REDDING CITY COUNCIL SPECIAL MEETING
Civic Center Council Chambers
777 Cypress Avenue, Redding, CA
THURSDAY, MARCH 13, 2025, 2:00 P.M.
NOTICE AND AGENDA
NOTICE IS HEREBY GIVEN that a Special Meeting of the Redding City Council is hereby called by the undersigned and under the authority vested in him by Section 54956 of the Government Code of the State of California. The meeting is to take place at the date, time, and location listed above.
Business to be transacted at said meeting, and the only business to be transacted is as follows:
1. See Attached Agenda
_______________________
Jack Munns, Mayor
Dated: March 12, 2025
Redding City Council March 13, 2025
Agenda
Special Meeting - Budget Workshop
Redding City Council
Council Chambers (Doors open 30 minutes prior)
777 Cypress Avenue, Redding, CA
March 13, 2025
2:00 PM
1. CALL TO ORDER - MAYOR JACK MUNNS
2. ROLL CALL
3. CITY OF REDDING BUDGET WORKSHOP NO. 2
3.1. Consider presentation regarding t he current budget and development of the budget for fiscal years 2025-27.
Recommendation:
Accept presentation regarding the current budget and development of the City of Redding’s biennial 2025-27 budget; and provide direction to staff as needed.
4. ADJOURNMENT
If anyone wishes to address the City Council on any item considered at this meeting before or during Council’s consideration of that item, please fill out a blue Speaker Request Form, located in the lighted alcoves at the back of the Council Chambers, and submit it to the City Clerk. The City Council will allocate up to a maximum of three minutes per speaker for each agenda item. Staff reports are available on-line at the City’s web site at www.cityofredding.gov or in the Public View binder located on the podium at the north side of the Chambers.
PLEASE SILENCE YOUR CELL PHONES. THANK YOU.
Redding City Council March 13, 2025
Pursuant to the Brown Act, non -confidential materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for inspection during normal business hours at th e Office of the City Clerk, 3 rd Floor, City Hall, 777 Cypress Avenue, Redding, California.
City Council Meetings will be televised live on Shasta Community Access Channels via Charter/Spectrum Cable channel 181 , and will be rerun on Thursday at 12:30 p.m. during the week in which the meeting is held. Additionally, the meeting can be viewed online at the following: https://www.shastaartscouncil.org/scactv. Video of the City Council me etings can also be viewed on the City’s web site at http://www.cityofredding.gov/. Open the Services tab, and select City Council Videos.
In compliance with Title II of the Americans with Disabilities Act, the City of Redding will make avail able to persons with disabilities modifications or accommodations including auxiliary aids or services necessary to participate in public meetings. A person needing assistance should contact the Redding City Clerk by telephone at (530) 225 -4447 or in perso n, or by mail at 777 Cypress Avenue, 3 rd Floor, Redding, California 96001 at least three (3) working days in advance.
The City of Redding will ensure that no person shall be excluded from participation in, denied the benefits of, or otherwise be subjec ted to discrimination under any of its projects, activities, services, or business opportunities on the basis of race, color, national origin, age, sex, or disability, as afforded by Title VI of the Civil Rights Act of 1964 and related statutes as amended. All persons, regardless of their citizenship status, are covered under this regulation.
Questions, complaints, or requests for accommodations or additional information may be forwarded to the ADA & Title VI Coordinator at 777 Cypress Avenue, Attn: Perso nnel Dept., Redding, California 96001, Phone (530) 225-4065.
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept presentation regarding the current budget and development of the City of Redding’s Biennial 2025-27 Budget; and provide direction to staff as needed.
Attachments
^Presentation Slides
MEETING DATE: March 13, 2025
ITEM NO. 3.1
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 3.1--Consider presentation regarding the current budget and development of the budget for fiscal years 2025-27.
