment in Capital Assets ....................................................................................................... 136 Note 22 – Commitments and Contingencies ...................................................................................................... 137 A. Construction Commitments ................................................................................................................ 137 B. Redding Electric Utility (REU) .......................................................................................................... 137 C. West Central Landfill ........................................................................................................................ 138 D. Grants ................................................................................................................................................. 138 E. Litigation ............................................................................................................................................ 138 Note 23 – Successor Agency Trust for Assets of the Former Redevelopment Agency ................................... 139 Packet Pg. 770 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
63 Note 1 – Summary of Significant Accounting Policies
The following is a summary of the more significant accounting policies of the City of Redding (City), all of which conform to United States generally accepted accounting principles (U.S. GAAP) as applicable to governmental units.

The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

A. Reporting Entity
The City was incorporated on October 4, 1887, as a general law city formed under state legislative statutes and governed by a body of laws in the State Constitution. The financial reporting entity (the government) includes all the funds of the primary government (i.e., the City as legally defined), as well as all of its component units.

Component units are legally separate entities for which the primary government is financially accountable. The government provides a full range of services including police and fire protection; sanitation, electric, water, and wastewater services; the construction and maintenance of streets and infrastructure; recreational activities and cultural events.

As required by U.S. GAAP, the accompanying basic financial statements present the City and its component units. Component units are entities for which the City is considered to be financially accountable. GASB defines component units as legally separate entities that meet any one of the following tests:
 The component unit’s governing body is substantively the same as the governing body of the City and:
o there is a financial benefit or burden relationship between the City and the component unit or o Management of the City has operational responsibility for the component unit.  The component unit provides services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City even though it does not provide services to it.  The component unit’s total debt outstanding, including leases, is expected to be repaid entirely or almost entirely with resources of the City.

Management determined that the following component units should be blended based on the criteria above:
 Redding Housing Authority
 Redding Joint Power Financing Authority
 Redding Capital Services Corporation
 Redding Area Bus Authority
These component units are included in the primary government because of the significance of their financial or operational relationship and the same City governing body.

Each of the blended component units in the accompanying basic financial statements of the City are described below:

Redding Housing Authority (Authority) manages certain programs which are funded by the U.S. Department of Housing and Urban Development, primarily to provide services under the Housing Assistance Payments Program.

The five City Council members and one person appointed by the City Council, in a separate session, serve as the governing board of the Authority. The financial activity of the Authority has been included in the City’s financial statements as a special revenue fund.

Redding Joint Powers Financing Authority (JPA) was created by a joint exercise of power agreement between the City and the JPA with the purpose of financing public capital improvements. City Council members, in a separate session, serve as the governing board of the JPA. The financing activity of the JPA has been included in the City’s financial statements.

Packet Pg. 771 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
64 Note 1 – Summary of Significant Accounting Policies (Continued) A. Reporting Entity (Continued)
Redding Capital Services Corporation (Corporation), a nonprofit public benefit corporation, was organized under the Nonprofit Public Benefit Corporation Law of the State of California to provide financial assistance to the City by constructing, financing, purchasing, selling and leasing various public facilities, land and equipment for the use, benefit and enjoyment of the public serviced by the City. City council members, in a separate session, serve as the board of directors of the Corporation. The financing activity of the Corporation has been included in the City’s financial statements in the enterprise funds.

Redding Area Bus Authority (RABA) is a separate governmental entity formed under a joint powers agreement between the County of Shasta, City of Shasta Lake, the City of Anderson and the City. RABA’s governing board comprises members of both the Counties, and the cities of Redding, Anderson, and Shasta Lake’s governing boards based on population ratios within the service area. Currently, the Redding City Council comprises a majority of the board members filling five of the eight positions. In addition, City of Redding personnel provides administrative responsibility for RABA. The function of RABA is to provide the most cost effective public transportation system utilizing federal and state funding participation. The financial activity of RABA has been included in the City’s financial statements as an enterprise fund.

Financial statements for each of the individual component units may be obtained from the Finance Department of the City at 777 Cypress Avenue, Redding, California 96001.

B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.

The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources represent a consumption of net assets that applies to future periods and that, therefore, will not be recognized as an expense until that time.

Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods and that, therefore, are not recognized as revenue until that time.

Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

Packet Pg. 772 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
65 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Government-Wide Financial Statements (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues.

The government-wide financial statements are reported using the “economic resources” measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues.

Likewise, general revenues include all taxes.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government’s business type activities and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in Net Position as presented in these statements to the Net Position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.

Governmental fund financial statements are reported using the “current financial resources” measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues as available if they are collected within sixty (60) days of the end of the current fiscal period, except for sales tax which has a ninety (90) day availability period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

The reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences.

Packet Pg. 773 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
66 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental Fund Financial Statements (Continued)
Property taxes, sales taxes, transient occupancy tax, grants, licenses, fees, charges and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The General Capital Projects Fund accounts for the financing and construction activities of the general government.

Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major Proprietary Fund.

A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City’s internal service funds account for the financing of goods or services provided by one department to other departments of the City on a cost-reimbursement basis. Internal service funds used by the City are:

Equipment Fund - this fund is used to account for vehicle maintenance and communication costs.

Information Systems - this fund is used to provide computer technology services as well as providing programming and general information systems support services.

General Support Services - this fund is used to provide printing, reprographics, geographic services, records retention, building and maintenance services, volunteer services and employee services.

Risk Management – this fund is used to account for the accumulation of monies necessary to pay for worker’s compensation claims, health, dental and visions claims and liability claims under a self-insurance program.

Municipal Utilities Support – this fund is used to account for the management and technician support given to the Utilities and Street Maintenance funds.

Packet Pg. 774 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
67 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Proprietary Fund Financial Statements (Continued)
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and of the government’s internal service funds are charges to customers for sales and services. Tap and similar fees have been reported as non-operating revenues in the City’s statement of revenue expense and changes in net position for proprietary funds and as capital grants and contributions in the statement of activities and changes in net position. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

The City reports the following major proprietary funds:

The Electric Utility Fund accounts for the operations of the City’s electric utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

The Water Utility Fund accounts for the operations of the City’s water utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

The Wastewater Utility Fund accounts for the operations of the City’s wastewater utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

The Solid Waste Collection / Disposal Fund accounts for the operations of the City’s solid waste utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of fiduciary net position and a statement of changes in fiduciary net position. The City’s fiduciary funds represent custodial funds and a Private-purpose Trust Fund.

Custodial funds report fiduciary activities that are not held in a trust or equivalent arrangement. These funds use the economic resources measurement focus.

Packet Pg. 775 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
68 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Fiduciary Fund Financial Statements (Continued)
Fiduciary fund types are accounted for according to the nature of the fund.

The City’s Custodial funds are used to account for assets held by a governmental unit as an agent for individuals, governmental entities (other than the City) and non-public organizations. This fund is used to account for deposits and collects monies for various community events which are remitted to the organizers.

The City’s private purpose trust fund is a fiduciary fund type used to report all trust arrangements, other than those properly reported in pension trust funds or investment trust funds, under which principal and interest benefit individuals, private organizations, or other governments. This trust fund is used to account for the fiduciary assets, liabilities and net position of the Successor Agency (Agency) to the Redding Redevelopment Agency, the former redevelopment agency of the City.

C. Cash and Investments
The City pools idle cash from all funds for the purpose of increasing income through investment activities. Cash deposits are stated at cost, which approximates fair value. Investments are stated at fair value. Investment income is recorded as revenue in the individual funds based on the computed average interest rate of all investments and the average daily cash balance of each fund. For purposes of the statement of cash flows of the proprietary fund types, cash and cash equivalents include all investments, as the City operates an internal cash management pool which maintains the general characteristics of a demand deposit account.

All cash and investments of proprietary funds are held in the City’s investment pool. Therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for purposes of the statement of cash flows as these cash pools have the general characteristics of a demand deposit account.

Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas:
 Interest Rate Risk
 Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
 Foreign Currency Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

Packet Pg. 776 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
69 Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash and Investments (Continued)
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position or Balance Sheet, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:

Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.

Level 2 – Inputs, other than quoted prices included in Level 1, which are observable for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

D. General Receivables and Property Taxes Receivable
The City records an allowance for doubtful accounts on general accounts receivable based on the experience method.

The County of Shasta assesses, bills, and collects property taxes for the City. Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on July 1. They become due November 1 and February 1 and become delinquent December 10 and April 10. City property tax revenue is recognized when levied to the extent that it is available (collected within 60 days of year-end).

E. Inventories
Inventories are physically counted at year-end and valued at their average cost. All inventories consist of expendable supplies held for consumption. The cost is recorded as inventory when items are purchased and as expenditures when the items are used (the consumption method of accounting for inventories). The weighted average method is used for establishing the cost of inventory consumed.

F. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation. “Right-to-use” assets are defined by the government as assets with an initial present value of more than $15,000 and an estimated life in excess of one year. Such assets are recorded at present value.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset’s life are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Packet Pg. 777 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
70 Note 1 – Summary of Significant Accounting Policies (Continued) F. Capital Assets (Continued)
Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows:

Asset Types Useful Life (in years)
Public domain infrastructure 30-50
Utility plants 15-50
Buildings 10-30
Improvements other than buildings 5-40
Equipment, furnishings and vehicles 5-10
Assets under capital lease 4-30
System infrastructure 30
Right-to-use assets Life of Lease
For all infrastructure systems, the City elected to use the Basic Approach. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include the streets, water purification and distribution system, sewer collection and treatment system, parks and recreation, lands and improvement system, storm water conveyance system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land.

These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.

G. Leases
Lessee
The City has a policy to recognize a lease liability and a right‐to‐use lease asset (lease asset) in our financial statements with an initial, individual value of $15,000 or more with a lease term greater than one year. Variable payments based on future performance or usage of the underlying assets are not included in the measurement of the lease liability.

At the commencement of a lease, the lease liability is measured at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight–line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the State has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

Packet Pg. 778 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
71 Note 1 – Summary of Significant Accounting Policies (Continued) G. Leases (continued)
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

1. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.

2. The lease term includes the non-cancelable period of the lease, plus any option periods that are reasonably certain to be exercised.

3. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of a lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported as right-to-use along with other capital assets and lease liabilities are reported on the statement of net position as long-term debt.

Lessor
The City is a lessor for leases of buildings and land and recognizes leases receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.

1. The City uses an incremental borrowing rate (IBR) calculated by using the 5, 7, or 10-year Constant Maturities Treasury Bill Index plus a margin of 3% as instructed by one of our financial institutions at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.

2. The lease term includes the non-cancelable period of the lease plus any option periods that are likely to be exercised.

3. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

Packet Pg. 779 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
72 Note 1 – Summary of Significant Accounting Policies (Continued) H. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 1). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting:

CalPERS:

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
PARS:

Valuation Date June 30, 2020
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

I. Other Postemployment Healthcare Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 18). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for OPEB reporting:

Valuation Date June 30, 2021
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

Packet Pg. 780 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
73 Note 1 – Summary of Significant Accounting Policies (Continued) J. Vacation and Sick Pay
Vacation pay is vested to the employees as it accrues and is payable upon retirement or termination. Sick leave, however, does not vest to the employees and is payable only when sick leave is taken, except when an individual has been employed by the City for ten years or longer. If the employee severs their relationship with the City after having been employed ten or more years, they receive from 33-1/3% to 60% payoffs depending on length of service. If the employee retires from the City after having been employed ten or more years, they have the option to take from 33-1/3% to 60% payoffs, per various Memoranda of Understandings, of their accrued sick pay as additional termination pay and have the remaining accrued sick pay extend their term of service for retirement benefit purposes. Vacation pay and 33-1/3% to 60% of the sick pay of employees with terms of services equal to or exceeding ten years have been accrued in the accompanying government-wide financial statements and the accompanying proprietary fund financial statements.

K. Unearned Revenue
In the government-wide financial statements and fund financial statements, unearned revenue is recorded for transactions for which revenues have not been earned.

L. Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, businesstype activities, or proprietary fund type statement of net position. Lease liabilities with a present value of more than $15,000 are also included in long-term debt. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method, which does not materially differ from the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Bond issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures unless they are related to insurance costs. Bond issuance insurance costs are reported as a prepaid asset and amortized over the life of the bonds.

M. Net Position
For government-wide reporting as well as in proprietary funds, fund equity is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted.

Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by outstanding balance of bonds, notes and other debt that are attributed to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction or improvement of those assets or related debt are included in this component of net position.

Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation.

Packet Pg. 781 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
74 Note 1 – Summary of Significant Accounting Policies (Continued) M. Net Position (continued)
Unrestricted net position is the net amount of assets, deferred outflows or resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories.

N. Fund Balances
In the fund financial statements, governmental funds aggregate amounts for five classifications of fund balances based on the constraints imposed on the use of these resources. The non-spendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form – prepaid items or inventories; or (b) legally or contractually required to be maintained intact.

The spendable portion of the fund balance comprises the remaining four classifications; restricted, committed, assigned, and unassigned.

Restricted fund balance. This classification reflects the constraints imposed on resources either (a) externally by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.

Committed fund balance. These amounts can only be used for specific purposes pursuant to constraints imposed ordinances of the City Council – the government’s highest level of decision making authority. Those committed amounts cannot be used for any other purpose unless the City Council removes the specified use by taking the same type of action imposing the commitment. This classification also includes contractual obligations to the extent that existing resources in the fund have been specifically committed for the use in satisfying those contractual requirements.

Assigned fund balance. This classification reflects the amounts constrained by the City Council’s “intent” to be used for specific purposes, but are neither restricted nor committed. By Council Policy the City Council and City Manager have the authority to allocate amounts to be used for specific purposes. City Council approves the appropriation; however, the budget ordinance authorizes the City Manager to modify the appropriations by resource or appropriation within a functional area or fund.

Unassigned fund balance. This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount.

In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount.

However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

O. Spending Policy
When both restricted and unrestricted resources are available for use, it is the City’s policy to use externally restricted resources first, then unrestricted resources-committed, assigned, and unassigned-in order as needed. The City has no formal policy of assignment of fund balance. So it is presumed that the order of spending is first committed fund balance, then assigned fund balance, and last of all, unassigned fund balance.

Packet Pg. 782 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
75 Note 1 – Summary of Significant Accounting Policies (Continued) P. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Q. New Governmental Accounting Standards Implemented for the Year Ended June 30, 2022 The requirements of the following accounting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2022. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.

GASB Statement No. 87 - In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No. 87), to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It also establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Implementation of this Statement had a significant effect on the City’s financial statements for fiscal year ended June 30, 2022.

GASB Statement No. 92 - In January 2020, GASB issued Statement No. 92, Omnibus 2020. The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. Implementation of this Statement did not have a significant effect on the City’s financial statements for fiscal year ended June 30, 2022.

GASB Statement No. 93 - In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates. Some governments have entered into agreements in which variable payments made or received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2022, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference rate.

The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.

Packet Pg. 783 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
76 Note 1 – Summary of Significant Accounting Policies (Continued) Q. New Governmental Accounting Standards Implemented for the Year Ended June 30, 2022 (Continued) GASB Statement No. 97 - In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.

R. Upcoming Governmental Accounting Standards Implementation The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements:

GASB Statement No. 91 - In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations (GASB Statement No. 91), to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. Application of this statement is effective for the City’s fiscal year ending June 30, 2023, as amended by GASB 95.

GASB Statement No. 94 - In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

GASB Statement No. 96 - In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

Packet Pg. 784 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
77 Note 1 – Summary of Significant Accounting Policies (Continued) R. Upcoming Governmental Accounting Standards Implementation (Continued) GASB Statement No. 99 - In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees.

Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

GASB Statement No. 100 - In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Application of this statement is effective for the City’s fiscal year ending June 30, 2024.

GASB Statement No. 101 - In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

Application of this statement is effective for the City’s fiscal year ending June 30, 2025.

Note 2 – Cash and Investments
At June 30, 2022, cash and investments are reported in the accompanying basic financial statements as follows:

Fiduciary Funds
Governmental Business-Type Statement of
Activities Activities Total Net Position Total
Cash and investments 79,884,498 $ $ 192,862,156 $ 272,746,654 $ 12,425,898 $ 285,172,552 Restricted cash
and investments $ 2,592,214 $ 10,822,509 $ 13,414,723 $ 6,755,004 $ 20,169,727 Government-Wide
Statement of Net Position
At June 30, 2022, cash and investments, including cash and investments with fiscal agent, are reported at fair value in accordance with generally accepted accounting principles. The following table presents the fair value measurements of the investments recognized in the accompanying statement of net position and balance sheet measured at fair value on a recurring basis and the levels within GASB 72 fair value hierarchy in which fair value measurement fall at June 30, 2022:

Packet Pg. 785 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
78 Note 2 – Cash and Investments (Continued)
Measurement
Unrestricted Restricted Total Input
Deposits 57,380,873 $ 148,473 $ 57,529,346 $ N/A
Medium Term Corporate Notes 30,753,401 - 30,753,401 Level 2 Federal Agency Bonds 97,224,513 - 97,224,513 Level 2
Mutual Funds 2,647,079 2,369,273 5,016,352 Level 1
Local Agency Investment Fund 97,166,686 17,651,981 114,818,667 Uncategorized Total investments 227,791,679 20,021,254 247,812,933
Total cash and investments $ 285,172,552 $ 20,169,727 $ 305,342,279 Fair Value
Securities classified in level 1 are valued using prices quoted in active markets for those securities. Securities classified in level 2 are valued using significant other observable inputs such as institutional bond pricing techniques and evaluated pricing applications and models.

The City maintains a cash and investment pool that is available for use by all funds, except for funds of the Authority, Agency, and RABA (these funds have segregated accounts). Each fund’s portion of the cash and investment pool or segregated accounts is displayed on the Statement of Net Position and the Fund Financial Statement Balance Sheets as “Cash and Investments.”
A. Demand Deposits
At June 30, 2022, the carrying amount of the City’s deposits was $57,529,346 of which $148,473 was restricted and $57,380,873 was unrestricted. The bank balance was $63,532,224. Of the bank balance, $2,358,532 was covered by Federal depository insurance, and $61,173,692 was covered by collateral held in the pledging bank’s trust department.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.

Packet Pg. 786 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
79 Note 2 – Cash and Investments (Continued)
B. Investments
The California Government Investment Code and the investment policy of the City authorize the City to invest in obligations, participation, or other instruments of the U.S. Government or its agencies, state and municipal bonds, commercial paper of “prime” quality of the highest ranking or of the highest letter and numerical rating as provided by Standard & Poor’s Corporation or Moody’s Investor Service, Inc., bankers’ acceptances, repurchase agreements, mortgage pass-through securities, collateralized mortgage obligations, mortgage-backed or other paythrough bonds, equipment lease-backed certificates, consumer receivable pass-through certificates, or consumer receivable-backed bonds, and medium-term notes (issued by U.S. Corporations) of a maximum of five years with a minimum rating category of “A” by a nationally recognized rating service, notes, bonds, or other obligations secured by a valid first priority security interest, and the State Treasurer’s Investment Pool (LAIF). Reverse repurchase agreements may be made only when prior approval of the City Council has been given.

C. Investments in Local Agency Investment Fund
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2022 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:

Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2022, the City had $114,818,667 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes (1.14%) and Asset-Back Securities (.74%). LAIF determines the value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 2022, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants’ total aggregate amortized cost by total aggregate fair value. The fair value of the City’s position in the pool is the same as the value of the pool shares. The credit quality rating of LAIF is unrated as of June 30, 2022.

Packet Pg. 787 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
80 Note 2 – Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City varies its maturity dates throughout the five-year maturity period. The investments with maturities greater than 5 years pertain to investment agreements within the bond issues. These agreements afford the City long-term fixed interest rates for the duration of the bond issue, with the option to utilize those funds for debt service payments and at the City’s option replenish those funds at the fixed rate until the maturity of the investment agreements. The City has no formal policy regarding interest rate risk.

As of June 30, 2022, the City had the following investments and maturities:

Unrestricted:

Fair Less
Investment Type Value Than 1 1-2 3-4 5
Medium Term Corporate Notes 30,753,401 $ $ 6,187,126 $ 7,530,425 $ 12,253,150 $ 4,782,700 Federal Agency Bonds 97,224,513 12, - 804,391 57,586,987 26,833,135 Investment in State Treasurer's
Investment Pool 97,166,686 97,166,686 - - -
Mutual Funds 2,647,079 2,647,079 - - -
Total $ 227,791,679 $ 106,000,891 $ 20,334,816 $ 69,840,137 $ 31,615,835 Investments Maturities (in Years)
Restricted:

Fair Less More
Investment Type Value Than 1 1-5 Than 5
Investment in State Treasurer's Investment Pool 17,651,981 $ $ 17,651,981 $ - $ - Mutual Funds 2,369,273 2,369,273 - -
Total $ 20,021,254 $ 20,021,254 $ - $ -
Investments Maturities (in Years)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type.

As of June 30, 2022, the City’s investments in Federal Agency Bonds were rated Aaa by Moody’s Investors Service. The City’s investments in Medium Term Corporate Notes were rated A, Aa, and Aaa by Moody’s Investors Service. Investments in LAIF are not rated as LAIF is a State sponsored investment pool. The City policy limits the percentage invested in various instruments by category.

Packet Pg. 788 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
81 Note 2 – Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Disclosures Relating to Concentration of Credit Risk
Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows:

Issuer Investment Type Amount
Federal Farm Credit Bank Federal Agency Securities $ 22,353,584 Federal National Mortgage Association Federal Agency Securities $ 18,430,950 Federal Home Loan Mortgage Corporation Federal Agency Securities $ 22,872,252 Disclosures Relating to Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., brokerdealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits.

All securities are held in the name of the City. As a result, the City had no custodial credit risk at June 30, 2022.

Note 3 - Governmental Notes Receivable
Notes receivable represent loan agreements entered into between the City or Successor Housing Agency (the former RDA) and unrelated nongovernmental entities as part of the City’s redevelopment activities, including single-family home buyer assistance, and real estate development and construction loans. At June 30, 2022, approximately $43.04 million of notes receivable, net of $0.20 million allowance for doubtful accounts, were reported in the Community Development non-major special revenue fund. At June 30, 2022, approximately $15.29 million of notes receivable were reported in the Housing non-major special revenue fund. Business-type note receivable is $0.11 million.

Packet Pg. 789 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
82 Note 3 - Governmental Notes Receivable (Continued)
Balance Balance
July 1, 2021 Additions Deletions June 30, 2022
General governmental activities:

Community development fund loans
Community Development Block Grant (CDBG) $ 2,237,306 $ 631,417 $ (44,826) $ 2,823,897 HOME Investment Program (HOME) 20,637,701 1,614,796 (366,025) 21,886,472 CalHome Program 1,710,558 93,632 (46,023) 1,758,167
Other California Programs (AHSC, IIG) 14,488,182 38,926 - 14,527,108 City Affordable Housing Loan Fund (AHLF) 1,999,999 41,598 - 2,041,597 Total community development fund loans 41,073,746 2,420,369 (456,874) 43,037,241 Allowance for bad debt (191,734) (5,675) - ( 197,410)
Community development fund notes receivable, net 40,882,012 2,414,694 (456,874) 42,839,831 Housing fund loans
Low Mod Income Housing Asset Fund 14,717,378 784,230 (210,708) 15,290,900 Total housing fund loans 14,717,378 784,230 (210,708) 15,290,900 Allowance for bad debt - - - -
Housing fund loans receivable, net 14,717,378 784,230 (210,708) 15,290,900 Total governmental note receivable 55,599,390 3,198,924 (667,582) 58,130,731 Business-type activities:

Electric utility loans
Redding Rodeo note 133,368 (21, - 047) 112,321
Total business-type note receivable 133,368 (21, - 047) 112,321 Total note receivable $ 55,732,758 $ 3,198,924 $ (688,629) $ 58,243,052 Note 4 – Lease Receivable
Summary of changes in governmental activities leases receivable for the year ended June 30, 2022 is as follows:

Balance Balance Due within Due in more
July 1, 2021 Additions Deletions June 30, 2022 One Year than One Year Lease receivable
Governmental-type activities 2,337,504 $ -$ (280,759)$ $ 2,056,745 $ 295,144 $ 1,761,601 Business-type activities 7,839,907 463,071 (689,603) 7,613,375 688,245 6,925,130 Total lease receivable $ 10,177,411 463,071$ (970,362)$ $ 9,670,120 $ 983,389 $ 8,686,731 Packet Pg. 790 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
83 Note 4 – Lease Receivable (Continued)
A portion of the City's property is leased to others. Such property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with others for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 2 to 25 years. The calculated interest rates used are based on the 5, 7, or 10-year Constant Maturities Treasury Bill Index plus a margin of 3%. It is City policy to recognize leases as a lease receivable when the present value meets or exceeds $15,000. Lease revenues are recognized as operating revenues in proprietary funds and as charges for services in governmental funds. The City municipal airport holds the majority of the leases recognized, with a balance at June 30, 2022 of $5,763,788.

Governmental-type activities
Lease receivable
Year Ending June 30, Principal Interest Total Deferred Inflows 2023 295,144 $ 58,893 $ 354,037 $ 295,144 $
2024 351,757 59,707 411,464 351,757
2025 307,731 52,073 359,804 307,731
2026 178,469 42,688 221,157 178,469
2027 165,550 35,334 200,884 165,550
2028-2032 599,396 87,987 687,383 599,396
2033-2037 118,365 18,168 136,533 118,365
2038-2042 39,105 3,015 42,120 39,105
2043-2047 1,228 22 1,250 1,228
Total 2,056,745 $ 357,887 $ 2,414,632 $ 2,056,745 $
Business-type activities
Lease receivable
Year Ending June 30, Principal Interest Total Deferred Inflows 2023 $ 688,245 $ 321,806 $ 1,010,051 $ 688,245
2024 795,294 290,587 1,085,881 795,294
2025 752,088 257,221 1,009,309 752,088
2026 675,599 226,110 901,709 675,599
2027 611,254 197,863 809,117 611,254
2028-2032 2,303,808 641,038 2,944,846 2,303,808
2033-2037 1,578,287 209,994 1,788,281 1,578,287
2038-2042 208,800 8,623 217,423 208,800
Total $ 7,613,375 $ 2,153,242 $ 9,766,617 $ 7,613,375
Packet Pg. 791 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
84 Note 5 – Interfund Activities
A. Due From and Due To Other Funds
At June 30, 2022, due to and due from other funds balances are as follows:

Due From
Other Funds
Due To Other Funds General Fund Total
Governmental funds:

Nonmajor governmental funds 60,037 $ 60,037 $
Enterprise funds:

Nonmajor enterprise funds 1,726,507 1,726,507
Total $ 1,786,544 $ 1,786,544
Short-term loans recorded as due to and due from other funds were for cash shortages for operations.

B. Interfund Receivable and Payable
At June 30, 2022, interfund receivable and payable balances are as follows:

Electric Internal
General Utility Service
Interfund Payable Fund Fund Funds Total
Enterprise funds:

Nonmajor enterprise funds $ - $ 83,851 - $ $ 83,851
Internal service funds 25,000 67,649 92,649 -
Total $ 25,000 $ 67,649 $ 83,851 $ 176,500
Interfund Receivable
Interfund receivables and payables represented the portion of Advances that are expected to be repaid within one year.

C. Advances To and From Other Funds
At June 30, 2022, long-term advances consisted of the followings:

Advances to other funds
Internal
General Electric Service
Fund Utility Funds Total
Governmental funds:

General fund $ 5, - $ 760,767 $ 5, - $ 760,767
Nonmajor: governmental funds - 233,782 186,912 420,694
Enterprise funds:

Nonmajor: enterprise funds - 3, - 125,787 3,125,787
Internal service funds 31,250 12,561 43,811 -
Total $ 31,250 $ 6,007,110 $ 3,312,699 $ 9,351,059
Advances from other funds
Packet Pg. 792 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
85 Note 5 – Interfund Activities (Continued)
C. Advances To and From Other Funds (Continued)
a) The Electric Utility loaned the Parking Fund additional funds for another parking structure at the Downtown Mall. The outstanding balance at year-end was $233,782; all of which is classified as long-term. b) The Electric Utility Fund advanced $708,786 to the Information Technology division for the City’s portion of the new telephone system. At year-end the remaining balance is $12,561 all of which is classified as long-term. c) The Electric Utility Fund advanced $3,621,500 to the General Fund for the replacement of the Redding Soccer Park turf. The outstanding balance of the advance including accrued interest at the City’s average earnings on its pooled cash is $3,725,184; all of which is classified as long-term. d) The General Fund has advanced funds to the Parking Fund to cover operating expenditures. This balance has been transferred to the Risk Management Fund and had a balance of $186,913 at year-end; all of which is classified as long-term.
e) In recent years the General Fund has advanced $8,917,054 to the Airport Fund to finance improvements and operating expenses. The balance was transferred to the Risk Management Fund during the 2009-2010 fiscal year. The Airport Fund has repaid $7,342,640 to date. At year-end the balance was $1,574,384. Of this amount $1,549,384 is classified as long-term.
f) In recent years the General Fund has advanced $1,374,847 to the Convention Center Fund to finance improvements and operating expenses. The balance was transferred to the Risk Management Fund during the 2009-2010 fiscal year. The balance at year-end was $850,247; of this amount $791,395 is classified as longterm. g) The Risk Management Fund advanced funds to the Convention Center Fund to finance additional improvements. At year-end the balance was $785,008; all of which is classified as long-term at year-end. h) The Electric Fund advanced funds of $681,400 to the General Fund by paying for a portion of the Redding Police Department’s share of the communication platform overhaul. An additional advance was taken in fiscal year 2021-22 in the amount of $1,340,345. The outstanding balance of the advance including accrued interest at the City’s average earnings on its pooled cash is $2,035,583; all of which is classified as long term. i) The General Fund advanced funds of $75,000 to Employer Services for software licensing. At year-end the balance was $56,250; of which $31,250 is classified as long-term.

Packet Pg. 793 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
86 Note 5 – Interfund Activities (Continued)
D. Internal Balance Summary
At June 30, 2022, the internal balance summary consisted of the followings:

Governmental Funds Proprietary Funds
General
Fund
Special
Revenue
Internal Service
Funds Total
Electric
Utility
Nonmajor
Enterprise Total
Assets
Due from other funds $ 1,786,544 $ - $ 1,786,544 - $ $ - $ - $ - Interfund receivable 25,000 - 83,851 108,851 67,649 - 67,649 Advances to other funds 31,250 3,312,699 3,343,949 6,007,110 6,007,110 - 1,842,794 3,396,550 - 5,239,344 6,074,759 6,074,759 -
Liabilities
Due to other funds 60,037 - 60,037 - 1,726,507 - 1,726,507 Interfund payable - - 92,649 92,649 83,851 - 83,851
Advances from other funds 5,760,767 420,694 43,811 6,225,272 3,125,787 - 3,125,787 5,760,767 480,731 136,460 6,377,958 4,936,145 - 4,936,145 Net difference (1,138,614) 1,138,614
Business-type portion of the internal service funds 14,171,839 (14,171,839) Statement of net assets internal balance $ 13,033,225 $ (13,033,225) E. Transfer In and Out
The following operating transfers were made during the fiscal year-ended June 30, 2022:

Transfers Out General Fund
Nonmajor
Governmental
Funds Water
Nonmajor
Enterprise
Funds
Internal
Service
Funds Total
Governmental funds:

Major funds:

General fund $ 937,161 - $ -$ 1,142,682 -$ 2,079,843 $
General capital projects fund 122,048 - - - - 122,048
Nonmajor governmental funds 8,553,136 - - - - 8,553,136 Enterprise funds:

Major enterprise funds:

Electric 5,464,000 - - - - 5,464,000
Water - - - 268,555 1,130 269,685
Nonmajor enterprise funds 235,000 - - - - 235,000
Internal service funds - 4,000 - - - 4,000
Total $ 14,374,184 $ 937,161 4,000$ 1,411,237 $ 1,130$ $ 16,727,712 Transfers In
Packet Pg. 794 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
87 Note 5 – Interfund Activities (Continued)
E. Transfer In and Out (Continued)
The reasons for these transfers are set forth below:
a) The General Fund transferred a portion of the transient occupancy tax to the Convention Center per City policy. b) The General Fund transferred funds to the Library for operations. c) The Airports and Electric Enterprise Funds transfer funds to the General Fund in lieu of property tax. d) Within the Nonmajor Governmental Funds, gas taxes and other special revenues are transferred to the General Fund to pay for related expenditures such as street maintenance and public safety. In addition, funds were transferred to the capital project fund to cover portions of qualified projects. e) The Electric Utility transferred electric vehicles to Internal Service Fund Fleet and Reprographics as well as an Enterprise Fund (Airport) as part of the Transportation Electrification Program. f) Funds transferred for used vehicles purchased internally per City policy between General Fund, Electric, Solid Waste, RABA and Internal Service Funds.

