CITY OF REDDING
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Schedule of Expenditures of Federal Awards. (9)
Federal
Assistance Grant
Federal Grantor/Pass-Through Grantor/ Listing Identification Federal Passed Through Program or Cluster Title Number Number Expenditures to Subrecipients U.S. Department of Homeland Security
Passed through the California Natural Resources Agency - Division of Boating and Waterways:
Boating Safety 97.011 N/A 9,039 $ $ -
Subtotal Direct Assistance Listing Number 97.011 9,039 - Small Water Craft Safety Program 97.012 C24L0601 3,332 - Direct Programs:
Disaster Grants - Public Assistance 97.036 FEMA-4382-DR-Carr Fire 328,949 - Disaster Grants - Public Assistance 97.036 FEMA-4301-Flooding 1,268,793 - Subtotal Direct Assistance Listing Number 97.036 1,597,742 - Direct Programs:
Disaster Grants - Public Assistance 97.039 HMGP 4382-143-27F 1,627,655 - Disaster Grants - Public Assistance 97.039 HMGP DR-4382-131-3R 87,411 - Subtotal Direct Assistance Listing Number 97.039 1,715,066 - Direct Programs:
Assistance to Firefighters 97.044 EMW-2022-FG-03871 81,821 - Subtotal Direct Assistance Listing Number 97.044 81,821 - Passed through the County of Shasta:
Homeland Security Grant Program (HSGP) 97.067 2022-0043 42,550 - Homeland Security Grant Program (HSGP) 97.067 2023-0042 18,683 - Homeland Security Grant Program (HSGP) 97.067 2022-0043 19,145 - Subtotal Direct Assistance Listing Number 97.067 80,378 - Direct Programs:
Staffing for Adequate Fire & Emergency Response (SAFER) Grant Program 97.083 EMW-2021-FF-00741 1,226,636 -
Total Department of Homeland Security 4,714,014 -
Total Expenditures of Federal Awards $ 40,277,309 $ 160,972 Packet Pg. 323 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025)
CITY OF REDDING
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2025
(10)
NOTE 1 REPORTING ENTITY
The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of the City of Redding (City). The City’s reporting entity is defined in Note 1 to the City’s basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included in the Schedule. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.
NOTE 2 BASIS OF ACCOUNTING
The accompanying Schedule is presented using the modified accrual basis of accounting and the accrual basis of accounting for program expenditures accounted for in governmental funds and proprietary funds, respectively, as described in Note 1 of the City’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
NOTE 3 FEDERAL ASSISTANCE LISTING NUMBERS
The program titles and federal assistance listing numbers were obtained from the federal or pass-through grantor.
NOTE 4 INDIRECT COST RATE
The City did not elect to use the 10% de minimis indirect cost rate as covered in 2 CFR §200.414.
NOTE 5 PASS-THROUGH ENTITIES’ IDENTIFYING NUMBER
When federal awards were received from a pass-through entity, the Schedule shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program, or the City was unable to obtain an identifying number from the pass-through entity.
Packet Pg. 324 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025)
CITY OF REDDING
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2025
(11)
NOTE 6 BLENDED COMPONENT UNITS
The accompanying Schedule of Expenditures of Federal Awards includes federal awards to the following blended component units:
Federal
Expenditures
Redding Area Bus Authority:
Federal Transit Assistance Cluster 2,097,566 $
Housing Authority of the City of Redding:
Housing Vouchers Cluster 15,546,603 $
Mainstream Vouchers Cluster 690,311
Family Self Sufficiency (FSS Program) 88,568
Packet Pg. 325 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025)
CITY OF REDDING
SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2025
(12)
Section I – Summary of Auditors’ Results
Financial Statements
1. Type of auditors’ report issued: Unmodified
2. Internal control over financial reporting:
Material weakness(es) identified? yes x no
Significant deficiency(ies) identified? yes x none reported
3. Noncompliance material to financial
statements noted? yes x no
Federal Awards
1. Internal control over major federal programs:
Material weakness(es) identified? yes x ___ no
Significant deficiency(ies) identified? yes x___ none reported
2. Type of auditors’ report issued on
compliance for major federal programs: Unmodified
3. Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)? yes x no
Identification of Major Federal Programs
Assistance Listing Number(s) Name of Federal Program or Cluster
20.205 Highway Planning and Construction
97.036 Disaster Grants – Public Assistance
97.039 Hazard Mitigation Grant Program (HMGP)
97.083 SAFER Grant Program
Dollar threshold used to distinguish between
Type A and Type B programs: $ 1,208,319
Auditee qualified as low-risk auditee? x yes no
Packet Pg. 326 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025)
CITY OF REDDING
SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2025
(13)
Section II – Financial Statement Findings
Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards.
Section III – Findings and Questioned Costs – Major Federal Programs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a).
Packet Pg. 327 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025) (14)
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR THE
PASSENGER FACILITY CHARGE PROGRAM, REPORT ON INTERNAL CONTROL
OVER COMPLIANCE, AND REPORT ON THE SCHEDULE OF PASSENGER FACILITY CHARGES
COLLECTED AND EXPENDED AND INTEREST COLLECTED
Honorable Mayor and Members of City Council
City of Redding
Redding, California
Report on Compliance for the Passenger Facility Charge Program Opinion on Compliance
We have audited the City of Redding’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 (the Guide), for its passenger facility charge program for the year ended June 30, 2025.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on the Passenger Facility Charge Program for the year ended June 30, 2025.
Basis for Opinion on the Passenger Facility Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the Federal Aviation Administration. Our responsibilities under those standards and the Federal Aviation Administration are further described in the Auditors’ 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. 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 government programs.
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
Packet Pg. 328 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025) Honorable Mayor and Members of City Council
City of Redding
(15)
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 GAAS, Government Auditing Standards, and the Federal Aviation Administration 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 government program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Federal Aviation Administration, 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 Federal Aviation Administration, 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 on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement 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 that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Packet Pg. 329 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025) Honorable Mayor and Members of City Council
City of Redding
(16)
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 Federal Aviation Administration. Accordingly, this report is not suitable for any other purpose.
Report on the 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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated January 15, 2026, which contained unmodified opinions on those financial statements. The accompanying 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 Audit 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, 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 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.
CliftonLarsonAllen LLP
Roseville, California
January 15, 2026
Packet Pg. 330 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025)
CITY OF REDDING
SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED AND EXPENDED AND
INTEREST COLLECTED
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Schedule of Passenger Facility Charges Collected and Expended and Interest Collected. (17)
Cumulative Total September 30, December 31,
June 30, 2024 2024 2024
Unexpended (over expended) passenger facility $ 407,127 340,055 $ 499,219 $ charges and interest, beginning of period
Amount
Revenues: Approved
Passenger facility charges collected 94,708 5,218,739 102,828 Interest earned 114 26,404 173
Total passenger facility charge revenue $ 5,245,143 6,138,540 94,822 103,001 Expenses:
Amount
Project Number/Project Name Approved
Completed and Closed Applications 2,766,535 $ 2,766,535 - - Open Projects
Application 11-04-C-01-RDD
001-Storage Building for FAR Part 139 Equipment 14,791 14,791 - - 002-Update Airport Layout Plan (ALP) 1,500 1,500 - -
003-Prepare Airport Electrical Master Plan 1,500 1,500 - - 004-Acquire Aircraft Rescue Fire Fighting (ARFF) Equipment 1,992 1,992 - - 005-Rehabilitate Airfield Guidance Signs 16,588 16,588 - - 006-Rehabilitate Runway 13/34 - Design Only 3,250 3,250 - - 007-Rehabilitate Parallel and Connecting Taxiways - Design Only 2,302 2,302 - - 008-Rehabilitate Terminal Building 60,346 60,346 - -
009-Conduct Wildlife Hazard Assessment 4,510 4,510 - -
010-Terminal Building Expansion - Design Only 12,498 12,498 - - 011-PFC Administration Costs 35,000 35,000 - -
017-Rehabilitate and Expand Terminal Building 519,645 519,645 - - 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-Aircraft 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 - - Application 23-06-C-00-RDD
001-PFC Audit 61,141 61,141 - -
002-Guidance Sign Installation & Misc NAVAID 30,811 30,811 - - 003-Terminal Loop Design 53,633 67,660 - -
004-AAAE-IET Training Program 42,000 42,000 - -
005-Update Airport Master Plan Study 103,927 32,640 - - 006-Master Drainage Study 52,001 21,158 - -
Application 24-07-C-00-RDD
001-PFC Audit 10,750 10,716 - -
002-PFC Application 67,222 23,333 - -
003-NEPA Environmental Evaluation for Runway 16-34 Improvements 17,051 - - - 004-Runway 16-34 Rehabilitation Design 87,288 83,841 2,289 254 005-Runway 16-34 Blast Pad Design 6,006 5,769 157 18
006-Runway 16-34 Connector Taxiways Design 10,414 10,003 273 30 007-Runway 16-34 MAGVAR Update Design 431 414 11 1
008-Runway 16-34 Rehabilitation Construction 1,532,385 5,458 - - 009-Runway 16-34 Blast Pad Construction 106,615 380 - - 010-Runway 16-34 Connector Taxiways Construction 201,900 719 - - 011-Runway 16-34 MAGVAR Update Construction 7,655 28 - - Total passenger facility charge revenue expenditures 4,725,095 2,730 303 Unexpended (over expended) passenger facility
charges and interest, end of period 520,048 $ 499,219 $ 601,917 $ For the Quarter Ended
Packet Pg. 331 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025)
CITY OF REDDING
SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED AND EXPENDED AND
INTEREST COLLECTED (CONTINUED)
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Schedule of Passenger Facility Charges Collected and Expended and Interest Collected. (18)
For the Year
Ended
March 31, June 30, June 30, Cumulative Total
2025 2025 2025 June 30, 2025
Unexpended (over expended) passenger facility 601,917 $ 673,692 $ 407,127 $ - $ charges and interest, beginning of period
Revenues:
Passenger facility charges collected 72,425 87,816 357,776 5,576,515 Interest earned 138 193 619 27,023
Total passenger facility charge revenue 72,563 88,009 358,395 5,603,538 Expenses:
Project Number/Project Name
Completed and Closed Applications - - - -
Open Projects
Application 11-04-C-01-RDD
001-Storage Building for FAR Part 139 Equipment - - - - 002-Update Airport Layout Plan (ALP) - - - -
003-Prepare Airport Electrical Master Plan - - - -
004-Acquire Aircraft Rescue Fire Fighting (ARFF) Equipment - - - - 005-Rehabilitate Airfield Guidance Signs - - - -
006-Rehabilitate Runway 13/34 - Design Only - - - -
007-Rehabilitate Parallel and Connecting Taxiways - Design Only - - - - 008-Rehabilitate Terminal Building - - - -
009-Conduct Wildlife Hazard Assessment - - - -
010-Terminal Building Expansion - Design Only - - - -
011-PFC Administration Costs - - - -
017-Rehabilitate and Expand Terminal Building - - - -
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 - - - -
Application 23-06-C-00-RDD -
001-PFC Audit - - - -
002-Guidance Sign Installation & Misc NAVAID - - - -
003-Terminal Loop Design - - - -
004-AAAE-IET Training Program - - - -
005-Update Airport Master Plan Study - - - -
006-Master Drainage Study - - - -
Application 24-07-C-00-RDD - -
001-PFC Audit - - - -
002-PFC Application - - - -
003-NEPA Environmental Evaluation for Runway 16-34 Improvements - - - - 004-Runway 16-34 Rehabilitation Design 86 760 3,389 -
005-Runway 16-34 Blast Pad Design 6 52 233 -
006-Runway 16-34 Connector Taxiways Design 10 91 404 -
007-Runway 16-34 MAGVAR Update Design - 5 17 -
008-Runway 16-34 Rehabilitation Construction 569 3,519 4,088 - 009-Runway 16-34 Blast Pad Construction 39 244 283 -
010-Runway 16-34 Connector Taxiways Construction 75 462 537 - 011-Runway 16-34 MAGVAR Update Construction 3 18 21 -
Total passenger facility charge revenue expenditures 788 5,151 8,972 4,734,067 Unexpended (over expended) passenger facility
charges and interest, end of period 673,692 $ 756,550 $ 756,550 $ 869,471 $ For the Quarter Ended
Packet Pg. 332 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025)
CITY OF REDDING
NOTES TO SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED AND EXPENDED
AND INTEREST COLLECTED
JUNE 30, 2025
(19)
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, 2024 through June 30, 2025. The City currently collects $4.50 per enplaned passenger. The current approval for the charges as approved by the Federal Aviation Administration (FAA) is expected to end on December 31, 2029.