Barry Tippin, City Manager
Packet Pg. 4
Budget Workshop
Biennial Budget
G eneral Fund
March 13, 2025
Packet Pg. 5
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2) Revenue Assumptions
Sales Tax
o FY 2025 flat from FY 2024 (no increase)
o FY 2026 onward 2.5% increase per year
Property Tax
o FY 2025 4.5% up from FY 2024
o FY 2026 onward 3% increase per year (May change in final budget) Transient Occupancy Tax (TOT)
o FY 2025 flat from FY 2024
o FY 2026 onward 4%
Cannabis Tax
o FY 2025 down 9.6% from FY 2024
o FY 2026 onward use original projection 4%
Packet Pg. 6
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2) Previous Workshop Adjustments
Cannabis Tax
o Council Approved Increases
o Cultivation - $3 per square foot to $5 per square foot o Retail – 5% tax on Gross Sales to 6% tax of Gross
o Other Commercial – 3% of Gross Receipts to 4% of Gross Receipts o $450K per year increase
Radio Loan Deferral of Payments
o $470K per year for FY 2026 & 2027
Cal Fire Rent Payments
o $170K per year for FY 2026 & 2027
$1.1 Million
Savings Identified Per Year
Packet Pg. 7
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2) Other Cost Saving Recommendations
Rolling Stock
o Cut by $250K per year
o Savings in 10 Year Plan but future one-time funds needed Police
o Attrition of 3 Police Officer positions
o $480K per year
o Sworn Officers: 110 GF Officers down from 122
o Add back 4 grant funded officers (short term)
Tourism Contract
o Cut by $350K per year $2.2 Million
Savings Identified Per Year
Packet Pg. 8
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2) City Fees – Development Services
Building Fees
o Fees based on building valuation and graduated fee schedule o Direct Costs for plan check & inspection
o 65% of fee is toward review of plans
o 35% of fee is toward inspection of construction
o Costs not captured
o Indirect Costs (ie, overhead costs, administrative, operational expenses, & training) Planning Fees
o Fees based on Direct Costs for some permits and others based on flat fee of cost analysis for direct costs o Costs not captured
o Indirect costs (ie, overhead costs, administrative, operational expenses, & training) Miscellaneous Development Services
o Some incurred costs are not recoverable (ie, General & Specific Plans, counter time, record requests, pre-application consults, Housing Element, Ordinance Work) o Some planning fees are Direct Charge Recovery based on planning time spent (Subdivision, Developer initiated plan changes, EIR’s)
Packet Pg. 9
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2) City Fees – Development Services Options
Building Fees
o Full Cost Recovery
o Billing by hours spent with overhead factor included
o Approximate fee increases or cost of doing business reductions – 10% or $300K per year o Modification of Current Practices
o Additional billing based on impact of services (IE charging for reinspection & extended plan review) o Analysis of direct and indirect costs to increases all fees o Approximate fee increases – 2-5% - Approximately $100K per year Planning Fees
o Full Cost Recovery
o Billing by hours spent with overhead factor included to recover all costs o Approximate fee increases or cost of doing business reductions – 25% or approximately $500K o Modification of Current Practices
o Additional billing based on impact of services (Quality of submittal, charge counter time) o Analysis of direct and indirect costs to increases all fees o Approximate fee increases – 5-10% - Approximately $100K per year Packet Pg. 10
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2) City Fees - Recreation Fees
City Council Policy 806
All Fees
o Included Costs per CP 806
o Part Time Direct Costs
o Specific O&M Derived from program costs
o Not Included per CP 806
o Full Time Positions utilized to support Programs
o Indirect costs to support activities
Adult Programs
o 105% recovery rate of included costs
Youth Programs
o 90% recovery rate of included costs
Aquatic Center
o Not included in current policy
MLK, Junior Giants, Fantasy Fountain, Fitness Classes at Senior Citizens Hall o Free Programs by policy
Packet Pg. 11
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2) City Fees - Recreation Fees Options
Keep or modify City Council Policy 806
o Recover administrative and indirect costs for all programs o Resident vs Non-Resident Fees
o Minimum Revenue - $55K
o Maximum Revenue - $500K
All user groups should be paying fees for park rentals & reservations o Maximum Revenue Increases - $100K
Packet Pg. 12
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2) Other City Fees
City Clerk
o No Fees Charged
o Business License Processing Fee
o Event Fees
Police/Fire/Airports/Et. Al
o Not maximizing expense collection
o Magnitude of increase vary by department
$2.5 Million
Low end of Savings Identified Per Year
$3.7 Million
High end of Savings Identified Per Year
Packet Pg. 13
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2) Biennial Budget Refinement
Internal Charging to Grants & Departments
Recasting of Personnel & O&M Costs
Cost Allocation adjustments
ONCE THIS EFFORT IS COMPLETE THE BUDGET SHOULD BE BALANCED FINAL PRESENTED TO CC ON APRIL 17, 2025
Packet Pg. 14
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2) • Fire Station Improvements & Station 9 – Approximately $100 million • Vegetation Management – Approximately $4 million per year • Streets – Approximately $11 million per year
• General Fund Owned Buildings - $12.5 Million
• Parks - $20 Million
• Aquatic Center - $20 Million
• Redding Sports Park - $7-10 Million
• Police Rolling Stock & Equipment Replacement - $430K per year • Fire Rolling Stock & Equipment Replacement - $750K per year • Parks Rolling Stock - $235K per year
• Soccer Park Turf Replacement - $400K per year
• Airports - $95 Million
• Restore 9 Police Positions - $1.6 Million per year
• Restore 12 Firefighter Positions - $1.5 Million per year • Staffing for Station 9 – Approximately $3 million per year General Fund - Unmet Needs – A Few Items to Remember
Packet Pg. 15
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2) Realities of This City Budget
Down 12 Police Officers
Down 12 Firefighters
Infrastructure
Packet Pg. 16
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2) Questions?
Packet Pg. 17
Attachment: ^Presentation Slides (3.1--City of Redding Budget Workshop No. 2)