Packet Pg. 795 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
88 Note 6 – Capital Assets
A. Governmental Activities
Summary of changes in capital assets for the year ended June 30, 2022 consisted of the following:

Balance Balance
July 1, 2021 Additions Deletions Transfers June 30, 2022 Total governmental activities:

Capital assets, not being depreciated:

Land $ 36,321,785 $ 106,568 $ (307,893) $ 86,518 $ 36,206,978 Construction in process 32,412,968 22,305,060 (11,583,575) - 43,134,453 Total capital assets,
not being depreciated 68,734,753 22,411,628 (307,893) (11,497,057) 79,341,431 Capital assets, being depreciated:

Buildings 64,653,179 - 211,911 - 64,865,090
Improvements other than buildings 105,879,889 - 788,780 - 106,668,669 Infrastructure 333,653,293 2,015,995 9,804,277 - 345,473,565 Automotive equipment 16,835,024 3,421,075 (320,739) 103,847 20,039,207 Furnishings and equipment 10,806,552 309,088 287,655 - 11,403,295 Assets under lease:

Right-to-use improvements 86,028 - - - 86,028
Right-to-use automotive equipment 192,403 163,242 - 355,645 - Total capital assets, being depreciated 532,106,368 5,909,400 (320,739) 11,196,470 548,891,499 Accumulated depreciation:

Buildings (37,916,085) (2,038,457) (5,671) - (39,960,213) Improvements other than buildings (70,384,597) (3,730,332) - (74,114,929) - Infrastructure (133,686,413) (9,383,220) - (143,069,633) - Automotive equipment (12,316,480) (1,005,095) 319,748 (39,643) (13,041,470) Furnishings and equipment (9,067,594) (468,681) (72,352) - (9,608,627) Assets under lease:

Right-to-use improvements (34,981) - - - (34,981)
Right-to-use automotive equipment (65,658) - - - (65,658) Total accumulated
depreciation/amortization (263,371,169) (16,726,424) 319,748 (117,666) (279,895,511) Total capital assets,
being depreciated, net 268,735,199 (10,817,024) 11,078,804 (991) 268,995,988 Total governmental activities $ 337,469,952 $ 11,594,604 $ (308,884) $ (418,253) $ 348,337,419 Depreciation expense was charged to governmental activities as follows:

Program Depriciation
General government $ 1,432,334
Police 423,852
Fire 144,799
Public works 9,374,645
Recreation and culture 4,108,215
Community development 11,914
Internal service funds 1,230,665
Total $ 16,726,424
Packet Pg. 796 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
89 Note 6 – Capital Assets (Continued)
B. Business-Type Activities
Summary of changes in capital assets for the year ended June 30, 2022 consisted of the following:

Balance Balance
July 1, 2021 Additions Deletions Transfers June 30, 2022 Business-type activities:

Capital assets, not being depreciated:

Land $ 20,127,247 $ 251,824 -$ 15,239 $ $ 20,394,310
Construction in progress 36,015,055 14,698,916 - (16,225,980) 34,487,991 Total capital assets,
not being depreciated 56,142,302 14,950,740 - (16,210,741) 54,882,301 Capital assets, being depreciated:

Utility plants 872,325,968 9,222,525 (2,128,806) 16,940,358 896,360,045 Buildings 78,630,899 (157) - (178,175) 78,452,567
Improvements other than buildings 57,363,998 39,527 - 71,731 57,475,256 Automotive equipment 48,639,143 2,630,950 (1,490,294) (40,773) 49,739,026 Furnishings and equipment 31,824,198 2,509,021 (135,614) (281,813) 33,915,792 Assets under lease:

Right-to-use equipment 124,056 - - 124,056 -
Total capital assets, being depreciated 1,088,908,262 14,402,023 (3,754,871) 16,511,328 1,116,066,742 Less accumulated depreciation for:

Utility plants (480,649,907) (22,689,826) 1,467,214 (501,872,519) - Buildings (47,644,422) (2,190,502) 157 5,671 (49,829,096) Improvements other than buildings (32,558,647) (1,882,561) - (34,441,208) - Automotive equipment (27,120,049) (3,553,957) 1,459,914 39,643 (29,174,449) Furnishings and equipment (22,137,619) (2,421,901) 135,614 72,352 (24,351,554) Assets under lease:

Right-to-use equipment - (62,951) - - (62,951)
Total accumulated
depreciation/amortization (610,110,644) (32,801,698) 3,062,899 117,666 (639,731,777) Total capital assets,
being depreciated, net 478,797,618 (18,399,675) (691,972) 16,628,994 476,334,965 Total business-type activities $ 534,939,920 $ (3,448,935) $ (691,972) $ 418,253 $ 531,217,266 Depreciation expense was charged to the business-type activities as follows:

Program Depreciation
Electric $ 14,111,226
Water 3,928,806
Wastewater 7,530,265
Storm drainage 1,084,859
Solid waste 2,787,403
Airport 1,786,913
RABA 1,496,477
Convention center 75,749
Total $ 32,801,698
Packet Pg. 797 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
90 Note 7 – Power Acquisition Costs
The Redding Electric Utility (REU) entered into an agreement in 1986 with the Western Area Power Administration (WAPA) to build a second interconnection point between REU’s internal electric 115kv transmission grid and the surrounding WAPA 230kv transmission grid. REU paid WAPA to build the Airport Road Substation to affect this connection and convert the 230kv surrounding power to 115kv for use on REU’s lines. After completion, REU gained title to the 115kv side of the substation, while WAPA retained ownership of the 230kv side. Since REU paid for the construction of the 230kv side and benefits from its presence, the cost of this has been set up as an asset and is being amortized over the 34 year useful life of the substation.

Power acquisition cost $ 3,470,314
Less: amortization (3,435,030)
Power acquisition cost, net $ 35,284
For the year ended June 30, 2022, amortization expense was $102,068.

Note 8 – Storage Base Gas
Redding Electric Utility (REU) entered into a natural gas lease agreement on August 28, 2009 with Gill Ranch Storage, LLC (GRS) in which GRS (Lessee) would provide firm natural gas storage service to REU (Lessor). The firm storage service is provided at the GRS facility in Madera County, California, near the City of Fresno. 2,250,000 Dth of natural gas was initially acquired by REU for GRS’ use as base gas under the lease at a total cost of $11,850,000. Additionally, in order to effect the right to offset provisions per the lease contract between REU and GRS, REU paid GRS an amount equal to $1,720,000. The total cost to REU to implement this lease agreement was $13,570,000. The lease arrangement dictates that GRS shall make monthly payments to REU as rent for the base gas in an amount equal to $100,000 per month. If REU does not purchase and deliver to GRS the base gas then GRS shall not be required to pay rent to REU.

As of June 30, 2022, the lease agreement between Redding Electric Utility and Gill Ranch Storage, LLC continues to be in effect.

Note 9 – Unavailable Revenue
On the fund financial statements, unavailable revenue consisted of the following as of June 30, 2022:

General Nonmajor
General Capital Projects Governmental
Fund Fund Funds Total
Unavailable revenues:

Sales tax 61,264 $ - $ - $ 61,264 $
Property taxes 714,006 - - 714,006
Grant revenue 730,719 19,131,988 478,152 20,340,859
Shasta Area Safety
Communications Agency rents 141,233 - - 141,233
Assessments - - 306,773 306,773
Housing loans - interest - - 4,948,433 4,948,433
HUD funds - - 34,990 34,990
Total 1,647,222 $ 19,131,988 $ 5,768,348 $ 26,547,558 $ Packet Pg. 798 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
91 Note 10 – Long-Term Debt
Summary of changes in long-term debt for the year ended June 30, 2022, is as follows:

Balance Balance Due within Due in more
July 1, 2021 Additions Deletions June 30, 2022 One Year than One Year Governmental activities:

Long-term debt:

Leases $ 278,431 151,196$ $ (91,796) $ 337,831 $ 104,228 $ 233,603 Revenue bonds 29,593,649 - (1, 954,753) 27,638,896 2,034,111 25,604,785 Long-term debt before
unamortized amounts 29,872,080 151,196 (2,046,549) 27,976,727 2,138,339 25,838,388 Bond premium 2,999,885 - ( 130,904) 2,868,981 130,903 2,738,078 Bond discount (42,129) - 3,988 (38,141) (3,644) (34,497) Total governmental activities
activities long-term debt 32,829,836 151,196 (2,173,465) 30,807,567 2,265,598 28,541,969 Business-type activities:

Long-term debt:

Leases 124,056 - (59,100) 64,956 60,571 4,385
Revenue bonds 158,316,350 - (12,555,247) 145,761,103 14,690,888 131,070,215 State loans payable 1,211,564 - (83,125) 1,128,439 85,483 1,042,956 Long-term debt before
unamortized amounts 159,651,970 - (12,697,472) 146,954,498 14,836,942 132,117,556 Bond premium 25,430,225 - (2, 236,069) 23,194,156 2,222,804 20,971,352 Bond discount (200) - 200 - - -
Total business-type activities
long-term debt 185,081,995 - (14,933,341) 170,148,654 17,059,746 153,088,908 Total long-term debt $ 217,911,831 151,196$ $ (17,106,806) $ 200,956,221 $ 19,325,344 $ 181,630,877 Current year amortization expense for bond premiums and discounts was $126,916 for the governmental activities and $2,235,869 for the business-type activities.

The annual requirements to amortize all debt outstanding as of June 30, 2022, excluding obligations associated with bond premiums (discounts) are as follows:

Year Ending
June 30, Principal Interest Principal Interest Principal Interest 2023 2,138,339 $ 1,339,342 $ 14,836,942 $ 7,183,047 $ 16,975,281 $ 8,522,389 $ 2024 1,740,819 1,232,821 13,632,506 6,473,505 15,373,325 7,706,326 2025 1,629,488 1,149,675 14,225,397 5,796,343 15,854,885 6,946,018 2026 1,677,447 1,067,705 14,937,958 5,087,033 16,615,405 6,154,738 2027 1,095,632 981,578 15,680,590 4,342,149 16,776,222 5,323,727 2028-2032 6,255,000 3,998,220 61,507,103 9,962,743 67,762,103 13,960,963 2033-2037 6,740,002 2,298,867 12,134,002 912,430 18,874,004 3,211,297 2038-2042 4,600,000 938,428 - 4,600,000 - 938,428
2043-2047 2,100,000 107,539 - 2,100,000 - 107,539
Total $ 27,976,727 $ 13,114,175 $ 146,954,498 $ 39,757,250 $ 174,931,225 $ 52,871,425 Governmental Activities Business-Type Activities Government-Wide Packet Pg. 799 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
92 Note 10 – Long-Term Debt (Continued)
Governmental activities
Issue
Amount
Balance
06/30/2022 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
2013 Lease Revenue Bonds, Series B
Principal Payment $ 6,508,896 9,046,060 $ $ 359,111 $ 379,783 $ 235,000 $ 245,000 Bond Discount (38, (120,916) (3, 141) (2, 645) 184) (1,678) (1,678) 2013 Lease Revenue Bonds, Series C
Principal Payment 2,135,000 1,475,000 100,000 105,000 110,000 120,000 2019 Lease Revenue Bonds, Series A
Principal Payment 24,085,000 19,655,000 1,575,000 1,155,000 1,210,000 1,275,000 Bond Premium 3,272,602 2,868,981 130,904 130,904 130,904 130,904 Leases Payable
Principal Payment 429,627 337,831 104,228 101,036 74,488 37,447 Total governmental activities $ 38,847,373 $ 30,807,567 $ 2,265,598 $ 1,869,539 $ 1,758,714 1,806,673$ Business-type activities
2013 California Airport Loan-Benton
Principal Payment $ 350,000 $ 211,539 $ 20,274 21,013$ $ 21,782 $ 22,578 2015 California Airport-Municipal
Principal Payment 1,100,000 763,746 55,326 56,724 58,155 59,619 2018 California Airport Loan- Benton
Principal Payment 190,000 153,154 9,883 10,167 10,459 10,760 2013 Lease Revenue Bonds, Series B
Principal Payment 693,940 156,103 75,888 80,215 - -
2020 Wastewater Revenue Bonds
Principal Payment 52,420,000 43,060,000 4,570,000 3,680,000 3,865,000 4,060,000 Bond Premium 12,075,581 10,817,708 754,724 754,724 754,724 754,724 2018 Electric Systems Revenue Bonds, Series A
Principal Payment 39,510,000 27,290,000 2,860,000 3,000,000 3,155,000 3,305,000 Bond Premium 6,232,541 3,957,252 525,067 525,067 525,067 525,067 2017 Electric Systems Revenue Bonds, Series A
Principal Payment 55,785,000 41,830,000 4,380,000 4,600,000 4,830,000 5,075,000 Bond Premium 9,436,880 5,587,337 733,246 733,246 733,246 733,246 2015 Electric Systems Revenue Bonds, Series A
Principal Payment 37,955,000 32,720,000 2,100,000 2,180,000 2,285,000 2,405,000 Bond Premium 4,195,346 2,831,859 209,767 209,767 209,767 209,767 2013 Water and Wastewater Revenue Bonds, Series A
Principal Payment 14,730,000 705,000 705,000 - - -
Leases Payable
Principal Payment 124,056 64,956 60,571 4,385 - -
Total business-type activities $ 234,798,344 $ 170,148,654 17,059,746$ 15,855,308$ $ 16,448,200 17,160,761$ *Additional Information on the Bond Issues follows this note.

Packet Pg. 800 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
93 Note 10 – Long-Term Debt (Continued)
FY 2026-27 FY 2028-32 FY 2033-37 FY 2038-42 FY 2043-47 Thereafter Final
Maturity
Interest
Rate
2043 2-5%
$ 1,485,000 255,000 $ 1,405,002 $ 1,450,000 $ 695,000 $ -$ (8,390) (1,678) (8,390) (8,390) (2,108) -
2032 3.75-6.5%
125,000 735,000 180,000 - - -
2044 3.125-5%
695,000 4,035,000 5,155,000 3,150,000 1,405,000 -
130,904 654,520 654,520 654,520 250,901 -
2027 3.890%
20,632 - - - - -
$ 1,224,858 $ 6,901,130 $ 7,386,132 $ 5,246,130 $ 2,348,793 $ - $ 23,404 $ 102,488 $ - -$ -$ $ 2031 3.655% -
61,117 329,309 143,496 - - 2033 2.33% -
11,069 60,308 40,508 - - 2035 2.87% -
- - - - - 2032 2-5.5% -
4,260,000 18,720,000 3,905,000 - - 2036 5% -
754,724 3,773,620 3,270,468 - - -
3,475,000 11,495,000 - - - 2030 4-5% -
525,067 1,331,917 - - - -
5,320,000 17,625,000 - - - 2030 3-5% -
733,246 1,921,107 - - - -
2,530,000 13,175,000 8,045,000 - - 2035 2-5% -
209,767 1,048,835 734,189 - - -
- - - - - 2023 2-5% -
- - - - - 2023 2.89% -
$ 17,903,394 $ 69,582,584 $ 16,138,661 $ - -$ -$
Packet Pg. 801 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
94 Note 10 – Long-Term Debt (Continued)
2013 Lease Revenue Bonds, Series B and C
The 2013 Lease Revenue Bonds, Series B and Series C were issued to finance the construction of the Redding police building and refinance the 2003 Aquatic Center, the Sports Complex, SHASCOM, Convention Center and the Municipal Airport, which was used to refinance the 1993 Lease Revenue Bonds for SHASCOM, Convention Center and the Municipal Airport.

The Bonds are payable from the operating revenues of the Redding Aquatic Center, Sports Complex, SHASCOM, Convention Center, and Municipal Airport Funds. The security for the bonds is the title to the City's existing police facility, its SHASCOM communications facility, the Redding Aquatic Center and the land on which the to-beconstructed police facility will be located to the Authority, and the City will lease back the leased property from the Authority pursuant to the facilities lease.
2019 Lease Revenue Bonds, Series A
The 2019 Lease Revenue Bonds, Series A were issued to refinance the 2004 Capital Projects Series A & B, 2004 Civic Center Refunding Series C, and the 2007 Capital Project Series A and to finance acquisition and construction of capital projects within the City of Redding. Payable from revenues generated pursuant to the Facilities Lease between the Redding Joint Powers Financing Authority (Authority) and the City of Redding whereby the City has transferred title to its Civic Center and leases it back from the Authority.

The Bonds are payable from revenues generated pursuant to the Facilities Lease between the Redding Joint Powers Financing Authority (Authority) and the City of Redding whereby the City has transferred title to its Civic Center and leases it back from the Authority.
2013 California Airport Loan (Benton)
The 2013 California Airport Loan (Benton) was to repay the California Highway Patrol Hangar at the Benton Airpark. 2015 California Airport Loan (Municipal)
The 2015 California Airport Loan (Municipal) was for the PV Solar Array lease purchase at the Redding Municipal Airport.
2018 California Airport Loan (Benton)
The 2018 California Airport Loan (Benton) was for the construction of a new hangar roof and other exterior improvements at the Benton Airpark.
2020 Wastewater Revenue Bonds
The 2020 Wastewater Revenue Bonds, Series A were issued to refinance twelve State Water Resource Control Board (SWRCB) loans, which were used to finance capital improvements to the City’s wastewater system and cost of issues for the 2020 bonds.

The payments are payable from operating revenue of the Wastewater Utility Fund. The 2020 bonds are special obligations of the City payable solely from and secured by a pledge of and lien on net revenues of the wastewater system and all monies on deposit in the Wastewater Revenue Fund.

Packet Pg. 802 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
95 Note 10 – Long-Term Debt (Continued)
2018 Electric System Revenue Bonds
The 2018 Electric System Revenue Bonds, Series A were issued to prepay and refund a portion of the City’s outstanding 2008 A Electric System Certificates of Participation Bonds and pay costs of issuance monies on deposit in the Electric Revenue Fund of the City.

The payments are payable from operating revenues of the Electric Utility Fund. The 2018 bonds are special obligations of the City payable solely from and secured by a pledge of and lien on net revenues of the electric system and all monies on deposit in the Electric Revenue Fund of the City. 2017 Electric System Revenue Bonds
The 2017 Electric System Revenue Bonds, Series A were issued to prepay and refund a portion of the City’s outstanding 2008 A Electric Systems Certificates of Participation Bonds and pay cost of issuance of the 2017 bonds.

The payments are payable from operating revenues of the Electric Utility Fund. The 2017 bonds are special obligation of the City payable solely from and secured by a pledge of and lien on net revenues of the electric system and all monies on deposit in the Electric Revenue Fund of the City. 2015 Electric System Revenue Bonds
The 2018 Electric System Revenue Bonds, Series A were issued to finance the cost of design, acquisition and construction of new administrative building for the Electric Utility of the City and to refinance the 2005 Electric Certificates of Participation Bonds, which were used to provide funds to finance costs of acquisition and construction of certain additions, betterments and improvements to the City’s electric system.

These payments are payable from operating revenues of the Electric Utility Fund. 2013 Water and Wastewater Revenue Bonds
The 2013 Water and Wastewater Revenue Bonds were issued to refinance the 2003 Water Revenue Bonds which were used to refinance the 1993 Water Revenue Bonds, which were originally issued to finance capital improvements to the City’s water system. The 2013 Wastewater Bongs were issued to refinance the 2002 Wastewater Revenue Bonds which were issued to refinance wastewater debt and wastewater’s portion of the corporation yard debt.

The water portion is payable from the operating revenues of the Water Utility Fund and the Wastewater portion is payable from the Wastewater operating revenues of the Wastewater Utility Fund. The refunding bonds are payable from, and secured by the Authority from the City under the Water Installment Sale Agreement and under the Wastewater Installment Sale Agreement and from certain interest and other income derived from certain funds and accounts held under the Trust Agreement.

Packet Pg. 803 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
96 Note 11 – Pledged Revenue
Revenue Pledged
Borrowing
Fund/Entity Bond/Loan Use of Funds
Year of Loan or
Year Repayments
and/or Interest
Payments Began
Original
Issue/Loan
Amount
Net Revenues Water Utility Bond Refund prior debt
issues.
2013 $ 6,165,000
Net Revenues Wastewater
Utility
Bond Refund prior debt
issues. (SRF Loan)
2020 52,420,000
Net Revenues Plus
Reserves
Electric Utility Bond Refund prior debt 2015 37,955,000 Net Revenues Plus
Reserves
Electric Utility Bond Refund prior debt 2017 55,785,000 Net Revenues Plus
Reserves
Electric Utility Bond Refund prior debt 2018 39,510,000

Packet Pg. 804 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
97 Note 11 – Pledged Revenue (Continued)
Payments
Amortized
Thru
Estimated % of
Pledged
Revenue
Required for
Debt Service
Estimated % of
Pledged
Revenue Plus
Reserves
Required for
Debt Service
Remaining
Principal &
Interest
Current Year
Principal &
Interest Paid
Current Year
Pledged
Revenue
Available
Reserve
Balance
2023 9% 733,200 $ 730,200 $ 8,277,770 $ - $
2036 40% 55,598,500 6,720,500 16,659,823 -
2035 12% 2% 43,266,915 1,853,570 15,261,997 71,511,669
2030 39% 7% 51,776,000 5,971,250 15,261,997 71,511,669
2030 33% 6% 33,778,000 4,960,750 15,261,997 71,511,669

Packet Pg. 805 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
98 Note 12 – Compensated Absences
The compensated absences liability will be paid from the General Fund, Housing Authority, Community Development, Airports, Electric Utility, Water Utility, Wastewater Utility, Solid Waste Utility, Storm Drainage Utility, Equipment Fund, Information Systems, General Support Services, Risk Management and Municipal Utility Support.

The City’s changes in compensated absences for the year ended June 30, 2022 were as follows:

Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Governmental activities 12,261,344 $ $ 7,673,063 $ (6,182,264) $ 13,752,143 $ 5,093,888 $ 8,658,255 Business-type activities 8,392,766 5,178,265 (4,513,764) 9,057,267 3,223,756 5,833,511 Total $ 20,654,110 $ 12,851,328 $ (10,696,028) $ 22,809,410 $ 8,317,644 $ 14,491,766 Note 13 – Self-Insurance
The City administers self-insurance programs for general liability and workers’ compensation. These programs are accounted for in the Risk Management Fund. Liability for each claim is estimated on a case-by-case basis for all pending claims. There has been no significant reduction in any of the insurance coverages from the prior year. Costs in the City’s Risk Management Fund have not exceeded charges to the various funds of the City and its component units. Settled claims resulting from these risks have not exceeded co-insurance plan coverage or commercial insurance coverage in any of the past three fiscal years. The City is also self-insured for health benefits and is a member of CSAC Excess Insurance Authority which administers the health benefits program.

Employee Health Insurance - The City is part of the California Public Entity Public Insurance Authority, a joint powers authority. The Risk Management Fund recognizes revenue from fund charges and accounts for actual expenditures. Funds determined to be at risk are charged estimated claims expense based on salary. The interfund charges are reported as an expense or expenditure in the at risk fund. The estimated liability for pending and incurred but not reported employee health insurance claims relating to July 1, 2021 and prior at June 30, 2022, has been included as an accrued liability in the risk management internal service fund.

Workers’ Compensation Insurance is administered as a co-insurance plan. The City is self-insured up to $750,000 with an insurance company co-insuring claims from $750,001 to $50,000,000. Funds determined to be at risk are charged a percentage of the total estimated insurance and claim expense. Percentages are based upon loss experience and salary costs. The interfund charges are reported as an expense or expenditure in the fund at risk. The estimated liability for pending and incurred but not reported claims at June 30, 2022, has been included in the Risk Management Fund’s claims payable amount as of June 30, 2022.

General Liability Insurance is self-administered and is self-insured up to $750,000. Any claims from $750,001 to $40,000,000 are administered through a governmental pooling joint powers authority, California Joint Powers Risk Management Authority. The Risk Management Fund recognizes revenue from fund charges and accounts for actual expenditures. Funds determined to be at risk are charged a percentage of the total estimated insurance and claim expense. Percentages are based upon loss experience and salary. The interfund charges are reported as an expense or expenditure in the funds at risk. Incurred but not reported claims liability has been included in the claims payable amount as of June 30, 2022.

Packet Pg. 806 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
99 Note 13 – Self-Insurance (Continued)
Property Insurance is administered as a co-insurance plan. The City is self-insured for claims up to $250,000 for all Risk and $500,000 for Wildfire. An insurance company co-insures claims over $250,000 for all Risk and $500,000 for Wildfire. Additionally, the City has acquired coverage for the Redding Power Plant up to $100,000,000 with various sub-limits and deductibles for different types of losses. The Risk Management Fund recognizes revenue from fund charges and accounts for actual expenditures. Funds determined to be at risk are charged a percentage of the total estimated insurance and claim expense. Percentages are based upon loss experience and salary costs. The interfund charges are reported as an expense or expenditure in the funds at risk. Incurred but not reported claims liability has been included in the claims payable amount as of June 30, 2022.

The following is a reconciliation of changes in claims liability amounts for fiscal years ended June 30, 2022:

Claims Claims
For the Years Payable Claims Claims Payable Due within Due in More Ended June 30, July 1, Incurred Payments June 30, One Year Than One Year Workers' Compensation
2020 15,906,350 399,795 (2,739,855) 13,566,290 3,222,190 10,344,100 2021 13,566,290 2,024,198 (2,036,288) 13,554,200 3,325,620 10,228,580 2022 13,554,200 2,784,524 (3,053,554) 13,285,170 4,567,826 8,717,344 General Liability
2020 1,426,870 1,555,907 (568,817) 2,413,960 2,188,880 225,080 2021 2,413,960 1,298,173 (750,213) 2,961,920 639,000 2,322,920 2022 2,961,920 2,479,008 (1,251,548) 4,189,380 2,400,823 1,788,557 Health and Dental
2020 87,510 23,305,218 (23,281,738) 110,990 110,990 -
2021 110,990 24,386,443 (24,398,343) 99,090 99,090 -
25,573,792 99,090 (25,490,492) 182,390 182,390 -
Total
2020 17,420,730 25,260,920 (26,590,410) 16,091,240 5,522,060 10,569,180 2021 16,091,240 27,708,814 (27,184,844) 16,615,210 4,063,710 12,551,500 2022 16,615,210 30,837,324 (29,795,594) 17,656,940 7,151,039 10,505,901 Packet Pg. 807 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
100
Note 14 – Individual Fund Disclosures
The following fund reported a deficit fund balance as of June 30, 2022:

Information Systems Fund – The deficit of $2,532,805 in this fund resulted from the City funding Internal Service Funds on a cash flow basis. Until the City funds the Other Post Employment Benefit (OPEB) and the pension liability, this fund will continue to have a deficit balance.

General Support Services Fund – The deficit of $2,938,967 in this fund resulted from the City funding Internal Service Funds on a cash flow basis. Until the City funds the Other Post Employment Benefit (OPEB) and the pension liability, this fund will continue to have a deficit balance.

Risk Management Fund – The deficit of $3,877,440 in this fund resulted from the City funding Internal Service Funds on a cash flow basis. Until the City funds the Other Post Employment Benefit (OPEB) and the pension liability, this fund will continue to have a deficit balance.

Municipal Utilities Support Fund – The deficit of $5,309,035 in this fund resulted from the City funding Internal Service Funds on a cash flow basis. Until the City funds the Other Post Employment Benefit (OPEB) and the pension liability, this fund will continue to have a deficit balance.

Note 15 – Joint Ventures
The City participates in the following four joint ventures:
 M-S-R Public Power Agency
 M-S-R Energy Authority
 Transmission Agency of Northern California
 Balancing Authority of Northern California
A. M-S-R Public Power Agency
M-S-R Public Power Agency (the Power Agency) was formed in 1980 by the Modesto Irrigation District (MID) and the Cities of Santa Clara and Redding, California, pursuant to Section 6500, et seq., of the California Government Code. The Agency was formed to conduct research and exploration for energy sources to provide additional electric power for the electric distribution systems of its members.

The Agency is governed by a Commission which consists of one member from each of the Power Agency’s members. For action, the Commission must have a quorum (minimum of two members) present, and there must be a unanimous vote of all Commissioners present. The Treasurer of the Power Agency is designated by the Joint Powers Agreement to be the Treasurer/Controller of MID. The selection of other management positions is made by the Commission from the personnel of its members. These functions are performed without compensation to the members.

The members’ rights, property, income, and expense-sharing ratio in most all Power Agency activities prior to April 2018 are as follows: Modesto Irrigation District - 50%, City of Santa Clara - 35%, and City of Redding - 15%. The debt service through 2022, declining on-going administrative activities and other remaining obligations and costs associated with the San Juan Power Plant (described below), will remain at the 50% - 35% - 15% ratio.

Packet Pg. 808 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
101
Note 15 – Joint Ventures (Continued)
A. M-S-R Public Power Agency (Continued)
The majority of activities after April 2018 will be related to renewables (Big Horn Wind energy project described below). Coordinating, regulatory, and compliance services costs will be shared as follows: Modesto Irrigation District – 40%, City of Santa Clara – 40%, and City of Redding – 20%. Renewable administrative services, electric product, delivery and environmental attribute rights, benefits and costs will be shared by contracted participation ratios as described below.

The activities of M-S-R consist of a previous 28.8% ownership interest in a 498-megawatt coal-fire electricity generating plant located in New Mexico (the “San Juan” plant). The San Juan plant began commercial operation in 1982 and had been owned jointly by the Public Service Company of New Mexico (38.5%), M-S-R (28.8%), and four other municipal power entities (32.7%).

The owners of the San Juan Generation Station have approved an ownership restructuring of the San Juan Generation Station effective December 31, 2017 under which M-S-R’s (and thereby the City’s) interest in the station and its generation will be transferred to the remaining owners. Definitive agreements for the proposed ownership restructuring of the San Juan Generation Station have been executed by all nine San Juan Generation Station owners and the Public Service Company of New Mexico Resources (PNMR).

With the ownership restructuring of the San Juan Generation Station, M-S-R Public Power Agency sold its interest of the Southwest Transmission on May 25, 2016. Proceeds of the sale of the Southwest Transmission Project assets were applied primarily to the defeasance of a portion of M-S-R Public Power Agency’s outstanding revenue bonds, and to fund certain deposits for future payments to the plant decommissioning trust fund, and to the mine reclamation trust fund established under the agreements relating to the ownership restructuring of the San Juan Generation Station. At this time Redding and M-S-R have no ongoing or regular cash called expenses with regard to this divested asset other than administrative and existing bonds to expire in 2022.

Additionally, in 2005, M-S-R entered into a 20-year power purchase agreement with PPM Energy, Inc.—now known as Avangrid Renewables, LLC (Avangrid—formerly Iberdrola Renewables) to procure 100% of the output from the Big Horn Wind Energy facility located near the town of Bickleton in Klickitat County, Washington. The project began commercial operation in October of 2006. The facility is interconnected through an 11 mile transmission line with the Bonneville Power Administration’s Spring Creek Substation. Redding receives a 35% share of the 199.5 MW project, while Santa Clara and Modesto receive 52.5% and 12.5% respectively.

In addition to the procurement of energy from the Big Horn Wind Energy facility, the Power Agency has also signed an agreement with Iberdrola Renewables—now known as Avangrid—to procure shaping and firming services for the output of the Big Horn facility. Through this agreement, Avangrid receives 100% of the output from the Big Horn facility as generated, and delivers such energy to M-S-R at the California-Oregon Border pursuant to firm pre-established delivery schedules.

Packet Pg. 809 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
102
Note 15 – Joint Ventures (Continued)
A. M-S-R Public Power Agency (Continued)
Summary audited financial information of the M-S-R Public Power Agency as of and for the year ended December 31, 2021 is as follows (in thousands):

Total assets and deferred outflows 79,588 $ Total revenues 86,361$ Total expenses (58,186)
Total liabilities and deferred inflows 57,006
Total members' deficit Net income 22,582 28,175
Total liabilities and members' deficit 79,588 $ Members' deficit, January 1, 2021 (2,293) Member distributions (3,300)
Members' deficit, December 31, 2021 22,582 $
The debt of the Power Agency is comprised entirely of revenue bonds totaling $26 million. These bonds are secured by a pledge and assignment of the net electric revenues of the Power Agency and are supported by takeand-pay commitments of the participants.

On June 13, 2018, bonds in the amount of $98,850,000, the 2018R bonds, were issued with an average interest rate of 4.71% to refund; $88,000,000 of the outstanding 2008L bonds with an average interest rate of 5.00%, and $30,595,000 and $14,685,000 of the outstanding variable interest rate 2008M and 2008N bonds, respectively. The net proceeds of the 2018R bonds plus $33,257,000 of restricted funds on hand were used to prepay the outstanding debt service requirements on the old bonds.

The cash flow requirements on the old bonds prior to the current refunding was $150,475,000 from 2018 through 2022. The cash flow requirements on the new bonds are $110,992,000 from 2018 through 2022. The current refund resulted in an economic gain of $5,147,000.

The City utilizes the equity method of accounting for M-S-R Public Power Agency. The City has invested $17.4 million in this joint venture. Operating profits have caused the City to have equity in the Power Agency of $3.4 million at December 31, 2021. Under the joint exercise of power agreement, which formed M-S-R, the City is responsible for funding up to 15% of M-S-R’s operating costs, to the extent such funding is necessary. During the year ended June 30, 2022, the City made no contributions to fund its share of prior operating deficits. If there were such contributions, they would be included in operating expenses.

Packet Pg. 810 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
103
Note 15 – Joint Ventures (Continued)
B. M-S-R Energy Authority
The Modesto Irrigation District, the City of Santa Clara, and the City of Redding formed M-S-R Energy Authority for the principal purpose to acquire, construct, maintain, operate and finance projects for the benefit of any one or more of the Members. On September 10, 2009, the Authority entered into a series of thirty-year prepaid gas contracts with Citigroup Energy, Inc., which are financed by non-recourse revenue bonds. The M-S-R Energy Authority also entered into matching Natural Gas Supply Agreements (“Supply Agreements”) whereby each member is obligated to purchase the natural gas from the Authority at a discount from the Index Price. The Supply Agreements will continue in effect until September 30, 2039, unless terminated earlier due to certain defaults, as set forth therein, or the termination of the matching prepaid gas contract. If the M-S-R Energy Authority fails on any day to deliver the quantity of natural gas required to be delivered pursuant to a Supply Agreement, the member will have no obligation for any of the natural gas supply that was not delivered as a result of such delivery default.

The equity of the M-S-R Energy Authority is split between the members based on the revenues and expenses applicable to each individual member’s Supply Agreement. Redding’s equity in the M-S-R Energy Authority’s net losses exceeds its investment and, therefore, the equity method of accounting has been suspended. As of December 31, 2021, the City’s unrecognized share of member’s deficit of the M-S-R Energy Authority was $118,408,933.

The long-term debt of the M-S-R Energy Authority totaled $881,000,000 at December 31, 2021. The M-S-R Energy Authority did not make any principal payments in 2021.

Summarized financial information of M-S-R Energy Authority as of and for the year ended December 31, 2021, is as follows (in thousands):

Total assets and deferred outflows $ 894,989
Total liabilities and deferred inflows $ 894,989
Total net position $ -
Total liabilities and net position $ 894,989
Net increase (decrease) in net position $ -
C. Transmission Agency of Northern California
The Transmission Agency of Northern California (TANC) is a joint powers agency organized for the principal purpose to provide electric transmission or other facilities for the use of its members. The City has an 8.41% ownership interest in TANC equating to a $6,353,828 member’s equity balance at June 30, 2022. The first transmission construction project undertaken by TANC was the development of the California-Oregon Transmission Project (COTP). The project is a 339 mile long, 500 kilovolt alternating current transmission project between southern Oregon and central California. In 2009, TANC purchased an additional 121 megawatts (MW) of COTP transfer capability from the City of Vernon. TANC’s new ownership share of COTP transfer capability is 1367 MW and TANC pays 87% of the operating costs. The City’s share of the project is 115 MW.

Packet Pg. 811 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
104
Note 15 – Joint Ventures (Continued)
C. Transmission Agency of Northern California
Also TANC receives from Pacific Gas and Electric Company (PG&E) 300 MW of bi-directional transmission service over PG&E’s system between the Tesla and Midway Substations. The City’s share of this South of Tesla agreement is 10.33% at June 30, 2022.

The debt of the Transmission Agency of Northern California is comprised entirely of revenue bonds totaling $167,800,000. These bonds are secured by a pledge and assignment of the net electric revenues of the Agency and are supported by take-and-pay commitments of the participants.

Investment in JPA $ 6,353,828 .

Summarized financial information of TANC as of and for the year ended June 30, 2022, is as follows (in thousands):

Total assets and deferred outflows $ 381,085
Total liabilities and deferred inflows 302,014
Total net position 79,071
Total liabilities and net position $ 381,085
Net increase (decrease) in net position $ 14,921
D. Balancing Authority of Northern California

The Balancing Authority of Northern California (BANC) is a joint powers agency consisting of the Sacramento Municipal Utility district (SMUD), Modesto Irrigation District (MID), Roseville Electric and City of Redding-Electric Utility (REU) as its founding members as was formed in 2009. Subsequent to its formation, Trinity Public Utilities District (TPUD) and Shasta Lake Public Utility District (SLPUD) have joined as new members. REU participates in BANC through the Western sub-balancing authority. BANC assumed the balancing authority responsibilities on May 1, 2011, from SMUD that include the matching of generation to load and coordinating system operations with neighboring Balancing Authorities. The Central Valley Project (CVP) generation, owned by the Bureau of Reclamation and Western Area Power Administration’s transmission facilities along with the 500 kV California Oregon Transmission Project (COTP), are included among other resources within the BANC footprint. BANC members contract for about 40 percent of the CVP hydroelectric resource. The COTP is jointly owned by several parties including WAPA and BANC members via the Transmission Agency of Northern California (TANC).