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.
Packet Pg. 333 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025)
CITY OF REDDING
PASSENGER FACILITY CHARGE PROGRAM
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2025
(20)
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, 2025.
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, 2024.
Packet Pg. 334 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025) Packet Pg. 335 Attachment: 2025 City of Redding - Single Audit Report FINAL (9A--Reports from Independent Auditors for the year ended June 30, 2025) Packet Pg. 336
Attachment: 2025 City of Redding ACFR AU-C-260 letter (9A--Reports from Independent Auditors for the year ended June 30, 2025) Packet Pg. 337
Attachment: 2025 City of Redding ACFR AU-C-260 letter (9A--Reports from Independent Auditors for the year ended June 30, 2025) Packet Pg. 338
Attachment: 2025 City of Redding ACFR AU-C-260 letter (9A--Reports from Independent Auditors for the year ended June 30, 2025) Packet Pg. 339
Attachment: 2025 City of Redding ACFR AU-C-260 letter (9A--Reports from Independent Auditors for the year ended June 30, 2025)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve Redding Electric Utility’s (REU) 2030 Strategic Plan, establishing updated mission and vision statements, identifying strategic focus areas, and setting long-term goals to guide the REU’s operations and decision-making through 2030.
Fiscal Impact
There is no direct fiscal impact associated with approving Redding Electric Utility’s (REU) 2030 Strategic Plan. Implementation of future initiatives identified in the plan will be subject to separate Council consideration and approval through normal budgetary and policy processes.
Alternative Action
Council may reject staff’s recommendation and provide alternative direction regarding the 2030 Strategic Plan.
Background/Analysis
REU’s 2021–2026 Strategic Plan provided an important framework for aligning the utility’s organizational priorities, investments, and culture with community needs during a period of significant change in the electric utility industry. Since that time, the pace and complexity of change facing publicly owned utilities has continued to accelerate, driven by evolving regulatory requirements, wildfire risk, infrastructure needs, customer expectations, technology advancements, and long-term resource planning challenges.
MEETING DATE: February 3, 2026
ITEM NO. 9.5(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.5(c)--Consider approval of Redding Electric Utility's 2030 Strategic Plan.
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 340
Report to Redding City Council January 27, 2026
Re: 9.5(c)--REU 2030 Strategic Plan Page 2
In response, REU initiated a comprehensive strategic planning effort to develop a 2030 Strategic Plan that serves as a forward-looking roadmap for the next five years, through 2030. REU retained Aether Advisors as a consultant to support the development of the plan and facilitate a collaborative process to identify the REU’s most significant risks, along with the key strengths, weaknesses, opportunities, and threats shaping its operating environment. The intent is to develop a plan that clearly articulates REU’s mission, vision, and strategic direction, while maintaining the flexibility needed to adapt to evolving conditions and emerging challenges.
A key component of this effort was a structured stakeholder engagement process. REU convened a diverse panel of community members representing environmental interests, commercial and critical-infrastructure customers, housing and affordability perspectives, and long-term community and economic development considerations, and engaged the panel through multiple facilitated workshops. These workshops focused on identifying core values, discussing key challenges and trade-offs, and providing input on the long-term goals and strategic direction that should guide REU’s future. Stakeholder feedback emphasized themes such as affordability and rate stability, reliability and risk management, sustainability and stewardship, and the importance of proactive planning.
The resulting 2030 Strategic Plan reflects this input and establishes a clear framework organized around three overarching strategic focus areas of reliability, risk, and rates, supported by specific goals and guiding principles. Stakeholders were provided the opportunity to review the draft goals and overall direction and to provide final comments and endorsements prior to the plan being finalized for Council consideration.
Approval of the 2030 Strategic Plan will provide staff with a clear policy framework to guide future planning efforts, operational priorities, and investment decisions, while reinforcing alignment with community values and Council priorities.
Environmental Review
This action does not constitute a project under the California Environmental Quality Act (CEQA). Any future initiatives or projects that may result from implementation of the Strategic Plan will undergo appropriate environmental review in accordance with CEQA, if applicable.
Council Priority/City Manager Goals
• Government of the 21st Century - The 2030 Strategic Plan supports the City’s goal of maintaining a forward-looking, responsive, and resilient public utility by anticipating future challenges and positioning REU to continue providing safe, reliable, affordable, and sustainable electric service to the Redding community.
Attachments
Redding Electric Utility's 2030 Strategic Plan
Packet Pg. 341
Redding Electric Utility’s
2030 Strategic Plan
POWER
PROTECT
PREPARE
Packet Pg. 342 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Table of Contents
Message from the Director | POWER, PROTECT, PREPARE ..................................................... 3 Executive Summary: REU’s 2030 Strategic Plan ...................................................................... 4 Charting the Future of Public Power........................................................................................... 4 REU’s Strategic Identity............................................................................................................... 4 The Strategic Framework: The "Three R’s" ................................................................................. 4 The Goals for 2030 ...................................................................................................................... 5 Stakeholder Alignment................................................................................................................ 5 Reflecting on the 2021-2025 Strategic Plan ............................................................................ 6 Organizational Safety .................................................................................................................. 6 Reliability and Affordability......................................................................................................... 6 Financial Strength and Workforce Excellence............................................................................. 6 Strategic Planning Process and Framework ............................................................................ 7 Strategic Plan Framework ........................................................................................................... 7 Who We Are: Our Purpose, Mission, Vision, and Core Values................................................. 8 Purpose........................................................................................................................................ 8 Mission ........................................................................................................................................ 8 Vision........................................................................................................................................... 8 Core Values................................................................................................................................. 8 The Strategic Context: Our Operating Landscape ................................................................... 9 Risk Assessment .......................................................................................................................... 9 SWOT Analysis........................................................................................................................... 10 Strategic Priorities for 2030 ................................................................................................. 11 REU’s 2030 Goals................................................................................................................. 12 Stakeholder Engagement..................................................................................................... 16 Acknowledgements............................................................................................................. 17 Final Insights ....................................................................................................................... 17 Packet Pg. 343 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 3
Message from the Director | POWER, PROTECT, PREPARE
For more than 100 years, REU has served the City of Redding as a community-owned, not-forprofit electric utility. Our responsibility is simple and enduring: to deliver safe, reliable, and affordable electric service while acting in the best long-term interests of the community we serve.
This strategic plan provides a clear direction for the next five years. It is intended to guide decision-making, investment, and policy as REU navigates an increasingly complex and uncertain operating environment. While conditions will continue to change, this plan serves as a steady framework to help the utility remain focused, disciplined, and prepared.
Like utilities across the country, REU faces a convergence of challenges. Aging infrastructure, increased wildfire risk, evolving regulatory requirements, rising costs, and workforce pressures all demand thoughtful planning and prudent action. At the same time, our customers continue to rely on REU for dependable service and affordable rates, and they expect the utility to manage risk responsibly.
Over the previous planning period, REU made meaningful progress strengthening reliability, improving workforce stability, and maintaining some of the lowest electric rates in California.
These accomplishments reflect the dedication of our employees and the value of long-term planning. They also underscore the importance of continuing to invest wisely and adapting to changing conditions.
In developing the next 2030 Strategic Plan, REU undertook a comprehensive review of its operating environment, risks, and opportunities. This work informed a focused set of priorities and goals designed to protect public safety, maintain system reliability, and ensure long-term affordability. The plan emphasizes disciplined risk management, careful financial stewardship, and sustained investment in infrastructure, technology, and people.
As a publicly owned utility, REU exists to serve the community—not external shareholders. Every decision reflected in this plan is guided by that responsibility and by the long-standing principle of local control established when the City of Redding assumed ownership of its electric system in 1921.
I am pleased to present the 2030 Strategic Plan as a shared roadmap to guide REU’s operations and investments over the next five years. While not a static document, the 2030 Strategic Plan is intended to guide our actions while remaining responsive to changing conditions and emerging challenges. With a commitment to power, protect, and prepare, this plan reflects our responsibility and our promise to thoughtfully and responsibly power Redding’s future.
Thank you,
Nicholas Zettel
Electric Utility Director
Packet Pg. 344 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 4
Executive Summary: REU’s 2030 Strategic Plan
Charting the Future of Public Power
For over a century, Redding Electric Utility (REU) has served as a community-owned, not-forprofit utility dedicated to the best interests of its neighbors. While the 2021–2025 Strategic Plan successfully guided the utility through historic operational challenges, REU simultaneously secured high bond ratings and maintained system reliability. Now, the accelerating pace of change in the energy sector necessitates a modernized approach. Evolving regulations, the urgent threat of wildfire, and rapid technological advancements require a new, adaptive roadmap. The 2030 Strategic Plan serves as this roadmap, articulating REU’s commitment to securing a sustainable, safe, and prosperous energy future for Redding over the next five years.
REU’s Strategic Identity
Rooted in a rigorous planning process that included deep-dive internal risk assessments and extensive SWOT analysis (strengths, weaknesses, opportunities, and threats), REU has modernized its guiding principles to reflect the current operating landscape.
Mission: To safely deliver affordable,
dependable, and long-term energy
solutions that enhance the quality of life
and Redding's economic strength while
adapting to evolving demands.
Vision: Be a trusted community-owned
utility recognized for affordability,
resilience, and service excellence—
committed to empowering Redding to build
a brighter future for generations to come.
Core Values: Safety, Integrity, Customer Focus, Teamwork, and Stewardship.
The Strategic Framework: The "Three R’s"
To navigate the complex environment of rising costs and regulatory uncertainty, REU has established three core priorities—the "Three R's"—that will filter every decision and investment through 2030:
◼ Risk Mitigation: Proactively managing operational and environmental risks, particularly wildfire threats, to ensure the safety of our workforce and community. ◼ Reliability: Minimizing service interruptions and modernizing systems for consistent, long-term performance.
◼ Rates: Providing fair, transparent, and cost-based pricing that supports equitable access and financial sustainability.
Packet Pg. 345 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 5
The Goals for 2030
These priorities are operationalized through eight specific, measurable goals designed to address critical risks such as aging infrastructure, cyber threats, and workforce attrition:
◼ Goal 1: Advance a Safety-Centered Culture
◼ Goal 2: Strengthen Disaster and Emergency Preparedness ◼ Goal 3: Deliver Reliable, Low-Cost Power
◼ Goal 4: Plan for a Sustainable and Prudent Power Supply ◼ Goal 5: Develop a Future-Ready Workforce
◼ Goal 6: Enhance Customer Communication and Engagement ◼ Goal 7: Position for Resilient, Sustainable Infrastructure ◼ Goal 8: Leverage Data and Systems to Improve Decision-Making Stakeholder Alignment
As a community-owned entity, REU’s success is intrinsically linked to the people we serve. This plan was shaped by robust engagement with diverse community stakeholders who reinforced the critical need to balance clean energy mandates with affordability and rate stability. By integrating these community values with operational expertise, the 2030 Strategic Plan positions REU to empower Redding to build a brighter future for generations to come.
Packet Pg. 346 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 6
Reflecting on the 2021-2025 Strategic Plan
This section looks back at the path REU has traveled under the previous strategic plan, which served as the utility’s roadmap. It demonstrates our commitment to accountability and shows how the successes of the 2021-2025 period have built a strong foundation for the objectives outlined in this 2030 plan. By tracking key performance indicators, we have ensured measurable progress and continuous improvement across all core areas of our operations.
Over the course of the five-year planning period, REU demonstrated measurable progress across its strategic priorities, strengthening the utility and reinforcing accountability to the community it serves. That progress is most clearly demonstrated through three core outcomes: a strong culture of safety, dependable and affordable electric service, and the financial and workforce strength required to support long-term investment and reliability.