BANC provides its members an ownership voice in all balancing authority decisions consistent with the principle of maximizing consumer value. It also provides members a unified voice and representation in topics pertaining to Balancing Area matters. The structure provides flexibility to expand potential cost-saving opportunities by sharing future facility costs and clarifies roles and responsibilities of the members regarding reliability standard compliance.

Packet Pg. 812 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
105
Note 15 – Joint Ventures (Continued)
D. Balancing Authority of Northern California
The member’s rights and expense-sharing is based on the participation percentages in most BANC activities.

BANC member’s participation percentages are based on the member’s retail sales and stands at 69.2%, 16.9%,

7.7%, 4.9%, and 1.3% for SMUD, MID, Roseville, REU, and Shasta Lake respectively. These participation percentages can be updated as the need requires.

Summarized financial information of BANC as of and for the year ended December 31, 2021, is as follows (in thousands):

Total current assets $ 7,096,513
Total current liabilities 7,096,513
Total net position -
Total liabilities and net position $ 7,096,513
Net increase (decrease) in net position $ -
Complete separate financial statements for each of the joint ventures in which the City participates may be obtained from the City of Redding Finance Department, 777 Cypress Avenue, Redding, California 96001.

E. Contingent Liability
Under the terms of the various joint venture agreements, the City is contingently liable for a portion of the longterm debt of the entities under take-or-pay agreements, letters of credit, guarantees or other similar agreements.

Based on the most recent audited financial statements of the individual joint ventures, the City is contingently liable for long-term debt as follows:

Total City of Redding's City of Redding's
Debt Participating Share Contingent liability
M-S-R (1):

Bonds 26,425,000 $ 15.000% 3,963,750 $
TANC (2)
Bonds (2016A) 167,800,000 8.3912% 14,080,434
TANC subtotal 167,800,000 14,080,434
Total 194,225,000 $ 18,044,184 $
(1) As of December 31, 2021
(2) As of June 30, 2022
In addition, the City would be, under certain conditions, liable to pay a portion of costs associated with the operations of the entities. Under certain circumstances, such as default or bankruptcy of the other participants, the City may also be liable to pay a portion of the debt of these joint ventures on behalf of those participants and seek reimbursement from those participants. These costs are not measurable at this time.

Packet Pg. 813 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
106
Note 16 – Postclosure Care Costs
State and federal laws and regulations required the City to place a final cover on Benton Landfill, which closed in 1990.

The City has completed the final cover and other closure items required. The City is also required under state and federal laws and regulations to perform certain maintenance and monitoring functions at the landfill site for the next 15 years. The remaining estimated liability for landfill postclosure care cost was $2,583,690 as of June 30, 2022, as shown in the table below. The total estimated cost of the landfill postclosure care is based on the amount that would be paid if all services required to monitor and maintain the landfill were acquired as of June 30, 2022. There is no requirement to currently fund this amount. The cost for postclosure care at the landfill and additional costs that might arise from changes in postclosure requirements (due to changes in technology or more rigorous environmental regulations, for example) will be covered by charges to Solid Waste rate payers.

Changes in postclosure care costs for the year ended June 30, 2022, were as follows:

Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Postclosure care liability 2,390,240 $ 327,853$ 134,133$ $ 2,583,960 $ 170,370 $ 2,413,590 Note 17 – Public Transportation Modernization Improvement and Service Enhancement Account (PTMISEA) Grant Information.

In November 2006, California Voters passed bond measure 1B, enacting the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006. Of the $19.925 billion of state general obligation bonds authorized, $3.6 billion was allocated to PTMISEA to be available to transit operators over a ten-year period. These funds may be used for transit rehabilitation, safety or modernization improvements, capital service enhancements or expansions, new capital projects, bus rapid transit improvements, or rolling stock (buses and rail cars) procurement, rehabilitation or replacement.

In fiscal year 2021-22, RABA did not receive or accrue any additional PTMISEA funding. During the fiscal year RABA incurred $816,392 in qualifying expenditures and earned $4,598 in interest income. The June 30, 2022 ending balance in unspent PTMISEA funding was $961,993 and is included in the Unearned Revenue balance.

Packet Pg. 814 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
107
Note 18 – Retirement Plans
A. Summary
Aggregate Net Pension Liability
Aggregate Net pension liability is reported in the accompanying Statements of Net Position as follows:

Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) $ 30,241,994 $ 94,663,754 $ 4,305,732 $ 129,211,480 Internal Service Funds:

Equipment 2,444,024 256,591 - 2,700,615
Information Systems 3,068,945 257,468 - 3,326,413
General Support Services 3,494,968 347,877 - 3,842,845
Risk Management 779,081 - 66,022 845,103
Municipal Utilities Support 4,139,790 740,934 - 4,880,724 Total Internal Service Funds 13,926,808 1,668,892 - 15,595,700 Total Governmental Activities 44,168,802 94,663,754 5,974,624 144,807,180 Enterprise funds:

Electric Utility 42,838,951 - 48,468,583 5,629,632
Water Utility 4,436,857 - 5,254,395 817,538
Wastewater Utility 5,922,597 - 6,885,326 962,729
Solid Waste Utility 10,148,036 - 11,450,799 1,302,763
Airport 1,181,792 - 1,182,653 861
Storm Drainage Utility 733,473 - 854,932 121,459
Total Enterprise funds 65,261,706 - 8,834,982 74,096,688 Total $ 94,663,754 109,430,508 $ 14,809,606 $ 218,903,868 $ Packet Pg. 815 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
108
Note 18 – Retirement Plans (Continued)
A. Summary (Continued)
Deferred Outflows of Resources
Deferred outflows of resources are reported in the accompanying Statements of Net Position as follows:

Pension Contributions Made after the Measurement Date
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) 4,633,233 $ 12,958,225 $ 2,788,038 $ 20,379,496 $ Internal Service Funds:

Equipment 374,437 - 166,147 540,584
Information Systems 470,179 - 166,715 636,894
General Support Services 535,448 - 225,256 760,704
Risk Management 119,359 - 42,750 162,109
Municipal Utilities Support 634,238 - 479,768 1,114,006 Total Internal Service Funds 2,133,661 - 1,080,636 3,214,297 Total Governmental Activities 6,766,894 12,958,225 3,868,674 23,593,793 Enterprise funds:

Electric Utility 6,563,151 - 3,645,286 10,208,437
Water Utility 679,749 - 529,370 1,209,119
Wastewater Utility 907,373 - 623,384 1,530,757
Solid Waste Utility 1,554,732 - 843,562 2,398,294
Airport 181,057 - 558 181,615
Storm Drainage Utility 112,372 - 78,647 191,019
Total Enterprise funds 9,998,434 - 5,720,807 15,719,241 Total $ 12,958,225 16,765,328 $ 9,589,481 $ 39,313,034 $ Packet Pg. 816 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
109
Note 18 – Retirement Plans (Continued)
A. Summary (Continued)
Deferred Outflows of Resources (Continued)
Difference between Expected and Actual Experience
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) $ 706,368 $ 744,941 $ 35,897 $ 1,487,206 Internal Service Funds:

Equipment 57,083 - 2,139 59,222
Information Systems 71,681 - 2,147 73,828
General Support Services 81,636 - 2,900 84,536
Risk Management 18,199 - 550 18,749
Municipal Utilities Support 96,694 - 6,177 102,871
Total Internal Service Funds 325,293 13,913 - 339,206
Total Governmental Activities 1,031,661 744,941 49,810 1,826,412 Enterprise funds:

Electric Utility 1,000,598 46,934 - 1,047,532
Water Utility 103,633 - 6,816 110,449
Wastewater Utility 138,335 - 8,026 146,361
Solid Waste Utility 237,029 10,861 - 247,890
Airport 27,603 - 7 27,610
Storm Drainage Utility 17,131 - 1,013 18,144
Total Enterprise funds 1,524,329 73,657 - 1,597,986
Total $ 2,555,990 $ 744,941 $ 123,467 $ 3,424,398
Total Deferred Outflows
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) 5,339,601 $ 13,703,166 $ 2,823,935 $ 21,866,702 $ Internal Service Funds:

Equipment 431,520 - 168,286 599,806
Information Systems 541,860 - 168,862 710,722
General Support Services 617,084 - 228,156 845,240
Risk Management 137,558 - 43,300 180,858
Municipal Utilities Support 730,932 - 485,945 1,216,877 Total Internal Service Funds 2,458,954 - 1,094,549 3,553,503 Total Governmental Activities 7,798,555 13,703,166 3,918,484 25,420,205 Enterprise funds:

Electric Utility 7,563,749 - 3,692,220 11,255,969
Water Utility 783,382 - 536,186 1,319,568
Wastewater Utility 1,045,708 - 631,410 1,677,118
Solid Waste Utility 1,791,761 - 854,423 2,646,184
Airport 208,660 - 565 209,225
Storm Drainage Utility 129,503 - 79,660 209,163
Total Enterprise funds 11,522,763 - 5,794,464 17,317,227 Total $ 13,703,166 19,321,318 $ 9,712,948 $ 42,737,432 $ Packet Pg. 817 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
110
Note 18 – Retirement Plans (Continued)
A. Summary (Continued)
Deferred Inflows of Resources
Deferred inflows of resources are reported in the accompanying Statements of Net Position as follows:

Differences between Expected and Actual Experience
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) - $ 1,077,437 $ - $ 1,077,437 $ Internal Service Funds:

Equipment - - - -
Information Systems - - - -
General Support Services - - - -
Risk Management - - - -
Municipal Utilities Support - - - -
Total Internal Service Funds - - - -
Total Governmental Activities - 1,077,437 - 1,077,437
Enterprise funds:

Electric Utility - - - -
Water Utility - - - -
Wastewater Utility - - - -
Solid Waste Utility - - - -
Airport - - - -
Storm Drainage Utility - - - -
Total Enterprise funds - - - -
Total $ 1,077,437 - $ - $ 1,077,437 $
Difference between Expected and Actual Experience
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) $ 9,881,478 $ 23,754,345 $ 2,074,897 $ 35,710,720 Internal Service Funds:

Equipment 798,576 123,649 - 922,225
Information Systems 1,002,768 124,072 - 1,126,840
General Support Services 1,141,971 167,639 - 1,309,610
Risk Management 254,562 31,815 - 286,377
Municipal Utilities Support 1,352,663 357,050 - 1,709,713 Total Internal Service Funds 4,550,540 804,225 - 5,354,765 Total Governmental Activities 14,432,018 23,754,345 2,879,122 41,065,485 Enterprise funds:

Electric Utility 13,997,495 2,712,874 - 16,710,369
Water Utility 1,449,728 393,967 - 1,843,695
Wastewater Utility 1,935,190 463,931 - 2,399,121
Solid Waste Utility 3,315,841 627,791 - 3,943,632
Airport 386,147 - 415 386,562
Storm Drainage Utility 239,660 58,530 - 298,190
Total Enterprise funds 21,324,061 4,257,508 - 25,581,569 Total $ 35,756,079 $ 23,754,345 $ 7,136,630 $ 66,647,054 Packet Pg. 818 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
111
Note 18 – Retirement Plans (Continued)
A. Summary (Continued)
Deferred Inflows of Resources
Total Pension-related Deferred Inflows
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) $ 9,881,478 $ 24,831,782 $ 2,074,897 $ 36,788,157 Internal Service Funds:

Electric Utility 13,997,495 2,712,874 - 16,710,369
Water Utility 1,449,728 393,967 - 1,843,695
Wastewater Utility 1,935,190 463,931 - 2,399,121
Solid Waste Utility 3,315,841 627,791 - 3,943,632
Airport 386,147 - 415 386,562
Storm Drainage Utility 239,660 58,530 - 298,190
Total Enterprise funds 21,324,061 4,257,508 - 25,581,569 Total $ 35,756,079 $ 24,831,782 $ 7,136,630 $ 67,724,491 Pension Expense
The total pension expense related to all retirement plans is $13,157,358. This is comprised of three parts CalPERS Miscellaneous Plan, CalPERS Safety Plan, and the PARS plan. The CalPERS Miscellaneous Plan pension expense was $5,380,006, the CalPERS Safety Plan pension expense was $6,574,057, and the PARS plan was $1,203,295.

B. CalPERS
General Information about the Pension Plans
All qualified permanent and probationary employees are eligible to participate in the City’s separate Miscellaneous and Safety (police and fire) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employee’s Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Packet Pg. 819 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
112
Note 18 – Retirement Plans (Continued)
B. CalPERS (Continued)
General Information about the Pension Plans (continued) In addition to the defined benefit pension plan through CalPERS, the City offers a defined benefit Retirement Enhancement Plan (REP) to the CalPERS Miscellaneous Plan through Public Agency Retirement Services (PARS).

This plan became effective on January 1, 2005. Information about the REP Plan through PARS will be discussed following the discussion of the CalPERS Plan.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.

The death benefit is one of the following: the Basis Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:

Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement age 50-55 52-67
Monthly benefits, as a % of eligible compensation 1.426% to 2.0% 1.0% to 2.5% Required employee contribution rates 7.00% 7.25%
Required employer contribution rates 9.96% 9.96%
Miscellaneous
Hire date
Prior to
September 8, 2012
September 8, 2012
to December 31,
2012
On or after
January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit Payments monthly for life monthly for life monthly for life Retirement age 50-55 50-55 52-57
Monthly benefits, as a % of eligible compensation 3.0% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.0% 9.0% 13.3%
Required employer contribution rates 21.554% 21.554% 21.970% Safety
Packet Pg. 820 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
113
Note 18 – Retirement Plans (Continued)
B. CalPERS (Continued)
a. Net Pension Liability
Employees Covered by Benefit Terms
At June 30, 2020 (actuarial valuation date), the following employees were covered by the benefit terms for each Plan:

Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 861 307 Inactive employees entitled to but not yet receiving benefits 315 69 Active employees 605 192
Total 1,781 568
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions for both Plans are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer-Paid Member Contributions or situations where members are paying a portion of the employer contribution.

The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Packet Pg. 821 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
114
Note 18 – Retirement Plans (Continued)
B. CalPERS (Continued)
a. Net Pension Liability (Continued)
Actuarial Assumptions
The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Payroll Growth 2.75% 2.75%
Projected Salary Increase
Investment Rate of Return
includes Inflation
Mortality Rate Table 1
Post Retirement Benefit Increase
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Preretirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

Contract COLA up to 2.50% until Purchasing
Power Protection Allowance Floor on Purchasing
Power applies, 2.50% thereafter
Derived using CalPERS' Membership Data for all
Funds.

Entry-Age Normal Cost
Varies by Entry Age and Service

7.00% Net of Pension Plan Investment Expense,
All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publication.

Packet Pg. 822 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
115
Note 18 – Retirement Plans (Continued)
B. CalPERS (Continued)
a. Net Pension Liability (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS staff took into account both short-term and long-term market return expectations as well as the expected pension fund (Public Employees’ Retirement Fund) cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ assets classes, expected compound (geometric returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above the rounded down to the nearest one quarter of one percent.

The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the Board effective on July 1, 2014.

Asset Class1
Current Target
Allocation
Real Return
Years 1-10
2 Real Return
Years 11+
3 Global Equity 50.0% 4.80% 5.98%
Global Fixed Income 28.0% 1.00% 2.62%
Inflation Sensitive 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Estate 13.0% 3.75% 4.93%
Infrastructure and Forestland 0.0% 0.00% 0.00%
Liquidity 1.0% 0.00% -0.92%
3 An expected inflation of 2.92% used for this period
1 In the System's CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities 2 An expected inflation of 2.0% used for this period
Packet Pg. 823 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
116
Note 18 – Retirement Plans (Continued)
B. CalPERS (Continued)
b. Changes in Net Pension Liability
The changes in the Net Pension Liability for each Plan follow:

Miscellaneous Plan:

Total Pension
Liability
Increase
(Decrease) Plan
Fiduciary Net
Pension
Net Pension
Liability/ (Asset)
Balance at June 30, 2020 (Measurement date) $ 475,245,999 $ 318,158,015 $ 157,087,984 Changes in the year:

Service costs 7,299,034 7,299,034 -
Interest on the total pension liability 33,378,172 33,378,172 - Changes of benefit terms - - -
Differences between actual and expected experience 1,706,144 1,706,144 - Change in assumptions - - -
Plan to plan resource movement - - -
Contributions - employer 15,066,353 - (15,066,353)
Contribution - employee 3,711,059 - (3,711,059)
Net investment income 71,581,234 - (71,581,234)
Benefit payments, including refunds of employee
contributions (27,548,141) (27,548,141) -
Administrative expense - (317,820) 317,820
Other miscellaneous income/(expense) - - -
Net changes 14,835,209 62,492,685 (47,657,476)
Balance at June 30, 2021 (Measurement date) $ 490,081,208 $ 380,650,700 $ 109,430,508 2 Net of administrative expenses
Packet Pg. 824 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
117
Note 18 – Retirement Plans (Continued)
B. CalPERS (Continued)
b. Changes in Net Pension Liability (Continued)
Safety Plan:

Total Pension
Liability
Increase
(Decrease) Plan
Fiduciary Net
Pension
Net Pension
Liability/ (Asset)
Balance at June 30, 2020 (Measurement date) $ 337,367,520 $ 209,035,943 $ 128,331,577 Changes in the year:

Service costs 5,835,290 5,835,290 - Interest on the total pension liability 23,600,338 23,600,338 - Changes of benefit terms - - - Differences between actual and expected experience (1,394,330) (1,394,330) - Change in assumptions - - - Plan to plan resource movement - - - Contributions - employer 12,015,895 - (12,015,895) Contribution - employee 2,413,060 - (2,413,060)
Net investment income 47,488,980 - (47,488,980)
Benefit payments, including refunds of employee
contributions (17,632,371) (17,632,371) - Administrative expense - (208,814) 208,814 Other miscellaneous income/(expense) - - - Net changes 10,408,927 44,076,750 (33,667,823) Balance at June 30, 2021 (Measurement date) $ 347,776,447 $ 253,112,693 $ 94,663,754 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:

Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net pension liability $ 168,773,269 $ 141,449,690
Current discount rate 7.15% 7.15%
Net pension liability $ 109,430,508 $ 94,663,754
1% Increase 8.15% 8.15%
Net pension liability $ 59,840,471 $ 56,232,817
Packet Pg. 825 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
118
Note 18 – Retirement Plans (Continued)
B. CalPERS (Continued)
b. Changes in Net Pension Liability (Continued)
Pension Plan Fiduciary Net Position
The plan fiduciary net position disclosed in the City’s GASB 68 accounting valuation report may differ from the plan assets report in the funding actuarial valuation report due to several reasons. First, for the account valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Annual Comprehensive Financial Report closing and final reconciled reserves.
c. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense of $11,954,063, which is comprised of $5,380,006 of pension expense related to the CalPERS Miscellaneous plan and $6,574,057 of pension expense related to the CalPERS Safety plan. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Plan:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions made after measurement date 16,765,328 $ - $ Difference between expected and actual experience 2,555,990 - Net difference between projected and actual earnings on pension plan investments - (35,756,079)
Total 19,321,318 $ (35,756,079) $
Safety Plan:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions made after measurement date 12,958,225 $ - $ Difference between expected and actual experience 744,941 (1,077,437) Net difference between projected and actual earnings on pension plan investments - (23,754,345)
Total 13,703,166 $ (24,831,782) $
Packet Pg. 826 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
119
Note 18 – Retirement Plans (Continued)
B. CalPERS (Continued)
c. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) The amounts above are net of outflow and inflows recognized in the 2020-21 measurement period expense.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the miscellaneous plan and safety plan for the 2019-20 measurement is 3.5 and 4.1 years, which was obtained by dividing the total service years of 6,004 and 2,213 (the sum of remaining service lifetimes of the active employees) by 1,714 and 543 (the total number of participants: active, inactive and retired), respectively.

The $16,765,328 and $12,958,225 reported as deferred outflows of resources related to pension resulting from the City’s contributions subsequent to the measurement date during the year ended June 30, 2021 will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflow and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Year Ended June 30 Miscellaneous Plan Safety Plan
2022 (7,469,429) $ (5,654,203) $
2023 (7,577,422) (5,770,683)
2024 (8,308,544) (5,997,965)
2025 (9,844,694) (6,663,990)
2026 - -
Thereafter - -
Total (33,200,089) $ (24,086,841) $
d. Payable to the Pension Plan
At June 30, 2022, The City reported a payable of $ -0- for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.

Packet Pg. 827 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
120
Note 18 – Retirement Plans (Continued)
C. PARS
a. General Information about the Pension Plans
Effective January 1, 2005, the City adopted a defined benefit plan administered through the Public Agency Retirement System (PARS) to provide supplemental retirement benefits to eligible employees in addition to the benefits the employees receive from CalPERS. The plan is an agent multiple-employer defined benefit plan. The financial statement is issued as part of an audited trust Financial Statement and is available thru the State Controller website and filed on an annual basis. Employee groups who are eligible to participate in the Retirement Enhancement Plan (REP) are as follows: Tier I – Executive Management Employees, Tier II – Redding Independent Employees’ Organization (RIEO) represented employees, Tier III Redding Police Officers’ Association (RPOA) - Miscellaneous Unit employees, Tier IV International Brotherhood of Electrical Workers (IBEW) – Maintenance unit represented employees, Tier V International Brotherhood of electrical Workers (IBEW) – Electric represented employees, and Tier VI United Public Employees of California represented employees. The Plan is now closed to new participants.

Benefits Provided
The REP plan provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members and beneficiaries. Benefits are based on years of service credited service, equal to one year of full time employment. Members in Tiers I, III, IV, V and VI with five years of service with the City are eligible to retire at age 50. Members in Tier II with ten years of service with the City are eligible to retire at age 50. The death benefit is one of the following: the Basis Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:

Tier I Tier II Tier III Tier IV Tier V Tier VI
Hire date 1/1/2005 thru
8/7/2011
1/1/2005 thru
12/31/2012
1/1/2005 thru
1/5/2011
1/1/2005 thru
1/5/2011
1/1/2005 thru
9/21/2011
1/1/2005 thru
9/21/2011
Benefit formula 2.7% @ 55 2.7% @ 55 2.5% @ 55 2.7% @ 55 2.7% @ 55 2.7% @ 55 Benefit vesting schedule 5 years service 10 years service 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life monthly for life monthly for life Retirement age 50-55 50-55 50-55 50-55 50-55 50-55
Monthly benefits, as a %
of eligible compensation 2.0% to 2.7% 2.0% to 2.7% 2.0% to 2.5% 2.0% to 2.7% 2.0% to 2.7% 2.0% to 2.7% Required employee
contribution rates 2.35% 1.70% 1.71% 2.08% 2.08% 1.31%
Required employer
contribution rates 54.14% 45.87% 45.85% 39.57% 36.09% 46.52% Packet Pg. 828 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
121
Note 18 – Retirement Plans (Continued)
C. PARS (Continued)
a. General Information about the Pension Plans (Continued) Employees Covered
At July 1, 2020, the following employees were covered by the benefit terms for each Plan:

Tier I Tier II Tier III Tier IV Tier V Tier VI Total
Inactive employees or beneficiaries
currently receiving benefits 100 205 10 93 45 11 464
Inactive employees entitled to
but not yet receiving benefits 3 4 - 3 - 1 11
Active employees 101 2 60 27 12 245 43
Total 310 12 156 72 24 720 146
b. Net Pension Liability
The City’s total pension liability was determined by an actuarial valuation as of the valuation date, calculated based on the discount rate and actuarial assumptions below, and was then projected forward to the measurement date. There have been no significant changes between the valuation date and the fiscal year end. As summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions
The total pension liabilities in the June 30, 2020 actuarial valuation were determined using the following actuarial assumptions:

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal
Actuarial Assumptions:

Discount Rate 7.00%
Inflation 2.50%
Projected Salary Increase Graded rates based on years of services, 3.4% after 22 years of service.

Investment Rate of Return 7.00%
Mortality Rate Table Pre-retirement/Post-retirement: Consistent with NonIndustrial rates used to value the Miscellaneous CalPERS Pension Plans after June 30, 2017
Packet Pg. 829 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
122
Note 18 – Retirement Plans (Continued)
C. PARS (Continued)
b. Net Pension Liability (Continued)
Discount Rate
The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per Milliman’s investment consulting practice as of June 30, 2022.

Asset Class Index
Target
Allocation
Long-Term
Expected
Arithmetic
Real Rate of
Return
Long-Term
Expected
Geometric
Real Rate of
Return
US Cash BAML 3-Mon Tbill 0.63% 0.21% 0.20%
US Core Fixed Income Barclays Aggregate 36.04% 1.95% 1.84% US Equity Market Russell 3000 47.97% 5.70% 4.10%
Foreign Developed Equity MSCI EAFE NR 7.77% 6.99% 5.25% Emerging Markets Equity MSCI EM NR 5.55% 9.44% 5.97%
US REITs FTSE NAREIT Equity REIT 2.04% 6.27% 4.11%
Assumed inflation - mean 2.35% 2.35%

1.25% 1.25%
Portfolio real mean return 4.63% 3.96%
Portfolio nominal mean return 6.98% 6.43%
Portfolio standard deviation 11.08%

7.00%
Assumed inflation - standard deviation
Long-term expected rate of return
Packet Pg. 830 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
123
Note 18 – Retirement Plans (Continued)
C. PARS (Continued)
c. Changes in Net Pension Liability
The changes in the Net Pension Liability for the Plan follow:

PARS-REP Plan
Total Pension
Liability
Increase
(Decrease) Plan
Fiduciary Net
Pension
Net Pension
Liability/ (Asset)
Balance at June 30, 2020 (Measurement date) $ 88,742,201 $ 59,697,789 $ 29,044,412 Changes in the year:

Service costs 934,480 934,480 - Interest on the total pension liability 6,099,199 6,099,199 - Changes of benefit terms - - - Effect of economic/demographic gains or losses - - - Differences between actual and expected experience - - - Change in assumptions - - - Contributions - employer 6,575,412 - (6,575,412) Contribution - employer (paid by member) 353,687 - (353,687) Net investment income 14,530,931 - (14,530,931)
Administrative expenses (191,545) - 191,545
Benefit payments, including refunds of employee
contributions
Net changes 1,855,557 16,090,363 (14,234,806)
Balance at June 30, 2021 (Measurement date) $ 90,597,758 $ 75,788,152 $ 14,809,606 (5,178,122) (5,178,122) -
Sensitivity Analysis
The following presents the net pension liability of the City of Redding Retirement Enhancement Plan, calculated using the discount rate of 7.0%, as well as what the Plan’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.0%) or 1 percentage point higher (8.0%) than the current rate.
1% Decrease

6.0%
Current
Discount Rate

7.0%
1% Increase

8.0%
Total pension liability 100,746,516 $ $ 90,597,758 $ 82,015,742 Fiduciary net position 75,788,152 75,788,152 75,788,152 Net pension liability 24,958,364 14,809,606 6,227,590
Packet Pg. 831 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
124
Note 18 – Retirement Plans (Continued)
C. PARS (Continued)
c. Changes in Net Pension Liability (Continued)
Pension Plan Fiduciary Net Position
The plan fiduciary net position disclosed in the City’s GASB 68 accounting valuation report may differ from the plan assets report in the funding actuarial valuation report due to several reasons. First, for the account valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Annual Comprehensive Financial Report closing and final reconciled reserves.
d. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense of $1,203,296. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions made after measurement date $ 9,589,481 $ - Difference between expected and actual experience 123,467 - Net difference between projected and actual earnings on pension plan investments - (7,136,630)
Total $ 9,712,948 $ (7,136,630)
The amounts above are net of outflow and inflows recognized in the 2019-20 measurement period expense.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the PARS plan for the 2019-20 measurement is 2.6 years, which was obtained by dividing the total service years of 1,889 (the sum of remaining service lifetimes of the active employees) by 727 (the total number of participants: active, inactive and retired).

Packet Pg. 832 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
125
Note 18 – Retirement Plans (Continued)
C. PARS (Continued)
d. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) The $9,589,481 reported as deferred outflows of resources related to pension resulting from the City’s contributions subsequent to the measurement date during the year ended June 30, 2022 will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflow and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Year Ended June 30 Amount
2022 (1,542,094) $
2023 (1,677,756)
2024 (1,733,628)
2025 (2,059,685)
Thereafter -
Total $ (7,013,163)
e. Payable to the Pension Plan
At June 30, 2022, The City reported a payable of $ -0- for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.

Packet Pg. 833 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
126
Note 19 – Other Postemployment Healthcare Benefits
The following is a summary of Net other postemployment benefits (“OPEB”) liabilities and related deferred outflows and inflows of resources as of June 30, 2022:

Aggregate Net OPEB Liability
Aggregate Net OPEB Liability is reported in the accompanying Statements of Net Position as follows:

Governmental Activities
(minus Internal Service Funds) 27,431,814 $
Internal Service Funds:

Equipment 795,713
Information Systems 1,037,017
General Support Services 1,216,435
Risk Management 294,520
Municipal Utilities Support 1,492,420
Total Internal Service Funds 4,836,105
Total Governmental Activities 32,267,919
Enterprise funds:

Electric Utility 14,788,676
Water Utility 1,533,050
Wastewater Utility 2,115,611
Solid Waste Utility 3,559,958
Airport 444,359
Storm Drainage Utility 230,595
Total Enterprise funds 22,672,249
Total $ 54,940,168
OPEB

Packet Pg. 834 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
127
Note 19 – Other Postemployment Healthcare Benefits (Continued) Deferred Outflows of Resources
Deferred outflows of resources are reported in the accompanying Statements of Net Position as follows:

OPEB Contributions made after the Measurement Date
Governmental Activities
(minus Internal Service Funds) 2,297,304 $
Internal Service Funds:

Equipment 66,639
Information Systems 86,846
General Support Services 101,871
Risk Management 24,665
Municipal Utilities Support 124,984
Total Internal Service Funds 405,005
Total Governmental Activities 2,702,309
Enterprise funds:

Electric Utility 1,238,492
Water Utility 128,387
Wastewater Utility 177,174
Solid Waste Utility 298,132
Airport 37,213
Storm Drainage Utility 19,311
Total Enterprise funds 1,898,709
Total $ 4,601,018
OPEB
Difference between Projected and Actual Earnings on Pension Plan Investments Governmental Activities
(minus Internal Service Funds) 930 $
Internal Service Funds:

Equipment 25
Information Systems 35
General Support Services 42
Risk Management 10
Municipal Utilities Support 51
Total Internal Service Funds 163
Total Governmental Activities 1,093
Enterprise funds:

Electric Utility 501
Water Utility 52
Wastewater Utility 72
Solid Waste Utility 120
Airport 15
Storm Drainage Utility 8
Total Enterprise funds 768
Total $ 1,861
OPEB
Packet Pg. 835 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
128
Note 19 – Other Postemployment Healthcare Benefits (Continued) Deferred Outflows of Resources (Continued)
Changes of Assumptions
Governmental Activities
(minus Internal Service Funds) 4,552,673 $
Internal Service Funds:

Equipment 132,059
Information Systems 172,107
General Support Services 201,883
Risk Management 48,879
Municipal Utilities Support 247,687
Total Internal Service Funds 802,615
Total Governmental Activities 5,355,288
Enterprise funds:

Electric Utility 2,454,377
Water Utility 254,430
Wastewater Utility 351,114
Solid Waste Utility 590,823
Airport 73,747
Storm Drainage Utility 38,270
Total Enterprise funds 3,762,761
Total $ 9,118,049
OPEB
Packet Pg. 836 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
129
Note 19 – Other Postemployment Healthcare Benefits (Continued) Deferred Outflows of Resources (Continued)
Differences between Expected and Actual Experience
Governmental Activities
(minus Internal Service Funds) 6,708,066 $
Internal Service Funds:

Equipment 194,581
Information Systems 253,588
General Support Services 297,463
Risk Management 72,021
Municipal Utilities Support 364,950
Total Internal Service Funds 1,182,603
Total Governmental Activities 7,890,669
Enterprise funds:

Electric Utility 3,616,364
Water Utility 374,885
Wastewater Utility 517,342
Solid Waste Utility 870,538
Airport 108,662
Storm Drainage Utility 56,389
Total Enterprise funds 5,544,180
Total $ 13,434,849
OPEB
Total Deferred Outflows
Governmental Activities
(minus Internal Service Funds) 13,558,974 $
Internal Service Funds:

Equipment 393,304
Information Systems 512,576
General Support Services 601,258
Risk Management 145,575
Municipal Utilities Support 737,672
Total Internal Service Funds 2,390,385
Total Governmental Activities 15,949,359
Enterprise funds:

Electric Utility 7,309,734
Water Utility 757,754
Wastewater Utility 1,045,702
Solid Waste Utility 1,759,613
Airport 219,637
Storm Drainage Utility 113,978
Total Enterprise funds 11,206,418
Total $ 27,155,777
OPEB
Packet Pg. 837 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
130
Note 19 – Other Postemployment Healthcare Benefits (Continued) Deferred Inflows of Resources
Deferred Inflows of resources are reported in the accompanying Statements of Net Position as follows:

Changes in Assumptions
Governmental Activities
(minus Internal Service Funds) 1,003,716 $
Internal Service Funds:

Equipment 29,114
Information Systems 37,944
General Support Services 44,508
Risk Management 10,776
Municipal Utilities Support 54,607
Total Internal Service Funds 176,949
Total Governmental Activities 1,180,665
Enterprise funds:

Electric Utility 541,110
Water Utility 56,093
Wastewater Utility 77,409
Solid Waste Utility 130,257
Airport 16,258
Storm Drainage Utility 8,437
Total Enterprise funds 829,564
Total $ 2,010,229
OPEB
Total Deferred Inflows
Governmental Activities
(minus Internal Service Funds) 1,003,716 $
Internal Service Funds:

Electric Utility 541,110
Water Utility 56,093
Wastewater Utility 77,409
Solid Waste Utility 130,257
Airport 16,258
Storm Drainage Utility 8,437
Total Enterprise funds 829,564
Total $ 2,010,229
OPEB

Packet Pg. 838 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
131
Note 19 – Other Postemployment Healthcare Benefits (Continued) General Information about the OPEB Plan
Plan Description
The City of Redding PARS Post-Retirement Health Care Plan (the “Plan”) is a single-employer defined benefit healthcare plan administered by Phase II Systems, dba Public Agency Retirement Services (PARS). The Plan provides medical and dental insurance benefits to eligible retirees and their spouses. The City Council has the authority to establish and amend benefit provisions to the plan.

Funding Policy
The contribution requirements of plan members are established and may be amended by the City Council. The required contribution is based on projected pay-as-you-go financing requirements, with an additional amount to prefund benefits as determined annually by the City Council.