The comprehensive process of developing our new 2030 Strategic Plan was built upon the following past successes and a clear understanding of our current operating realities:
Organizational Safety
◼ Total Recordable Injury Rate was reduced
from 3.9 improving to 3.3
◼ Reportable utility-caused fires reduced from 9
in 2021 to just 1 reportable event in 2025
Reliability and Affordability
◼ Average outage duration dropped from 38.15
minutes in 2023 to 28.71 minutes in 2024
◼ REU aimed to keep customer electric bills
below 2.5% of median household income; this
target was met with bills at 1.88% in 2024 and
1.82% in 2025
Financial Strength and Workforce
Excellence
◼ Maintained an investment-grade credit rating
of AA-, reducing costs for capital investment
◼ Achieved a 78% customer satisfaction rating,
higher than the national average of 68%
Packet Pg. 347 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 7
Strategic Planning Process and Framework
A rigorous and inclusive planning process is the cornerstone of any effective strategy. To develop our 2030 Strategic Plan, REU undertook a methodical approach designed to ensure the final plan is comprehensive, informed by a group of stakeholders representing various community interests, and grounded in a deep understanding of our dynamic operating environment. This methodology guarantees that our path forward is both ambitious and achievable.
The planning process began with an internal Advisory Team kickoff in April 2024 and continued through a focused planning effort from April 2025 through January 2026, led by Aether Advisors.
REU completed extensive internal analysis, including a risk assessment, external landscape review, and SWOT analysis, which informed refinements to the utility’s mission, vision, and core values. With this foundation in place, REU established its strategic priorities and goals and then engaged community stakeholders for input. Stakeholder feedback helped shape and refine the plan prior to City Council consideration.
Strategic Plan Framework
Our strategic plan is built upon a clear and logical framework. Each element serves a distinct purpose, creating a cohesive roadmap that connects our organizational identity to our daily actions and long-term objectives.
Who We Are: This defines our fundamental
identity through our Purpose, Mission,
Vision, and Core Values.
Context: This section provides a distilled
analysis of our operating environment,
drawing from the risk assessment, landscape
review, and SWOT analysis.
Strategic Priorities: These are the three
guiding pillars of the plan, focusing our efforts
on what matters most.
Goals: These are the specific, measurable
outcomes and objectives we aim to achieve
under each priority.
This strategic plan intentionally concludes at the goal level. Specific initiatives and implementation actions will be developed following plan adoption, allowing REU to align resources, timing, and execution strategies with City direction and evolving conditions.
Packet Pg. 348 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 8
Who We Are: Our Purpose, Mission, Vision, and Core Values This section reflects the heart of REU—why we exist, what we stand for, and how we serve our community. Our purpose, mission, vision, and core values guide the decisions we make every day and shape how we show up for the people of Redding. Together, they ground our commitment to providing safe, reliable, and affordable power for our community.
Purpose
Our purpose is simple: Provide safe, reliable, low-cost power to help the community thrive. This purpose grounds our work every day and guides how we plan, invest, and show up for the customers we serve.
Mission
The revised mission statement reflects our
dedication to serving Redding by adapting
to the evolving demands:
“REU safely delivers affordable,
dependable, and sustainable energy
solutions that enhance the quality of life
and Redding's economic strength while
adapting to evolving demands.”
Vision
Our vision statement was updated to reflect
the long-term direction REU is pursuing
throughout the planning period:
“Be a trusted community-owned utility
recognized for affordability, resilience, and
service excellence—committed to
empowering Redding to build a brighter
future for generations to come.”
Core Values
Our Core Values reflect how we do our work and how we treat one another and our customers.
They guide our actions, shape our culture, and set clear expectations for everyone at REU.
Safety
◼We prioritize the
well-being of our
employees and
community.
Integrity
◼We act with
honesty and
accountability in
everything we do.
Customer Focus
◼We listen and
respond to all
customers with care
and respect.
Teamwork
◼We work together
to acheieve shared
goals & serve our
community.
Stewardship
◼We manage
resources wisely
for long-term
benefit
Packet Pg. 349 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 9
The Strategic Context: Our Operating Landscape
The purpose of this section is to ground our strategic plan in a clear-eyed analysis of the external and internal factors shaping REU's future. A deep understanding of our operating landscape— including risks, trends, and organizational capabilities—is essential for proactive, effective, and resilient planning.
To develop this context, REU conducted a comprehensive risk assessment, evaluated changes in the external landscape, and completed an internal assessment of strengths, weaknesses, opportunities, and threats. Together, this work provided the foundation for the 2030 Strategic Plan and helped identify the issues most likely to influence REU’s operations in the coming years.
Key risks include wildfire exposure, aging infrastructure, cybersecurity threats, rising costs, and workforce attrition.
The landscape assessment also examined broader trends affecting the utility, its customers, and the community. Safety remains a central consideration across all areas of REU’s work, with wildfire risk identified as the most significant threat. While REU cannot eliminate all sources of wildfire risk, minimizing the likelihood that utility operations contribute to a wildfire remains a top priority.
At the same time, electric operations must continue to adapt to evolving resource portfolios and growing demand. Grid modernization is essential to replacing aging assets and strengthening system resilience. Continued investment in technology and workforce capabilities will support reliable service and long-term affordability. In parallel, rapid changes in the western wholesale power market and new clean energy mandates underscore the importance of long-term power supply planning.
Risk Assessment
Our risk assessment identified several highpriority challenges that directly influenced the development of this plan. The top risks
facing REU include the ever-present risk of
having assets in high fire threat areas, the
need to address aging electric infrastructure,
the growing sophistication of cyber risks, the
rate impacts from rising operational costs,
and the challenge of workforce attrition and
knowledge transfer.
Simultaneously, we are navigating a
landscape of significant external trends. The
western U.S. power market is undergoing
rapid transformation, driven by a push for
new energy resources to meet increased
customer demand while navigating
uncertain regulatory mandates. New
technologies, particularly in artificial
intelligence and data management, present
powerful opportunities to enhance grid
operations and efficiency. Throughout all of
this, maintaining safety and preventing
wildfires remain paramount concerns that
influence every aspect of our work.
Packet Pg. 350 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 10
SWOT Analysis
This analysis provides a comprehensive view of our internal capabilities and the external environment, forming the basis for our strategic priorities.
Strengths
• Strong finances and operations
• High customer satisfaction
• Deep community roots as a City department
• Resilient ‘can-do’ culture
Weaknesses
• Aging delivery infrastructure
• Recruiting and retention challenges
• Legacy systems requiring modernization
• Limited internal resources for new initiatives
Opportunities
• Grid modernization and new technology
• Enhanced customer outreach
• Regional market integration for reliability &
cost-sharing
Threats
• Escalating climate threats (wildfire, flooding)
• Cybersecurity risks
• Regulatory uncertainty and compliance burdens
• Material cost inflation & supply chain disruption
This comprehensive analysis builds from the three clear strategic priorities previously defined in the 2026 Strategic Plan and will focus our efforts through 2030.
Key Takeaway: Our strategy is designed to leverage our strengths to seize new opportunities while proactively mitigating our threats and weaknesses.
Packet Pg. 351 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 11
Strategic Priorities for 2030
Strategic priorities are the primary pillars of our plan, designed to focus the utility's energy and resources on the areas of greatest importance. To leverage our financial strengths, address our operational weaknesses, and confront the threats of extreme weather events and regulatory uncertainty, we have focused our efforts on three core priorities. These will guide REU's decisionmaking and operational focus as we work to achieve our mission over the next five years. ◼ Risk Mitigation – Safe and
Proactive
✓ Protecting employees, customers,
and critical infrastructure through a
strong safety culture, proactive
wildfire mitigation, and full
compliance with all applicable
regulatory requirements.
◼ Reliability – Dependable and
Responsive
✓ Delivering dependable power by
minimizing outages, restoring
service quickly when disruptions
occur, and maintaining and
modernizing the electric system.
◼ Rates – Affordable and
Transparent
✓ Providing fair, transparent, and
cost-based rates while supporting
long-term financial sustainability
and affordability for all customers.
These high-level priorities are brought to
life through a set of specific, actionable
goals designed to achieve them.
Packet Pg. 352 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 12
REU’s 2030 Goals
The following eight goals define the strategic outcomes that translate REU’s priorities into clear direction for the utility through 2030. Together, they establish what success looks like over the planning horizon and provide a consistent framework for guiding future decisions.
Each goal is intentionally outcome-oriented
and grounded in the challenges and
opportunities identified through REU’s risk
assessment, landscape review, and SWOT
analysis. Rather than prescribing specific
actions, the goals set clear expectations for
performance and progress, ensuring
alignment with REU’s mission while allowing
flexibility in how results are achieved.
These goals create a durable structure for
accountability and performance evaluation
over time. They are designed to support the
development of initiatives and performance
measures that assess progress toward the
intended outcomes, while preserving the
ability to adapt to changing conditions,
regulatory requirements, and community
needs.
By first identifying its strategic goals, REU
sets clear direction for the organization and
establishes the context for the priorities that
follow.
Goal 1
Advance a SafetyCentered Culture
Goal 2
Strengthen Disaster
and Emergency
Preparedness
Goal 3
Deliver Reliable, LowCost Power
Goal 4
Plan for a Prudent and
Sustainable Power
Supply
Goal 5
Develop a FutureReady Workforce
Goal 6
Enhance Customer
Communication and
Engagement
Goal 7
Position for a Resilient
and Sustainable
Infrastructure
Goal 8
Leverage Data and
Systems to Improve
Decision Making
Packet Pg. 353 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 13
Goal 1: Advance a Safety-Centered Culture
Adapt to increasing climate risks, continuously improve and maintain a comprehensive safety program to minimize risk to our customers, facilities, and employees.
• Strategic Priority: Risk Mitigation
• Example Success Measure: No fatalities and injury rate lower than industry average; no utility-caused fires.
• Example Initiative: Complete undergrounding in Tier 3 as an adaptation to utility-caused wildfire risk and shift away from mitigation.
Goal 2: Strengthen Disaster and Emergency Preparedness
Build and sustain an all-hazards readiness and resilience culture that minimizes service disruption, and speeds recovery from emergencies.
• Strategic Priority: Risk Mitigation and Reliability
• Example Success Measure: Continued high reliability and quick service restoration.
• Example Initiatives: Modernize our outage management
system and conduct multi-agency disaster response drills.
Goal 3: Deliver Reliable, Low-Cost Power
Continue prudent financial management, exercise fiscal
responsibility, maintain cost-efficient operations, implement fair rate structures, and expand programs that support all customer segments, delivering reliable electric service.
• Strategic Priority: Reliability and Rates
• Example Success Measure: Maintaining low rates relative to other state utilities and energy burden target %.
• Example Initiative: Conduct a comprehensive review of the Utility’s financial management policy to ensure it continues to support stable, predictable rates amid an increasingly uncertain operating environment.
Packet Pg. 354 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 14
Goal 4: Plan for a Prudent and Sustainable Power Supply Develop and maintain long-term resource planning strategies that anticipate and mitigate supply-side risks, ensure resource adequacy, and support reliable, affordable service.
◼ Strategic Priority: Risk Mitigation, Reliability, and Rates ◼ Example Success Measure: Comprehensive resource
planning to meet hedging targets for energy and capacity. ◼ Example Initiative: To meet climate mandates, replace expiring resources while also meeting Redding’s growing power demand, secure new cost-effective renewable resources.
Goal 5: Develop a Future-Ready Workforce
Strengthen employee development, attraction, and retention by promoting a culture of autonomy, accountability, and proactive decision-making. Support ongoing professional growth,
safeguard institutional knowledge, and enable employees at every level to take ownership of their work and advance REU’s success.
◼ Strategic Priority: Risk Mitigation and Reliability
◼ Example Success Measure: A prepared and well-trained
future workforce, with a vacancy rate below 10%.
◼ Example Initiative: Launch new recruitment and professional development programs to attract, retain, and prepare the future workforce ready to use new systems and AI tools.
Goal 6: Enhance Customer Communication and Engagement
Implement a proactive, multi-channel customer communication strategy that informs and engages residential, commercial, and vulnerable populations – measuring satisfaction and engagement to drive continuous improvement.
◼ Strategic Priority: Risk Mitigation and Rates
◼ Example Success Measure: Continued customer
satisfaction that exceeds the national average.
◼ Example Initiative: Develop a new digital communication platform for proactive outage alerts, utility programs, and energy saving-tips.
Packet Pg. 355 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 15
Goal 7: Position for a Resilient and Sustainable Infrastructure Develop long-range plans to ensure reliability, extend asset life, and meet evolving power supply needs.
◼ Strategic Priority: Risk Mitigation, Reliability
◼ Example Success Measure: Compliance with state
mandates and resources acquired to meet future
customer load.
◼ Example Initiative: Execute the $70 million bond-funded grid modernization program to replace aging assets and
harden the system.
Goal 8: Leverage Data and Systems to Improve Decision Making Leverage data-driven insights and emerging technologies to optimize utility assets, strengthen decision-making, and improve efficiency, reliability, resilience, and customer satisfaction. ◼ Strategic Priority: Reliability, Risk Mitigation
◼ Example Success Measure: Successfully integrated
systems and data utilization to bring operating efficiencies. ◼ Example Initiative: Upgrade our energy trading and
analytics platforms to optimize resource planning and decisionmaking and ensure the judicious use of artificial intelligence.
The eight strategic goals serve as the roadmap for executing our “Three R’s” framework—Risk Mitigation, Reliability, and Rates—which guides every decision we make. By strengthening safety practices and disaster preparedness, we proactively address our highest priority risks, including wildfire mitigation, while investments in resilient infrastructure ensure a dependable grid amid extreme weather. At the same time, we balance these efforts with a firm commitment to reliable, low-cost power and data-driven efficiency, protecting the affordability and rate stability that our community values most.
These goals collectively advance our modernized mission and vision to empower Redding’s future. By building a future-ready workforce and strengthening customer communication, we foster the agility and trust needed to enhance the quality of life and support Redding’s economic strength in a rapidly evolving industry. In parallel, pursuing a prudent and sustainable power supply connects near-term actions to our long-term vision, securing energy solutions that reinforce service excellence and stewardship while helping build a brighter future for generations to come.
Packet Pg. 356 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 16
Stakeholder Engagement
As a community-owned utility, REU's success is intrinsically linked to the community we serve.
Our accountability is not to shareholders, but to our neighbors, local businesses, and public partners. For this reason, robust stakeholder engagement was a critical and foundational element of our planning process. This approach ensures that our final strategy reflects the values, priorities, and needs of the people of Redding.
In December 2025 and January 2026, REU leadership convened a diverse group of community stakeholders for a series of workshops. During these sessions, we shared insights into industry trends, discussed future challenges and opportunities, and gathered direct feedback on our proposed strategic priorities and goals. The thoughtful questions and valuable guidance from these representatives helped shape the final plan.
Several key themes emerged from this collaborative dialogue, reinforcing and refining our strategic direction:
• The importance of carefully balancing the need to meet clean energy mandates with the equally critical goals of customer affordability and realistic timelines. • A clear and consistent mandate to shift from risk mitigation to adaptation in response to extreme weather events and high fire threat, prioritizing public safety above all else. • An unwavering emphasis on maintaining rate stability and affordability for all customers, particularly residential and low-income households. • A strong focus on long-term sustainability and environmental stewardship in all resource planning and operational decisions.
(Workshop 2)
Packet Pg. 357 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 17
This direct feedback was instrumental in validating goals such as Goal 4 (Plan for a Prudent and Sustainable Power Supply), which addresses the balance of clean energy with affordability, and Goal 1 (Advance a Safety-Centered Culture), which directly responds to the community's mandate on wildfire mitigation and adaptation. REU is committed to continuous, transparent engagement with the community, ensuring that our partnership remains strong as we implement this plan. We are deeply grateful for this community partnership and wish to formally acknowledge the key individuals who guided this process.
Acknowledgements
We wish to thank the many individuals who contributed their time, expertise, and passion to the development of the 2030 Strategic Plan. This plan is stronger, more comprehensive, and more reflective of our community's needs because of their diverse perspectives and dedicated involvement. We are deeply grateful for their partnership.
Strategic Plan Stakeholders:
◼ Miranda Favorite – Redding Rancheria
◼ Todd Jones – Chamber of Commerce
◼ Erin Resner – Redding City Council
◼ Michael Webb – City of Redding, Director
of Public Works
◼ Kurt Swanson – Certified Public Accountant
◼ David Ledger – North State Climate Action
◼ Shelby Marocco – Community Revitalization
and Development Corp.
◼ Rachel Hatch – Institute of the Future
◼ Rob Lowes – Dignity Health North State
Packet Pg. 358 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan) Redding Electric Utility | 2030 Strategic Plan 18
Final Insights
As REU looks toward 2030, this Strategic Plan reflects a clear sense of responsibility to the community it serves. The goals and priorities outlined here are rooted in a commitment to provide safe, reliable, and affordable electric service, while thoughtfully preparing for a changing energy landscape. As a community-owned utility, REU approaches this work with an understanding that every decision carries long-term implications for customers, local businesses, and future generations.
This plan is intended to serve as a practical and enduring guide, not a static document. REU will continue to engage with stakeholders, evaluate progress, and adapt as conditions change, always with an emphasis on transparency and responsible use of public resources. By acting as careful stewards of the community’s electric system, REU remains focused on delivering long-term value, maintaining public trust, and supporting the evolving needs of the community it is proud to serve.
Navigating the Path to 2030 with Redding Electric Utility Packet Pg. 359 Attachment: Redding Electric Utility's 2030 Strategic Plan (9.5(c)--REU 2030 Strategic Plan)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Should Council desire to provide operational funding for Advance Redding, staff recommends authorizing and approving the following actions relative to Advance Redding and the operations of the Civic Auditorium:
(1) Provide staff with direction relative to the funding amount, timeline and duration, if any, for short-term operations funding to Advance Redding for the Civic Auditorium; (2) Authorize the Mayor to execute a Grant Agreement for short-term operations of the Civic Auditorium;
(3) Authorize the City Manager, or designee, to administratively appropriate funding from the source, if any, selected by Council for use in the grant; (4) Authorize the Mayor to execute the Second Lease Amendment with Advance Redding (C-5682), providing rent relief and adding a 60-day no-cause termination clause; and (5) Consider long-term options and provide staff with direction, if any.
Fiscal Impact
At the January 20, 2026, meeting, Advance Redding requested ongoing support for the operations of the Civic Auditorium in the amount of $116,000, monthly. Should City Council (Council) choose to provide short-term funding to Advance Redding, each option will have varying impacts based on the funding source and amount provided. The Council could choose to use, at their discretion, the following one-time funding sources:
General Fund Reserves – The General Fund reserves are not expected to meet Council reserve policy at fiscal year-end due to lower starting cash position than 10-year plan forecast and lower tax revenues.
MEETING DATE: February 3, 2026
ITEM NO. 9.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(a)--Consider providing direction to staff regarding funding for Advance Redding's operations of the Civic Auditorium located at 700 Auditorium Drive.
Travis Menne, Director of
Community Services/Airports
Packet Pg. 360
Report to Redding City Council January 29, 2026
Re: 9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic Auditorium Page 2
Redding Rancheria Agreement – The City General Fund received approximately $3.2 Million from Redding Rancheria for their Health Campus agreement in November 2025. These monies are housed in the General Fund, but have not been budgetarily appropriated for any purpose. The Council could choose to utilize these for a variety of purposes including this, but may also choose to use them in the future to increase General Fund reserves to meet Council policy requirements. These funds are not part of the 10-year plan.
Stillwater & General Fund Property Sales – Recent property sales have brought the Stillwater Property sales to nearly $4 million, all of which are available for General Fund uses. The Council has previously decided to save this money for future needs at Stillwater. Stillwater, like many General Fund items, has an unmet need that will require future Council consideration and action.
These funds are not part of the 10-year plan.
These options present a variety of strengths and weaknesses for the Council to consider but ultimately these are one-time sources of money, which could limit or hinder future availability of funds for other uses by the Council.
Executing the Lease Amendment will result in a continued $5,000 per month impact on the Civic Auditorium Fund (where rent revenues live) to the total of $30,000.
Alternative Action
Other options include, but are not limited to:
• Authorize staff to negotiate with Advance Redding for a new lease that provides financial assistance for operations of the facility;
• Negotiate with Advance Redding for a temporary grant agreement, but issue a Request for Proposals for alternatives. This alternative may have additional budget impacts from consulting costs;
• Do not provide staff with direction, this alternative will not provide financial relief to Advance Redding and may result in the closure of the Civic Auditorium; • Do not authorize short-term financial assistance and issue a Request for Proposals for alternatives. This alternative will not provide financial relief to Advance Redding and may result in the closure of the Civic Auditorium;
• Direct staff to develop a plan for the City to reabsorb operations of the facility; and • Provide staff with alternate direction.
Background/Analysis
At its meeting on January 20, 2026, the Council directed staff to return at the February 3, 2026, Council meeting with short-term funding options for consideration. Furthermore, the Council authorized six months of additional rent relief. To enable this action, staff has brought the Second Lease Amendment for Council’s consideration. Additionally, because the Lease does not currently have a termination clause, staff has worked with Advance Redding to include an agreeable 60-day “no cause” termination clause. The change means that either party can terminate the agreement with 60 days’ notice. Currently, neither party may terminate the agreement without a breach of contract. Should short term funding be provided, Advance Redding would be required to return any and all remaining funds to the City prior to termination.
Packet Pg. 361
Report to Redding City Council January 29, 2026
Re: 9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic Auditorium Page 3
Should the Council not wish to include a termination clause, staff can remove that language from the draft contract prior to execution.
Short-term funding options for Advance Redding’s operation of the Civic Auditorium can include a combination of a grant and utility relief (where the City pays utility costs directly) to absorption of existing contracts, purchases or other obligations. The attached contract contemplates only a direct financial contribution. If another model is desired, staff can return with additional details and agreements.
However, providing short-term funding does not solve Advance Redding’s long-term operational and budget issues. Should Council desire to provide long-term support, a funding agreement can be generated that includes cash, utility relief and, though more complex, Council could also consider providing staff support for Civic Auditorium operations, including marketing and building maintenance support to lower costs for Advance Redding. Furthermore, Council could consider utilizing Transient Occupancy Tax (TOT) in future budget cycles, money which has historically been tied to the operations of the facility. Other options include the General Fund or negotiating for Tourism Marketing Business Improvement District funds. Council could also consider issuing a Request for Proposals (RFP) for an alternative operator prior to making a long-term funding decision.
At its August 4, 2025, Council meeting, Advance Redding presented the “State of the Civic.” During that presentation, General Manager, Julie Dyar, had two requests for the Council: (1) to use $675,000 sourced from the proceeds of the property sale for the Sheraton Hotel in 2014 to assist Advance Redding with expenses; and (2) work with the City to re-structure the existing agreement to ensure future success. On August 19, 2025, Council directed staff to develop a grant agreement for Advance Redding to help support operations of the Civic Auditorium with a total value of $675,445,27 and also directed staff to waive rent payments until January 2, 2026.
At that time, Advance Redding estimated the funds would support operations sometime into January 2026, at which point the facility would risk closure.
Later, on September 2, 2025, Council authorized the Mayor to execute the Grant Agreement and Lease Amendment documents - both agreements were executed on September 9, 2025. On September 16, 2025, Council directed staff to return with a report for discussion and consideration of options, if any, at its next meeting, regarding the terms and conditions of both the Amended and Restated Civic Auditorium Lease Agreement (C-5682) and the executed Grant Agreement (C-10981) with Advance Redding. Staff returned on October 7, 2025 and Council did not elect to make changes to the agreement at that time.
As further background, the Amended and Restated Civic Auditorium Lease Agreement between the City and Advance Redding, establishes the terms for leasing the Redding Civic Auditorium from January 1, 2022, to December 31, 2031. Advance Redding is responsible for managing the venue, ensuring a minimum of 60 event days per year, measured on a three-year rolling average, and accommodating specific community events like Kool April Nites and the July 4th Freedom Festival. The lease allows limited rent-free use of the facility by the City for municipal purposes and natural disaster response.
Packet Pg. 362
Report to Redding City Council January 29, 2026
Re: 9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic Auditorium Page 4
The rent structure was variable to account for a major subtenant’s presence. In 2022, rent was $10,000 per month and in 2023, increased to approximately $23,356 per month, with cost-ofliving adjustments in 2023 and 2024. However, in December 2023, when Advance Redding received written notice that its subtenant, Bethel Church, intended to terminate its sublease, the rent dropped to $5,000 per month for the remainder of the lease. The rent reduction acknowledged the financial impact of losing a major source of stable income that supported the tenant’s operational viability. At their September 2, 2025 meeting, the Council authorized a lease amendment which waived rent payments until January 2, 2026. At their January 20, 2026 meeting the Council authorized a further six months of rent payment relief, expiring June 30, 2026.