Employees Covered by Benefit Term
Inactive employees or beneficiaries currently receiving benefits 396 Inactive employees entitled to but not yet receiving benefits - Active employees 762
Total 1,158

Packet Pg. 839 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
132
Note 19 – Other Postemployment Healthcare Benefits (Continued) Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2021, and the actuarial valuation used to calculate the net OPEB liability was as of June 30, 2021.

Actuarial Assumptions
The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions:

Valuation Date June 30, 2021
Measurement Date June 30, 2021
Actuarial Assumptions:

Discount Rate 2.16% at June 30, 2021 Bond Buyer 20-bond Index

2.21% at June 30, 2020 Bond Buyer 20-bond Index
General Inflation 2.50%
Expected Net Long-Term Rate
of Return on Investments: 3.50% at June 30, 2021
Mortality Rate Table CalPERS 2000-2019 Experience Study Mortality Improvement Mortality projected fully generational with Scale MP2021 Salary Increases 2.75%
Medical Trend Non-Medicare-6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076
Medicare-5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076
Medical participation Medicare- 100% actives and retirees assumed to be eligible and will participate in Medicare
Healthcare participation for
future retirees Single coverage: 60% pre-65, 20% post-65 2-Party and family coverage - 75% pre-65, 50% post-65
Healthcare participation for
current retirees
30% for single and 70% for 2-party/family after age 65
for retirees currently under 65
100% for other retirees

Packet Pg. 840 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
133
Note 19 – Other Postemployment Healthcare Benefits (Continued) Net OPEB Liability (Continued)
Changes in Net OPEB Liability
Total OPEB
Liability
Fiduciary Net
Position
Net OPEB
Liability
Balance at June 30, 2020 (Measurement date) $ 40,690,410 $ 52,691 $ 40,637,719 Changes in the year:

Service costs 2,473,321 2,473,321 - Interest on the total pension liability 913,626 913,626 - Changes of benefit terms - - - Effect of economic/demographic gains or losses - - - Differences between actual and expected experience 12,995,166 12,995,166 - Change in assumptions 1,566,528 1,566,528 - Contributions - employer 3,646,314 - (3,646,314) Contributions - employer (paid by employer) - - - Net investment income - 10 (10) Administrative expenses - (132) 132
Benefit payments, including refunds of employee
contributions
Net changes 14,302,327 14,302,449 (122) Balance at June 30, 2021 (Measurement date) $ 54,992,737 $ 52,569 $ 54,940,168 (3,646,314) (3,646,314) -
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the plan as of the measurement date, calculated using the discount rate of 2.16%, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (1.16%) or 1 percentage point higher (3.16%) than the current rate:
1% Decrease
(1.16%)
Current Rate
(2.16%)
1% Increase
(3.16%)
Net OPEB Liability $ 56,861,129 $ 54,940,168 $ 52,538,599 Sensitivity of the Net OPEB Liability to Changes in the Healthcare cost Trend Rates The following presents the net OPEB liability of the plan as of the measurement date, calculated using healthcare cost trend rates, as well as what the net OPEB liability would be if it were calculate using a trend that are one percentage point lower or one percentage higher than the current healthcare cost trend rates:
1% Decrease Current Trend 1% Increase
Net OPEB Liability $ 50,969,824 $ 54,940,168 $ 59,046,865 Packet Pg. 841 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
134
Note 19 – Other Postemployment Healthcare Benefits (Continued) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2022, the City recognized OPEB expense of $7,530,447. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
OPEB contributions made after measurement date 4,601,018 $ - $ Changes of assumptions 9,118,049 2,010,229
Difference between expected and actual experience 13,434,849 - Net difference between projected and actual earnings on OPEB plan investments 1,861 -
Total 27,155,777 $ 2,010,229 $
The $4,601,018 reported as deferred outflows of resources related to pension resulting from the City’s contributions subsequent to the measurement date during the year ended June 30, 2022 will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2023. Other amounts reported as deferred outflow and deferred inflow of resources related to OPEB will be recognized in future OPEB expense as follows:

Year Ended June 30 Amount
2023 $ 4,145,341
2024 4,145,419
2025 3,660,632
2026 3,367,556
2027 2,047,937
Thereafter 3,177,645
Total $ 20,544,530
Packet Pg. 842 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
135
Note 20 – Fund Balances
Fund balance as of June 30, 2022, consists of the following:

General Major Capital Other
Fund Project Fund Funds Total
Fund balances:

Nonspendable fund balance:

Prepaids and inventory $ 2,316,861 $ - $ 777 $ 2,317,638 Contractually nonspendable 907,489 - 907,489 -
Total nonspendable 3,224,350 - 777 3,225,127
Restricted fund balance:

Fiscal agent reserves 3 - - 3
Capital projects 1,712,086 - 1,712,086 -
Debt service 141,233 301,424 - 442,657
Special Revenue:

Community development - 44,476,511 - 44,476,511
Housing - 16,857,625 - 16,857,625
Landscape maintenance - 542,408 - 542,408
Library - 1,009,560 - 1,009,560
Local transportation - 8,768,110 - 8,768,110
Parking - 196,753 - 196,753
Police asset seizure - 21,590 - 21,590
Total restricted 141,236 1,712,086 72,173,981 74,027,303 Assigned fund balance:

Operations and maintenance
Police 339,509 - 339,509 -
Fire 224,655 - 224,655 -
Public works 2,077,292 - 2,077,292 -
Recreation and culture 32,898 - - 32,898
Other 933,770 - 933,770 -
Capital Projects
Public works 2,386,920 - 2,386,920 -
Recreation and culture 407,353 - 407,353 -
Other 804,684 - 804,684 -
Vehicles and equipment
Police 171,009 - 171,009 -
Fire 127,978 - 127,978 -
Public works 192,653 - 192,653 -
Recreation and culture 89,028 - - 89,028
Rolling stock 1,420,086 - 1,420,086 -
Future capital projects 909,714 - 909,714 -
Total assigned - 10,117,549 - 10,117,549
Unassigned:

General fund 15,242,047 - - 15,242,047
Total unassigned - 15,242,047 - 15,242,047
Total fund balances $ 1,712,086 28,725,182 $ 72,174,758 $ 102,612,026 $ Packet Pg. 843 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
136
Note 21 – Net Investment in Capital Assets
Net Investment in Capital Assets as of June 30, 2022, consisted of the following:

Governmental Business-Type
Activities Activities
Net investment in capital assets
Capital assets, nondepreciable 79,341,431 $ 54,882,301 $ Capital assets, depreciable 268,995,988 476,334,965
Deferred amount on refunding
Current portion of long-term debt:

Governmental (2,265,598) -
Electric Utility - (10,808,080)
Water Utility - (731,415)
Wastewater Utility - (5,349,838)
Solid Waste Utility (9,042)
Airport - (131,921)
Convention Center - (29,450)
Long-term debt, excluding current portion:

Governmental (28,541,969) -
Electric Utility - (103,408,368)
Water Utility - (2,248)
Wastewater Utility - (48,555,121)
Airport - (1,092,041)
Convention Center - (31,130)
Deferred gain/loss on refunding
Governmental 212,906 -
Electric Utility - 6,504,667
Water Utility - 12,973
Wastewater Utility - 825,317
Airport - 4,633
Debt not used for capital assets
Electric Utility - 643
Water Utility - 370,867
Net investment in capital assets $ 368,787,712 317,742,758 $ Packet Pg. 844 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
137
Note 22 – Commitments and Contingencies
A. Construction Commitments
A number of construction contracts existed at June 30, 2022. The unexpended authorized amount of $68,168,670 represents a commitment by the City.

B. Redding Electric Utility (REU)
i) REU is contractually obligated to purchase 7,500 Dth/day of GTN natural gas pipeline capacity which will expire October 31, 2023. REU has sold its delivery rights to the GTN through the remainder of the contract period ending October 31, 2023.

With GTN rate reductions implemented on an annual basis and the sale of the GTN capacity rights, REU realizes a small net revenue from this asset.

Beginning November 1, 2023, REU will permanently release its rights and will no longer have any ownership, fees, or revenue related to the GTN pipeline.
ii) REU is contractually committed to purchase natural gas through fiscal year 2025. The following table provides on a fiscal year basis the approximate purchase dollar amount and the percentage these purchases cover of the minimum fuel requirements for the expected operating level of the Redding Power facility. 2023 2024 2025 2026 2027
Purchase Cost $ (million) 12.3$ 10.9$ 11.3$ 6.0$ 2.7$
% Natural Gas Hedge ** 66% 71% 70% 55% 30%
** This is the % of gas acquired to meet power retail sales after considering all other power resources and before wholesale power and gas transactions.
iii) In 2010, REU entered into a 28 year term contract with Gill Ranch Storage. Under the Agreement REU has leased 2,250,000 Dth of cushion gas initially valued at $13,570,000 to Gill Ranch. Gill Ranch provides REU with monthly lease payments along with approximately 600,000 Dth of natural gas storage. At the end of the contract term in 2038, the cushion gas will be returned to REU unless the lessee executes the option to purchase the gas. If the option is executed the purchase price shall be equal to the original cost of the gas escalated at a rate of 1.08% per annum.
iv) REU has contractually committed to purchase power from M-S-R Public Power Agency on an as-delivered basis from a Pacific Northwest wind project. Deliveries began October 1, 2006. REU’s share of the output from the wind project is approximately 170,000 MWh per year. The twenty-year contract with an option to extend five years has an $11,850,000 annual expected expense. The wind-based energy from this contract is a major source of eligible renewable energy with the associated environmental attributes available to meet REU’s renewable resource portfolio requirements. M-S-R has completed an amendment to the Pacific Northwest Wind Contract which addresses financial responsibility for the Bonneville Power Administration’s Wind Integration Charge (WIC). Currently, the WIC is approximately $1.01 per kw-mo and is included in the annual expected expense mentioned above.

Packet Pg. 845 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
138
Note 22 – Commitments and Contingencies (Continued)
B. Redding Electric Utility (REU) (Continued)
v) The City of Redding, in conjunction with the Northern California Power Agency and Cities of Roseville and Santa Clara (collectively the “Plaintiffs”), filed a complaint in September 2014 in the U.S. Court of Claims seeking recovery of more than $45 million in overcharges imposed by the Bureau of Reclamation for the Central Valley Project Improvement Act (CVPIA). The CVPIA, established in 1992, obligates Reclamation to collect roughly $30 million per year (in 1992 dollars) from water and power customers who benefit from the Central Valley Project (CVP), in proportion to the users’ project repayment obligation over a 10-year rolling average. Through the end of 2019, Reclamation estimates CVP capital costs to the power users over the previous 10 years is 34.07%; however, the CVPIA collections had averaged 45% over the same time period. Redding and the other plaintiffs in this claim, believe that Reclamation has overcharged the CVP power customers and are seeking repayment. In July of 2018, the U.S. Court of Federal Claims denied the Plaintiffs’ complaint. Due to the large amount of overcharges, the Plaintiffs filed notices of appeal of the case to the Federal Circuit in September of 2018. On November 6, 2019, the Federal Circuit issued an opinion where they reversed the judgment of the Court of Federal Claims and remanded for future proceedings consistent with the opinion. On September 20, 2022, the Court of Claims issued its Order of Judgement in which it collectively awarded Plaintiffs the sum of $81,872,385. The City of Redding will participate in approximately 20% of that judgement. The period of time for Defendant to appeal will lapse on December 21, 2022. Absent an appeal, the case will conclude.

C. West Central Landfill
In 1990 the City entered into an agreement with Shasta County to operate West Central Landfill (the landfill).

Under the agreement, the City is obligated to operate the landfill at least until there are no bonds or contracts outstanding. The 1997 refunding bonds expired July 1, 2010, and the bonds were paid off. The City records the activity and net position of the operations portion of the landfill in its Solid Waste enterprise fund. Net position associated with the landfill, recorded on the City’s books at June 30, 2022, was $6,517,133. The net position includes Net investment in capital assets of $4,114,353 and Unrestricted of $2,402,780.

D. Grants
Amounts received or receivable from granting agencies are subject to audit and adjustments by grantor agencies.

While no matters of non-compliance were disclosed by the audit of the financial statements or single audit of the Federal programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have material adverse effect on the financial position of the City.

E. Litigation
Various claims and suits have been filed against the City in the normal course of business. Although the outcome of these matters is not presently determinable in the opinion of legal counsel, the city believes that the resolutions of these matters will not have a material adverse effect on the financial condition of the City.

Packet Pg. 846 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
139
Note 23 – Successor Agency Trust for Assets of the Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. The assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 12, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-001.

Following the disbursement of unencumbered funds, the Department of Finance of the State of California granted a “Finding of Completion” on June 20, 2013, to the City of Redding Successor Agency. The Successor Agency is now allowed to place loan agreements between the former redevelopment agency and sponsoring entity on the Recognized Obligation Payment Schedule and utilize remaining bond proceeds.

Successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. The State Controller completed the review of all assets transferred and issued a report dated October 13, 2014.

The review found that the Agency transferred $69,027,149 in assets after January 2, 2011, including unallowable transfers to the City totaling $876,800. The City turned over the $876,800 to the Agency that was subsequently remitted to the Shasta County Auditor-Controller for distribution to the taxing entities.

Packet Pg. 847 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
140
Note 23 – Successor Agency Trust for Assets of the Former Redevelopment Agency (Continued) Long-term debt consisted of the following as of June 30, 2022:

Market Street Tax Allocation Bonds, Series 2003:

Interest from 2.0% to 5.679% payable March 1 and September 1; maturities are payable September 1 in annual redemptions from $170,000 to $400,000; final payment September 1, 2023. Original issue: $5,185,000. Proceeds from the Series 2003 Bonds are used to finance various capital improvements within the Market Street Redevelopment Area. $ 780,000 Canby-Hilltop-Cypress Tax Allocation Bonds, Series A 2003:

Interest from 2.0% to 5.0% payable March 1 and September 1; maturities are payable September 1 in annual redemptions from $1,040,000 to $2,055,000; final payment September 1, 2023. Original issue: $28,935,000. Proceeds from the Series A 2003 Bonds are used to finance various capital improvements within the Canby-Hilltop-Cypress Redevelopment Area. 3,850,000
SHASTEC Tax Allocation Bonds, Series 2006:

Interest from 4.0% to 5.0% payable March 1 and September 1; maturities are payable September 1 in annual redemptions from $245,000 to $5,585,000; final payment September 1, 2036. Original issue: $15,000,000. Proceeds from the Series 2006 Bonds are used to finance various capital improvements within the SHASTEC Redevelopment Area. 10,005,000
Total bonds outstanding 14,635,000
Discount on Market Street Tax Allocation Bonds, Series 2003 (2,973) Premium on Canby-Hilltop-Cypress Tax Allocation Bonds, Series A 2003 4,377 Discount on SHASTEC Tax Allocation Bonds, Series 2006 (31,204) Total discount/premium (29,800)
Total long-term bonded debt $ 14,605,200
Annual requirements to amortize long-term bonds outstanding as of June 30, 2022, are set forth below:

Fiscal Year Principal Interest Total
2022 $ 2,905,000 $ 650,660 $ 3,555,660
2023 2,685,000 511,125 3,196,125
2024 510,000 432,750 942,750
2025 535,000 409,238 944,238
2026 560,000 384,600 944,600
2027-2031 3,260,000 1,469,250 4,729,250
2032-2036 4,180,000 543,000 4,723,000
2037-2041 - - - Total 14,635,000 $ $ 4,400,623 $ 19,035,623 Packet Pg. 848 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Required Supplementary
Information (Unaudited)
141
Packet Pg. 849 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 142
This page intentionally left blank
Packet Pg. 850 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) City of Redding
Required Supplementary Information
Budgetary Information (Unaudited)
For the Year Ended June 30, 2022
143
Note 1 – Budgetary Principles
Budget Data
The operating budget of the City is adopted by the City Council prior to July 1 each year primarily on a cash basis.

The City Manager is authorized to transfer budget amounts between divisions of a department within any fund; however, any revisions that alter the total expenditures of any fund require City Council resolution.

Budget information is adopted and presented for the general, special revenue (except for the Landscape Maintenance Districts and Asset Seizure Fund), capital project and the debt service funds. The presentations represent original appropriations adjusted for supplemental appropriations, if any, made during the year.

The City does not formally adopt a budget for the debt service fund. The bond documents are the controlling factor.

Summary of Differences between Budgetary Basis and Generally Accepted Accounting Principles (GAAP) The following are the differences between the City’s budgetary basis and GAAP:

A. The City does not budget for the fair market value adjustment required under GASB 31.

B. The City does not budget for accounts payable or intergovernmental payables.

C. The City does not budget for benefit accruals.

D. The City budgets for certain receivables and payables on a cash basis.

E. The City budgets for land to be held for resale as expenditure.

F. Encumbrances are not included in the Statement of Revenue, Expenditures and Changes in Fund Balance
Budgetary Basis Reconciliation
Budgets are not adopted for the Landscape Maintenance Districts Fund and the Asset Seizure Fund.

Packet Pg. 851 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Actual Variance With
Amounts Final Budget
Budgetary Positive
Original Final Basis (Negative)
REVENUES:

Property taxes 23,889,930 $ 23,889,930 $ 24,196,056 $ 306,126 $ Sales and use taxes 28,374,570 31,982,570 32,088,786 106,216 Other taxes 9,761,700 11,602,700 13,210,101 1,607,401
Licenses and permits 2,216,500 2,216,500 2,449,650 233,150 Intergovernmental revenues 1,615,270 20,447,240 19,042,750 (1,404,490) Charges for services 3,289,660 5,765,270 5,755,503 (9,767) Fines, forfeitures, and penalties 604,020 1,187,110 1,291,173 104,063 Use of money and property 8,554,080 8,554,080 8,174,198 (379,882) Net investment earnings (loss) 118,010 118,010 107,861 (10,149) Other revenue 383,850 956,190 1,388,793 432,603
Total revenues 106,719,600 78,807,590 107,704,871 985,271 EXPENDITURES:

Current:

General government:
361,600 361,600 386,535 (24,935)
916,320 916,320 903,178 13,142
3,327,910 10,993,490 4,927,375 6,066,115
706,300 706,300 678,190 28,110
1,598,850 1,598,850 1,536,199 62,651
Personnel 567,870 580,470 575,779 4,691
Purchasing 631,350 631,350 586,418 44,932
Public safety:

Police 38,087,050 46,346,050 41,112,649 5,233,401
Fire safety 23,766,710 26,763,760 26,450,839 312,921
Public works 18,429,937 20,014,447 16,527,614 3,486,833 Planning 6,736,330 17,316,070 7,780,204 9,535,866
Recreation and culture 9,596,655 13,094,285 7,800,078 5,294,207 Debt service:

Principal payments 1,684,760 1,741,930 1,741,918 12
Interest and fiscal charges 953,420 970,950 966,933 4,017 Total expenditures 107,365,062 142,035,872 111,973,909 30,061,963 REVENUES OVER (UNDER) EXPENDITURES (28,557,472) (35,316,272) (4,269,038) 31,047,234 OTHER FINANCING SOURCES (USES):

Sale of capital assets - - 1,392,536 1,392,536
Transfers in 13,755,240 22,744,470 17,532,159 (5,212,311) Transfers out (3,638,860) (10,013,860) (4,082,003) 5,931,857 Total other financing sources (uses) 12,730,610 10,116,380 14,842,692 2,112,082 CHANGE IN FUND BALANCE (18,441,092) (22,585,662) 10,573,654 33,159,316 BUDGETARY FUND BALANCES:

Beginning of year 30,506,787 30,506,787 30,506,787 -
End of year $ 12,065,695 $ 7,921,125 $ 41,080,441 $ 33,159,316 (Continued)
City of Redding
Schedule of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual (Unaudited) General Fund
For the Year Ended June 30, 2022
Finance
City Treasurer
Budgeted Amounts
City Attorney
City Clerk
City Manager
144 Packet Pg. 852 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) $ 28,725,182

1. The City budgets for taxes on a cash basis. 553,303

2. The City budgets for grants on a cash basis. 14,971,497

3. Timing difference due to GASB #33. (16,324)

4. The City does not budget for accounts payable adjustments. 3,519,195

5. The City does not budget for benefit accruals. (226,964)

6. Financial statement only adjustment for GASB #31. 1,598,301

7. The City does not budget for interest, sale of property or rental income related to the rolling stock fund. The City budgets only for the transfers in and out of the rolling stock fund. (484,327)

8. The City does not budget for special assessments. (12,009)

9. The City does not budget for interest on the long-term advances. 39,626

10. Encumbrances are not included in the Statement of Revenues, Expenditures and Changes in Fund Balance. (11,387,602)

10. The City did not budget for prepaid rent for the Housing Authority and the Agency

11. The City does not budget for developer's fees that are prepaid. 31,818

11. The City budgeted for prepaid expenditures. 2,646,096

12. The City does not budget for interest on deposits held in trust. (2,523)

13. The City Budgets for cash transfers to/from other funds as loans, but records the advances in advances receivable/payable on the balance sheet. 1,359,095

14. The City does not budget interest accrued at year-end (78,632)

15. The City does not budget for CalFire lease of Cypress property that make loan payment (175,258)

16. The City does not budget for interest expended on loan for CalPers UAL prepayment 36,045

17. The City budgets for Shascom payroll revenue on a cash basis (16,078) Budgetary fund balance $ 41,080,441
(Concluded)
Explanation of differences from the Statement of Revenues, Expenditures and Changes in Fund Balances to Actual Amounts Budgetary Basis:

Fund balance from the Statement of Revenues, Expenditures and Changes in Fund Balances General Fund (Continued)
For the Year Ended June 30, 2022
Schedule of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual (Unaudited) City of Redding
145 Packet Pg. 853 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Measurement Period 2021 2020
TOTAL PENSION LIABILITY:

Service Costs $ 7,095,018 7,299,034 $
Interest 32,355,397 33,378,172
Difference Between Expected and Actual Experience 1,379,900 1,706,144 Changes of Assumptions - -
Benefit Payments, Including Refunds of Employee Contributions (27,548,141) (26,359,866) Net Change in Total Pension Liability 14,470,449 14,835,209 Total Pension Liability - Beginning 460,775,550 475,245,999 Total Pension Liability - Ending (a) $ 475,245,999 490,081,208 $ PLAN FIDUCIARY NET POSITION:

Contributions - Employer $ 13,743,592 15,066,353 $
Contributions - Employee 3,533,531 3,711,059
Net Investment Income 15,455,298 71,581,234
Benefit Payments, Including Refunds of Employee Contributions (27,548,141) (26,359,866) Plan to Plan Resource Movement - -
Administrative Expense (317,820) (440,162)
Other Miscellaneous Income/(Expense)1
- -
Net Change in Fiduciary Net Position 62,492,685 5,932,393 Plan Fiduciary Net Position - Beginning2
312,225,622 318,158,015
Plan Fiduciary Net Position - Ending (b) 380,650,700 $ 318,158,015 $ Plan Net Pension Liability/(Asset) - Ending (a) - (b) 109,430,508 $ $ 157,087,984 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 77.67% 66.95% Covered Payroll $ 44,861,920 $ 42,974,064
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll 243.93% 365.54% Notes to Schedules of Changes in Net Pension Liability and Related Ratios:

City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standard Board Statement (GASB No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expenses as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 2 Includes any beginning of year adjustment.

The Required Supplementary Information for Schedules of Changes in Net Pension Liability and Related Ratios is intended to show information for ten years; as additional years' information becomes available it will be displayed accordingly.

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan 146 Packet Pg. 854 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2019 2018 2017 2016 2015 2014
1,258,688
$ 7,333,947 $ 7,260,646 $ 7,191,855 $ 6,259,646 $ 6,164,984 $ 6,465,244 31,319,926 30,024,355 29,157,632 28,527,904 27,466,002 26,335,482 4,475,575 414,506 (3,221,954) (705,952) (551,120) -
(2,598,628) - 23,416,908 (6,578,864) - -
(24,504,515) (22,850,231) (21,305,301) (19,821,373) (18,361,188) (16,894,132) 18,624,933 12,250,648 78,596,709 14,260,225 8,139,814 15,906,594 442,150,617 429,899,969 394,660,829 380,400,604 372,260,790 356,354,196 $ 460,775,550 $ 442,150,617 $ 473,257,538 $ 394,660,829 $ 380,400,604 $ 372,260,790 $ 12,199,094 $ 10,902,871 $ 10,045,335 $ 8,742,083 $ 7,771,417 $ 7,140,089 3,132,551 3,149,996 3,177,532 2,849,237 2,892,519 2,924,099 19,732,888 24,307,041 29,710,153 1,432,535 6,167,183 41,359,309 (24,504,515) (22,850,231) (21,305,301) (19,821,373) (18,361,188) (16,894,132) - (702) (145) (1,256) 20,221 -
(215,428) (448,271) (393,376) (166,624) (307,951) -
702 (851,273) - - - -
10,345,292 14,209,431 21,234,198 (6,965,398) (1,817,799) 34,529,365 301,880,330 287,670,899 266,436,701 273,402,099 275,219,898 240,690,533 $ 312,225,622 $ 301,880,330 $ 287,670,899 $ 296,204,582 $ 303,236,784 $ 310,058,548 $ 148,549,928 $ 140,270,287 $ 185,586,639 $ 98,456,247 $ 77,163,820 $ 62,202,242

67.76% 68.28% 66.92% 67.51% 71.87% 73.93%
$ 43,942,160 $ 43,633,688 $ 42,409,809 $ 41,323,256 $ 40,294,018 $ 40,286,914 338.06% 321.47% 335.37% 310.30% 265.54% 240.87%
For the Year Ended June 30, 2022
Schedules of Changes in Net Pension Liability and Related Ratios Required Supplementary Information (Unaudited)
City of Redding
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan 147 Packet Pg. 855 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2022 2021
Actuarially Determined Contribution 2 $ 15,066,353 16,765,328 $ Contributions in Relations to the Actuarially Determined Contribution 2 (15,066,353) (16,765,328)
Contribution Deficiency (Excess) $ - - $
Covered Payroll 3 $ 46,184,875 50,582,394 $
Contributions as a Percentage of Covered-Employee Payroll 3 33.14% 32.62% 1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be determined as of the employer's most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.

Notes to Schedule of Plan Contributions:

The Required Supplementary Information for Schedule of Plan Contributions is intended to show information for ten years; as additional years' information becomes available it will be displayed accordingly. 3 Includes one year's payroll growth using 2.75 percent payroll assumption for fiscal year ended June 30, 2018; 3.00 percent payroll assumption for fiscal years ended June 30, 2014-17.

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan City of Redding
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions
For the Year Ended June 30, 2022
148 Packet Pg. 856 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2020 2019 2018 2017 2016 2015 2014
$ 13,743,592 $ 12,199,094 $ 10,902,871 $ 10,045,335 $ 8,742,083 $ 7,771,417 $ 7,140,089 (13,743,592) (12,199,094) (10,902,871) (10,045,335) (8,742,083) (7,771,417) (7,140,089) $ - $ - $ - $ - $ - $ - $ -
$ 42,974,064 $ 43,942,160 $ 43,633,688 $ 42,409,809 $ 41,323,256 $ 40,294,018 $ 40,286,914

31.98% 27.76% 24.99% 23.69% 21.16% 19.29% 17.72%
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan City of Redding
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions
For the Year Ended June 30, 2022
149 Packet Pg. 857 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Measurement Period 2021 2020
TOTAL PENSION LIABILITY:

Service Costs $ 5,609,745 5,835,290 $
Interest 23,600,338 22,885,014
Difference Between Expected and Actual Experience 198,438 (1,394,330) Changes of Assumptions - -
Benefit Payments, Including Refunds of Employee Contributions (17,632,371) (16,785,010) Net Change in Total Pension Liability 10,408,927 11,908,187 Total Pension Liability - Beginning 337,367,520 325,459,333 Total Pension Liability - Ending (a) $ 347,776,447 $ 337,367,520 PLAN FIDUCIARY NET POSITION:

Contributions - Employer $ 12,015,895 $ 10,962,279
Contributions - Employee 2,413,060 2,206,742
Net Investment Income 47,488,980 10,081,863
Benefit Payments, Including Refunds of Employee Contributions (17,632,371) (16,785,010) Plan to Plan Resource Movement - -
Administrative Expense (208,814) (285,977)
Other Miscellaneous Income/(Expense)
1 - -
Net Change in Fiduciary Net Position 44,076,750 6,179,897 Plan Fiduciary Net Position - Beginning2
209,035,943 202,856,046
Plan Fiduciary Net Position - Ending (b) $ 253,112,693 $ 209,035,943 Plan Net Pension Liability/(Asset) - Ending (a) - (b) $ 94,663,754 $ 128,331,577 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 72.78% 61.96% Covered Payroll $ 19,213,993 $ 18,386,577
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll 492.68% 697.96% Notes to Schedules of Changes in Net Pension Liability and Related Ratios:

California Public Employees' Retirement System ("CalPERS") - Safety Plan City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net Pension Liability and Related Ratios 1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standard Board Statement (GASB No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expenses as a result of the adoption of GASB 75.

For the Year Ended June 30, 2022
150 Packet Pg. 858 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2019 2018 2017 2016 2015 2014
$ 5,654,637 $ 5,621,256 $ 5,567,053 $ 1,258,688 $ 4,702,492 $ 4,982,595 22,052,183 21,033,750 20,189,512 19,492,841 18,712,421 18,027,294 2,573,209 1,287,937 (1,169,833) (610,852) (1,889,558) - (1,265,088) - 17,369,797 (4,730,135) - -
(15,684,647) (14,317,530) (13,680,425) (13,015,636) (12,355,104) (11,659,397) 14,595,382 12,360,325 28,276,104 7,125,041 4,440,116 11,350,492 310,863,951 298,503,626 270,227,522 259,492,927 255,052,811 243,702,319 $ 325,459,333 $ 310,863,951 $ 78,596,709 $ 266,617,968 $ 259,492,927 $ 255,052,811 $ 9,775,655 $ 9,016,294 $ 8,645,061 $ 7,839,435 $ 7,466,754 $ 6,761,771 1,983,768 2,086,601 1,955,068 1,620,695 1,570,703 1,517,735 12,784,582 15,509,897 18,500,188 828,855 3,715,343 25,448,647 (15,684,647) (14,317,530) (13,680,425) (13,015,636) (12,355,104) (11,659,397) - (452) - 1,256 193,399 -
(138,539) (284,643) (247,291) (103,802) (191,504) -
452 (540,541) - - - -
8,721,271 11,469,626 15,172,601 (2,829,197) 399,591 22,068,756 194,134,775 182,665,149 167,492,548 170,321,745 169,922,154 147,853,398 $ 202,856,046 $ 194,134,775 $ 182,665,149 $ 167,492,548 $ 170,321,745 $ 169,922,154 $ 122,603,287 $ 116,729,176 $ (104,068,440) $ 99,125,420 $ 89,171,182 $ 85,130,657

62.33% 62.45% 61.19% 61.98% 65.64% 66.62%
$ 18,244,296 $ 18,109,134 $ 17,705,784 $ 29,767,881 $ 29,834,685 $ 34,838,650 672.01% 644.59% 654.24% 593.38% 537.11% 506.71%
California Public Employees' Retirement System ("CalPERS") - Safety Plan For the Year Ended June 30, 2022
City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net Pension Liability and Related Ratios 151 Packet Pg. 859 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2022 2021
Actuarially Determined Contribution 2 $ 12,958,225 $ 12,015,895 Contributions in Relations to the Actuarially Determined Contribution 2 (12,015,895) (12,958,225)
Contribution Deficiency (Excess) $ - - $
Covered Payroll 3 $ 21,536,663 $ 19,383,450
Contributions as a Percentage of Covered Payroll 3 60.17% 61.99% 1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be determined as of the employer's most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.

Notes to Schedule of Plan Contributions:

City of Redding
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions
California Public Employees' Retirement System ("CalPERS") - Safety Plan For the Year Ended June 30, 2022
The Required Supplementary Information for Schedule of Plan Contributions is intended to show information for ten years; as additional years' information becomes available it will be displayed accordingly. 3 Includes one year's payroll growth using 2.75 percent payroll assumption for fiscal year ended June 30, 2018; 3.00 percent payroll assumption for fiscal years ended June 30, 2014-17.
152 Packet Pg. 860 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2020 2019 2018 2017 2016 2015 2014
$ 10,962,279 $ 9,775,655 $ 9,016,294 $ 8,645,061 $ 7,839,435 $ 7,466,754 $ 6,761,771 (10,962,279) (9,775,655) (9,016,294) (8,645,061) (7,839,435) (7,466,754) (6,761,771) $ - $ - $ - $ - $ - $ - $ -
$ 18,386,577 $ 18,244,296 $ 18,109,134 $ 17,705,784 $ 17,313,615 $ 16,601,913 $ 16,800,737

59.62% 53.58% 49.79% 48.83% 45.28% 44.98% 40.25%
California Public Employees' Retirement System ("CalPERS") - Safety Plan City of Redding
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions
For the Year Ended June 30, 2022
153 Packet Pg. 861 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Measurement Period 2021 2020
TOTAL PENSION LIABILITY:

Service Costs $ 934,480 $ 909,470
Interest 6,099,199 5,933,422
Effect of economic/demographic gains or losses 535,027 - Changes of Assumptions - -
Benefit Payments, Including Refunds of Employee Contributions (5,178,122) (4,896,050) Net Change in Total Pension Liability $ 1,855,557 $ 2,481,869 Total Pension Liability - Beginning 88,742,201 86,260,332 Total Pension Liability - Ending (a) $ 90,597,758 $ 88,742,201 PLAN FIDUCIARY NET POSITION:

Contributions - Employer $ 6,575,412 $ 6,888,868
Contributions - Employee 353,687 224,631
Net Investment Income 2 14,530,931 2,318,864
Benefit Payments, Including Refunds of Employee Contributions (5,178,122) (4,896,050) Administrative Expenses (191,545) (324,596)
Net Change in Fiduciary Net Position 16,090,363 4,211,717 Plan Fiduciary Net Position - Beginning 59,697,789 55,486,072 Plan Fiduciary Net Position - Ending (b) $ 75,788,152 $ 59,697,789 Plan Net Pension Liability/(Asset) - Ending (a) - (b) $ 14,809,606 $ 29,044,412 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 83.65% 67.27% Covered Payroll $ 20,161,261 $ 21,474,397
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll 73.46% 135.25% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Net of administrative expenses.

Notes to Schedules of Changes in Net Pension Liability and Related Ratios:

Changes of Assumptions: There were no changes in assumptions.

City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net Pension Liability and Related Ratios The Required Supplementary Information for Schedules of Changes in Net Pension Liability and Related Ratios is intended to show information for ten years; as additional years' information becomes available it will be displayed accordingly.