Beyond rent, Advance Redding bears responsibility for interior maintenance, utility costs, and capital upgrades to auditorium seating systems. The City retains responsibility for structural systems such as HVAC, windows, restrooms, grounds maintenance, and parking lots. To this end, Advance Redding has paid in excess of $1 Million dollars for various interior maintenance.
The City spends approximately $200,000 annually on exterior maintenance and major mechanical repair.
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
• 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.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
^2026_Advance Redding Grant Agreement
^C-5682 Second Amendment to the Amended and Restated Lease Agreement C-10981 - Grant Agreement - 2025 - Advance Redding
Reso. 2025-074 - Authorizing Financial Support for Advanced Reddings Operations of Redding Civic
C-5682 - First Amendment - 2025 - Advance Redding
(C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement Previous Staff Report - August 19, 2025, item 9.6(d)
Previous Staff Report - September 2, 2025, item 9.6(b)
Previous Staff Report - October 7, 2025, item 9.6 (a)
Previous Staff Report - January 20, 2026, item 9.6(c)
Packet Pg. 363
2026 Grant Agreement – Advance Redding Civic Auditorium Operations Page 1 2026 SHORT TERM GRANT AGREEMENT BETWEEN THE CITY OF REDDING
AND ADVANCE REDDING FOR OPERATIONS OF THE REDDING CIVIC
AUDITORIUM
THIS AGREEMENT, made between the City of Redding a municipal corporation, hereinafter called "CITY," and Advance Redding, a California nonprofit corporation (collectively the “Parties, individually a “Party”) for the purpose of establishing a grant agreement for the operations of the Redding Civic Auditorium.
RECITALS
WHEREAS, the Redding Civic Auditorium (“Civic Auditorium”), formerly known as the Redding Convention Center, has historically served as an entertainment and meeting venue hosting various commercial and community events; and
WHEREAS, Advance Redding leases from the City of Redding (“City”) certain real property located at 700 Auditorium Dr., Redding, CA 96001 (“Premises”), also known as the Civic Auditorium, upon which Advance Redding operates and maintains the Premises as a venue for hosting artistic, cultural, community, educational, performing arts, conventions, trade shows, other community purposes and similar events; and
WHEREAS, the City recognizes the economic and cultural value brought to the community through sustainable operations of the Civic Auditorium; and NOW, THEREFORE, it is mutually agreed by Advance Redding and CITY hereto that:
SECTION 1. SCOPE OF WORK
Advance Redding shall continue to operate the Civic Auditorium as a venue for the duration of this agreement.
SECTION 2. TERM AND TIME OF PERFORMANCE
A. The term of this Agreement _______ months from the date of this Agreement.
B. The City may terminate this Agreement, with or without cause, at any time, by providing Advance Redding with written notice of its intent to terminate the Agreement. The termination will be effective upon delivery of the notice.
C. In no event shall the termination or expiration of this Agreement be construed as a waiver of any right to seek remedies in law, equity or otherwise for a Party’s failure to perform each obligation required by this Agreement.
SECTION 3. AMOUNT AND USE OF FUNDS
City shall provide grant funds to Advance Redding for the continued operation of the Civic Auditorium. Use of CITY’s funds allocated hereunder to Advance Redding shall be subject to the following terms and conditions:
Packet Pg. 364 Attachment: ^2026_Advance Redding Grant Agreement (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic 2026 Grant Agreement – Advance Redding Civic Auditorium Operations Page 2 A. CITY shall provide a grant in an amount not to exceed $________ to Advance Redding to be used for the specific categories of expenses incurred in the operation of the Civic Auditorium identified in Exhibit A.
B. Any funds paid to Advance Redding shall be used solely for the purposes set forth in the List of Approved Expense Categories (Exhibit A) and in accordance with the terms outlined within this contract. No expenditure for any other purpose shall be made without prior amendment of this agreement.
C. Upon termination of this agreement, any funds remaining shall be returned to CITY.
D. Any funds not used for the purposes specified in Exhibit A shall be repaid to CITY in full.
SECTION 4. PAYMENT AND REPORTING
A. Payment of said funds shall be made in equal monthly installments beginning ________ and continuing the 1st of each month until reaching the grant limits identified in Section 2 A and 3 A.
B. Advance Redding shall submit one grant closeout report detailing exact expenditures, with invoices or relevant records, and outcomes prior to the end of the term of this Agreement.
SECTION 5. AUTHORITY TO CONTRACT
A. Each of the undersigned signatories hereby represents and warrants that they are authorized to execute this Agreement on behalf of the respective parties to this Contract; that they have full right, power and lawful authority to undertake all obligations as provided in this Agreement; and that the execution, performance and delivery of this Contract by said signatories has been fully authorized by all requisite actions on the part of the respective parties to this Agreement.
B. The City Manager and/or the Department Director having direct responsibility for managing the services provided herein.
C. This Agreement may be modified or amended only by a written document, executed by both Advance Redding and the CITY. The City Manager, or their designee, shall have signing authority to amend the Agreement, inclusive of Exhibit A, provided the overall compensation noted in Section 3 does not change.
SECTION 6. COMPLIANCE WITH LAWS – NONDISCRIMINATION
A. Advance Redding shall comply with all applicable laws, ordinances and codes of federal, state and local governments.
B. In the performance of this Agreement, Advance Redding shall not discriminate against any employee or applicant for employment because of race, color, ancestry, national origin, religious creed sex, sexual orientation, disability, age, marital status, political Packet Pg. 365 Attachment: ^2026_Advance Redding Grant Agreement (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic 2026 Grant Agreement – Advance Redding Civic Auditorium Operations Page 3 affiliation, or membership or non- membership in any organization. Advance Redding shall take affirmative action to ensure applicants are employed and that employees are treated during their employment without regard to their race, color, ancestry, national origin, religious creed, sex, sexual orientation, disability, age, marital status, political affiliation, or membership or nonmembership in any organization. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training.
SECTION 7. ASSIGNMENT
This Agreement, grant funds, nor any interest in this Agreement, shall not be assigned, or otherwise transferred, in whole or in part, to another party without the prior written consent of the CITY.
SECTION 8. CONTRACT INTERPRETATION, VENUE AND ATTORNEY FEES A. This Agreement shall be deemed to have been entered into in Redding, California. All questions regarding the validity, interpretation or performance of any of its terms or of any rights or obligations of the parties to this Agreement shall be governed by California law. if any claim, at law or otherwise, is made by either party to this Agreement, the prevailing party shall be entitled to its costs and reasonable attorneys' fees.
B. This document, including all exhibits, contains the entire Agreement between the parties and supersedes whatever oral or written understanding each may have had prior to the execution of this Agreement. This Agreement shall not be altered, amended or modified except by a writing signed by CITY and Advance Redding. No verbal agreement or conversation with any official, officer, agent or employee of City, either before, during or after the execution of this Agreement, shall affect or modify any of the terms or conditions contained in this Agreement, nor shall any such verbal agreement or conversation entitle Advance Redding to any additional payment whatsoever under the terms of this Agreement
C. No covenant or condition to be performed by Advance Redding under this Agreement can be waived except by the written consent of City. Forbearance or indulgence by City in any regard whatsoever shall not constitute a waiver of the covenant or condition in question. Until performance by Advance Redding of said covenant or condition is complete, City shall be entitled to invoke any remedy available to CITY under this Agreement or by law or in equity despite said forbearance or indulgence.
D. If any portion of this Agreement or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement shall not be affected thereby and shall be enforced to the greatest extent permitted by law.
E. The headings in this Agreement are inserted for convenience only and shall not constitute a part hereof A waiver of any party of any provision or a breach of this Agreement must be provided in writing, and shall not be construed as a waiver of any other provision or any succeeding breach of the same or any other provisions herein.
Packet Pg. 366 Attachment: ^2026_Advance Redding Grant Agreement (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic 2026 Grant Agreement – Advance Redding Civic Auditorium Operations Page 4 Each Party hereto declares and represents that in entering into this Agreement, it has relied and is relying solely upon its own judgment, belief and knowledge of the nature, extent, effect and consequence relating thereto.
F. Each Party further declares and represents that this Agreement is made without reliance upon any statement or representation not contained herein of any other Party or any representative, agent or attorney of the other Party. The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms, and conditions of this Agreement and that the decision of whether or not to seek the advice of counsel with respect to this Contract is a decision which is the sole responsibility of each of the Parties. Accordingly, no party shall be deemed to have been the drafter hereof, and the principle of law set forth in Civil Code § 1654 that contracts are construed against the drafter shall not apply.
G. Each of the Parties hereto hereby irrevocably waives any and all right to trial by jury in any action, proceeding, claim or counterclaim, whether in contract or tort, at law or in equity, arising out of or in any way related to this Agreement or the transactions contemplated hereby. Each Party further waives any right to consolidate any action which a jury trial has been waived with any other action in which a jury trial cannot be or has not been waived. In the event of a conflict between the term and conditions of the body of this Agreement and those of any exhibit or attachment hereto, the terms and conditions set forth in the body of this Agreement proper shall prevail. In the event of a conflict between the terms and conditions of any two or more exhibits or attachments hereto, those prepared by City shall prevail over those prepared by Advance Redding.
SECTION 9. INSURANCE
A. Grantee’s Insurance. Grantee shall procure and maintain, or cause to be procured and maintained, the insurance required within City of Redding contract C-5682 (Civic Auditorium Lease Agreement).
1. SECTION 10. NOTICES
A. All notices, requests, demands and other communications hereunder shall be deemed given only if in writing signed by an authorized representative of the sender (may be other than the representatives referred to in Section 10) and delivered by facsimile, with a hard copy mailed first class, postage prepaid; or when sent by a courier or an express service guaranteeing overnight delivery to the receiving party, addressed to the respective parties as follows:
Packet Pg. 367 Attachment: ^2026_Advance Redding Grant Agreement (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic 2026 Grant Agreement – Advance Redding Civic Auditorium Operations Page 5 To City:
City of Redding
Attention: Travis Menne
777 Cypress Ave, 2nd Floor
Redding, CA 96001
[email protected]
To Advance Redding:
Advance Redding
Attention: Julie Dyar
700 Auditorium Dr.
Redding, CA 96001
[email protected]
B. Either party may change its address for the purposes of this paragraph by giving written notice of such change to the other party in the manner provided in this Section.
C. Notice shall be deemed effective upon: 1) personal service; 2) two calendar days after mailing or transmission by facsimile, whichever is earlier.
SECTION 11. SEVERABILITY
If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect.
SECTION 12. SECTION HEADINGS AND SUBHEADINGS
The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.
SECTION 13. WAIVER
CITY’s failure to act with respect to a breach by Advance Redding does not waive its right to act with respect to subsequent or similar breaches. The failure of CITY to exercise or enforce any right or provision shall not constitute a waiver of such right or provision.
SECTION 14. ENTIRE AGREEMENT
This Agreement constitutes the entire Agreement between CITY and PROVIDER for the use of funds received under this Agreement and it supersedes all prior or contemporaneous communication and proposals, whether electronic, oral, or written between CITY and PROVIDER with respect to this Agreement.
SECTION 15. DATE OF CONTRACT
The date of this Agreement is the date that it is signed by the City.