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2014. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

For the Year Ended June 30, 2022
Public Agency Retirement System - Miscellaneous Plan (PARS) 1 154 Packet Pg. 862 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2019 2018 2017 2016 2015 2014
$ 1,122,061 $ 1,441,162 $ 1,258,688 $ 1,170,873 $ 1,478,671 $ 1,432,128 5,794,604 5,468,051 5,387,397 5,162,353 4,941,220 4,689,105 2,071,932 - - 92,895 - -
456,118 - 3,255,582 - - -
(4,551,652) (4,138,653) (3,689,765) (3,343,227) (2,990,408) (2,628,633) $ 2,365,013 $ 5,298,610 $ 6,211,902 $ 3,082,894 $ 3,429,483 $ 3,492,600 83,895,319 78,596,709 72,384,807 69,301,913 65,872,430 62,379,830 $ 86,260,332 $ 83,895,319 $ 78,596,709 $ 72,384,807 $ 69,301,913 $ 65,872,430 $ 5,944,074 $ 6,648,630 $ 4,816,795 $ 5,020,997 $ 5,760,375 $ 6,042,892 122,545 92,709 - - - -
3,330,635 3,208,975 4,418,967 643,326 998,681 4,209,807 (4,551,652) (4,138,653) (3,689,765) (3,343,227) (2,990,408) (2,628,633) (366,455) (338,499) (301,577) (269,745) (258,434) (219,880) 4,479,147 5,473,162 5,244,420 2,051,351 3,510,214 7,404,186 51,006,925 45,533,763 40,289,343 38,237,992 34,727,778 27,323,592 $ 55,486,072 $ 51,006,925 $ 45,533,763 $ 40,289,343 $ 38,237,992 $ 34,727,778 $ 30,774,260 $ 32,888,394 $ 33,062,946 $ 32,095,464 $ 31,063,921 $ 31,144,652

64.32% 60.80% 57.93% 55.66% 55.18% 52.72%
$ 23,687,133 $ 27,974,321 $ 29,767,881 $ 29,834,685 $ 34,838,650 $ 33,451,518 129.92% 117.57% 111.07% 107.58% 89.17% 93.10%
City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net Pension Liability and Related Ratios Public Agency Retirement System - Miscellaneous Plan (PARS) For the Year Ended June 30, 2022
155 Packet Pg. 863 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2022 2021
Actuarially Determined Contribution 2 $ 7,158,333 9,589,481 $ (9,589,481) (7,158,333)
Contribution Deficiency (Excess) $ - $ -
Covered Payroll 3 $ 19,255,663 $ 21,054,825
Contributions as a Percentage of Covered Payroll 3 49.80% 34.00% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
3 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered payroll as the total payroll of employees that are provided pensions through the pension plan.

Accordingly, if pensionable earnings are different than total earnings for the covered-employees, the employer should display in the disclosure footnotes the payroll passed on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedules:

The following actuarial methods and assumptions were used in the July 1, 2017 funding valuation. Please see the valuation report dated April 25, 2017 for further details.

Valuation Timing Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which the contributions are reported.

Actuarial Cost Method
Amortization Method/Period Level dollar, closed, amortization period at 1/1/2014 was 11 years Asset Valuation Method None
Inflation
Salary Increases
Payroll Growth
Investment Rate of Return 7.01% Graded Net of Pension Plan Investment and Administrative Expenses Cost of Living Adjustments 2.00%
Withdrawal
Mortality Pre-Retirement/Post-Retirement: CalPERS 1997-2011 Healthy Retiree Tables (sex distinct) projected using Scale AA and base year of 2008.

Disability None assumed.
y
Contribution 2
Entry Age Normal

3.00%
Varies by Years of Service
City of Redding
Required Supplementary Information (Unaudited)
Schedules of Public Agency Retirement Services Retirement Enhancement Plan Contributions All Tiers Public Agency Retirement System - Miscellaneous Plan (PARS) All Tiers 1 For the Year Ended June 30, 2022
Consistent with Non-Industrial rates used to value the Miscellaneous CalPERS Pension Plan.

The Required Supplementary Information for Schedules of Public Agency Retirement Services Retirement Enhancement Plan Contributions All Tiers is intended to show information for ten years; as additional years' information becomes available it will be displayed accordingly.

3.25%
156 Packet Pg. 864 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2020 2019 2018 2017 2016 2015 2014
$ 6,925,920 $ 5,917,528 $ 6,988,001 $ 4,816,795 $ 5,020,997 $ 5,760,375 $ 6,042,892 (6,888,868) (5,917,528) (6,988,001) 1,258,688 (5,020,997) (5,760,375) (6,042,892) $ 37,052 $ - $ 6,075,483 - $ $ - $ - $ -
$ 21,474,397 $ 23,687,133 $ 27,974,321 $ 29,767,881 $ 29,834,685 $ 34,838,650 $ 33,451,518

32.25% 24.98% 24.98% 16.18% 16.83% 16.53% 18.06%
City of Redding
Required Supplementary Information (Unaudited)
Schedules of Public Agency Retirement Services Retirement Enhancement Plan Contributions All Tiers For the Year Ended June 30, 2022
Public Agency Retirement System - Miscellaneous Plan (PARS) All Tiers 157 Packet Pg. 865 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Measurement Period 2021 2020
TOTAL OPEB LIABILITY:

Service Costs $ 2,473,321 $ 2,266,201
Interest 913,626 1,532,174
Difference Between Expected and Actual Experience 12,995,166 - Changes of Assumptions 1,566,528 (2,741,226)
Benefit Payments, Including Refunds of Employee Contributions (3,646,314) (3,753,880) Net Change in Total OPEB Liability $ 14,302,327 $ (2,696,731) Total OPEB Liability - Beginning 40,690,410 43,387,141
Total OPEB Liability - Ending (a) $ 54,992,737 $ 40,690,410 PLAN FIDUCIARY NET POSITION:

Contributions - Employer $ 3,646,314 $ 3,753,880
Net Investment Income 10 634
Benefit Payments, Including Refunds of Employee Contributions (3,646,314) (3,753,880) Administrative Expenses (132) (131)
Net Change in Fiduciary Net Position (122) 503
Plan Fiduciary Net Position - Beginning 52,691 52,188
Plan Fiduciary Net Position - Ending (b) $ 52,569 $ 52,691 Plan Net OPEB Liability/(Asset) - Ending (a) - (b) $ 54,940,168 $ 40,637,719 Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 0.10% 0.13% Covered-Employee Payroll $ 63,075,673 $ 58,084,647
Plan Net OPEB Liability/(Asset) as a Percentage of Covered-Employee Payroll 87.10% 69.96% 1 Historical information is required only for measurement periods for which GASB 75 is applicable.

Notes to Schedules of Changes in Net OPEB Liability and Related Ratios:

Changes of Assumptions: There were no changes in assumptions.

Other Postemployment Benefits (OPEB)
The Required Supplementary Information for Schedules of Changes in Net OPEB Liability and Related Ratios is intended to show information for ten years; as additional years' information becomes available it will be displayed accordingly.

City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net OPEB Liability and Related Ratios For the Year Ended June 30, 2022
158 Packet Pg. 866 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Measurement Period 2019 2018 2017
TOTAL OPEB LIABILITY:

Service Costs $ (13,080) $ (185,355) $ (744,002)
Interest 1,185,185 1,124,094 852,000
Difference Between Expected and Actual Experience 3,574,842 - - Changes of Assumptions 9,724,504 1,582,262 4,331,000
Benefit Payments, Including Refunds of Employee Contributions (3,444,608) (3,490,701) (3,480,000) Net Change in Total OPEB Liability $ 11,026,843 $ (969,700) $ 958,998 Total OPEB Liability - Beginning 32,360,298 33,329,998 32,371,000 Total OPEB Liability - Ending (a) $ 43,387,141 $ 32,360,298 $ 33,329,998 PLAN FIDUCIARY NET POSITION:

Contributions - Employer $ 3,444,608 $ 3,490,701 $ 3,480,000 Net Investment Income 1,068 376 -
Benefit Payments, Including Refunds of Employee Contributions (3,444,608) (3,490,701) (3,480,000) Administrative Expenses (129) (127) -
Net Change in Fiduciary Net Position 939 249 -
Plan Fiduciary Net Position - Beginning 51,249 51,000 51,000 Plan Fiduciary Net Position - Ending (b) $ 52,188 $ 51,249 $ 51,000 Plan Net OPEB Liability/(Asset) - Ending (a) - (b) $ 43,334,953 $ 32,309,049 $ 33,278,998 Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 0.12% 0.16% 0.15% Covered-Employee Payroll $ 57,452,344 $ 58,314,156 $ 58,084,647 Plan Net OPEB Liability/(Asset) as a Percentage of Covered-Employee Payroll 75.43% 55.41% 57.29% Other Postemployment Benefits (OPEB)
City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net OPEB Liability and Related Ratios For the Year Ended June 30, 2022
159 Packet Pg. 867 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2022 2021
Actuarially Determined Contribution 2 $ 3,646,314 4,601,018 $ Contribution 2 (3,646,314) (4,601,018)
Contribution Deficiency (Excess) $ - $ -
Covered-employee Payroll $ 69,040,537 $ 63,073,360
Contributions as a Percentage of Covered-employee Payroll 6.66% 5.78% 1 GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary Information for 10 years or as many years as are available upon implementation. 2 The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years 6/30/17, 6/30/18 and 6/30/19.

Notes to Schedules:

Other Postemployment Benefits (OPEB)
The Required Supplementary Information for Schedules of Public Agency Retirement Services Retirement Enhancement Plan Contributions All Tiers is intended to show information for ten years; as additional years' information becomes available it will be displayed accordingly.

City of Redding
Required Supplementary Information (Unaudited)
Schedule of Contributions-OPEB
For the Year Ended June 30, 2022
160 Packet Pg. 868 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2020 2019 2018 2017
Actuarially Determined Contribution $ 3,753,880 $ 3,444,608 $ 3,480,000 3,490,701 $ y Contribution (3,444,608) (3,753,880) (3,490,701) (3,480,000) Contribution Deficiency (Excess) $ - $ - $ - $ -
Covered-employee Payroll $ 60,225,532 $ 57,452,344 $ 58,314,156 $ 58,084,647 Contributions as a Percentage of Covered-employee Payroll 6.23% 6.00% 5.99% 5.99% Other Postemployment Benefits (OPEB)
City of Redding
Required Supplementary Information (Unaudited)
Schedule of Contributions-OPEB
For the Year Ended June 30, 2022
161 Packet Pg. 869 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
162 Packet Pg. 870 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Supplementary
Information
163
Packet Pg. 871 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
164 Packet Pg. 872 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) SPECIAL REVENUE FUNDS:

Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.

Parking Fund
This fund was established to account for the receipts of parking-related revenues and expenditures.

Street Maintenance Fund
This fund was established to account for the construction and maintenance of the street system of the City.

Financing is provided by the State and is restricted to street expenditures.

Community Development Fund
This fund was established to account for financing and rehabilitation of homes and government structures.

Financing is provided by Federal Department of Housing and Urban Development.

Housing Fund
This fund was established to account for subsidies received on behalf of low to moderate income families.

Financing is provided by Federal Department of Housing and Urban Development and a portion of tax increment revenue from redevelopment project area property.

General Special Revenue
This fund was established to account for receipts and disbursements of special revenues required to be segregated from the General Fund revenues.

Landscape Maintenance Districts
This fund was established to account for the activities of landscape maintenance assessment districts. The landscape districts collect assessments to pay for landscape maintenance in the assessment area.

Library Fund
This fund was established to account for the activities of the public library.

Asset Seizure Fund
This fund was established to account for the activities involved with asset seizures.

DEBT SERVICE FUND
The debt service fund is used to account for the payment of interest and principal on general debt of the City. 1915 Act Assessment District Bonds
Established to accumulate monies for payment of 1915 Act Special Assessment bonds when the government is obligated in some manner.

NONMAJOR

GOVERNMENTAL FUNDS
165 Packet Pg. 873 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) General
Street Community Special
Parking Maintenance Development Housing Revenue
ASSETS
Cash and investments 641,816 $ 7,048,404 $ 1,594,878 $ 3,093,404 $ - $ Interest receivable, unrestricted 1,717 25,138 2,385,774 2,369,910 - Accounts receivable, net - - 50 37,730 -
Intergovernmental receivable - 1,694,568 551,591 128,106 - Other receivable - - 12,600 2,092 -
Restricted cash and investments - - - 148,473 -
Prepaid items 269 - 508 - -
Special assessments receivable - - - - -
Notes receivable - - 42,839,831 15,290,900 -
Total assets $ 8,768,110 643,802 $ 47,385,232 $ 21,070,615 $ - $

LIABILITIES
Accounts payable 24,217 $ - $ 16,368 $ 1,412 $ - $
Accrued liabilities 1,356 - 15,799 16,179 -
Intergovernmental payable 513 - 1,574 5,000 -
Due to other funds - - - 60,037 -
Accounts payable from restricted assets - - - 5,200 -
Unearned revenue - - - 1,515,950 -
Deposits - - 148,473 - -
Advances from other funds 420,694 - - - -
Total liabilities 446,780 33,741 - 1,752,251 -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 2,874,472 - 2,460,739 -
Total deferred inflows of resources: - 2,874,472 - 2,460,739 -

FUND BALANCES
Nonspendable 269 - 508 - -
Restricted 196,753 8,768,110 44,476,511 16,857,625 -
Total fund balances 197,022 8,768,110 44,477,019 16,857,625 - Total liabilities, deferred inflows of
resources and fund balances $ 643,802 $ 8,768,110 $ 47,385,232 $ 21,070,615 $ - (Continued)
Special Revenue
City of Redding
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2022
166 Packet Pg. 874 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Special Revenue Debt Service
1915 Act Total
Landscape Assessment Non-Major
Maintenance Asset District Governmental
Districts Library Seizure Bonds Funds
ASSETS
Cash and investments $ 532,581 $ 1,255,061 $ 22,914 $ 300,631 $ 14,489,689 Interest receivable, unrestricted 850 1,618 61 4,785,861 793 Accounts receivable, net - - - 37,780 -
Intergovernmental receivable 65,481 62,883 - 2,502,629 - Other receivable - - - 14,692 -
Restricted cash and investments - - - 148,473 -
Prepaid items - - - - 777
Special assessments receivable 21,625 - 299,777 - 321,402 Notes receivable - - - 58,130,731 -
Total assets $ 620,537 $ 1,319,562 $ 22,975 $ 601,201 $ 80,432,034

LIABILITIES
Accounts payable $ 3,172 $ 94,494 $ 239 $ 139,902 - $
Accrued liabilities 2,480 1,543 - 37,357 -
Intergovernmental payable - 185 1,146 - 8,418
Due to other funds - - - 60,037 -
Accounts payable from restricted assets - - - - 5,200
Unearned revenue 152,897 - - 1,668,847 -
Deposits - - - - 148,473
Advances from other funds - - - 420,694 -
Total liabilities 5,652 249,119 1,385 2,488,928 -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 72,477 60,883 299,777 - 5,768,348
Total deferred inflows of resources: 72,477 60,883 299,777 5,768,348

FUND BALANCES
Nonspendable - - 777
Restricted 542,408 1,009,560 21,590 301,424 72,173,981
Total fund balances 542,408 1,009,560 21,590 301,424 72,174,758 Total liabilities, deferred inflows of
resources and fund balances $ 620,537 $ 1,319,562 $ 22,975 $ 601,201 $ 80,432,034 (Concluded)
City of Redding
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2022
167 Packet Pg. 875 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) General
Street Community Special
Parking Maintenance Development Housing Revenue
REVENUES:

Sales tax revenue - $ - $ - $ - $ 272,517 $
Special assessments - - - - -
Licenses, fees and permits 45,766 - - - -
Intergovernmental revenues - 8,337,994 2,258,279 10,501,086 - Charges for services - - 145,000 - -
Fines, forfeitures and penalties 32,502 - - - -
Net investment earnings (loss) (19,530) (204,040) 61,663 36,488 - Other revenues - - 614 66,151 -
Total revenues 8,133,954 58,738 2,465,556 10,603,725 272,517 EXPENDITURES:

Current:

Community development - - 1,378,587 10,727,867 -
Public safety - - - - -
Public works 189,985 - - - -
Recreation and culture - - - - -
Capital outlay - 150,488 16,618 -
Debt service:

Principal retirement 34,631 - - - -
Interest and fiscal charges 2,449 - 849 - -
Total expenditures 227,065 1,529,924 - 10,744,485 -

REVENUE OVER
(UNDER) EXPENDITURE (168,327) 8,133,954 935,632 (140,760) 272,517

OTHER FINANCING
SOURCES (USES):

Sale of assets - - 625,000 - -
Transfers in - - - - -
Transfers out (8,280,619) - - (272,517) -
Total other financing
sources (uses) (8,280,619) - 625,000 - (272,517)
Net change in fund balances (168,327) (146,665) 935,632 484,240 - FUND BALANCES:

Beginning of year 365,349 8,914,775 43,541,387 16,373,385 - End of year $ 197,022 $ 8,768,110 $ 44,477,019 $ 16,857,625 $ - (Continued)
Special Revenue
City of Redding
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2022
168 Packet Pg. 876 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Special Revenue Debt Service
1915 Act
Landscape Assessment Non-Major
Maintenance Asset District Governmental
Districts Library Seizure Bonds Funds
REVENUES:

Sales tax revenue $ - - $ - $ 272,517 - $
Special assessments 916,718 - - 916,718 -
Licenses, fees and permits - - - 45,766 -
Intergovernmental revenues 20,802 - - 21,118,161 -
Charges for services 1,515,488 - - 1,660,488 -
Fines, forfeitures and penalties 1,149 43,997 - 77,648 - Net investment earnings (loss) (16,910) (41,766) (446) (9,537) (194,078) Other revenues 27,565 - 47,119 141,449 -
Total revenues 900,957 1,566,086 46,673 (9,537) 24,038,669 EXPENDITURES:

Current:

Community development - - - 12,106,454 -
Public safety - 56,048 - 56,048 -
Public works 690,678 - - 880,663 -
Recreation and culture 2,533,696 - - 2,533,696 -
Capital outlay - - - 167,106 -
Debt service: - -
Principal retirement - - - 34,631 -
Interest and fiscal charges - - - - 3,298
Total expenditures 690,678 2,533,696 56,048 15,781,896 -

REVENUE OVER
(UNDER) EXPENDITURE 210,279 (967,610) (9,375) (9,537) 8,256,773

OTHER FINANCING
SOURCES (USES):

Sale of assets - - - 625,000 -
Transfers in 937,161 - - 937,161 -
Transfers out - - - (8,553,136) -
Total other financing
sources (uses) 937,161 - - (6,990,975) -
Net change in fund balances 210,279 (30,449) (9,375) (9,537) 1,265,798 FUND BALANCES:

Beginning of year 332,129 1,040,009 30,965 310,961 70,908,960 End of year $ 542,408 $ 1,009,560 $ 21,590 $ 301,424 $ 72,174,758 (Concluded)
City of Redding
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2022
169 Packet Pg. 877 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Actual Variance with
Amounts Final Budget
Budgetary Positive
Original Final Basis (Negative)
REVENUES:

Licenses and permits $ 36,000 36,000 $ 45,766 $ 9,766 $ Fines, forfeitures and penalties 30,000 30,000 32,606 2,606 Interest revenue 3,000 3,000 2,937 (63)
Total revenues 69,000 69,000 81,309 12,309
EXPENDITURES:

Current:

Public works 835,330 832,420 331,350 501,070
Total expenditures 835,330 832,420 331,350 501,070

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (766,330) (763,420) (250,041) (513,379) Net change in fund balance (766,330) (763,420) (250,041) (513,379) FUND BALANCE:

Beginning of year 365,349 365,349 365,349 -
End of year $ (400,981) $ (398,071) $ 115,308 $ (513,379) $ 197,022
24,185
18,971

3. The City budgets for interest on a cash basis (1,717)

4. Encumbrances are not included in the Statement of Revenues, Expenditures and Changes in Fund Balance. (123,153)
Budgetary fund balance $ 115,308
City of Redding
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Parking Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts

1. Financial statement only adjustment per GASB #31.

Fund balance from the Statement of Revenues, Expenditures and Changes in Fund Balances Explanation of differences from the Statement of Revenues, Expenditures and Changes in Fund Balances to Actual Amounts Budgetary Basis:

2. The City does not budget for accounts payable adjustments. 170 Packet Pg. 878 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Actual Variance with
Amounts Final Budget
Budgetary Positive
Original Final Basis (Negative)
REVENUES:

Intergovernmental revenue $ 8,142,360 $ 8,142,360 $ 7,935,772 $ (206,588) Interest revenues 25,000 25,000 35,033 10,033
Total revenues 8,167,360 8,167,360 7,970,805 (196,555)

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 8,167,360 8,167,360 7,970,805 (196,555) OTHER FINANCING SOURCES (USES):

Transfers out (7,705,200) (7,705,200) (8,280,619) (575,419) Total other financing sources (uses) (7,705,200) (7,705,200) (8,280,619) (575,419) Net change in fund balance 462,160 462,160 (309,814) (771,974) FUND BALANCE:

Beginning of year 8,914,775 8,914,775 8,914,775 -
End of year $ 9,376,935 $ 9,376,935 $ 8,604,961 $ (771,974) $ 8,768,110
264,210

2. The City budgets for grants and taxes on a cash basis (427,359) $ 8,604,961
City of Redding
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Street Maintenance Special Revenue Fund
For the Year Ended June 30, 2022
Budgetary fund balance
Budgeted Amounts

1. Financial statement only adjustment per GASB #31.

Explanation of differences from the Statement of Revenues, Expenditures and Changes in Fund Balances to Actual Amounts Budgetary Basis:

Fund balance from the Statement of Revenues, Expenditures and Changes in Fund Balances 171 Packet Pg. 879 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Actual Variance with
Amounts Final Budget
Budgetary Positive
Original Final Basis (Negative)
REVENUES:

Intergovernmental $ 19,670,920 $ 40,852,150 $ 2,138,257 $ (38,713,893) Interest revenue 77,360 169,760 167,111 (2,649)
Use of money and property 334,950 463,620 427,212 (36,408) Other revenues 125,000 125,800 145,800 20,000
Total revenues 20,208,230 41,611,330 2,878,380 (38,732,950) EXPENDITURES:

Current:

Community development 3,113,760 43,536,220 3,963,551 39,572,669 Total expenditures 3,113,760 43,536,220 3,963,551 39,572,669 Net change in fund balance 17,094,470 (1,924,890) (1,085,171) 839,719 FUND BALANCE:

Beginning of year 43,541,387 43,541,387 43,541,387 -
End of year $ 60,635,857 $ 41,616,497 $ 42,456,216 $ 839,719 $ 44,477,019
61,046

2. The City does not budget for accounts payable and accrued liability adjustments. (727)

3. The City budgets for and records loans made in the expenditure accounts, but adjusts the actual disbursement to loans receivable. (2,420,392)

4. The City budgets for and records loan payments received in the revenue accounts, but adjusts the actual payment to loans receivable. 427,212

5. The City budgets for grants on a cash basis. (120,022)

6. The City budgets for interest income on notes receivable, trust fund assets, and rolling stock on a cash basis 48,459

7. The City does not budget for benefit accrual on a cash basis. 494

8. End of year encumbrances are included in actual expenditures budgetary basis, but are not included in the Statement of Revenues, Expenditures, and Fund Balance. (18,676)

9. The City does not budget for allowance for uncollectable loans 5,675

10. The City doe not budget for interest accruals. (3,547)

11. The City does not budget for unearned revenue. (325) $ 42,456,216
City of Redding
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Community Development Special Revenue Fund
For the Year Ended June 30, 2022
Budgetary fund balance
Budgeted Amounts

1. Financial statement only adjustment per GASB #31.

Explanation of differences from the Statement of Revenues, Expenditures and Changes in Fund Balances to Actual Amounts Budgetary Basis:

Fund balance from the Statement of Revenues, Expenditures and Changes in Fund Balances 172 Packet Pg. 880 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Actual Variance with
Amounts Final Budget
Budgetary Positive
Original Final Basis (Negative)
REVENUES:

Intergovernmental revenue $ 10,070,340 $ 13,807,750 $ 10,397,649 $ (3,410,101) Use of money and property 114,500 114,500 210,568 96,068 Interest 32,270 32,270 78,692 46,422
Other revenues 26,000 36,750 66,273 29,523
Total revenues 10,243,110 13,991,270 10,753,182 (3,238,088) EXPENDITURES:

Current:

Community development 11,038,500 14,905,752 10,922,545 3,983,207 Capital outlay - 16,618 16,618 -
Total expenditures 11,038,500 14,922,370 10,939,163 3,983,207 Net change in fund balance (795,390) (931,100) (185,981) 745,119 FUND BALANCE:

Beginning of year 16,373,385 16,373,385 16,373,385 -
End of year $ 15,577,995 $ 15,442,285 $ 16,187,404 $ 745,119 $ 16,857,625
44,431

2. The City does not budget for accounts payable or intergovernmental payable adjustments. (5,353)

3. The City budgets for and records loans made in the expenditure accounts, but adjusts the actual disbursement to disbursement to loans receivable. (159,230)

4. The City budgets for and records loans payments received in the revenue accounts, but adjusts the actual disbursement to loans receivable. 210,679

5. The City budgets for grants on a cash basis. (124,111)

6. End of year encumbrances are included in actual expenditures budgetary basis, but are not included in the Statement of Revenues, Expenditures, and Fund Balance. (41,421)

7. The City budgets for interest income on notes receivable on a cash basis. 29

8. The City does not budget for interest accruals. (2,245)

9. The City budgets for housing loans as expenditures, but adjusts the disbursements to loans receivable. (625,000)

10. The City does not budget for unearned revenue. 20,674

11. The City does not budget for refund receivables for Section 8 11,326 $ 16,187,404
City of Redding
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Housing Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts

1. Financial statement only adjustment per GASB #31.

Budgetary fund balance
Explanation of differences from the Statement of Revenues, Expenditures and Changes in Fund Balances to Actual Amounts Budgetary Basis:

Fund balance from the Statement of Revenues, Expenditures and Changes in Fund Balances 173 Packet Pg. 881 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Actual Variance with
Amounts Final Budget
Budgetary Positive
Original Final Basis (Negative)
REVENUES:

Sales tax $ 272,520 $ 272,520 $ 272,517 $ (3)
Total revenues 272,520 272,520 272,517 (3)

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 272,520 272,520 272,517 (3)
OTHER FINANCING SOURCES (USES):

Transfers out (272,520) (272,520) (272,517) 3
Total other financing sources (uses) (272,520) (272,520) (272,517) 3 Net change in fund balance - - - -
FUND BALANCE:

Beginning of year - - - -
End of year $ - $ - $ - $ -
#REF!
Budgeted Amounts
City of Redding
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual General Special Revenue Fund
For the Year Ended June 30, 2022
174 Packet Pg. 882 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Actual Variance with
Amounts Final Budget
Budgetary Positive
Original Final Basis (Negative)
REVENUES:

Intergovernmental $ - $ 73,890 $ 83,997 $ 10,107
Charges for services 1,514,700 1,514,700 1,515,488 788
Fines, forfeitures and penalties 56,500 56,500 43,997 (12,503) Interest revenue 3,000 3,000 (114) (3,114)
Other revenue 3,600 22,820 27,565 4,745
Total revenues 1,577,800 1,670,910 1,670,933 23
EXPENDITURES:

Current:

Recreation and culture 2,604,050 2,697,160 2,554,800 142,360 Total expenditures 2,604,050 2,697,160 2,554,800 142,360

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (1,026,250) (1,026,250) (883,867) (142,383) OTHER FINANCING SOURCES (USES):

Transfers in 934,430 934,430 937,161 2,731
Transfers out (50,000) (50,000) (50,000) -
Total other financing sources (uses) 884,430 884,430 887,161 2,731 Net change in fund balance (141,820) (141,820) 3,294 145,114 FUND BALANCE:

Beginning of year 1,040,009 1,040,009 1,040,009 -
End of year $ 898,189 $ 898,189 $ 1,043,303 $ 145,114
$ 1,009,560
46,803

2. The City does not budget for accounts payable adjustments. 67,956

3. The City budgets for grants on a cash basis. 63,195

4. The City does not budget for interest income, sale of property or rental income related to the equipment replacement fund. The City budgets only for the transfers in and out of the equipment replacement fund. (53,533)

5. The City budgets for interest on a cash basis. (1,618)

6. End of year encumbrances are included in actual expenditures budgetary basis, but are not included in the Statement of Revenues, Expenditures, and Fund Balance. (89,060) $ 1,043,303
City of Redding
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Library Special Revenue Fund
For the Year Ended June 30, 2022
Budgetary fund balance
Budgeted Amounts

1. Financial statement only adjustment per GASB #31.

Explanation of differences from the Statement of Revenues, Expenditures and Changes in Fund Balances to Actual Amounts Budgetary Basis:

Fund Balance from the Statement of Revenues, Expenditures and Changes in Fund Balances 175 Packet Pg. 883 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Actual Variance with
Amounts Final Budget
Budgetary Positive
Original Final Basis (Negative)
REVENUES:

Intergovernmental revenue $ - $ 29,348,970 $ 7,379,500 $ (21,969,470) Investment revenue - - 11,174 11,174
Other 1,613,610 1,652,690 4,558,938 2,906,248
Total revenues 1,613,610 31,001,660 11,949,612 (19,052,048) EXPENDITURES:

Current:

General government 450,580 450,580 92,537 358,043
Public works 38,099,950 67,658,870 25,768,632 41,890,238 Recreation and culture 12,569,850 17,081,400 6,405,973 10,675,427 Debt service:

Principal retirement 270,000 270,000 270,000 -
Interest and fiscal charges 467,790 467,790 467,788 2
Total expenditures 51,858,170 85,928,640 33,004,930 52,923,710

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (50,244,560) (54,926,980) (21,055,318) 33,871,662 OTHER FINANCING SOURCES (USES):

Transfers in 150,780 150,780 150,780 -
Transfers out (229,300) (229,300) (272,828) (43,528)
Total other financing sources (uses) (78,520) (78,520) (122,048) (43,528) Net change in fund balance (50,323,080) (55,005,500) (21,177,366) 33,828,134 FUND BALANCE:

Beginning of year 7,185,133 7,185,133 7,185,133 -
End of year $ (43,137,947) $ (47,820,367) $ (13,992,233) $ 33,828,134 $ 1,712,086
33,144
115,253
(15,294,716)
73,619
(638,750)

6. The City did not budget for revenue from the Agency Fund. 7,131 $ (13,992,233)
City of Redding
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual General Capital Projects Fund - Major Fund
For the Year Ended June 30, 2022
not included in the Statement of Revenues, Expenditures, and Changes in Fund Balance.

4. The City does not budget for the transfer of developer fees and interest on those fees to Budgeted Amounts

1. Financial statement only adjustment per GASB #31.

2. The City does not budget for accounts payable adjustments.

3. End of year encumbrances are included in actual expenditures budgetary basis, but are Explanation of differences from the Statement of Revenues, Expenditures and Changes in Fund Balances to Actual Amounts Budgetary Basis:

Fund Balance from the Statement of Revenues, Expenditures and Changes in Fund Balances Budgetary fund balance
the related enterprise funds.

5. The City budgets for grants on a cash basis.
176 Packet Pg. 884 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Enterprise funds account for operations that are financed and operated in a manner similar to a private business enterprise. The intent of the governing body is that the cost of providing goods or services be financed primarily through user charges. An enterprise fund is also used when the governing body has decided that periodic determination of revenues earned and expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.

Airport
This fund was established to account for the operations of the City's airports.

Storm Drainage
This fund was established to account for the operations of the City's storm drainage utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

Redding Area Bus Authority
This fund was established to account for the operations of the Redding Area Bus Authority.

Convention Center
This fund was established to account for the operations of the Convention Center.