Packet Pg. 368 Attachment: ^2026_Advance Redding Grant Agreement (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic 2026 Grant Agreement – Advance Redding Civic Auditorium Operations Page 6 IN WITNESS WHEREOF, CITY and PROVIDER have executed this Agreement on the days and year set forth below:
CITY OF REDDING,
A Municipal Corporation
Dated: , 2026
MIKE LITTAU, MAYOR
ATTEST: APPROVED AS TO FORM:
SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney
ADVANCE REDDING
Dated: , 2026
By: JULIE DYAR, General Manager
Tax ID No.:
Attachments:
Exhibit A (List of Approved Expense Categories)
Packet Pg. 369 Attachment: ^2026_Advance Redding Grant Agreement (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic 2026 Grant Agreement – Advance Redding Civic Auditorium Operations Page 7 Exhibit A
List of Approved Expense Categories • General Operations • Marketing • Event Support Staff • Event Venue Expenses • Utilities • Facilities and Equipment Packet Pg. 370 Attachment: ^2026_Advance Redding Grant Agreement (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic
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A S LUTIC I T Q TI E CITY C l U1 1CIL I+ THE CITY ' DDING APPI OVINaG ' JNI) IN A1VD AU"TH ZING FII TANCIAL SITPP R"T FOR ALI ANCE D DING' S 0 PE TIl 1 1S f F THE DING CI I
AUDI`TC? iJM
WHE A, the Redding Civie Auditorium (" Civic Auditorium"}, forrnerly known as the Redding Convention Center, has historically served as an entertainment and mee ing venue hosting various commercial and corrxmunity events; and
WHE AS, Advance Redding leases frc m the City of Redding (" City) certain real property located at 700 Auditariurn Dr., Redding, A 96001 (" Premises"), al o known as the Civic Auditorium, upon which Advance Redding aperates and rnainta ns the Premises as a venue for hosting artistic, cultural, community, educational, performing arts, eonventions, trade shows, other community purposes and similar events; and
WI EI2EAS, the City recognizes the ect nomic and cultural value brought ta the community through sustainable operations of the Civic Auditorium, and WHE ' AS, zn 2014 the Redding City Council adopted Resolution No. 2014- t 25 which dir cted the City Manager to deposit the $ 600, 000 in proceeds fr m a eal estate purchase and sale agreement between the City of Redding anc The McConnell Foundation for the Sheraton Hotel property, into an accaunt established to be utilized for the sale purpose of costs related to capital improvements and deferred mait tenance to the Civic Auditorium; and WHE AS, with the addition of ongoing ease payments and interest, the cui rent balance of tl e accaunf is $675>445. 57; and
VVI- E , at their August 19, 2t 25, meeting, the Redding City Ct uncil directed staff ta release the entirety of said funds to Advance Redding through a grant greement for the sol purpose of supporting aperations of the ivic Audit rium, pursuant to the requirements of the grant agreement;
NO W, TgI Ft , BE IT 50L ED TH..AT THE ' IT' COUNCI., f F THE CITY O' DDIN HE BY t UTHt ZES T FClLLI` WI101G:
l. The use af sa d fi nds are redirected from thas uses outlined in Resc lution No. 2d14- 025 and redirected to supporting Advance Redding' s operating costs at the Civic Auditorium; and
2. The Mayor is authorized to negotiate and enter into a grant agreement, not to exceed 675, 445.2, with Advance Redding for the sole use to support its operating costs at the Civic Auditorium.
Packet Pg. 381 Attachment: Reso. 2025-074 - Authorizing Financial Support for Advanced Reddings Operations of Redding Civic (9.6(a)--Provide Direction on I HE BY C R' IF' that the foregoing resolution was introduced and adopted at a regular meeting of the City Councii of the City of Redding on the 2nd day of 5epfiember, 2025, by the following vote:
AYES. CO TNCIL 1t dEMBERS. - ETTE, LITTAU, SNER, M[ T10TNS N tES; CO.. TNCIL ld'iE ERS; - N(JNE
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Packet Pg. 382 Attachment: Reso. 2025-074 - Authorizing Financial Support for Advanced Reddings Operations of Redding Civic (9.6(a)--Provide Direction on Packet Pg. 383
Attachment: C-5682 - First Amendment - 2025 - Advance Redding (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Packet Pg. 384
Attachment: C-5682 - First Amendment - 2025 - Advance Redding (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Packet Pg. 385
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CI TY OF REDDMG
114)
e 777 CYPRESS AVENUE, REDDING, CA 96001
P.O. Box 496071. REDDING CA 96049- 6071
PAMELA MIZE, CITY CLERK
SHARLENE TIPTON, ASSISTANT CITY CLERK
530 225 4447
530 225 4463 FAX
December 21, 2021
Advance Redding, Inc.
Attn: Julie Dyar
700 Auditorium Drive
Redding, CA 96001
RE: Amended and Restated Civic Auditorium Lease Agreement, C- 5682 Dear Julie Dyar,
Enclosed please find the fully executed original of the above referenced Amended and Restated Civic Auditorium Lease Amendment by and between the City of Redding and Advance Redding, Inc. regarding the long term lease for the civic auditorium.
If you have any questions regarding this agreement, or if we can be of assistance, please contact the Office of the City Clerk at ( 530) 225- 4044.
Sincerely,
Amber DalPoggetto
Executive Assistant
Enclosure
cc: Barry Tippin
Barry DeWalt
Angie Ryan
Kim Niemer
Ellen Grannis
Casey S. Hale
Packet Pg. 387 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance
AMENDED AND RESTATED
CIVIC AUDITORIUM LEASE AGREEMENT
THIS AMENDED AND RESTATED CIVIC AUDITORIUM LEASE ("Agreement") fully amends, supersedes, and restates in its entirety the following as of January 1, 2022:
THE CONVENTION CENTER LEASE ( C- 5682) dated October 5, 2011 Original Lease", herein), by and between the CITY OF REDDING, a Municipal Corporation (" Landlord"), and ADVANCE REDDING, INC., (" Advance Redding", and/ or" Tenant"),
As amended by the First Amendment to Convention Center Lease dated August 21, 2012,
As amended by the Second Amendment to Convention Center Lease dated September 17, 2015,
As amended by the Third Amendment to Convention Center Lease dated May 4, 2017, and
As amended by the Fourth Amendment to Convention Center Lease dated September 9, 2021.
WHEREAS, the Redding Civic Auditorium (" Civic Auditorium"), formerly known as the Redding Convention Center, has historically served as an entertainment and meeting venue hosting various commercial and community events.
WHEREAS, Tenant desires to lease from the City of Redding certain real property located at 700 Auditorium Dr., Redding, CA 96001 (" Premises"), upon which Tenant may at Tenant' s sole discretion and for Tenant' s account, operate and maintain the Premises as a venue for hosting artistic, cultural, community, educational, performing arts, and similar events; conventions and trade shows; and regular ongoing use for educational or community purposes in accordance with Tenant' s requirements and on the conditions set forth herein (" Tenant' s Use).
WHEREAS, the City of Redding (" City") desires to lease the Premises to Tenant upon the terms and conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration hereby acknowledged, City and Tenant enter into this Lease Agreement (" Agreement") effective as of the date this Agreement is signed by both City and Tenant as follows:
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Packet Pg. 388 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance SECTION 1. DEFINITIONS.
A. Commencement Date. The Commencement Date is January 1, 2022.
B. Property.
1. The " Property" in all of the real property of the Civic Auditorium comprising approximately 9. 76 acres, situated in the City of Redding, County of Shasta, State of California, legally described on Exhibit A and depicted on Exhibit B, attached and incorporated herein, inclusive of all Improvements now or hereafter located thereon.
2. Tenant shall schedule use for the front lawns at the Redding Civic Auditorium depicted in Exhibit C. City shall provide maintenance services for this area consistent with this Lease Agreement. The lawn areas shall continue to be open to public use when not specifically reserved.
C. Event Day. An event day is a calendar day in which the Premises is leased or used for a Special Event, a City Free Use Day, a community event not associated with Bethel Church of Redding ( the " Church"), or the City occupies the Premises in the event of a natural disaster.
D. Improvements. The Improvements are listed and described in Sections 6.A. and
6. B., and all other improvements and facilities on the site including, but not limited to, appurtenant fixtures, machinery and equipment necessary for the operation of the Premises.
E. Lease Year. " Lease Year" means January 1 through December 31.
F. Month. " Month" means a calendar month.
G. Premises. The " Premises" are the Property, the Improvements and Tenant' s right to use the appurtenances located thereon.
H. Rent. " Rent" means rent as set forth under Section 3.B.
I. Term. " Term" means the term of this Agreement as set forth under Section 3.A.
SECTION 2. LEASE AND ACCOMMODATION OF SPECIAL EVENTS.
A. Lease of Premises. For and in consideration of Tenant' s covenant to pay Rent and its performance of other obligations in accord with the terms and conditions set forth herein, City leases the Premises to Tenant for the Term set forth in Section 3 and Tenant accepts lease of the same. Tenant hereby covenants that the Premises shall be marketed, and in all respects referred to, as the Redding Civic Auditorium.
2 Packet Pg. 389 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance B. Obligation to Sublet or Authorize Use of Premises. As consideration for the grant of the right to occupy the Premises under the terms and conditions set forth herein, Tenant shall sublet or otherwise authorize use of the Premises for a minimum of sixty (60) Event Days during each Lease Year. To the extent that the City wishes to use the Premises during an Event Day, Tenant and City agree to use their best efforts to coordinate that use so that it does not interfere with Tenant' s use of the Premises or Tenant' s performing its obligations hereunder, including but not limited to Sections 2. B. and 2. C.
C. Special Events. The obligation set forth in Section 2.B. shall include Tenant' s obligation to sublet or otherwise authorize use of the Premises for the following Special Events:
1. Kool April Nites.
2. Redding Rodeo Days ( Parking Lot Only).
3. 3 on 3 Basketball Tournament ( June Event— Parking Lot Only).
4. Turtle Bay Auction.
5. California Deer Dinner.
6. Memorial Day Ceremony ( Outside Only).
7. Redding State of the City Luncheon.
8. July
4th
Freedom Festival.
9. One other two- day weekend as requested by the Redding Rodeo Association, provided that the event, is booked at least six months prior to the use dates, and provided further that such weekend date is not already under contract at the facility.
D. Scheduling. Tenant hereby acknowledges that the scheduling of the Special Events listed under Section 2. C. is not subject to specific dates and times and that scheduling will vary from Lease Year to Lease Year. Tenant hereby agrees to give priority scheduling to the Special Events.
E. Remedies. In the event of Tenant' s breach of Section 2. B or 2. C, City may, in its sole discretion, exercise the remedies set forth in Section 14 with regard to default or, in the alternative, City may require payment by Tenant of the sum of Two Thousand ($ 2, 000) Dollars, as liquidated damages and not as a penalty, for each Event Day not accomplished during the Lease Year. In establishing the liquidated damages set forth herein, the Parties agree and hereby confirm that it is impracticable to fix actual damages for breach of Sections 2. B. and 2. C. Tenant shall pay the same within thirty ( 30) calendar days upon receipt of written 3 Packet Pg. 390 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance demand from City. Notwithstanding the preceding, Tenant shall not be deemed to be in violation of Section 2. B or 2. 0 if it sublets or otherwise authorizes use of the Premises for a minimum of sixty ( 60) event days per calendar year calculated using a three ( 3) year rolling average that includes the current calendar year and the two (2) calendar years immediately preceding the current calendar year.
F. Use of Premises— Natural Disaster. In the event of a natural disaster, City may occupy the Premises if, in the City' s sole discretion, such occupation is reasonably required for the health, safety, and welfare of the residents of Redding provided it does not interfere with Tenant' s use of the Premises or Tenant' s performing its obligations hereunder, including but not limited to Sections 2.B. and 2. C. Such occupation may last only until such time as the natural disaster has concluded and reasonable time has elapsed to allow for evacuation of the Premises and relocation of the occupants located on the Premises due to such natural disaster. To the extent that Tenant incurs costs or expenses ( including but not limited to utilities and set up and tear down) directly related the City' s occupation of the Premises in the event of a natural disaster, City shall reimburse Tenant for those costs and expenses.
G. City Free Use Days. Upon ten ( 10) calendar days' notice to Tenant, City shall be permitted to use the Premises for municipal purposes, without the obligation to pay rent, in whole or in part, provided that use does not interfere with Tenant' s use of the Premises or Tenant' s performing its obligations hereunder, including but not limited to Sections 2. B. and 2. C. Tenant shall make a good faith effort to accommodate such City use. To the extent that Tenant incurs costs or expenses directly related to City' s use of the Premises for a City Free Use Day ( including but not limited to utilities and set up and tear down), City will reimburse Tenant for those costs and expenses. Upon thirty ( 30) calendar day' s notice to City, Tenant may cancel a City Free Use Day if Tenant lets the Premises after the City has scheduled a City Free Use Day and Tenant can no longer accommodate City' s use of the Premises during the City Free Use Day.
H. Fire Department Training. Tenant shall permit the parking lot of the Civic Auditorium to be used without cost to City for training by City departments provided that use does not interfere with Tenant' s use of the Premises or Tenant' s performing its obligations hereunder, including but not limited to Sections 2. B. and 2. C.
SECTION 3. TERM AND RENT.
A. Term. The term of this Agreement shall commence on January 1, 2022. The Term shall end on December 31, 2031, unless terminated earlier pursuant to Section 14. No provision is made herein for automatic renewal. 4 Packet Pg. 391 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance B. Rent. Tenant covenants and agrees to pay Rent as follows:
January 1, 2022 —December 31, 2022 - Ten Thousand Dollars ($ 10, 000)/ month.
January 1, 2023 - December 31, 2023 The monthly rate of $23, 356 will be adjusted upward or downward by the percentage of increase or decrease in the U. S. Bureau of Labor Statistics West Coast Mid- Size Cities B/ C June- July CPI with said adjustment to be made effective on January 1, 2023.
January 1, 2024 - December 31, 2024 —The monthly rent as of January 1, 2023 will be adjusted upward or downward by the percentage of increase or decrease in the U. S. Bureau of Labor Statistics West Coast Mid-Size Cities B/ C June- July CPI with said adjustment to be made effective on January 1, 2024.
January 1, 2025— December 31, 2031 - Ten Thousand Dollars ($ 10, 000)/ month.
Adjusted Rent. Notwithstanding the foregoing, Tenant shall notice Landlord upon receipt of written notice by Church of intent to terminate sublease agreement. Tenant shall pay the adjusted rate of Five Thousand Dollars 5, 000)/ month commencing up to twelve months after receipt of notice for the duration of the term. Should the Church continue to sublet the Premises beyond notice, Tenant shall pay the full value of the rent for months outside the twelvemonth period.
C. Rent Payments. Tenant shall pay Rent hereunder in equal monthly installments, in advance, on or before the tenth ( 10th) day of each Month. Rent in lawful money of the United States of America. Unless otherwise provided in this Agreement, all payments of Rent shall be made by Tenant to City without notice or demand.
SECTION 4. WARRANTIES AND COVENANTS.
A. City' s Warranties. City represents, warrants and covenants that as of the Commencement Date:
1. Power and Authority. City is a public body corporate and politic, duly formed, validly existing and in good standing under the Laws of the State of California. City has the authority and power to enter into this Agreement and to consummate the transaction provided for herein. This Agreement and all other documents executed and delivered by City have been duly authorized, executed and delivered by City and constitute legal, valid, binding and enforceable obligations of City. City has no defenses or offsets whatsoever to the enforceability or validity of this Agreement. The person executing this Agreement on behalf of City has been duly authorized to do so.
5 Packet Pg. 392 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance
2. No Violations and Actions. The execution, delivery and performance by City of its obligations under this Agreement will not conflict with or result in a breach of any Law (as defined in Section 4. C. 3.), judgment, decree or order by which City or the Premises, or any part thereof, is bound, or the provisions of any contract or other agreement to which City is a party or by which City or the Premises, or any part thereof, is bound and, if City is not an individual, City' s articles of organization, declaration of trust, certificate of incorporation, bylaws, partnership agreement, operating agreement or other organizational documents, as the case may be. The foregoing specifically applies, without limitation, to the City' s tax- exempt bonds described in Section 5. C. hereof. There is no action, suit, proceeding ( including, without limitation, any condemnation proceeding) or investigation pending, or to City' s knowledge threatened, before any agency, court or other governmental authority which relates to the Premises, or any part thereof, or the use thereof.
3. Condemnation; Moratorium. There are no condemnation or eminent domain proceedings pending, or to City' s knowledge threatened or contemplated, against the Premises, or any part thereof. City has not received any notice, oral or written, of the desire of any public authority or other entity to take or use the Premises, or any part thereof. No moratorium or other Law, judgment, ruling or decree of any court or governmental agency has been enacted, adopted, issued, entered, or is pending or in effect, that could materially and adversely affect the Premises or Tenant' s ability to develop and operate Tenant' s Use on the Property.
4. Insolvency Matters. No insolvency Event of Default has occurred.
5. Misrepresentation and Adverse Facts. City has not failed to disclose any fact that is material to the transaction contemplated in this Agreement that is either known by City or not reasonably ascertainable by Tenant.
B. Tenant' s Warranties. Tenant represents and warrants that as of the Commencement Date:
1. Power and Authority. Tenant is a nonprofit Public Benefit corporation in good standing, duly formed and validly existing under the Laws of the State of California. Tenant is qualified to do business in the State of California.
Tenant has the authority and power to enter into this Agreement and to consummate the transaction provided for herein. This Agreement and all other documents executed and delivered by Tenant constitute legal, valid, binding and enforceable obligations of Tenant. There are no claims or defenses, personal or otherwise, or offsets whatsoever to the enforceability or validity of this Agreement. The person executing this Agreement on behalf of Tenant has been duly authorized to do so.
6 Packet Pg. 393 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance
2. No Violations or Actions. The execution, delivery and performance by Tenant of its obligations under this Agreement will not conflict with or result in a breach of any Law, judgment, decree or order by which Tenant is bound, or any contract or other agreement to which Tenant is a party or by which Tenant is bound, or Tenant' s certificate of incorporation or bylaws.
3. Misrepresentation and Adverse Facts. Tenant has not failed to disclose any fact that is material to the transaction contemplated in this Agreement that is either known by Tenant or not reasonably ascertainable by City.
C. City' s Covenants. From and after the Commencement Date, City covenants to perform in accordance with the following obligations:
1. Transfer by City; Liens and Encumbrances. Subject to the rights of the Tenant under this Agreement, City may sell, assign or convey any right, title or interest in or to the Premises, which act will not terminate this Agreement. Furthermore, if any transfer by City of an interest in the Premises results in an increase in real property taxes or assessments including, without limitation, due to a change in ownership under Article XIII of the California Constitution), City shall be responsible for and shall indemnify and hold Tenant harmless from such increase.
2. Representations and Warranties. City shall not take any action, or omit to take any action, which would have the effect of violating or rendering untrue any representation, warranty, covenant or agreement contained herein.
3. Governmental Orders; Compliance with Laws. City shall not violate any federal, state or local laws, rules, statutes, directives, binding written interpretations, binding written policies, ordinances and regulations or common law doctrines, as same have been amended, modified or supplemented from time to time (" Law") with respect to the Premises and shall at all times comply with all Laws applicable to the Premises. City promptly shall correct any violation of any Law of which City becomes aware which was not caused by Tenant or any subsidiary, parent or other entity that controls, is controlled by or is under common control with Tenant.
D. Tenant' s Covenants.
1. Transfer by Tenant. Tenant shall not, without the prior approval of City, convey any right, title or interest in or to the Premises. Further, Tenant shall not be entitled to encumber the leasehold or otherwise us its interest in the premises as security.
Packet Pg. 394 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance
2. Representations and Warranties. Tenant shall not take any action, or omit to take any action, which would have the effect of violating or rendering untrue any Tenant representation, warranty, covenant or agreement contained herein.
3. Governmental Orders; Compliance with Laws. Tenant shall not violate any federal, state or local laws, rules, statutes, directives, binding written interpretations, binding written policies, ordinances and regulations or common law doctrines, as same have been amended, modified or supplemented from time to time with respect to the Premises and shall at all times comply with all Laws applicable to the Premises. Tenant promptly shall correct any violation of any Law of which Tenant becomes aware which was not caused by Tenant or any subsidiary, parent or other entity that controls, is controlled by or is under common control with City.
SECTION 5. UTILITIES; TAXES; PERMITTED CONTESTS
A. Utilities. Beginning on the date the Term commences, Tenant shall pay or cause to be paid, and shall indemnify, defend and hold harmless City from all charges for public or private utility services supplied to the Premises including, but not limited to, all charges for heat, light, electricity, water, gas, telephone service, garbage collection, sewage, and drainage services. All accounts will be transferred to Tenant. Notwithstanding the foregoing, City will pay or cause to be paid the pro rata share of charges for public or private utility services supplied to the Premises that result from the City' s use of the Premises for uses including, but not limited to, City Free Use Days and City occupation of the Premises resulting from natural disaster.
B. Taxes.
1. Impositions. Beginning on the Commencement Date, Tenant shall pay prior to delinquency each and every one of the following arising during the Term ( collectively, the " Impositions"):
A. Except as otherwise expressly provided in this Agreement, all real property taxes or payments in lieu thereof, including but not limited to possessory interest taxes due under Revenue and Taxation Code section 107 et seq., due with respect to the Property and Improvements or any portion thereof( This provision shall not be construed to require Tenant to pay any amount to City' s general fund, which may represent an " in lieu" transfer);
B. All taxes imposed on or with respect to Tenant' s personal property, inventory and intangibles;
8 Packet Pg. 395 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance C. All assessments for public improvements or benefits which are assessed or payable during the Term with respect to the Property; and
D. All other charges, excises, levies, license fees, permit fees, inspection fees and other authorization fees and other charges including interest and penalties thereon), which at any time during the Term may be assessed, levied, confirmed or imposed on or in respect of or right or interest in the Premises, or any occupancy, use or possession of or activity conducted thereon or any part thereof, expressly excluding, however, any such items arising directly or indirectly out of any act or omission of City.
2. Installments. If by Law any Imposition may at the option of the taxpayer be paid in installments, Tenant, if obligated to pay such Impositions by the terms of this Agreement, may exercise such option, and shall pay all such installments ( and interest, if any) becoming due during the Term following the Commencement Date. At the end of the Term, Tenant shall deposit with City an amount sufficient to pay Tenant' s pro rata share of all Impositions for the Lease Year in which this Agreement expires or sooner terminates. All Impositions payable by Tenant shall be prorated as of the Commencement Date and the expiration or sooner termination of the Term.
3. Tax Statements. If the tax statement in respect of any Impositions covers only the Premises, City and Tenant shall use commercially reasonable efforts to have the tax statement sent directly to Tenant. If the tax statement is sent directly to Tenant, then Tenant will furnish a copy of such statement to City promptly following City' s written request therefore.
In the event such tax statement is not sent directly to Tenant, then City shall promptly forward such tax statement to Tenant, and Tenant shall not be obligated to pay such Impositions, or any portion thereof, sooner than thirty ( 30) days after City shall have provided Tenant a copy of such statement. City shall be liable for any late payment penalties or interest that result from City' s failure to forward any such tax statement to Tenant at least thirty( 30) days prior to the date payment is due.
4. Permitted Contests. Tenant, at its sole cost and expense, may by appropriate legal proceedings conducted in good faith and with reasonable diligence, contest the amount or validity or application, in whole or in part, of any Imposition or of any lien therefore imposed upon the Premises if such proceedings suspend the collection thereof from City, Tenant and the Premises or Tenant has furnished such security, if any, as may be required in the proceedings. Tenant shall give City reasonable notice of the commencement and final disposition of such proceedings. City shall join in any such proceedings as may be necessary or appropriate to 9 Packet Pg. 396 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance prosecute such proceedings properly, and City shall cooperate in any contest conducted by Tenant; provided, however, that any such contest shall be taken without any third-party expense to City. Any refunds obtained pursuant to any contest conducted by Tenant shall be payable to Tenant, and Tenant is authorized to collect the same. Within thirty ( 30) days after Tenant' s receipt of the same, Tenant shall pay to City any refunds, or portions thereof, attributable to Impositions previously paid by City and not attributable to Tenant' s share of same, net of Tenant' s expenses of obtaining such refunds.
C. Tax-Exempt Financing. Tenant acknowledges that City has financed a portion of the cost of construction of the Civic Auditorium or has otherwise encumbered the Premises with tax-exempt bonds. Except for any actions that Tenant is directed to take by City, Tenant hereby agrees that it will not knowingly take any actions that would result in the bonds becoming " private activity bonds" or would otherwise cause the interest on the bonds to become subject to federal income taxes. City will provide Tenant counsel and advice on what actions would result in the bonds becoming " private activity bonds", and will timely give Tenant written notice, with sufficient time to cure, of any Tenant actions that would result in the bonds becoming " private activity bonds". In the event any term or condition in this Agreement shall cause City or Tenant to violate any underlying covenant or condition associated with the bonds or this Agreement, the Parties agree to amend this Agreement in a manner to avoid violating any underlying covenant or condition associated with the bonds; however, if such required amendment materially reduces Tenant' s rights under this Agreement, as determined by Tenant, Tenant may terminate the Agreement without penalty.