NON-MAJOR

ENTERPRISE FUNDS
177 Packet Pg. 885 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Storm Redding
Drainage Area Bus Convention
Airport Utility Authority Center Total
ASSETS
Current assets:

Cash and investments - $ 5,362,333 $ 2,894,109 $ 680,887 $ 8,937,329 $ Accounts receivable, net 59,295 54,372 6,825 - 120,492
Lease receivable 427,224 - 15,889 147,300 590,413
Interest receivable 35 18,683 4,280 6 23,004
Intergovernmental receivable 3,062,560 13,918 597,086 - 3,673,564 Prepaid items - - - 1,494 1,494
Inventories - 21,929 92,471 - 114,400
Total current assets 3,549,114 5,471,235 3,610,660 829,687 13,460,696 Non-current assets:

Restricted assets:

Cash and investments - 3,121,712 - - 3,121,712
Total restricted assets - 3,121,712 - - 3,121,712
Capital assets:

Land 6,242,894 909,184 2,622,238 188,430 9,962,746
Construction in progress 2,530,174 149,970 873,649 - 3,553,793 Depreciable capital assets, net 28,543,296 14,648,518 8,303,510 775,204 52,270,528 Total capital assets 37,316,364 15,707,672 11,799,397 963,634 65,787,067 Other assets:

Lease receivable, net current 5,336,564 - 97,142 1,079,055 6,512,761 Total other assets 5,336,564 - 97,142 1,079,055 6,512,761 Total non-current assets 42,652,928 18,829,384 11,896,539 2,042,689 75,421,540 Total assets 46,202,042 24,300,619 15,507,199 2,872,376 88,882,236

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 4,633 - - 4,633 -
Deferred outflows related to other post
employment benefits 219,637 113,978 - 333,615 -
Deferred outflows related to pensions 209,225 209,163 - 418,388 - Total deferred outflows of resources 433,495 323,141 - 756,636 - (Continued)
City of Redding
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2022
178 Packet Pg. 886 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Storm Redding
Drainage Area Bus Convention
Airport Utility Authority Center Total

LIABILITIES
Current liabilities:

Accounts payable 998,280 103,642 516,078 85,730 1,703,730 Accrued liabilities 18,984 11,540 6,188 - 36,712
Accrued interest payable 20,208 - - 613 20,821
Intergovernmental payables 2,583 - 807,764 - 810,347
Due to other funds 1,460,017 - 266,490 - 1,726,507
Interfund payables 25,000 - - 58,851 83,851
Unearned revenue 19,272 2,000,000 1,035,741 - 3,055,013 Deposits payable 85,039 - 3,000 - 88,039
Compensated absences, due within one year 27,189 30,118 - - 57,307 Long-term debt, due within one year 46,438 - - 29,450 75,888 State loan, due within one year 85,483 - - - 85,483
Total current liabilities 2,788,493 2,145,300 2,635,261 174,644 7,743,698 Long-term liabilities:

Compensated absences, due in more than one year 41,127 60,513 - - 101,640 Advances from other funds 1,549,384 - - 1,576,403 3,125,787 Long-term debt, due in more than one year 49,085 - - 31,130 80,215 State loan, due in more than one year 1,042,956 - - - 1,042,956 Aggregate net OPEB liability 444,359 230,595 - 674,954 - Aggregate net pension liability 1,182,653 854,932 - 2,037,585 - Total long-term liabilities 4,309,564 1,146,040 1,607,533 - 7,063,137 Total liabilities 7,098,057 3,291,340 2,635,261 1,782,177 14,806,835

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post
employment benefits 16,258 8,437 - 24,695 -
Deferred inflows related to pensions 386,562 298,190 - 684,752 - Deferred inflows related to leases 5,763,788 113,031 - 1,226,355 7,103,174 Total deferred inflows of resources 6,166,608 306,627 113,031 1,226,355 7,812,621

NET POSITION
Net investment in capital assets 36,097,035 15,707,672 11,799,397 903,054 64,507,158 Restricted for capital projects 3,291,755 - - 3,291,755 - Unrestricted (deficit) (2,726,163) 2,026,366 959,510 (1,039,210) (779,497) Total net position $ 33,370,872 $ 21,025,793 $ 12,758,907 $ (136,156) $ 67,019,416 (Concluded)
Combining Statement of Net Position (Continued)
Nonmajor Enterprise Funds
June 30, 2022
City of Redding
179 Packet Pg. 887 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
180 Packet Pg. 888 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Storm Redding
Drainage Area Bus Convention
Airport Utility Authority Center Total
OPERATING REVENUES:

User fees and charges $ 219,000 $ 2,203,291 $ 1,289,031 $ 3,711,322 - $ Other operating revenue 2,671,075 - 196,171 - 2,867,246 Total operating revenues 2,890,075 2,203,291 1,289,031 196,171 6,578,568 OPERATING EXPENSES:

Cost of power, water, and transportation - 4,133,599 - 4,133,599 - Maintenance, operations, and administration 3,909,882 956,323 2,498,068 1,164,392 8,528,665 Depreciation and amortization 1,786,913 1,084,859 1,496,477 75,749 4,443,998 Total operating expenses 5,696,795 2,041,182 8,128,144 1,240,141 17,106,262 Operating gain (loss) (2,806,720) 162,109 (6,839,113) (1,043,970) (10,527,694) NONOPERATING REVENUE (EXPENSES):

Net investment earnings (loss) (267,717) 97 (15,477) (21,646) (304,743) Interest expense (43,143) (1,126) - (5,139) (49,408)
Intergovernmental revenues 801,432 5,554,821 - 6,356,253 - Gain (loss) on disposal of assets 11,756 - 11,446 23,202 - Other non-operating revenues (expenses) 440,195 1,110 30,844 472,149 - Total nonoperating revenues (expenses) 1,198,581 (254,851) 5,580,508 (26,785) 6,497,453 Gain (loss) before operating
transfers and capital contributions (1,608,139) (92,742) (1,258,605) (1,070,755) (4,030,241) Capital contributions 1,914,455 788,510 1,373,640 4,076,605 - Transfers in 225,000 268,555 917,682 - 1,411,237
Transfers out (235,000) - - (235,000) -
Change in net position 296,316 964,323 115,035 (153,073) 1,222,601 NET POSITION:

Beginning of year 33,074,556 20,061,470 12,643,872 16,917 65,796,815 End of year $ 33,370,872 $ 21,025,793 $ 12,758,907 $ (136,156) $ 67,019,416 City of Redding
Statement of Revenues, Expenses, and Changes in Net Position Nonmajor Enterprise Funds
For the Year Ended June 30, 2022
181 Packet Pg. 889 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Storm Redding
Drainage Area Bus Convention
Airport Utility Authority Center Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 2,873,984 $ 2,212,075 $ $ 1,298,745 $ 416,186 $ 6,800,990 Cash paid to suppliers (1,972,301) (482,979) (6,756,225) (1,100,703) (10,312,208) Cash paid to employees (894,170) (741,962) (32,070) - (1,668,202) Other operating revenue 36,878 - - 36,878 -
Net cash provided by (used in) operating activities 44,391 987,134 (5,457,480) (716,587) (5,142,542)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Intergovernmental revenue received 340,126 5,747,279 - 6,087,405 - Advances from other funds 1,460,017 266,490 - 1,726,507 - Repayment of advances from other funds (1,618,896) (130,099) - (137,881) (1,886,876) Transfers in 225,000 268,555 917,682 - 1,411,237
Transfers out (235,000) - - (235,000) - - Net cash provided by non-capital financing activities 268,555 171,247 5,883,670 779,801 7,103,273

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Capital grants received 1,181,630 2,050,328 379,983 3,611,941 - Proceeds from sale of assets 13,500 - 19,300 32,800 -
Purchases of capital assets (1,634,425) (418,525) (1,325,500) (3,378,450) - Interest paid (37,367) - (1,126) (3,046) (41,539)
Principal paid on long-term debt (129,171) - (29,201) - (158,372) Cash collected for future capital outlay 403,318 1,110 - 404,428 - Net cash provided by (used in)
capital and related financing activities (216,015) 1,646,413 (927,343) (32,247) 470,808 CASH FLOWS FROM INVESTING ACTIVITIES:

Net investment earnings (loss) (276,442) 77 (17,704) (21,648) (315,717) Rents received - - 30,844 30,844 -
Net cash provided by (used in) investing activities (276,442) 77 13,140 (21,648) (284,873) Net increase (decrease) in cash
and cash equivalents 2,625,660 (300) (488,013) 9,319 2,146,666 CASH AND CASH EQUIVALENTS:

Beginning of year 5,858,385 300 3,382,122 671,568 9,912,375 End of year $ 8,484,045 - $ $ 2,894,109 $ 680,887 $ 12,059,041 Reconciliation to statement of net position:

Cash and cash equivalents $ 5,362,333 - $ $ 2,894,109 $ 680,887 $ 8,937,329 Restricted cash and cash equivalents 3,121,712 - - - 3,121,712 $ 8,484,045 - $ $ 2,894,109 $ 680,887 $ 12,059,041
(Continued)
City of Redding
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended June 30, 2022
182 Packet Pg. 890 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Storm Redding
Drainage Area Bus Convention
Airport Utility Authority Center Total

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) to net cash provided by (used in) (2,806,720) $ 162,109 $ $ (6,839,113) $ (1,043,970) $ (10,527,694) Adjustments to reconcile operating (loss) to net
cash provided (used) by operating activities:

Other non-operating revenue and expense 36,878 - - 36,878 - Depreciation and amortization 1,786,913 1,084,859 1,496,477 75,749 4,443,998 (Increase) decrease in accounts receivable (27,161) 8,784 9,713 220,015 211,351 (Increase) decrease in inventories - 440 (10,100) (9,660) - (Increase) decrease in prepaid items 9,247 9,708 2,377 21,332 (Increase) decrease in accounts payable 854,149 95,629 (249,557) 30,518 730,739 Increase (decrease) in accrued liabilities (26,014) (30,704) (10,390) (1,276) (68,384) Increase (decrease) in deposits liability 11,070 - - 11,070 - Increase (decrease) in intergovernmental payable 2,387 145,490 - 147,877 - Increase (decrease) in unearned revenue (86) - - - (86) Increase (decrease) in accrued compensated absences 23,160 (21,194) - 1,966 - Accrued liabilities long-term -
Other post employment benefits relaed items 88,722 (17,386) - 71,336 - Pension related items 91,846 (305,111) - (213,265) -
Total adjustments 2,851,111 825,025 1,381,633 327,383 5,385,152 Net cash provided by (used) operating activities $ 44,391 $ 987,134 $ (5,457,480) $ (716,587) $ (5,142,542)

SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES:

Plant contributed from developers $ 788,510 - $ $ - $ 788,510 - $ Transfer of capital assets 268,555 - - 268,555 -
Total non-cash capital and
related financing activities $ 1,057,065 - $ $ - $ 1,057,065 - $ (Concluded)
Combining Statement of Cash Flows (Continued)
Nonmajor Enterprise Funds
For the Year Ended June 30, 2022
City of Redding
183 Packet Pg. 891 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
184 Packet Pg. 892 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021)

INTERNAL SERVICE FUNDS
Internal service funds are used to finance and account for special activities and services performed by a designated department to other departments within the same governmental unit on a cost reimbursement basis.

Equipment Fund
This fund was established to account for all motorized and communications equipment utilization by City departments.

Information Systems Fund
This fund was established to account for the data processing activities utilized by all City departments.

General Support Services Fund
This fund was established to account for general support services utilized by all City departments.

Risk Management Fund
This fund was established to account for the self-insurance activities of the City.

Municipal Utilities Support Fund
This fund was established to provide management and electrical technician support to the Utilities and Street Maintenance.
185 Packet Pg. 893 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Information General Support
Equipment Systems Services
ASSETS
Current assets:

Cash and investments $ 1,923,330 538,086 $ 2,511,974 $
Interest receivable 5,083 1,445 5,664
Accounts receivable, net - 2,066 1,732
Prepaid items 90,442 1,554 58,790
Inventories - 391,444 -
Interfund receivable - - -
Total current assets 934,595 2,018,855 2,578,160
Non-current assets:

Capital assets:

Land - - 110,810
Construction in progress - - 74,907
Depreciable capital assets, net 200,136 7,255,808 104,541 Capital assets, net 200,136 7,255,808 290,258
Other assets:

Advances to other funds - - -
Total other assets - - -
Total non-current assets 200,136 7,255,808 290,258
Total assets 2,218,991 8,190,403 2,868,418

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to other post employment benefits 512,576 393,304 601,258 Deferred outflows related to pensions 710,722 599,806 845,240 Total deferred outflows of resources 1,223,298 993,110 1,446,498

LIABILITIES
Current liabilities:

Accounts payable 59,129 9,391 246,705
Intergovernmental payable - - 20,617
Accrued liabilities 32,507 35,189 65,680
Claims and judgements payable - - -
Interfund payable - 67,649 25,000
Unearned revenue - 6,518 -
Compensated absences - current 101,033 74,186 155,807
Total current liabilities 172,340 213,262 513,809
Long-term liabilities:

Advances from other funds - 12,561 31,250
Compensated absences 221,057 148,699 295,426
Claims and judgements - -
Aggregate net OPEB liability 1,037,017 795,713 1,216,435 Aggregate net pension liability 3,326,413 2,700,615 3,842,845 Total long-term liabilities 4,597,048 3,645,027 5,385,956 Total liabilities 4,810,310 3,817,367 5,899,765

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits 37,944 29,114 44,508 Deferred inflows related to pensions 1,126,840 922,225 1,309,610 Total deferred inflows of resources 1,164,784 951,339 1,354,118

NET POSITION
Investment in capital assets 7,255,808 200,136 290,258
Unrestricted (deficit) (2,841,001) (2,732,941) (3,229,225) Total net position $ 4,414,807 $ (2,532,805) $ (2,938,967) (Continued)
City of Redding
Combining Statement of Net Position
All Internal Service Funds
June 30, 2022
186 Packet Pg. 894 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Risk Municipal Utilities
Management Support Total
ASSETS
Current assets:

Cash and investments $ 1,344,332 12,456,853 $ 18,774,575 $ Interest receivable 3,247 28,610 44,049
Accounts receivable, net - 73,027 76,825
Prepaid items - 6,311 157,097
Inventories - - 391,444
Interfund receivable - 83,851 83,851
Total current assets 12,648,652 1,347,579 19,527,841
Non-current assets:

Capital assets:

Land - - 110,810
Construction in progress - - 74,907
Other capital assets, net - 317,545 7,878,030
Capital assets, net - 317,545 8,063,747
Other assets:

Advances to other funds - 3,312,699 3,312,699
Total other assets 3,312,699 - 3,312,699
Total non-current assets 317,545 3,312,699 11,376,446
Total assets 1,665,124 15,961,351 30,904,287

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to other post employment benefits 737,672 145,575 2,390,385 Deferred outflows related to pensions 1,216,877 180,858 3,553,503 Total deferred outflows of resources 1,954,549 326,433 5,943,888

LIABILITIES
Current liabilities:

Accounts payable 145,060 17,960 478,245
Intergovernmental payable - 638,105 658,722
Accrued liabilities 21,569 131,848 286,793
Claims and judgements payable - 7,151,039 7,151,039
Interfund payable - - 92,649
Unearned revenue - 197,763 204,281
Compensated absences - current 244,440 22,893 598,359
Total current liabilities 8,176,429 394,248 9,470,088
Long-term liabilities:

Advances from other funds - - 43,811
Compensated absences 396,996 46,118 1,108,296
Claims and judgements - 10,505,901 10,505,901
Aggregate net OPEB liability 1,492,420 294,520 4,836,105 Aggregate net pension liability 4,880,724 845,103 15,595,700 Total long-term liabilities 6,770,140 11,691,642 32,089,813 Total liabilities 7,164,388 19,868,071 41,559,901

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits 54,607 10,776 176,949 Deferred inflows related to pensions 1,709,713 286,377 5,354,765 Total deferred inflows of resources 1,764,320 297,153 5,531,714

NET POSITION
Investment in capital assets - 317,545 8,063,747
Unrestricted (deficit) (3,877,440) (5,626,580) (18,307,187) Total net position $ (3,877,440) $ (5,309,035) $ (10,243,440) (Concluded)
June 30, 2022
All Internal Service Funds
Combining Statement of Net Position (Continued)
City of Redding
187 Packet Pg. 895 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
188 Packet Pg. 896 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) General Municipal
Information Support Risk Utilities
Equipment Systems Services Management Support Total
OPERATING REVENUES:

User fees and charges $ 4,495,454 $ 4,076,402 $ 8,193,414 $ 53,295,381 $ 5,041,090 $ 75,101,741 Other operating revenue 6,232 35 801 73,503 - 80,571
Total operating revenues 4,501,686 4,076,437 8,194,215 53,368,884 5,041,090 75,182,312 OPERATING EXPENSES:

Maintenance, operations,
and administration 4,058,370 3,412,289 7,960,729 54,002,666 4,736,480 74,170,534 Depreciation and amortization 1,073,692 75,159 22,013 - 59,801 1,230,665 Total operating expenses 5,132,062 3,487,448 7,982,742 54,002,666 4,796,281 75,401,199 OPERATING INCOME (LOSS) (630,376) 588,989 211,473 (633,782) 244,809 (218,887)

NONOPERATING REVENUE
(EXPENSES):

Net investment earnings (loss) (16,329) (58,693) (77,832) (391,522) (41,541) (585,917) Interest expense (802) (982) (1,039) - (1,282) (4,105)
Intergovernmental revenues - - - 1,244 - 1,244
Gain (loss) on disposal of capital assets (991) - - - 6,650 5,659 Other non-operating revenue (expense) - - - 575 392 967 Total nonoperating expenses (18,122) (59,675) (78,871) (389,703) (35,781) (582,152) Income (loss) before transfers
and contributions 529,314 (648,498) 132,602 (1,023,485) 209,028 (801,039) Capital contributions 3,421,075 - - - 7,952 3,429,027
Transfers in - - 1,130 - - 1,130
Transfers out - - (4,000) - - (4,000)
Changes in net position 2,772,577 529,314 129,732 (1,023,485) 216,980 2,625,118 NET POSITION:

Beginning of year 1,642,230 (3,062,119) (3,068,699) (2,853,955) (5,526,015) (12,868,558) End of year $ 4,414,807 $ (2,532,805) $ (2,938,967) $ (3,877,440) $ (5,309,035) $ (10,243,440) (2,841,001) (2,732,941) (3,229,225) (3,877,440) (5,626,580) - - - - - -
City of Redding
Combining Statement of Activities and Changes in Net Position All Internal Service Funds
For the Year Ended June 30, 2022
189 Packet Pg. 897 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) General Municipal
Information Support Risk Utilities
Equipment Systems Services Management Support Total

CASH FLOWS FROM
OPERATING ACTIVITIES:

Cash received from other funds $ 4,501,808 $ 4,076,437 $ 8,192,542 $ 53,601,114 5,041,090$ $ 75,412,991 Cash paid to suppliers (1,964,456) (1,025,769) (5,216,743) (51,840,193) (984,218) (61,031,379) Cash paid to employees (2,468,811) (2,660,846) (1,766,290) (1,017,603) (4,044,675) (11,958,225) Net cash provided by
operating activities 68,541 389,822 1,209,509 743,318 12,197 2,423,387

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Repayment of advances from other funds (3,362) (89,331) - - - (92,693) Advances from other funds - 56,250 - - - 56,250
Repayment of advances to other funds - - 162,881 - - 162,881 Intergovernmental revenue received - - 1,244 - - 1,244
Transfers out - (4,000) - - - (4,000)
Other - - - 575 - 575
Net cash provided by (used in)
noncapital financing activities (3,362) (89,331) 52,250 164,700 - 124,257

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of assets - - - 6,650 - 6,650
Purchase of capital assets (39,696) - (80,480) (55,122) - (175,298) Interest paid (802) (982) (1,039) - (1,282) (4,105)
Net cash (used in)
capital and related financing activities (802) (40,678) (81,519) (49,754) - (172,753)

CASH FLOWS FROM
INVESTING ACTIVITIES:

Investment revenue received (16,924) (60,728) (81,388) (400,856) (42,626) (602,522) Net cash (used in)
investing activities (60,728) (16,924) (81,388) (400,856) (42,626) (602,522) Net increase (decrease) in cash
and cash equivalents 199,085 47,453 1,098,852 507,162 (80,183) 1,772,369 CASH AND CASH EQUIVALENTS:

Beginning of year 490,633 1,724,245 1,413,122 11,949,691 1,424,515 17,002,206 End of year $ 538,086 $ 1,923,330 $ 2,511,974 $ 12,456,853 1,344,332$ $ 18,774,575 (Continued)
City of Redding
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2022
190 Packet Pg. 898 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) General Municipal
Information Support Risk Utilities
Equipment Systems Services Management Support Total

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) to net cash provided by
(used in) $ (630,376) $ 588,989 $ 211,473 $ (633,782) 244,809$ $ (218,887) Adjustments to reconcile operating
income (loss) to net cash provided
(used) by operating activities:

Other non-operating revenue and expense - - - - 392 392 Depreciation and amortization 1,073,692 75,159 22,013 59,801 - 1,230,665 (Increase) decrease in
accounts receivable 122 (1,666) - 38,474 - 36,930
(Increase) decrease in inventories (92,369) - - - - (92,369) (Increase) decrease in prepaid items 28,810 86,656 (29,514) 504,684 36,567 627,203 Increase (decrease) in
accounts payable 2,892 11,749 56,925 (167,089) (6,402) (101,925) Increase (decrease) in
accrued liabilities (74,640) (70,650) (80,881) (39,187) (42,467) (307,825) Increase (decrease) in claims
and judgements payable - - - 1,041,730 - 1,041,730
Increase (decrease) in deposits - - (7) - - (7)
Increase (decrease) in
intergovernmental payable (565) - (16,843) 37,153 - 19,745 Increase (decrease) in
unearned revenue - - 193,756 - - 193,756
Increase (decrease) in accrued
compensated absences 54,736 7,920 146,687 17,977 47,089 274,409 Other post employment benifits
related items 20,830 47,367 233,342 25,208 130,705 457,452 Pension related items (281,187) (390,772) 667,980 (275,606) (458,297) (737,882) Total adjustments 698,917 (199,167) 998,036 1,377,100 (232,612) 2,642,274 Net cash provided by
operating activities $ 68,541 $ 389,822 $ 1,209,509 $ 743,318 12,197$ $ 2,423,387 Schedule of noncash capital activities:

Equipment contributed $ 3,421,075 $ - $ - $ 7,952$ 3,429,027 - $ Transfer in of capital assets 1,130 - - - - 1,130
Total non-cash capital and related
financing activities $ 3,422,205 $ - $ - $ 7,952$ 3,430,157 - $ (Concluded)
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2022
City of Redding
191 Packet Pg. 899 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
192 Packet Pg. 900 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021)

FIDUCIARY FUNDS - CUSTODIAL FUNDS
The Custodial Funds are used to account for assets held by a government unit as an agent for individuals, governmental entities (other than the City) and non-public organizations.

Special Deposits
This fund was established to account for deposits and collect monies for various community events, which are remitted to the organizers.

IPSS Fund
This fund collects and disburses payments for a joint powers authority (JPA) between the Cities of Redding, Anderson, and Shasta County. The JPA is responsible for integrating public safety records between the entities.

Enterprise Anderson Groundwater Fund
This fund collects and disburses payments for an MOU between the City of Redding, Shasta County, the City of Anderson, ACID, CCCSD, and BVWD. The purposes of the MOU are to comply with the Sustainable Groundwater Management Act of 2014, ensure the continued sustainability of the Anderson and Enterprise Subbasins, and to develop, adopt, implement and manage a groundwater sustainability plan for the sustainable management of groundwater within the Enterprise and Anderson Subbasins of the Redding Area Groundwater Basin while keeping the complexity and costs as low as practicable.
193 Packet Pg. 901 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Enterprise
Special Anderson
Deposits IPSS Groundwater
Fund Fund Fund Total
ASSETS
Cash and cash equivalents $ 7,162,858 $ 1,062,843 $ 8,225,701 - $ Accounts receivable 6,256 41,784 38,498 86,538
Intergovernmental receivable - - 151,853 151,853
Interest receivable 11,482 2,996 - 14,478
Capital assets
Construction in progress 2,380,119 - 2,380,119 -
Depreciable capital assets, net - 117,888 - 117,888
Total assets 7,180,596 3,605,630 190,351 10,976,577

LIABILITIES
Deposits 7,151,277 - 7,151,277 -
Accounts payable - - 45,436 45,436
Accrued payroll - 10,218 320 10,538
Intergovernmental payable - - 144,595 144,595
Total liabilities 7,151,277 10,218 190,351 7,351,846

NET POSITION
Individuals, organizations, and other governments 29,319 3,595,412 3,624,731 - Total net position $ 29,319 $ 3,595,412 $ 3,624,731 - $ City of Redding
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2022
194 Packet Pg. 902 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Enterprise
Special Anderson
Deposits IPSS Groundwater
Fund Fund Fund Total

ADDITIONS
Intergovernmental - fees $ - $ 894,100 $ 46,071 $ 940,171 Intergovernmental - grants - - 291,523 291,523
User fees - 94,820 - 94,820
Investment income (loss) 10,192 (31,610) (18) (21,436)
Total additions 10,192 957,310 337,576 1,305,078

DEDUCTIONS
Administration - 960,559 2,362 962,921
Software maintenance and support - 75,155 - 75,155
Project payments - - 335,739 335,739
Depreciation - 72,272 - 72,272
Total deductions 1,107,986 - 338,101 1,446,087
Changes in net position 10,192 (150,676) (525) (141,009)

NET POSITION
Beginning of year 19,127 3,746,088 525 3,765,740
End of year $ 29,319 $ 3,595,412 $ 3,624,731 - $
City of Redding
Combining Statement Changes in Fiduciary Net Position
Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2022
195 Packet Pg. 903 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
196 Packet Pg. 904 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Other Supplementary
Information
197
Packet Pg. 905 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank.
198 Packet Pg. 906 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021)

OTHER SUPPLEMENTARY

INFORMATION
Other Supplementary Information is provided for the City of Redding Municipal Airport Passenger Facility Charges activity for the fiscal year. Passenger Facility Charge is a fee charged on commercial airline tickets for every enplaned passenger. Commercial airports use these fees to fund FAA-approved projects that enhance safety, security, or capacity; reduce noise; or increase air carrier competition.

Below is the current approved application of projects funded by Passenger Facility Charges:

Application 17-05-C-00-RDD
001-Aircraft Rescue and Fire Fighting Vehicle Acquisition 002-Airport Master Plan Update
003-ADA Passenger Loading Ramp
004-Airport Pavement Management System Study
005-T-Hangar Taxilane Reconstruction
006-West Tie Down Apron Reconstruction
007-Aircraft Rescue and Fire Fighting Station Modifications 009-Environmental Assessment Parallel Runway
013-PFC Application/Administration Costs
199 Packet Pg. 907 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Cumulative Total September 30, December 31,
June 30, 2021 2021 2021
Unexpended (over expended) passenger facility $ - $ (168,268) $ (88,603) charges and interest, beginning of period
Revenues:

Amount
Approved
Passenger facility charges collected 4,140,977 79,665 89,287 Interest earned 19,779 - -
Total passenger facility charge revenue 4,559,200$ 4,160,756 79,665 89,287 Expenses:

Project Number/Project Name
Amount
Approved
Completed and Closed Applications 3,440,457$ 3,440,457 - - Open Projects
Application 17-05-C-00-RDD
001-Aircraft Rescue and Fire Fighting Vehicle Acquisition 68,676 68,676 - - 002-Airport Master Plan Update 44,832 44,800 - -
003-ADA Passenger Loading Ramp 4,984 4,984 - -
004-Airport Pavement Management System Study 4,735 4,735 - - 005-T-Hangar Taxilane Reconstruction 458,672 394,850 - - 006-West Tie Down Apron Reconstruction 323,278 313,730 - - 007-Airccraft Rescue and Fire Fighting Station Modifications 1,735 1,735 - - 009-Environmental Assessment Parallel Runway 32,690 187 - - 013-PFC Application/Administration Costs 150,000 54,870 - - Total passenger facility charge revenue expenditures 4,329,024 - - Unexpended (over expended) passenger facility
charges and interest, end of period $ (168,268) $ (88,603) $ 684 (Continued)
For the Quarter Ended
City of Redding
Redding Municipal Airport
Schedule of Passenger Facility Charges Collected and Expended and Interest Collected For the Quarters Ended September 30, 2021, December 31, 2021, March 31, 2022, and June 30, 2022 200 Packet Pg. 908 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) For the Year
Ended
March 31, June 30, June 30, Cumulative Total
2022 2022 2022 June 30, 2022
Unexpended (over expended) passenger facility 684$ $ 126,445 $ (168,268) $ - charges and interest, beginning of period
Revenues:

Passenger facility charges collected 125,761 108,605 403,318 4,544,295 Interest earned - - - 19,779
Total passenger facility charge revenue 125,761 108,605 403,318 4,564,074 Expenses:

Project Number/Project Name
Completed and Closed Applications - - 3,440,457 -
Open Projects
Application 17-05-C-00-RDD
001-Aircraft Rescue and Fire Fighting Vehicle Acquisition - - - 68,676 002-Airport Master Plan Update - - - 44,800
003-ADA Passenger Loading Ramp - - - 4,984
004-Airport Pavement Management System Study - - - 4,735 005-T-Hangar Taxilane Reconstruction - - - 394,850
006-West Tie Down Apron Reconstruction - - - 313,730
007-Airccraft Rescue and Fire Fighting Station Modifications - - - 1,735 009-Environmental Assessment Parallel Runway - - - 187
013-PFC Application/Administration Costs - - - 54,870
Total passenger facility charge revenue expenditures - - 4,329,024 - Unexpended (over expended) passenger facility
charges and interest, end of period 126,445$ $ 235,050 $ 235,050 $ 235,050 (Concluded)
For the Quarter Ended
City of Redding
Redding Municipal Airport
Schedule of Passenger Facility Charges Collected and Expended and Interest Collected (Continued) For the Quarters Ended September 30, 2021, December 31, 2021, March 31, 2022, and June 30, 2022 201 Packet Pg. 909 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
202 Packet Pg. 910 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Statistical
Section
203
Packet Pg. 911 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
204 Packet Pg. 912 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) INDEX Page
Financial Trends 206
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity 217
These schedules contain information to help the reader assess the City’s most significant local revenues sources.

Debt Capacity 224
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information 235
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information 239
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

This part of the City of Redding's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

City of Redding
Statistical Section
Overview
205 Packet Pg. 913 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2012-13 2013-14 2014-15 2015-16 2016-17
Governmental activities
Net investment in capital assets 301,401,234 $ 299,220,582 $ 303,789,845 $ 304,441,380 $ 299,478,797 $ Restricted 42,200,822 44,242,198 44,242,198 43,495,762 42,760,454 Unrestricted 18,461,336 12,404,054 (150,344,065) (146,838,910) (157,129,728) Total governmental activities net position $ 355,866,834 362,063,392 $ 197,687,978 $ 201,098,232 $ 185,109,523 $ Business-type activities
Net investment in capital assets 270,149,380 $ 276,768,127 $ 286,401,920 $ 284,346,442 $ 293,920,914 $ Restricted 16,554,856 18,564,126 18,326,176 15,155,154 14,068,393 Unrestricted 97,572,863 103,748,759 32,692,674 54,363,934 66,198,888 Total business-type activities net position $ 399,081,012 384,277,099 $ 337,420,770 $ 353,865,530 $ 374,188,195 $ Primary government
Net investment in capital assets 571,550,614 $ 575,988,709 $ 590,191,765 $ 588,787,822 $ 593,399,711 $ Restricted 58,755,678 62,806,324 62,568,374 58,650,916 56,828,847 Unrestricted 116,034,199 116,152,813 (117,651,391) (92,474,976) (90,930,840) Total primary government net position $ 754,947,846 746,340,491 $ 535,108,748 $ 554,963,762 $ 559,297,718 $ Source: City of Redding Annual Comprehensive Financial Report City of Redding
Fiscal Year
Last Ten Fiscal Years Ended June 30, 2022
(accrual basis of accounting)
Net Position by Component
206 Packet Pg. 914 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2017-18 2018-19 2019-20 2020-21 2021-22
Governmental activities
Net investment in capital assets 298,515,126 $ 296,238,160 $ 293,561,715 $ 307,597,872 $ 317,742,758 $ Restricted 41,076,874 67,544,524 67,415,758 99,523,339 99,799,590 Unrestricted (135,453,029) (157,348,852) (152,188,061) (157,650,758) (146,175,614) Total governmental activities net position $ 206,433,832 204,138,971 $ 208,789,412 $ 249,470,453 $ 271,366,734 $ Business-type activities
Net investment in capital assets 314,064,755 $ 320,934,467 $ 327,301,815 $ 358,579,485 $ 368,787,712 $ Restricted 12,204,596 10,072,298 8,589,905 9,433,039 6,782,510 Unrestricted 99,325,093 112,968,216 127,947,134 105,661,660 110,264,669 Total business-type activities net position $ 443,974,981 425,594,444 $ 463,838,854 $ 473,674,184 $ 485,834,891 $ Primary government
Net investment in capital assets 612,579,881 $ 617,172,627 $ 620,863,530 $ 666,177,357 $ 686,530,470 $ Restricted 53,281,470 77,616,822 76,005,663 108,956,378 106,582,100 Unrestricted (36,127,936) (44,380,636) (24,240,927) (51,989,098) (35,910,945) Total primary government net position $ 650,408,813 629,733,415 $ 672,628,266 $ 723,144,637 $ 757,201,625 $ Source: City of Redding Annual Comprehensive Financial Report Fiscal Year
City of Redding
Net Position by Component (Continued)
Last Ten Fiscal Years Ended June 30, 2022
(accrual basis of accounting)
207 Packet Pg. 915 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2012-13 2013-14 2014-15 2015-16 2016-17
Expenses
Governmental activities
General government $ 7,296,724 $ 6,917,771 $ 7,112,939 $ 8,077,255 $ 7,576,731 Police 26,116,291 28,893,564 34,476,947 30,751,887 32,114,904 Fire 17,751,879 20,255,472 20,558,967 20,467,167 22,299,466 Public works 13,286,742 12,421,262 7,261,903 14,954,615 16,211,855 Planning 3,636,094 3,871,712 3,933,284 4,013,885 4,290,932 Recreation and culture 11,604,233 11,558,733 9,366,789 10,791,830 11,219,774 Community development 10,712,285 10,341,051 9,503,654 9,991,686 10,241,866 Interest on long-term debt 2,036,578 2,458,815 1,840,755 1,720,036 1,623,654 Total governmental activities expenses 92,069,592 97,089,614 94,055,238 100,768,361 105,579,182 Business-type activities
Electric 156,080,538 150,171,628 152,786,522 144,525,611 144,826,944 Water 17,185,065 16,207,794 16,921,142 17,023,112 17,810,721 Wastewater 20,289,784 19,405,723 22,541,672 23,872,035 23,748,358 Storm drainage 2,324,951 2,102,618 1,919,740 2,094,900 2,037,068 Solid waste 20,484,434 22,870,947 20,410,950 20,209,534 22,430,632 Transportation 9,679,832 9,874,891 9,569,808 9,948,552 10,114,207 Convention center 1,176,913 1,275,954 1,229,354 1,187,415 1,349,400 Total business-type activities expenses 225,360,185 223,770,887 225,379,188 218,861,159 222,317,330 Total primary government expenses $ 317,429,777 $ 320,860,501 $ 319,434,426 $ 319,629,520 $ 327,896,512 Program revenues
Governmental activities
Charges for services:

General government $ 5,904,251 $ 5,967,284 $ 6,516,578 $ 6,213,317 $ 6,395,898 Public works 557,062 577,312 682,515 650,616 669,769
Planning 1,337,696 1,748,627 1,673,717 1,286,338 1,986,579 Other activities 3,668,956 3,988,580 4,167,614 4,743,501 4,804,529 Operating grants and contributions 17,484,151 22,330,062 18,014,648 18,663,414 16,491,007 Capital grants and contributions 8,717,779 6,942,319 5,505,363 18,960,524 6,040,837 Total governmental activities program revenues 37,669,895 41,554,184 36,560,435 50,517,710 36,388,619 Program revenues
Business-type activities
Charges for services:

Electric 160,944,663 162,920,950 163,301,368 158,275,732 165,157,048 Water 16,734,627 18,667,027 17,871,349 17,995,434 19,591,568 Wastewater 21,355,779 22,731,807 24,577,645 26,776,762 26,939,000 Solid waste 18,800,831 19,681,867 20,505,176 21,200,419 22,167,885 Transportation 3,603,988 3,772,347 3,790,418 3,717,047 3,814,776 Other activities 1,549,792 1,513,033 1,622,114 1,744,369 1,687,107 Operating grants and contributions 4,170,108 4,159,414 4,405,158 4,300,769 4,441,415 Capital grants and contributions 10,196,914 7,476,968 6,079,058 3,343,536 2,624,987 Total business-type activities program revenues 237,356,702 240,923,413 242,152,286 237,354,068 246,423,786 Total primary government program revenues $ 275,026,597 $ 282,477,597 $ 278,712,721 $ 287,871,778 $ 282,812,405 Net (expense) revenue
Governmental activities $ (54,399,697) $ (55,535,430) $ (57,494,803) $ (50,250,651) $ (69,190,563) Business-type activities 11,996,517 17,152,526 16,773,098 18,492,909 24,106,456 Total primary government $ (42,403,180) $ (38,382,904) $ (40,721,705) $ (31,757,742) $ (45,084,107) SouSource: City of Redding Annual Comprehensive Financial Report City of Redding
Change in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
208 Packet Pg. 916 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2017-18 2018-19 2019-20 2020-21 2021-22
Expenses
Governmental activities
General government $ 7,678,431 $ 7,503,465 $ 9,842,219 $ 7,305,048 $ 7,444,640 Police 32,742,710 34,001,886 36,954,392 38,537,805 36,227,155 Fire 23,264,792 23,685,713 24,997,889 27,416,745 24,061,217 Public works 15,039,604 16,096,332 16,133,278 12,781,403 17,139,094 Planning 3,918,206 3,879,239 5,049,433 4,261,253 5,529,441 Recreation and culture 11,137,417 11,360,417 12,101,698 11,436,375 12,086,281 Community development 9,377,682 9,724,970 10,825,020 10,788,241 11,712,568 Interest on long-term debt 1,575,210 1,495,440 1,832,339 1,501,079 1,448,241 Total governmental activities expenses 104,734,052 107,747,462 117,736,268 114,027,949 115,648,637 Business-type activities
Electric 139,069,185 148,470,304 154,180,658 158,675,983 158,141,420 Water 18,403,516 18,714,649 18,747,880 20,163,278 20,378,700 Wastewater 24,553,202 23,807,419 25,734,531 25,097,221 24,957,471 Storm drainage 2,032,999 2,155,137 2,313,546 2,529,827 2,024,016 Solid waste 22,835,505 25,668,200 26,604,891 27,348,763 24,546,239 Transportation 10,256,990 10,837,593 11,140,459 11,187,003 13,906,912 Convention center 1,316,803 1,408,622 1,785,044 873,731 1,221,786 Total business-type activities expenses 218,033,550 231,496,574 240,507,009 245,875,806 245,176,544 Total primary government expenses $ 322,767,602 $ 339,244,036 $ 358,243,277 $ 359,903,755 $ 360,825,181 Program revenues
Governmental activities
Charges for services:

General government $ 6,522,621 $ 6,332,966 $ 7,030,150 $ 5,427,109 $ 6,483,335 Public works 785,973 1,375,532 770,387 822,537 1,055,233 Planning 1,822,316 3,031,727 4,201,516 4,917,418 5,502,403 Other activities 4,921,877 4,555,208 5,182,252 8,134,737 5,910,441 Operating grants and contributions 15,293,829 22,924,591 22,540,523 34,693,970 26,364,886 Capital grants and contributions 11,061,017 8,618,248 13,690,648 27,665,920 18,621,461 Total governmental activities program revenues 40,407,633 46,838,272 53,415,476 81,661,691 63,937,759 Program revenues
Business-type activities
Charges for services:

Electric 158,286,134 155,200,165 151,851,828 158,263,003 159,904,815 Water 22,158,506 22,486,899 23,665,086 26,431,076 25,183,388 Wastewater 27,592,665 29,145,722 29,287,911 30,841,837 32,707,404 Solid waste 22,703,424 23,639,052 24,174,557 26,017,505 26,844,590 Transportation 5,463,971 2,006,964 3,578,926 3,379,397 4,016,624 Other activities 1,419,953 1,495,369 1,944,149 1,950,674 2,400,572 Operating grants and contributions 6,219,525 5,803,463 7,396,940 7,387,085 11,230,562 Capital grants and contributions 8,173,146 7,413,845 16,790,748 7,134,115 5,308,211 Total business-type activities program revenues 252,017,324 247,191,479 258,690,145 261,404,692 267,596,166 Total primary government program revenues $ 292,424,957 $ 294,029,751 $ 312,105,621 $ 343,066,383 $ 331,533,925 Net (expense) revenue
Governmental activities $ (64,326,419) $ (60,909,190) $ (64,320,792) $ (32,366,258) $ (51,710,878) Business-type activities 33,983,774 15,694,905 18,183,136 15,528,886 22,419,622 Total primary government $ (30,342,645) $ (45,214,285) $ (46,137,656) $ (16,837,372) $ (29,291,256) Source: City of Redding Annual Comprehensive Financial Report City of Redding
Change in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
209 Packet Pg. 917 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2012-13 2013-14 2014-15 2015-16 2016-17
General revenue and
other changes in net position
Governmental activities
Taxes
Sales taxes 20,696,311 $ 21,662,406 $ 22,053,840 $ 22,586,087 $ 23,199,460 $ Property taxes 19,284,310 15,847,198 16,292,632 17,357,917 17,924,119 Transient and occupancy taxes 4,099,953 4,074,333 4,458,110 4,616,654 4,778,285 Motor vehicle in-lieu taxes 38,845 37,663 (141) 36,761 40,422 Franchise taxes 896,297 915,623 972,438 1,005,928 1,088,088 Other taxes 988,154 1,068,561 1,112,392 1,103,021 1,189,035 Investment earnings (loss) 1,011 878,447 582,552 780,348 374,394 Gain on sale of property 299,492 43,617 48,699 1,401,277 166,278 Miscellaneous 143,637 144,036 142,599 203,979 152,135
Transfers 5,416,339 4,666,988 5,020,485 4,568,933 4,289,638 Special item - - - - -
Extraordinary gain - - - - -
Total governmental activities 51,864,349 49,338,872 50,683,606 53,660,905 53,201,854 Business-type activities
Investment earnings (loss) (667,664) 2,314,998 1,833,914 2,515,901 505,847 Transfers (5,416,339) (4,666,988) (5,013,200) (4,568,933) (4,289,638) Other items 2,696 3,377 2,361 4,883 -
Total business activities (6,081,307) (2,348,613) (3,176,925) (2,048,149) (3,783,791) Total primary government 45,783,042 46,990,259 47,506,681 51,612,756 49,418,063 Change in net position
Governmental activities (2,535,348) (6,196,558) (6,811,197) 3,410,254 (15,988,709) Adjustments - (151,367,658) - - -
Total governmental activities (2,535,348) (6,196,558) (158,178,855) 3,410,254 (15,988,709) Business-type activities 5,915,210 14,803,913 13,596,173 16,444,760 20,322,665 Adjustments - business activities - (75,256,413) - - -
Total business activities 5,915,210 14,803,913 (61,660,240) 16,444,760 20,322,665 Total changes in net position - primary government 3,379,862 $ $ 8,607,355 $ (219,839,095) $ 19,855,014 $ 4,333,956 Source: City of Redding Annual Comprehensive Financial Report Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
City of Redding
Change in Net Position (Continued)
210 Packet Pg. 918 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2017-18 2018-19 2019-20 2020-21 2021-22
General revenue and
other changes in net position
Governmental activities
Taxes
Sales taxes 23,507,550 $ 26,879,606 $ 26,695,889 $ 31,159,466 $ 31,845,575 $ Property taxes 19,156,295 20,075,405 21,519,652 22,777,902 24,231,038 Transient and occupancy taxes 5,168,477 6,916,257 5,206,330 6,222,974 8,266,136 Motor vehicle in-lieu taxes 47,718 43,852 73,478 67,288 105,953 Franchise taxes 1,131,066 1,138,077 1,188,938 1,190,714 1,237,911 Other taxes 1,134,113 1,317,172 2,034,827 3,931,465 3,646,978 Investment earnings 525,477 1,868,151 1,660,407 340,588 (2,241,966) Gain on sale of property 1,464,193 7,303 2,859,435 1,050,911 2,154,810 Miscellaneous 166,647 190,920 1,171,866 147,175 226,659 Transfers 5,440,006 4,767,308 4,265,550 6,158,816 4,134,065 Special item (2,485,800) - - - -
Extraordinary gain - - - - -
Total governmental activities 55,255,742 63,204,051 66,676,372 73,047,299 73,607,159 Business-type activities
Investment earnings (loss) 980,902 7,452,940 5,946,287 457,322 (6,124,850) Transfers (5,440,006) (4,767,308) (4,265,550) 7,938 (4,134,065) Other items - - (6,158,816) - -
Total business activities (4,459,104) 2,685,632 1,680,737 (5,693,556) (10,258,915) Total primary government 50,796,638 65,889,683 68,357,109 67,353,743 63,348,244 Change in net position
Governmental activities (9,070,677) 2,294,861 2,355,580 40,681,041 21,896,281 Adjustments 28,100,125 - - - -
Total governmental activities 19,029,448 2,294,861 2,355,580 40,681,041 21,896,281 Business-type activities 29,524,670 18,380,537 19,863,873 9,835,330 12,160,707 Adjustments - business activities 21,881,579 - - -
Total business activities 51,406,249 18,380,537 19,863,873 9,835,330 12,160,707 Total changes in net position - primary government 70,435,697 $ $ 20,675,398 $ 22,219,453 $ 50,516,371 $ 34,056,988 Source: City of Redding Annual Comprehensive Financial Report Fiscal Year
City of Redding
Change in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
211 Packet Pg. 919 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
212 Packet Pg. 920 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2012-13 2013-14 2014-15 2015-16 2016-17
General fund
Nonspendable 1,767,355 $ 2,884,768 $ 1,726,623 $ 1,875,032 $ 1,833,006 $ Restricted 1,408,645 853,717 648,655 756,897 757,254
Assigned 3,232,344 2,010,851 (720,495) 678,089 5,509,567 Unassigned 12,566,084 15,586,649 20,565,578 18,534,694 12,381,575 Total general fund $ 21,335,985 18,974,428 $ 22,220,361 $ 21,844,712 $ 20,481,402 $ All other governmental funds
Nonspendable 55,317 $ 24,306 $ 18,045 $ 20,521 $ 18,429 $ Restricted 57,554,330 57,938,036 47,850,398 53,237,478 50,903,778 Unassigned (232,712) (253,960) (275,436) (307,291) (344,254) Total all other governmental funds $ 57,708,382 57,376,935 $ 47,593,007 $ 52,950,708 $ 50,577,953 $ 2017-18 2018-19 2019-20 2020-21 2021-22
General fund
Nonspendable 2,748,604 $ 1,841,971 $ 1,911,241 $ 6,771,284 $ 3,224,350 $ Restricted 762,753 - 273,610 209,316 141,236
Assigned 5,489,161 3,533,413 3,195,034 10,524,976 10,117,549 Unassigned 9,682,620 16,686,434 16,964,783 13,001,211 15,242,047 Total general fund $ 22,061,818 18,683,138 $ 22,344,668 $ 30,506,787 $ 28,725,182 $ All other governmental funds
Nonspendable 20,291 $ 24,616 $ 24,078 $ 19,107 $ 777 $
Restricted 44,380,448 67,207,281 67,142,148 78,074,986 73,886,067 Unassigned (344,640) (342,425) - - -
Total all other governmental funds $ 44,056,099 $ 66,889,472 $ 67,166,226 $ 78,094,093 $ 73,886,844 Source: City of Redding Annual Comprehensive Financial Report Fiscal Year
Fiscal Year
City of Redding
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
213 Packet Pg. 921 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2012-13 2013-14 2014-15 2015-16 2016-17
Revenues:

Taxes 46,183,002 $ 43,678,499 $ 45,125,212 $ 47,889,908 $ 48,385,407 $ Licenses and permits 963,435 1,020,396 1,142,654 1,321,422 1,319,041 Intergovernmental revenues 21,275,544 23,367,310 21,555,631 33,039,876 19,301,043 Charges for services 3,055,935 3,423,766 3,543,025 3,135,897 3,763,928 Fines 923,777 1,050,533 968,591 1,434,429 1,598,215
Use of money and property 6,301,849 6,822,715 6,979,312 7,774,752 7,905,927 Interest revenue 141,842 642,330 408,382 559,933 351,277 Special assessments 614,387 562,559 480,861 311,291 480,855 Miscellaneous 4,167,895 2,786,993 2,917,802 6,151,375 3,321,608 Total revenues 83,355,101 83,627,666 83,121,470 101,618,883 86,427,301 Expenditures:

General government 5,283,779 5,339,521 5,335,175 5,531,550 6,170,131 Community development 10,094,221 10,594,203 9,391,315 9,833,058 9,988,629 Public safety 41,319,683 44,050,576 44,658,160 47,667,150 49,561,988 Public works 5,075,245 5,143,666 5,333,076 7,736,374 8,089,769 Planning 3,214,827 3,593,044 3,643,893 4,005,836 4,054,107 Recreation and culture 6,843,716 7,036,366 6,923,444 7,090,091 7,477,025 Capital outlay 9,657,100 9,792,385 16,601,544 16,012,801 6,902,183 Debt service:

Principal retirement 3,558,947 3,512,856 3,721,171 2,785,484 2,532,744 Interest and fiscal charges 2,007,629 1,924,737 1,812,496 1,658,488 1,557,407 Bond issuance costs 266,462 - 450 - -
Total expenditures 87,055,147 91,253,816 97,420,724 102,320,832 96,333,983 Excess of revenues over (under) expenditures (3,427,481) (7,898,715) (14,299,254) (701,949) (9,906,682) Other financing sources (uses)
Sale of capital asset 299,492 41,909 55,055 1,401,276 166,279 Financing proceeds 565,048 - - - -
Long-term debt issued 11,181,060 - - - -
Bond discount - (80,666) - - -
Premium on bonds issued - - - - -
Payment to refunding bond escrow agent (5,925,272) - - - - Transfers in 14,430,062 13,001,893 14,082,943 12,233,284 13,756,026 Transfers out (8,865,598) (8,192,253) (9,069,743) (7,950,559) (7,751,688) Total other financing sources (uses) 5,863,956 10,591,719 5,068,255 5,684,001 6,170,617 Special item - - - - -
Net change in fund balances $ 2,693,004 2,436,475 $ (9,230,999) $ 4,982,052 $ (3,736,065) $ Fund balances (deficit), beginning
of year, as originally stated $ 73,914,888 $ 76,351,363 $ 79,044,367 $ 69,813,368 $ 74,795,420 Prior period adjustment - - - - -
Fund balances (deficit), beginning
of year, as restated 73,914,888 76,351,363 79,044,367 69,813,368 74,795,420 Fund balances (deficit), end of year $ 79,044,367 76,351,363 $ 69,813,368 $ 74,795,420 $ 71,059,355 $ Debt service as a percentage of
noncapital expenditures 7% 7% 7% 5% 5%
Source: City of Redding Annual Comprehensive Financial Report Fiscal Year
City of Redding
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
214 Packet Pg. 922 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2017-18 2018-19 2019-20 2020-21 2021-22
Revenues:

Taxes 50,114,315 $ 56,183,337 $ 56,585,655 $ 65,233,262 $ 69,214,157 $ Licenses and permits 1,304,712 1,777,332 2,588,480 2,449,876 2,495,389 Intergovernmental revenues 17,561,603 31,593,447 24,712,718 31,838,001 33,322,809 Charges for services 3,968,265 4,011,783 5,199,913 6,393,638 7,357,575 Fines 1,445,372 2,005,413 1,173,384 1,346,858 1,368,471 Use of money and property 7,903,045 7,965,078 7,874,941 6,761,893 8,349,455 Interest revenue 505,398 1,333,966 1,233,375 348,081 (1,616,423) Special assessments 612,627 575,104 697,098 707,108 928,727 Miscellaneous 4,141,927 4,251,526 7,095,919 18,101,754 6,127,608 Total revenues 109,696,986 87,557,264 107,161,483 133,180,471 127,547,768 Expenditures:

General government 6,061,390 6,175,867 7,402,934 6,999,481 8,781,231 Community development 9,208,634 9,479,314 10,622,163 11,129,141 12,106,454 Public safety 51,305,095 52,470,544 53,761,183 58,097,550 64,675,885 Public works 6,280,036 7,785,619 7,596,809 6,328,452 10,716,202 Planning 3,751,957 3,718,793 4,543,768 5,122,727 5,843,580 Recreation and culture 7,895,240 7,668,664 8,146,931 7,893,793 8,692,187 Capital outlay 11,354,447 6,897,619 17,919,482 21,604,121 26,023,167 Debt service:

Principal retirement 2,657,496 20,291,342 1,964,210 1,853,967 2,046,549 Interest and fiscal charges 1,510,512 1,629,677 1,543,376 1,587,580 1,513,691 Bond issuance costs 223,905 - (466)
Total expenditures 100,024,807 116,341,344 113,500,390 120,616,812 140,398,946 Excess of revenues over (under) expenditures (12,467,543) (6,644,358) (6,338,907) 12,563,659 (12,851,178) Other financing sources (uses)
Sale of capital asset 1,275,193 196,303 2,859,435 1,050,911 2,154,810 Financing proceeds - - - - -
Long-term debt issued 23,996,354 - - 151,196 -
Bond discount - - - - -
Premium on bonds issued 3,272,602 - - - -
Payment to refunding bond escrow agent - - - - -
Transfers in 12,677,169 13,665,199 14,516,043 12,832,566 15,311,345 Transfers out (7,307,089) (8,274,047) (10,476,967) (7,357,150) (10,755,027) Total other financing sources (uses) 6,645,273 32,856,411 6,898,511 6,526,327 6,862,324 Special item (2,485,800) - - - -
Net change in fund balances $ 26,212,053 (8,308,070) $ 559,604 $ 19,089,986 $ (5,988,854) $ Fund balances (deficit), beginning
of year, as originally stated $ 71,059,355 $ 62,739,237 $ 88,951,290 $ 89,510,894 $ 108,600,880 Prior period adjustment (12,048) - - -
Fund balances (deficit), beginning
of year, as restated 71,047,307 62,739,237 88,951,290 89,510,894 108,600,880 Fund balances (deficit), end of year $ 88,951,290 62,739,237 $ 89,510,894 $ 108,600,880 $ 102,612,026 $ Debt service as a percentage of
noncapital expenditures 5% 20% 4% 3% 3%
Source: City of Redding Annual Comprehensive Financial Report Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
City of Redding
Changes in Fund Balances of Governmental Funds (Continued) 215 Packet Pg. 923 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
216 Packet Pg. 924 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Transient
Property Occupancy Sales Other
Fiscal Year Tax Tax Tax Taxes Total
2012-2013 19,402 4,100 20,797 1,884 46,183
2013-2014 15,942 4,074 21,678 1,984 43,678
2014-2015 16,253 4,459 22,330 2,083 45,125
2015-2016 17,247 4,616 23,918 2,110 47,891
2016-2017 18,131 4,779 23,199 2,276 48,385
2017-2018 19,173 5,168 23,507 2,266 50,114
2018-2019 19,934 6,916 26,878 2,455 56,183
2019-2020 21,460 5,206 26,695 3,224 56,585
2020-2021 22,809 6,224 31,079 5,121 65,233
2021-2022 24,196 8,262 31,867 4,889 69,214
Source: City of Redding Annual Comprehensive Financial Report Last Ten Fiscal Years
(in thousands)
City of Redding
General Governmental Tax Revenues By Source
217 Packet Pg. 925 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Base Rate Electricity Sold Base Rate Electricity Sold
Type of Customer Customers (MWHs) Customers (MWHs)
Residential 37,268 375,606 37,387 361,106
Commercial 5,022 338,257 5,011 336,507
Industrial 334 13,506 330 12,303
Other 927 46,756 934 45,923
Total 43,551 774,125 43,662 755,839
Base Rate Electricity Sold Base Rate Electricity Sold
Type of Customer Customers (MWHs) Customers (MWHs)
Residential 38,088 368,829 38,058 356,741
Commercial 4,955 323,799 4,942 312,484
Industrial 326 12,626 334 12,372
Other 935 41,471 930 39,765
Total 44,304 746,725 44,264 721,362
2018
Fiscal Year ended June 30,
2013 2014
City of Redding
Last Ten Fiscal Years
Revenue Base - Own Source Revenue
Metered Customers and MWHs Sold
Fiscal Year ended June 30,
2019
218 Packet Pg. 926 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Base Rate Electricity Sold Base Rate Electricity Sold Base Rate Electricity Sold Type of Customer Customers (MWHs) Customers (MWHs) Customers (MWHs) Residential 37,561 356,071 37,751 361,427 38,015 366,354 Commercial 5,034 338,292 5,025 332,232 4,949 324,202
Industrial 322 12,366 335 13,394 336 13,226
Other 915 43,087 928 42,358 933 41,825
Total 43,832 749,816 44,039 749,411 44,233 745,607
Base Rate Electricity Sold Base Rate Electricity Sold Base Rate Electricity Sold Type of Customer Customers (MWHs) Customers (MWHs) Customers (MWHs) Residential 38,320 358,510 38,587 393,404 38,572 375,818 Commercial 4,972 298,242 4,975 302,067 5,088 300,597
Industrial 338 12,349 353 11,552 351 12,155
Other 936 41,639 966 50,105 970 49,924
Total 44,566 710,740 44,881 757,128 44,981 738,494
2021
Fiscal Year ended June 30,
2022
Fiscal Year ended June 30,
2015 2016 2017
2020
City of Redding
Revenue Base - Own Source Revenue (Continued)
Metered Customers and MWHs Sold
Last Ten Fiscal Years
219 Packet Pg. 927 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Fiscal Year
Monthly Base
Rate
Energy Charge
per kwh
Small
Commercial
(< 15,000
kwh)
Large
Commercial
(> 15,000
kwh)
Small
Commercial
All kwh
Large
Commercial
All kwh
Per kwh in
excess of
15,000
2013 11.30 0.1426 18.00 29.00 0.1560 0.1560 0.0750
2014 13.00 0.1528 20.00 33.00 0.1679 0.1679 0.0809
2015 13.00 0.1528 20.00 33.00 0.1679 0.1679 0.0809
2016 15.00 0.1528 25.00 140.00 0.1679 0.1679 0.0809
2017 15.00 0.1528 25.00 140.00 0.1679 0.1679 0.0809
2018 15.00 0.1528 25.00 140.00 0.1679 0.0980 0.0980
2019 15.00 0.1528 25.00 140.00 0.1679 0.0980 0.0980
2020 15.00 0.1528 25.00 140.00 0.1679 0.0980 0.0980
2021 15.00 0.1528 25.00 140.00 0.1679 0.0980 0.0980
2022 20.00 0.1508 30.00 145.00 0.1679 0.1011 0.1011
Source: City of Redding Utility Rate Schedules
Last Ten Fiscal Years
City of Redding
Electric Utility Rates
Residential
Energy Charge
Commercial
Monthly Base Rate
220 Packet Pg. 928 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Fiscal Year
Monthly Base
Rate All kwh
Per kWh in
Excess of
15,000
If Off-Peak
Demand
Exceeds OnPeak Demand
If Off-Peak
Demand is
Less Than OnPeak Demand
2013 66.00 0.1766 0.0820 0.0692 0.0820
2014 66.00 0.1766 0.0820 0.0692 0.0820
2015 66.00 0.1766 0.0820 0.0692 0.0820
2016 230.00 0.1766 0.0820 0.0692 0.0820
2017 230.00 0.1766 0.0820 0.0692 0.0820
2018 140.00 0.0980 0.0980 0.0980 0.0980
2019 140.00 0.0980 0.0980 0.0980 0.0980
2020 140.00 0.0980 0.0980 0.0980 0.0980
2021 140.00 0.0980 0.0980 0.0980 0.0980
2022 145.00 0.1011 0.1011 0.1011 0.1011
Source: City of Redding Utility Rate Schedules
City of Redding
Electric Utility Rates (Continued)
Last Ten Fiscal Years
On Peak Energy Charge Off Peak Energy Charge
Industrial
221 Packet Pg. 929 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
222 Packet Pg. 930 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Percentage of Percentage of
City Total City Total
Utility Payer Utilities Paid Rank Utilities Paid Utilities Paid Rank Utilities Paid Customer #1 $5,409,653 1 4.40% $5,226,415 1 4.56%
Customer #2 1,738,010 2 1.41% 1,693,910 2 1.48%
Customer #3 1,587,068 3 1.29% 1,582,816 3 1.38%
Customer #4 1,456,362 4 1.18%
Customer #5 1,387,003 5 1.13% 1,211,561 4 1.06%
Customer #6 1,277,199 6 1.04%
Customer #7 948,871 7 0.77% 802,825 7 0.70%
Customer #8 825,198 8 0.67% 818,707 6 0.71%
Customer #9 656,254 9 0.53%
Customer #10 573,308 10 0.47% 632,866 9 0.55%
Customer #11 877,981 5 0.77%
Customer #12
Customer #13 675,716 8 0.59%
Customer #14 617,043 10 0.54%
Total $15,858,926 12.89% $14,139,840 12.34%
Source: City of Redding Electric Utility
City of Redding
Principal Electric Utility Payers
Fiscal Years 2021-22 and 2012-13
June 30, 2022 Fiscal Year June 30, 2013 Fiscal Year
223 Packet Pg. 931 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Fiscal Year
Ending Revenue Bonds Loans
Special
Assessment
Bonds Capital Leases Financing Leases
2013 36,938 1,042 825 221 -
2014 39,772 616 510 692 -
2015 36,632 320 123 574 -
2016 34,318 - 92 405 -
2017 31,915 - 63 292 -
2018 29,418 - - 177 -
2019 36,562 - - 60 -
2020 34,531 - - - -
2021 32,551 - - - -
2022 30,470 - - - 338
Governmental Activities
(1) Tax Allocation Bonds were associated with the Redevelopment Agency (RDA). The RDA's debt was removed from the City of Redding's totals as the RDA was dissolved by the State of California in 2012.

City of Redding
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) 224 Packet Pg. 932 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Fiscal Year
Ending
General
Obligation
Bonds
Revenue
Bonds
Certificates
of
Participation Loans
Special
Assessment
Bonds
Capital
Leases
Total Primary
Government
Percentage
of Personal
Income (1)
Per Capita
(1)
2013 - 18,092 159,001 74,571 - 2,559 293,249 8.87% 3,228 2014 - 14,446 166,777 84,258 - 2,156 309,226 9.14% 3,400 2015 - 12,081 160,556 84,429 - 1,774 296,489 8.27% 3,284 2016 - 46,761 126,082 84,164 - 1,356 293,178 7.67% 3,245 2017 - 98,629 65,905 80,784 - - 277,589 6.98% 3,043
2018 - 134,994 18,249 75,716 - - 258,553 6.32% 2,830
2019 - 126,304 16,781 70,323 - - 250,029 5.85% 2,725
2020 - 118,796 15,312 64,800 - - 233,439 5.25% 2,544
2021 - 169,902 13,844 1,212 - - 217,509 4.59% 2,372
2022 - 168,955 - 1,128 - 65 200,956 3.93% 2,162
Business-Type Activities
(1) See the Schedule of Demographics for population information by year and personal income.

City of Redding
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) 225 Packet Pg. 933 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
226 Packet Pg. 934 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Percentage Amount
Net Debt Applicable to Applicable to
Jurisdiction Outstanding City of Redding (3) City of Redding Direct:

City of Redding: (1)
Revenue bonds $ 30,807,567 100.000% $ 30,807,567
Total direct debt 30,807,567 30,807,567
Overlapping:

County of Shasta: (2)
Bonds 20,771,660 51.419% 10,680,580
Notes 13,591,085 51.419% 6,988,400
Capital leases 123,824 51.419% 63,669
Shasta County Schools: (2)
Enterprise School District 38,580,149 99.030% 38,205,922 Shasta Union High School District 59,858,561 69.747% 41,749,551 Gateway School 29,131,237 40.309% 11,742,510
Redding School District 25,815,000 99.330% 25,642,040
Columbia School District 8,189,944 73.915% 6,053,597
Shasta College 128,025,000 51.581% 66,036,575
Cascade School 17,348,418 2.179% 378,022
Pacheco School 6,538,592 58.145% 3,801,864
Grant School 1,310,000 5.451% 71,408
Andersion Union High School District 10,890,547 18.060% 1,966,833 Grant School 3,205,000 1.344% 43,075
Total overlapping debt 363,379,017 213,424,046
Total direct and overlapping debt $ 394,186,584 $ 244,231,613 Source: (1) City of Redding
(2) Shasta County Auditor-Controller's Office
(3) Percentages for Computation of Direct and Overlapping Debt are calculated by using the Shasta County valuations by taxing district for fiscal year 2019-20.

City of Redding
Computation of Direct and Overlapping Debt
As of June 30, 2022
227 Packet Pg. 935 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2012-13 2013-14 2014-15 2015-16 2016-17
Debt limit 254,417 $ 267,472 $ 275,782 $ 289,290 $ 301,892 $ Total net debt applicable to limit 825 510 123 92 63
Legal debt margin $ 253,592 $ 266,962 $ 275,659 $ 289,198 $ 301,829 Total net debt applicable to the limit
as a percentage of debt limit 0.32% 0.19% 0.04% 0.03% 0.02% City of Redding
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year
228 Packet Pg. 936 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2017-18 2018-19 2019-20 2020-21 2021-22
Debt limit 318,039 $ 334,352 $ 351,116 $ 370,670 $ 390,353 $ Total net debt applicable to limit - - - - -
Legal debt margin $ 318,039 $ 334,352 $ 351,116 $ 370,670 $ 390,353 Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% Assessed value (1)
Debt limit - 3.75% of total assessed value
Amount of debt applicable to the limit -
Legal debt margin
(1) Assessed valuation includes supplemental tax rolls.

City of Redding
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
(amounts expressed in thousands)
$ 390,353
$ 390,353
Note: Debt limit of 15% is based on assessed valuation being equivalent to 25% of full market valuation.

In 1981-1982, assessed valuation became equal to full market valuation. As a result, 1981-1982 and subsequent years' debt limit is computed at 1/4 of 15% or 3.75% of full market valuation.

Fiscal Year
Legal debt margin calculation for fiscal year 2021-22
$ 10,409,403
229 Packet Pg. 937 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2012-13 2013-14 2014-15 2015-16 2016-17
Operating revenue 21,342,485 $ 22,720,092 $ 24,563,888 $ 25,451,684 $ 25,815,214 $ Other revenue** 13,295 (86,499) 13,756 15,453 16,261
Interest revenue (241,696) 582,376 468,529 609,119 80,155 Adjusted revenue 21,114,084 23,215,969 25,046,173 26,076,256 25,911,630 25% of adjusted revenue 5,278,521 5,803,992 6,261,543 6,519,064 6,477,908 Actual connection fees 1,214,938 956,137 842,721 1,309,625 1,162,532 Allowable connection fees 1,214,938 956,137 842,721 1,309,625 1,162,532 Total revenue 22,329,022 24,172,106 25,888,894 27,385,881 27,074,162 Operating expense (17,188,977) (18,451,474) (20,045,882) (21,561,048) (21,645,196) Add back depreciation/amortization 5,572,955 5,924,400 6,886,048 7,026,394 7,018,740 Net operating expense (11,616,022) (12,527,074) (13,159,834) (14,534,654) (14,626,456) Net wastewater revenues* 10,713,000 $ 11,645,032 $ 12,729,060 $ 12,851,227 $ 12,447,706 $ Total debt service*** 6,122,885 $ 8,117,463 $ 8,131,564 $ 8,129,964 $ 8,569,619 $ Debt coverage ratio 1.75 1.43 1.57 1.58 1.45
* Excludes interest expense and gain/loss on disposal of assets. ** Excludes capital grants.
*** Excludes 2014 defeased debt of $9,126,250
Fiscal Year Ending
Last Ten Fiscal Years
Wastewater Revenue Bond Coverage
City of Redding
230 Packet Pg. 938 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2017-18 2018-19 2019-20 2020-21 2021-22
Operating revenue 27,575,888 $ 29,125,869 $ 29,544,078 $ 30,815,373 $ 32,689,735 $ Other revenue** 16,778 19,854 40,019 26,463 17,669
Interest revenue 199,081 1,434,691 1,056,758 81,245 (1,248,594) Adjusted revenue 27,791,747 30,580,414 30,640,855 30,923,081 31,458,810 25% of adjusted revenue 6,947,937 7,645,104 7,660,214 7,730,770 7,864,703 Actual connection fees 874,321 657,024 990,667 1,167,190 1,053,707 Allowable connection fees 874,321 657,024 990,667 1,167,190 1,053,707 Total revenue 28,666,068 31,237,438 31,631,522 32,090,271 32,512,517 Operating expense (21,888,127) (22,864,621) (23,847,874) (23,748,891) (23,382,959) Add back depreciation/amortization 7,289,864 7,345,254 7,627,592 7,810,350 7,530,265 Net operating expense (14,598,263) (15,519,367) (16,220,282) (15,938,541) (15,852,694) Net wastewater revenues* 14,067,805 $ 15,718,071 $ 15,411,240 $ 16,151,730 $ 16,659,823 $ Total debt service*** 8,573,419 $ 8,574,819 $ 6,973,569 $ 6,826,083 $ 6,720,500 $ Debt coverage ratio 1.64 1.83 2.21 2.37 2.48
Fiscal Year Ending
Last Ten Fiscal Years
Wastewater Revenue Bond Coverage (Continued)
City of Redding
231 Packet Pg. 939 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2012-13 2013-14 2014-15 2015-16 2016-17
Operating revenue 16,497,288 $ 18,423,339 $ 17,646,476 $ 16,860,160 $ 18,549,702 $ Other revenue** 237,340 172,996 224,874 149,471 137,769 Interest revenue (172,089) 411,799 330,137 439,975 77,297 Adjusted revenue 16,562,539 19,008,134 18,201,487 17,449,606 18,764,768 25% of adjusted revenue 4,140,635 4,752,034 4,550,372 4,362,402 4,691,192 Actual connection fees 1,389,868 753,633 662,463 985,803 961,572 Allowable connection fees 1,389,868 753,633 662,463 985,803 961,572 Total revenue 17,952,407 19,761,767 18,863,950 18,435,409 19,726,340 Operating expense (15,532,856) (16,703,721) (16,588,595) (16,224,118) (17,486,280) Add back depreciation/amortization 3,623,164 3,457,758 3,342,717 3,425,653 3,421,610 Net operating expense (11,909,692) (13,245,963) (13,245,878) (12,798,465) (14,064,670) Net water revenues* 6,042,715 $ 6,515,804 $ 5,618,072 $ 5,636,944 $ 5,661,670 $ Total debt service 1,027,210 $ 1,091,335 $ 764,100 $ 768,100 $ 770,500 $ Debt coverage ratio 5.88 5.97 7.35 7.34 7.35
* Excludes interest expense and gain/loss on disposal of assets. ** Excludes capital grants.
*** Excludes 2014 defeased debt of $7,547,500
Fiscal Year Ending
City of Redding
Water Revenue Bond Coverage
Last Ten Fiscal Years
232 Packet Pg. 940 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2017-18 2018-19 2019-20 2020-21 2021-22
Operating revenue 22,017,718 $ 22,346,030 $ 23,787,534 $ 26,296,180 $ 25,279,631 $ Other revenue** 141,212 145,516 151,785 156,454 174,432 Interest revenue 122,970 1,364,769 1,238,316 113,638 (1,605,195) Adjusted revenue 22,281,900 23,856,315 25,177,635 26,566,272 23,848,868 25% of adjusted revenue 5,570,475 5,964,079 6,294,409 6,641,568 5,962,217 Actual connection fees 775,752 543,546 819,035 1,062,722 913,210 Allowable connection fees 775,752 543,546 819,035 1,062,722 913,210 Total revenue 23,057,652 24,399,861 25,996,670 27,628,994 24,762,078 Operating expense (18,285,529) (18,381,575) (18,456,013) (19,819,040) (20,142,960) Add back depreciation/amortization 3,449,869 3,504,227 3,523,021 3,670,489 3,928,806 Net operating expense (14,835,660) (14,877,348) (14,932,992) (16,148,551) (16,214,154) Net water revenues* 8,221,992 $ 9,522,513 $ 11,063,678 $ 11,480,443 $ 8,547,924 $ Total debt service 711,900 $ 704,700 $ 731,200 $ 731,200 $ 730,200 $ Debt coverage ratio 11.55 13.51 15.13 15.70 11.95
Fiscal Year Ending
City of Redding
Water Revenue Bond Coverage (Continued)
Last Ten Fiscal Years
233 Packet Pg. 941 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Funds Debt
Available Available for Service
Fiscal Year Revenue Expense Reserves Debt Service Coverage 2012-2013 160,924,425 130,644,921 41,918,740 72,198,244 13,834,475 5.22 2013-2014 162,898,133 125,129,935 45,760,302 83,528,500 13,858,275 6.03 2014-2015 163,267,269 129,689,792 47,747,852 81,325,329 13,857,050 6.07 2015-2016 158,250,632 122,455,892 63,410,359 99,205,099 14,941,042 6.85 2016-2017 165,123,848 120,122,216 81,313,278 126,314,910 14,852,439 8.50 2017-2018 158,389,789 117,670,195 89,028,316 129,747,910 14,117,844 9.19 2018-2019 155,311,811 121,974,239 96,916,465 130,254,037 12,781,170 10.19 2019-2020 151,940,928 130,536,877 102,018,489 123,422,540 12,778,070 9.66 2020-2021 158,320,116 131,172,825 87,201,242 114,348,533 12,780,320 8.95 2021-2022 159,786,038 144,524,041 71,970,574 87,232,571 12,785,570 6.82 Source: Electric Utility Bond Disclosure Reports
Debt Service
City of Redding
Electric Revenue Bond Coverage
Last Ten Fiscal Years
234 Packet Pg. 942 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Personal Income Per Capita Unemployment
Fiscal Year Square Miles (1) Population (2) (thousands of dollars) Personal Income (3) Rates (4) 2012-2013 60.68 90,678 3,235,754 35,684 11.90
2013-2014 60.68 90,901 3,281,072 36,095 9.60
2014-2015 60.68 91,052 3,489,022 38,319 7.80
2015-2016 60.68 90,630 3,686,285 40,674 7.00
2016-2017 60.68 90,765 3,789,439 41,750 5.90
2017-2018 60.68 90,995 3,911,420 42,985 5.10
2018-2019 60.68 91,621 4,040,486 44,100 4.80
2019-2020 60.68 91,503 4,219,478 46,113 9.90
2020-2021 60.88 93,879 4,836,083 51,514 7.10
2021-2022 61.94 92,963 5,110,362 54,972 4.00
Note: Per capita personal income is based on the calendar year information ending during that fiscal year.

Source: (1) City of Redding - Development Services
(2) State of California Department of Finance
(3) Bureau of Economic Analysis, U.S. Department of Commerce (4) State of California Employment Development Department All numbers revised annually to source.

City of Redding
Demographic Statistics
Last Ten Fiscal Years
235 Packet Pg. 943 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Percentage Percentage
of Total Area of Total Area
Employer Employees Rank Employment Employees Rank Employment Mercy Medical Center 1,894 1 2.60% 1,730 2 2.40%
Shasta County 1,835 2 2.68% 1 2.55% 1,838
City of Redding ** 3 1.34% 943 3 1.06% 762
Shasta Regional Medical Center 4 1.22% 860 5 0.83% 600
California Transportation Department 5 1.07% 757
Redding Rancheria 6 1.04% 733 10 0.43% 310
Shasta Union High School District 7 70.00% 493
Shasta Community Health 8 67.00% 475
Shasta Community College 9 61.00% 429 4 0.94% 675
Wal Mart 10 59.00% 413 6 0.61% 442
Total 8,832 6,357
* Full-time equivalent budgeted positions. This includes employees who work outside of the City. ** Full-time budgeted positions
In 2021-22 there were 866 full-time and 375 part-time/temporary positions filled.

Source: Derived roughly from the Employment Development Department's (EDD) listing of the top 25 employers in Shasta County.

City of Redding
Principal Employers in the Greater Redding Metropolitan Area Current Year and Nine Years Ago
2022 2013
236 Packet Pg. 944 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
General government 85 88 88 91 92 91 91 95 95 85
Police 130 131 131 135 135 136 136 143 142 170
Fire 75 85 85 85 85 76 76 79 79 98
Public works 65 66 66 66 66 70 70 70 71 93
Planning 29 29 29 29 29 30 30 30 30 29
Recreation and culture 21 21 21 21 21 22 22 24 25 46
Community development 20 12 8 10 10 12 12 13 13 14
Electric 185 179 180 180 180 181 181 180 180 193
Water 28 27 27 28 28 29 29 30 31 30
Wastewater 33 34 34 36 36 36 36 37 37 39
Storm drainage 5 5 5 5 5 5 5 6 6 6
Solid waste 79 79 79 79 79 82 82 85 85 88
Transportation 7 6 7 7 7 7 7 6 6 10
Convention center - - - - - - - - - -
762 762 760 772 773 777 777 798 800 901
Source: City of Redding Personnel Division
City of Redding
Full -Time City Budgeted Employees by Function/Program
Last Ten Fiscal Years
Budgeted Full-time Employees
at June 30,
237 Packet Pg. 945 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
238 Packet Pg. 946 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Police
Stations 1111111111
Patrol units 39 38 41 45 45 46 46 45 45 45
Fire stations 8888888888
Public works
Streets (miles) 465.0 465.0 468.0 468.7 469.1 442.3 455.8 459.5 445.7 446.1 Streetlights 8,013 8,025 8,051 8,086 8,204 8,376 8,446 8,876 8,603 8,724 Recreation and culture
Maintained trails (miles) 66 66 67 68 39 39 39 39 40 41 Parks acreage (improved) 635 635 636 636 620 598 598 598 598 598 Parks acreage (unimproved) 487 487 487 487 460 443 443 457 457 457 Electric
793 798 798 812 812 815 818 822 824 824
Water
Length of water mains 556 556 557 558 559 557 558 565 566 564 Wastewater
Sewer lines (miles) 430.3 431.4 431.5 433.2 433.5 432.6 434 436 439 440 Solid waste
Collection trucks 32 32 36 38 37 38 39 39 39 40
Storm drainage
Length of system (miles) * 442 399 397 397 397 393 393 391 391 391 Catch basins* 10,711 7,068 6,594 6,590 6,594 6,593 6,646 6,748 6,748 6,745 Transportation
Buses 16 18 18 20 20 18 18 18 18 18
*
Source: City of Redding
City of Redding
Last Ten Fiscal Years
Capital Asset Statistics by Function/Program
Prior to 2014 the storm drain data included both public and private segments and facilities (the data for only the public portion for years prior to 2014 is not available). Starting in 2014 the storm drain data only includes public segments and facilities.

Function/Program
Transmission and
Distribution system (miles)
Fiscal Year Ended June 30,
239 Packet Pg. 947 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2013 2014 2015 2016 2017
Police
Calls for service 91,501 91,917 95,237 96,436 95,233
Felony arrests 2,905 2,658 2,237 2,259 2,245
Misdemeanor arrests 7,596 4,010 5,668 6,039 7,860
Total arrests 10,501 6,668 7,905 8,298 10,105
Fire
Fire, explosion 436 527 466 476 418 *
Rescue, emergency medical call 7,913 8,277 8,334 8,131 8,502 * Fire safety inspections 2,972 3,452 3,511 3,661 3,500 * Public works
Miles of roadway resurfaced 2.7 1.8 1.4 7.0 4.0
Miles of roadway slurry sealed 11.5 0.7 26.1 18 -
Planning
Number of building permits issued 3,043 3,167 3,575 3,813 4,107 Recreation and culture
Recreation division programs 2,800 2,800 2,800 2,650 **1,073 Program participants 13,605 13,717 13,854 13,793 **12,887 Redding Aquatic Center attendees - - - - 22,626 **
Special events programs - - - - 94 **
Special events attendance - - - - 24,962 **
Community development
Number of households assisted (rental assistance) 1,450 1,485 1,447 1,556 1,542 Owner occupied loans made for rehabilitation/purchase 21 16 20 17 17 Rental loans/grants for rehabilitation/purchase 3 3 3 1 1 Electric
Electric customers billed monthly 43,551 43,662 43,832 44,039 44,233 Average sustained outages per customer per year 0.62 0.26 0.49 0.38 0.53 System average retail rates 14.6 15.7 16.6 16.7 16.8
Water
Water produced (acre ft.) 27,994 29,307 21,514 20,411 21,674 Wastewater
Totals household equivalents served 40,598 41,988 42,641 42,209 46,079 Clear Creek dry flow 7.3 7.6 5.7 5.7 5.9
Stillwater dry flow 2.4 2.0 1.9 1.9 2.1
Storm drainage
Percentage of inlets cleaned/maintained (annually) 4.0% 4.0% 4.0% 4.0% 4.0% Solid \waste
Total waste collected (tons) 75,126 75,527 75,929 82,985 86,826 Recyclables sales (tons) 7,705 7,385 6,846 7,860 8,897
Transportation
Airport passenger movements/enplanements 26,785 24,951 27,148 35,844 48,048 RABA bus passengers 814,123 827,924 742,712 664,367 679,527 * Calendar year figures, as Fiscal Year amounts are not available ** Figures were unavailable prior to the implementation of the recreation management software in 2016-17.

Source: City of Redding
Function/Program
Fiscal Year Ended June 30,
City of Redding
Operating Indicators by Function/Program
Last Ten Fiscal Years
240 Packet Pg. 948 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 2018 2019 2020 2021 2022
Police
Calls for service 100,562 87,389 85,638 87,959 83,504
Felony arrests 2,526 2,209 2,108 2,325 2,234
Misdemeanor arrests 7,674 5,958 6,897 8,519 7,045
Total arrests 10,200 8,167 9,005 10,844 9,279
Fire
Fire, explosion 485 495 451 641 534 *
Rescue, emergency medical call 8,907 8,569 8,504 9,116 8,999 * Fire safety inspections 2,796 2,756 2,087 1,900 982 *
Public works
Miles of roadway resurfaced 5.0 1.4 2.5 2.8 1.8
Miles of roadway slurry sealed - 13.5 21.5 11 0
Planning
Number of building permits issued 4,223 4,123 6,301 5,844 4,688 Recreation and culture
Recreation division programs 929 841 636 652 703
Program participants 12,917 12,586 11,576 9,438 7,683
RAC Attendees 22,193 12,899 18,505 300 8,019 **
Special events programs 71 118 25 11 6 **
Special events attendance 20,998 21,384 12,830 3,756 2,306 ** Community development
Number of households assisted (rental assistance) 1,514 1,513 1,531 1,502 1,511 Owner occupied loans made for rehabilitation/purchase 12 6 10 2 - Rental loans/grants for rehabilitation/purchase 5 9 9 8 8 Electric
Electric customers billed monthly 44,304 44,264 44,566 44,881 44,981 Average sustained outages per customer per year 0.42 0.86 0.87 0.49 0.47 System average retail rates 16.7 16.5 14.9 16.3 16.4
Water
Water produced (acre ft.) 25,656 24,053 25,337 26,897 23,846 Wastewater
Totals household equivalents served 43,526 43,550 43,114 43,955 40,210 Clear Creek dry flow 5.9 5.3 6.3 6.1 5.9
Stillwater dry flow 2.3 2.1 2.5 2.4 2.2
Storm drainage
Percentage of inlets cleaned/maintained (annually) 4.0% 4.0% 4.0% 4.0% 4.0% Solid \waste
Total waste collected (tons) 86,942 87,849 93,339 98,433 96,883 Recyclables sales (tons) 10,282 9,538 9,799 9,415 9,053 Transportation
Airport passenger movements/enplanements 42,723 47,833 42,136 46,138 48,209 RABA bus passengers 659,562 575,978 513,618 330,690 360,044 * Calendar year figures, as Fiscal Year amounts are not available ** Figures were unavailable prior to the implementation of the recreation management software in 2016-17.

Source: City of Redding
Function/Program
Fiscal Year Ended June 30,
City of Redding
Operating Indicators by Function/Program (Continued)
Last Ten Fiscal Years
241 Packet Pg. 949 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
242 Packet Pg. 950 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) Supplemental
Historical Information
243
Packet Pg. 951 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) This page intentionally left blank
244 Packet Pg. 952 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 245

STATEMENT OF PHYSICAL CONDITON OF

AIRPORT ASSETS
Redding Municipal Airport serves the regional area of Northern California consisting of approximately 25,000 square miles covering some eight California counties. The population served is over 282,000 in the primary market (50-mile radius). Commercial, freight, and passenger services are provided by United Express / SkyWest Airlines, Alaska Airlines, Avelo Airlines, Federal Express, & UPS. United Express provides direct flights between Redding & San Francisco, CA (SFO) and Redding & Los Angeles, CA (LAX). Alaska Airlines provides non-stop service to Seattle, WA (SEA) and Avelo Airlines offers service to Burbank, CA (BUR) and Las Vegas, NV (LAS) added in January 2022. Fixed-based operators (FBOs) provide a wide range of services including general aircraft frame and engine maintenance, as well as avionics, charter services, sales of aircraft, flight instruction, and sales of fuels, lubricants, and accessories. Medical helicopter services and helicopter charters, repairs, and sales, are also available. Currently, four car rental agencies are available to serve the traveling public, three are on-site in the passenger terminal building.

There are 36 permanently assigned tie-downs, Eighty (80) more aircraft and eight (8) helicopter tie-downs for transients, 113 T-hangars, and 15 large commercial / corporate hangars that are maintained and leased out by the City of Redding – Airports Division. The T-hangars are 100% occupied, with no vacancies. In 2019, there were 66,962 takeoffs and landings recorded by the Air Traffic Control Tower during its hours of operation, 6:30 am to 9:30 pm, and the number of passengers moved totaled 106,959. In 2020 and 2021, the Covid-19 Pandemic had an effect on the recorded operations with 60,752 and 39,568 and the total passengers moved at 40,074 and 119,315 respectively. 2022 is on track to beat our best year on record with 135,052 (January through August) total passengers moved.

The Airport features a 32,000 square foot terminal building to serve the traveling public that was expanded and remodeled in 2014. It also features a full-service restaurant and lounge, as well as full services for all business tenants. There is a 333-space public automobile parking lot, as well as 77 spaces for rental cars, adjacent to the terminal building. The passenger terminal aircraft parking ramp is capable of receiving six medium-size jet aircraft at one time. The airport property includes a total of 1,503 acres.

The primary runway (16/34) is 7,003 feet in length and 150 feet wide with lighted distance-remaining markers. It also has a medium-intensity approach lighting system with runway alignment indicator lights (MALSR), a Category I instrument landing system (ILS) on Runway 34, runway-end identifier lights on Runway 16, precision approach path indicator light (PAPIs) on all runways, except Runway 12, a back course instrument landing system on Runway 16, a global position system (GPS/RNAV) approach, and a VHF omni-directional range (VOR) with distance-measuring equipment (DME) for Runway 34. The crosswind runway (12/30) is 5,067 feet long and 150 feet wide.

Benton Airpark (O85)
Benton Airpark is located within the city limits of Redding, only a few blocks from the downtown area. It features a runway that is 2,420 feet in length, 75 feet in width, and is lighted for night operations. The runway has two light, precision approach path indicator light (PAPIs) on both ends of the runway. There is a fixed-base operator (FBO) which provides a full range of aircraft services, as well as a café. The California Highway Patrol bases two helicopters and two fixed-wing aircraft at Benton. Also, there are 60 T-Hangars, 30 sun /shade covered aircraft parking spaces and 64 open tie-downs. Additionally, Benton has two designated helicopter pads and two privately built T-Hangars buildings with ten T-Hangars in one group and eleven T-Hangars to the second group.

Benton Airpark experiences an estimated 37,000 annual aircraft operations. Collectively, there are over 100 aircraft based on the airfield. Benton Airpark has over 301 acres of land, a new Aircraft Wash Rack in 2015, and an Automated Weather Observation System (AWOS).

Packet Pg. 953 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 246

HISTORY AND STATEMENT OF PHYSICAL CONDITION OF

ELECTRIC UTILITY SYSTEM ASSETS
History
Electric service in Redding started prior to 1900 by a private utility, the Redding Electric Light and Power Company, which obtained electric power from a small hydroelectric plant on the Sacramento River near Redding.

On November 28, 1901, the Keswick Electric Power Company began supplying the utility with electric power from its new Volta Hydro Plant, which had just started operation. Shortly thereafter, the Keswick Company acquired the capital stock of the Redding Electric Light and Power Company. Subsequently, on March 13, 1902, the Northern California Power Company was incorporated and proceedings were initiated to acquire control of all properties of the Keswick Company through an exchange of stock. This was succeeded in 1908 by the Northern California Power Company Consolidated, which continued operation until October 3, 1919, when it was acquired by Pacific Gas and Electric Company (PG&E) under a merger authorized by the California Railroad Commission.

Prior to the merger, a group of Redding citizens started a movement to acquire the municipal street- lighting system because of dissatisfaction with the existing system and its operation. As a result, in 1916, a municipal street-lighting system was established. Soon after the municipal street-lighting system began operation, a movement was started for the City of Redding to purchase the electric distribution system from the Northern California Power Company Consolidated, and preliminary negotiations were initiated.

During the period of negotiations between the City and the Northern California Power Company Consolidated, PG&E acquired the Northern California Power Company Consolidated. Final payment was made by the City to PG&E on December 21, 1921, on which date the property and its operations were turned over to the City. Under City ownership and operation, Redding’s Electric Utility (REU) has consistently provided superior service at a competitive price, with rates well below those in the surrounding service territory in which service is provided by PG&E.

Distribution Service
The City’s Electric Utility currently provides service to its customers in an area approximately 61 square miles in size, with 72 miles of 115-kV lines and 752 miles of overhead and underground 12-kV distribution lines. The City is proud of its record over the past five years of 99.9994 percent electric service availability to its customers.

Redding is presently interconnected with the Northern California 230-kV power grid at two points - Western Area Power Administration’s (Western) Keswick Switchyard and the Western/Redding Airport 230/115-kV Substation.

Delivery of all power from sources outside of the City is made to Redding at the Keswick Switchyard and Airport Substation. The City owns and operates the 115-kV lines that interconnect the City’s 115/12-kV distribution substations to these delivery points. This system is designed as a highly reliable looped system (there are at least two sources for every distribution substation) with state-of-the-art 115-kV circuit breakers and relay systems, which ensure that an outage or failure of any 115-kV line will not interrupt power to any City customer.

Design and right-of-way acquisition for distribution service to the Stillwater Business Park was completed in FY08. The Stillwater 115-kV line termination work was completed on August 15, 2008. The Stillwater 115-kV transmission project began construction in April 2012, and was completed on April 20, 2017. The City’s current distribution system consists of eleven 115/12-kV distribution substations where power is transformed from 115- kV to 12-kV distribution voltage and connected to the service distribution transformers via the 12-kV distribution lines. The 12-kV distribution system is a very reliable radial-type system designed such that all customers can be served from another feeder if the normal source is experiencing a problem. .

Packet Pg. 954 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 247
Power Supply
The City’s retail power supply comes from a diverse portfolio. Redding typically receives about 35% of its power supply from Western in an average hydro year. FY 2021-22 was below average, with Western providing 14.7% of the City’s system load. Western’s power is generated at Shasta Dam and 11 other facilities, which are a part of the Central Valley Project (CVP). Redding also relies on the City’s existing generation resources and other powerpurchase and exchange contracts, as well as short-term firm purchases, to provide low-cost service to all of the City’s customers.

To accommodate anticipated growth, the City developed several projects to increase power generation. The City’s Whiskeytown Hydroelectric Project became operational on September 3, 1986. In August 1991, the City purchased a 28-MW steam turbine generation project located within Redding city limits, now known as the Redding Power Plant. On June 1, 1994, the City began scheduling and dispatching the power produced by these various resources. The scheduling and dispatching operations allow Redding to take advantage of relatively inexpensive energy, which becomes available from time to time in the short-term wholesale power market. Three combustion turbine generators totaling 70-MW were added in 1996. In June 2002, the City commissioned Unit 5, a 43-MW highly efficient combined-cycle gas turbine with a heat recovery steam generator to be operated with the 28-MW steam turbine, bringing the total on-site generation to 141-MW. Construction began in September 2008 on Unit 6, which is a 47-MW combined cycle gas turbine nearly identical to the existing Unit 5. Unit 6 went into service in August 2011, which increased the overall Redding Power Plant capacity to 183-MW.

In addition to its own generation, the City has acquired several other sources of electric power through long-term, purchase-power contracts. Through its membership in a joint powers agency consisting of Modesto Irrigation District, City of Santa Clara, and City of Redding (M-S-R), the City entered into a long-term power purchase agreement for 70-MW of wind-generated power through the Big Horn Wind I Project (Big Horn). Deliveries for Big Horn began on October 1, 2006.

The City is a member of various organizations and agencies: Balancing Authority of Northern California (BANC), Northern California Power Agency (NCPA), M-S-R, Transmission Agency of Northern California (TANC), and Western Systems Power Pool (WSPP). The City contracted for and developed various power generation and transmission resources through these affiliations, including partial ownership of the San Juan coalfired generating station, the Desert Southwest Transmission Project, and the California-Oregon Transmission Project. The City and M-S-R divested themselves of their ownership of the San Juan generating station in December 2017 and the Southwest Transmission Project in May 2016, while debt service remains through 2022.

In response to changes in the bilateral power markets, the City officially joined the Energy Imbalance Market (EIM) through BANC, and became an active participant on April 1, 2021. The EIM, administered by the California Independent System Operator (CAISO), is a 5-minute, real-time bulk power trading market that optimizes the lowest-cost energy to serve real-time customer demand across a wide geographical region.

To operate cost-effectively, the City developed several load-management and energy-conservation programs, including public awareness campaigns, technical conservation assistance, rebates on energy-efficient products and technologies, renewable technologies, and energy-efficient streetlights. In FY 2022, the City developed the Demand-Side Integrated Resource Plan (DSM-IRP) and determined that decarbonization programs (i.e. electrification) were more cost-effective than energy-efficiency programs due to their inherent ability to produce downward rate pressure from the increased retail load. The electrification rebate programs, which help reduce carbon emissions by including incentives for switching appliances from natural gas to electric technologies, were launched at the beginning of FY 2023. Additionally, the City has provided opportunities for load management through applicable rate design.

Packet Pg. 955 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 248
Customer Base
The table below shows a five-year history of the growth in electric system customer accounts.

Number of Customer Accounts
Fiscal Year
Ending June 30 Residential Non-Residential Total
2018 38,088 6,216 44,304
2019 38,058 6,206 44,264
2020 38,320 6,246 44,566
2021 38,587 6,294 44,881
2022 38,572 6,409 44,981
Source: Utility Billing System Marketing Report of Quarterly NAICS Usage.

The total number of electric system customer accounts increased 1.5 percent during the last five years.

Packet Pg. 956 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 249

HISTORY AND STATEMENT OF PHYSICAL CONDITION OF

STORM DRAINAGE UTILITY SYSTEM ASSETS
History
The City Council established the Storm Drainage Utility on September 21, 1993. The utility is part of the Public Works Department. Responsibilities include monitoring, maintaining, and cleaning the storm drainage networks of the City.

Service Area and Customers
The service area encompasses storm drainage facilities within the City limits. The overall conveyance system is comprised of both public and private segments. The Storm Drain Utility responds to the needs of the public component of the overall conveyance system. The following table provides an overview of the storm drainage system as of June 30, 2022:

Workload and Performance Measures 2017-18 2018-19 2019-20 2020-21 2021-22 Miles of storm drain pipe 198 186 191 191 191
Miles of channels/ditches 200 200 200 200 200
Miles of maintained channels/ditches 17 17 17 17 17
Number of inlets 6,642 6,648 6,747 6,784 6,745
Number of outfalls 1,386 1,332 1,341 1,337 1,337
The Storm Drainage Utility charges are based on impervious area. An impervious area is one that prohibits the natural drainage of rainwater into the ground (i.e., building, parking lot, etc.). Effective February 4, 2014, the City directed the Shasta County Auditor-Controller to collect the Storm Drain service charges. Storm Drain service fees have been frozen since 1993. The annual fees are as follows:

Commercial $19.07 per impervious acre x 12
Multi-family/Mobile Home $9.96 per unit
Residential $15.84 per household
Condition of System
The City of Redding maintains a well-trained and well-equipped work force with very limited funding. The Storm Drain Utility’s primary function is to operate the Storm Drainage system to prevent flooding, make systematic inspections as part of the preventive maintenance program, and plan and construct replacements.

The City of Redding completed a Citywide Master Storm Drain Study in October 1993. A new Operations and Maintenance Plan was prepared in 2003, along with a project update of the 1993 Master Plan, which included a survey of the storm drain system. In 2015, City Council gave direction to proceed with an update to the Citywide Master Storm Drain Study.

Packet Pg. 957 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 250
The Statewide NPDES Phase II Small MS4 (municipal separate storm sewer system) permit became effective July 1, 2013, with a five-year implementation schedule of increased activities. A trash provision amendment to the statewide permit was approved in April 2015. While the prevention of trash entering the waterways has multiple benefits, the realities of capturing all trash as small as 5mm in high priority areas (high density residential, industrial, commercial, mixed urban and public transportation stations) will prove to be challenging.

The City has a consultant providing recommendations for compliance with the Trash Amendment.

Packet Pg. 958 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 251

HISTORY AND STATEMENT OF PHYSICAL CONDITION OF

WASTEWATER UTILITY SYSTEM ASSETS
History
The City began construction of the Wastewater System soon after its incorporation in 1887. The Wastewater System developed slowly until the early 1950s, at which time approximately 20 percent of the City’s approximate 5,200 acres were served. Recognizing the need for a systematic expansion of the Wastewater System, in 1956, the City commissioned the development of a master plan for the City to follow in making necessary improvements. As a result of this plan, which was updated in 1964, the City added approximately 27 miles of sewer lines, primarily as a result of a series of sewer assessment districts, and in 1966 relocated its wastewater treatment plant from a location near the Cypress Avenue Bridge, to the present Clear Creek site, approximately

5.5 miles to the south.

Over the succeeding ten years, various districts including the Buckeye Community Water District, the Cascade Community Services District, and the Enterprise Public Utilities District, were annexed to the City. This resulted in the elimination of the existing treatment plants of these districts and consolidated the wastewater treatment and disposal at the City’s Clear Creek Regional Wastewater Treatment Plant (described below). To maintain compliance with the Clean Water Act, the Clear Creek Plant was expanded and upgraded to an advanced secondary wastewater treatment plant in 1979. Throughout the years, the plant has undergone process upgrades and expansions with the most recent starting in 2006.

In 1983, the City, Shasta County, and Shasta Dam Area Public Utility District (the “Shasta Dam PUD”) commissioned Ott Water Engineers to prepare a regional sewage study of the Central Shasta County area. It was determined that the Clear Creek Wastewater Treatment Plant was operating at two-thirds of its capacity and the Shasta Dam PUD was operating essentially at its capacity. Additionally, significant growth for this area was projected. As a result of this study and analysis of various alternatives, it was determined that an additional wastewater treatment plant on the east side of the City near Stillwater Creek and the Sacramento River would be constructed and that the Clear Creek Wastewater Treatment Plant would continue operation on the west side of the City. The advanced secondary Stillwater Regional Wastewater Treatment Plant was constructed near the confluence of Clover Creek and the Sacramento River and began operation in 1990.

Existing Facilities
The Wastewater System consists of the collection, treatment, and disposal facilities for domestic and industrial sewage serving the City. The system inventory includes over 440 miles of interceptor and trunk sewers, 18 sewage lift stations, and two tertiary treatment plants.

The 2022 Master Plan, completed by MCC Engineering has been completed including many capacity and maintenance-driven improvements. One such recommendation is to adopt a city wide ordinance to require inspection and repair of private lateral sewers in an effort to further reduce Inflow and Infiltration (I&I).

Clear Creek Wastewater Treatment Plant
The Clear Creek Wastewater Treatment Plant is located at the confluence of Clear Creek and the Sacramento River. The plant has a dry weather daily flow capacity of 9.4 million gallons per day (MGD) and a peak day flow capacity of 40 MGD. The unit processes utilized at the plant include, among other things, the Clear Creek Lift Station, with an estimated effective pump capacity of 40 MGD, primary and secondary clarification, gravity filtration, chlorination for disinfection and sulfonation for dechlorination prior to discharge into the Sacramento River outfall via a new diffuser system. In addition, a series of eight flow equalization ponds provide raw sewage and/or primary effluent temporary flow storage should the influent flow exceed the capacity of the secondary treatment and filtration processes. Solids handling process include primary and secondary waste sludge streams being mixed, thickened and anaerobically digested. Additional solids treatment can take place in facultative Packet Pg. 959 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 252
sludge lagoons. A new Biosolids Handling Facility recently completed construction and is now in operation. This facility was designed for future centralization of biosolids for both Wastewater Treatment Plants. In 2005, the City Council had authorized modifications to the Clear Creek Plant at an estimated cost exceeding $80 million.

The upgrades were constructed in the following seven Bid Packages:
 Bid Package I began construction in the fall of 2006
 Bid Package II began construction in the fall of 2007  Bid Package III began construction in the spring of 2008  Bid Package IV began construction in the fall of 2008  Bid Package V began construction in the summer of 2011  Bid Package VI began construction in the winter of 2010  Bid Package VII began construction in the fall of 2012 and was completed in the spring of 2014 The plant expansion and upgrades were funded by a combination of low interest loans from the State of California Revolving Loan Fund and ARRA Stimulus grant funds, with repayment through a combination of new connection fee revenue and monthly service charges.

The 2022 Facility Plan, completed by Jacobs Engineering has been completed with various improvements recommended, including influent pump station screening and the potential for a PFAS removal treatment.

Recently, gaseous chlorine and sulfur dioxide have become volatile markets and have the potential to be in short supply. In response, plant staff is making provisions for a redundant dechlorination process utilizing liquid sodium bisulfite, which will in turn replace the gaseous sulfur dioxide dichlorination system. Soon to follow will be the redundant chlorination process utilizing sodium hypochlorite, replacing the gaseous chlorine dosing system.

A biosolids biodrying and pyrolysis system will be online in 2023 to eliminate landfill disposal of biosolids.

Stillwater Regional Wastewater Treatment Plant
The Stillwater Regional Wastewater Treatment Plant is located on an approximately 300-acre site along Airport Road at the Sacramento River. The plant is designed for an average dry weather flow of 3.4 MGD and a peak wet weather flow of 14.4 MGD.

A facilities plan was prepared in 2008 for expansion of the plant in stages to treat an average dry weather flow capacity to 8 MGD and a peak wet weather flow capacity to 24 MGD. The first plant expansion project (Phase 1 A/B) began construction in the spring of 2012, and was completed in the spring of 2014. This plant expansion was funded by Wastewater Utility funds, and a loan from the State of California Revolving Loan Fund, with repayment through a combination of new connection fee revenue and monthly service charges.

The 2022 Facility Plan, completed by Waterworks Engineering has been completed with various improvements recommended, including the installation of Facultative Sludge Lagoons and drying beds. Recently, gaseous chlorine and sulfur dioxide have become volatile markets and have the potential to be in short supply. In response, plant staff is making provisions for a redundant dechlorination process utilizing liquid sodium bisulfite, which will in turn replace the gaseous sulfur dioxide dichlorination system. Soon to follow will be the redundant chlorination process utilizing sodium hypochlorite, replacing the gaseous chlorine dosing system.

Environmental Compliance
The discharge requirements for the wastewater system are established by the State of California Water Resources Control Board, Central Valley Region (the “Regional Board”) which administers and enforces all Federal and State of California discharge requirements. The Regional Board administers regulations promulgated under the National Pollutant Discharge Elimination System (NPDES) by the United States Environmental Protection Agency (the “EPA”). The Clear Creek Wastewater System’s present discharge permit was adopted in 2022. The Stillwater Wastewater system permit was adopted in 2018 and is in the process of renewal for 2023.

Packet Pg. 960 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 253
The City is responsible for satisfying these Federal and State-mandated discharge requirements. The requirements include provisions requiring the City to comply with all pretreatment requirements contained in the Federal Water Pollution Control Act. The City has an approved pretreatment program that includes local limits for priority pollutants along with inspection and permitting of industrial discharges.

In general, plant performance has consistently met discharge requirements, and any instances of noncompliance have been isolated incidents that have not reoccurred.

Service Area
The service area of the wastewater system is primarily the City, but includes small-unincorporated areas in the county. The service area lies entirely within the City’s sphere of influence.

Historical Operations
The following table shows the historical number of residential customer household equivalents and the combined commercial and industrial customer household equivalents for the five fiscal years ending June 30, 2022. One household equivalent (HE) is the quantity of wastewater produced in the City of Redding by an average singlefamily residential household, which is 240 gallons per day (GPD). Since customer fees and charges are based on the HE for each customer, the revenue amounts are proportional to these HE counts.

Historical Residential and Commercial/Industrial Household Equivalents 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Residential HEs 32,068 32,418 32,410 32,526 32,904 33,078 Commercial/Industrial HEs 14,011* 11,106 11,140 10,588 10,894 11,132 Total System HEs 46,079 43,524 43,550 43,114 43,798 44,210 Annual System Growth 9% (5.8%) >1% (1%) 1.6% 1%
*Incorrect number provided by Vertex
Strikeout represents correction in previously reported data.

The wastewater system currently has an average dry weather daily design flow capacity of 12.8 MGD. The actual average dry weather daily flow (months of July, August, and September) of the wastewater system for the five fiscal years ending June 30, 2022, is shown below.

Average Dry Weather Daily Flows--Fiscal Years Ended June 30, 2022 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Clear Creek Plant 5.9 6.1 5.9 6.3 6.1 5.9
Stillwater Plant 2.4 2.6 2.3 2.5 2.4 2.2
Total Wastewater System 8.3 8.7 8.2 8.8 8.5 8.1
Strikeout represents correction in previously reported data.

Packet Pg. 961 Attachment: ACFR - FY Ended June 30, 2022 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2021) 254

HISTORY AND STATEMENT OF PHYSICAL CONDITION OF

WATER UTILITY SYSTEM ASSETS
History
The Redding water supply and treatment facilities date back to the early 1900s. The raw water supply pump station on the Sacramento River was built in stages beginning in 1939.

The City's rights to water from the Sacramento River stem from the 1941 acquisition of the local facilities of the California Water Service Company, together with its water rights, which date from 1886 and from a license to appropriate 5 cfs, issued in 1944.

Since 1939 when the City of Redding assumed control and operation of the water system, the City's population has grown from approximately 7,500 to 90,600. This growth includes two large increases in 1976 and 1977, when Redding annexed the Cascade Community Services District (serving approximately 4,450 residents) and the Enterprise Public Utility District (serving approximately 13,500 residents). Additionally, in 1967, the City assumed operation of the Buckeye County Water District serving about 1,500 residents outside the City limits.

A 1966 contract with the United States Bureau of Reclamation (USBR or Bureau) was renegotiated in June 2005, with the USBR extending the contract for an additional 40 years through March 31, 2045. It details Redding's principal rights to the Sacramento River. The “Sacramento River” contract permits renegotiation at any time for more or less water subject to need and availability of water in the river. Water to be diverted consists of "base" and "project water" supplies. The Base Supply is 85 percent of the total, with Project Water being the remaining 15 percent of the total river water supply. The total entitlement is 21,000 acre-feet. Due to Pre-1914 water rights, our Base Water has no charge. Water charges in 2021/22 per acre-foot for Project Water under this contract total $63.78 ($41.40 average water cost, $22.23 restoration charge and $0.15 Trinity PUD fee).

Redding City CouncilJanuary 17, 2023

Redding City Council
January 17, 2023