SECTION 6. CONSTRUCTION; ALTERATIONS; OWNERSHIP; MAINTENANCE A. Tenant' s Obligations. In addition to all routine maintenance outlined in this agreement, Tenant shall substantially upgrade the auditorium seating system, including but not limited to seats, platforms, lifts, and stairs over the life of this agreement. All work shall be performed in substantial compliance with all applicable Laws of all governmental agencies having jurisdiction over such work.
No construction or alteration which would cause a permanent alteration to the Premises may be commenced by Tenant without the prior written approval of City.
B. Landlord' s Obligations. City shall be responsible for the upgrades and/ or replacements of the HVAC system, restrooms, exterior doors and windows, Auditorium parking lots, and interior carpeting.
I0
Packet Pg. 397 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance C. Timing of Capital Improvement Projects.
The timeline for the obligations included in Sections 6. A and 6. B above will be agreed upon by both parties by January 1, 2025. If repairs or replacements are required in advance of January 1, 2025, the responsible party as outlined in Sections 6. A and 6. B is obligated to fund and complete the repair in a timely manner.
D. Permits; Compliance with Codes. Tenant, at its sole cost and expense, shall obtain all permits and other licenses, permissions, consents and approvals required to be obtained from governmental agencies or third parties in connection with Tenant' s construction or alteration of the Improvements and any subsequent improvements, repairs, replacements or renewals to the Premises by Tenant as required by applicable Laws. City agrees to cooperate reasonably with Tenant and all governmental authorities having jurisdiction to facilitate Tenant' s construction, maintenance and operation of the Premises, including, without limitation, City' s joinder in documents relating to the granting of the permits and other similar matters.
E. Ownership of Improvements. During the Term, the Improvements and all additions, alterations and improvements to the Improvements, and all appurtenant fixtures, machinery, furniture, equipment, and other personal property installed therein, shall be in possession of Tenant. City hereby waives any statutory or common law City' s lien in the Improvements or any of Tenant' s property therein.
At the expiration or sooner termination of this Agreement, the Improvements and all additions, alterations and improvements thereto or replacements thereof, except for such of Tenant' s and Tenant' s authorized sub-tenant' s fixtures, machinery, furniture, equipment, and other personal property removed pursuant to Section 6. G hereof, shall be in possession of City and title shall pass thereto.
1. Any Improvement or equipment purchased by Tenant which has as its purpose the replacement of City property on the Premises or which has been affixed to the Premises shall remain in place upon termination of the Agreement and become the sole property of City.
2. Title of two ( 2) forklifts shall be returned to City by Tenant upon termination of the Lease Agreement. Tenant may return title upon ninety 90) calendar days' written notice to City.
F. Maintenance. Tenant, at its sole cost and expense, shall maintain the interior of the Premises and all Improvements in good condition, normal wear and tear excepted, and City shall have no duty of repair. Tenant shall provide maintenance and record such maintenance at the intervals prescribed by City pursuant to Exhibit D (" Maintenance Schedule") and Exhibit E (" Maintenance Compliance Sheet"), attached and incorporated herein. Notwithstanding the Packet Pg. 398 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance preceding, City shall maintain the roof, HVAC systems, elevator, window integrity as against weather, landscaping, parking lot, and roads.
G. Surrender Upon Termination. Upon expiration or sooner termination of this Agreement, Tenant shall surrender the Premises to City in an " as- is, where- is" condition, with all faults, latent or patent, without representation or warranty, but broom clean and in compliance with this Section 6. G, as of the date of surrender.
1. Obligation to Remove Equipment and On- site Modular Units. Upon the surrender of the Premises to City, Tenant shall remove all equipment, modular office trailers, storage units, and personal property as follows:
A. Cause all fixtures, machinery, furniture, equipment, and other personal property used by Tenant to operate its business, including, without limitation, office equipment, furniture, kitchen equipment and supplies to be removed from the Premises; and
B. In connection with Tenant' s removal of such items, Tenant agrees to do the following as may be necessary in order to surrender the Premises in a safe condition and to satisfy any applicable code requirements: ( i) " cap off' ( either at the wall, ceiling or floor, as appropriate) all electrical wiring and other utility supply lines ( e. g., coolant lines) servicing any such equipment ( specifically excluding, however, all fire sprinkler lines which will not be moved or altered except to the extent necessary to preserve the structural integrity of such lines as they may be affected by the removal of any merchandise racking and other personal property), and ( ii) in those instances where any such equipment was anchored to the floor, cause any anchoring bolts or similar connectors to be ground down flush with the flooring.
2. Abandoned Equipment and On- site Modular Units. If Tenant fails to remove any fixtures, machinery, furniture, equipment, office trailers, storage units, and other personal property at expiration or sooner termination of this Agreement or within a thirty ( 30) days after notice to City specifying the manner in which City contends Tenant has failed to comply with Section 6.F hereof, the same shall be considered abandoned to City, and City may dispose of such property as it deems necessary.
Tenant shall reimburse City for the costs it reasonably incurred to dispose of such property.
H. Mechanic' s Liens. In the event any mechanic' s lien is filed against the Premises, the party permitting or causing such lien to be filed ( the " Permitting Party") hereby covenants promptly either ( a) to pay the same and have it discharged of record, ( b) to take such action as may be required to reasonably and legally object to such lien, or ( c) to have the lien removed from the Premises and, in all events, 12 Packet Pg. 399 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance agrees to have such lien discharged prior to the entry of judgment for foreclosure of such lien. Upon request of the other party ( the " Non-Permitting Party"), the Permitting Party agrees to furnish such security or indemnity as may be required, to and for the benefit of the Non-Permitting Party, to permit an endorsement to the Non- Permitting Party' s title policy to be issued relating to the Non- Permitting Party' s property without showing thereon the effect of such lien. If City or Tenant fails to comply with subdivisions ( a) — ( c), above, the Non-Permitting Party is hereby granted the right, but not the obligation, to bond against or otherwise discharge any such lien and, if the Non- Permitting Party exercises this right, the Permitting Party promptly shall reimburse the Non- Permitting Party upon demand for any and all costs and expenses incurred, including, without limitation, court costs and attorneys' fees, in connection therewith, including interest thereon at the rate set forth in Section 15. M.
License to Use City Equipment. City hereby conveys a license to Tenant to use box office computers and printers and other equipment set forth in Exhibit F Equipment Schedule"), attached and incorporated herein. Notwithstanding the preceding, Tenant shall, without cost to City, permit City' s use of any such equipment upon twenty-four (24) hours' notice to Tenant, provided that use does not interfere with Tenant' s performing its obligations hereunder, including but not limited to Sections 2.B. and 2. C. If any equipment set forth in Exhibit F is damaged or requires replacement, Tenant shall replace or repair said equipment.
SECTION 7. DAMAGE OR DESTRUCTION
A. Tenant Repair. In the event of any damage to or destruction of any of the Improvements located on the Premises Tenant shall, at its sole cost and expense, repair said damage. Tenant shall commence such repair no later than ninety ( 90) calendar days after the event causing said damage or destruction and diligently pursue the same to completion.
B. No Termination of Agreement; Abatement of Rent. This Agreement shall not be terminated because of damage to or destruction of any Improvements on or in the Premises. If such damage or destruction occurs and renders all or a portion of the Premises untenantable or unusable, then Rent shall thereafter abate for as long as and in proportion to the reduction in rental value of the Premises based on the extent to which the Premises are untenantable or unusable, as mutually determined by the parties. However, no abatement in Rent shall be required to the extent the destruction or damage to the Premises was caused by the Tenant' s negligence.
13 Packet Pg. 400 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance SECTION 8. INSURANCE
A. Tenant' s Insurance. Tenant shall procure and maintain, or cause to be procured and maintained, the following types of insurance with respect to the Premises and Improvements thereon, at Tenant' s sole cost and expense:
1. Commercial General Liability Insurance. Commercial general liability insurance in an amount not less than One Million Dollars ($ 1, 000, 000) for each occurrence and Two Million Dollars ($ 2, 000,000) general aggregate, insuring against claims for bodily injury, personal injury and property damage sustained in, on or about the Premises, operations on the Premises, independent contractors, products/ completed operations, personal and advertising injury and contractual liability.
2. Automobile Liability Insurance. Commercial automobile liability insurance insuring against claims for bodily injury, personal injury and property damage arising out of the ownership, maintenance or use of any owned, non- owned or hired vehicles with a combined single limit of not less than One Million Dollars ($ 1, 000,000) for each occurrence.
3. Workers' Compensation and Employer' s Liability. Workers' Compensation insurance in accordance with applicable governmental requirements. Employer' s liability insurance insuring against claims alleging employer negligence that result in work-related injuries, illness or death that are not covered under applicable workers compensation statutes in an amount not less than One Million Dollars ($ 1, 000, 000) for each accident or disease.
4. Property Insurance. Property insurance insuring against damage to the Premises and any Improvements located on the Improvements in an amount not less than One Million Dollars ($ 1, 000,000).
5. Umbrella Liability Insurance. Umbrella/excess liability insurance that applies in addition to and in excess of the insurance required pursuant to this Section 8. A in the amount of not less than Five Million Dollars 5, 000,000) for each occurrence and general aggregate.
6. Additional Insured. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of the operations of Tenant. The coverage shall contain no special limitations of the scope of protection afforded to the City, its officers, officials, employees, agents or volunteers.
7. Primary. For any claims related to this Agreement, the Tenant' s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents or volunteers. Any insurance or self14 Packet Pg. 401 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance insurance maintained by City, its officers, officials, employees, agents or volunteers shall be excess of the Tenant' s insurance and shall not contribute with it.
B. Terms of Insurance.
1. Evidence of Insurance. Tenant shall provide City with evidence of the insurance required hereunder. Such evidence may include a certificate of insurance, a memorandum of insurance or a statement from a licensed insurance broker or insurance company as to the coverage provided. City shall have the right to review Tenant' s actual policy documentation.
2. Terms of Tenant' s Insurance. All policies of insurance described in Section 8. A: ( a) with respect to the coverage required therein, shall be written as primary policies and any other policies maintained by City that may provide overlapping, duplicative or additional coverage shall be deemed excess and non- contributing; ( b) shall be written by insurance companies that have a then current A. M. Best' s
rating of" A", " VII" or an
equivalent rating, or better, and that are licensed, admitted or otherwise authorized to do business in the State of California; ( c) may be provided by group or blanket policies carried by Tenant, provided such group or blanket policies substantially fulfill the requirements specified herein; and d) with respect to liability insurance, shall be written on an " occurrence based" form and provide contractual liability coverage with respect to any indemnity obligation set forth in this Agreement. For the insurance required under Section 8.A, City and, if requested in writing by City, any mortgagee of City shall be named as an " additional insured". A party that is to be named as an additional insured need not be named individually or by an endorsement to such policy, but may be named as part of a class or group of parties granted additional insured status under such policy.
3. Deductibles and Self-Insurance. Tenant shall have the right to have such deductibles and/ or self-insured retentions as Tenant determines to be prudent, provided that no deductible or self-insured retention shall exceed One Hundred Thousand Dollars ($ 100, 000. 00).
SECTION 9. CONDEMNATION
A. Total Taking. In the event of the taking or condemnation by any competent authority of the whole or materially all of the Premises at any time during the Term ( a " Total Taking"), the right of City and Tenant to share in the proceeds of any award for the Premises, the Improvements and damages upon any such Total Taking shall be as follows:
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1. Termination of Agreement. The Term shall cease as of the date of possession by the condemnor and all Rent shall be apportioned as of the date of possession.
2. Removal of Improvements. There shall be paid from the condemnation award any expenses required with respect to the demolition or removal of any remaining Improvements on the Property upon termination of the Agreement.
3. City' s and Tenant' s Shares. City and Tenant shall each receive the present value of their respective interests in the leasehold estate created by this Agreement and Improvements, together with interest thereon from the date of taking to the date of payment at the rate paid on the award, and attorney' s fees and other costs to the extent awarded.
B. Partial Taking. In the event of a partial taking or condemnation of the Premises, e. g., a taking or condemnation that is not a Total Taking or a temporary taking ( a Partial Taking"):
1. Rent Abatement and Effect on Event Days. Except as provided in Section 7. B., the Term of this Agreement shall continue but the annual Rent to be paid by Tenant under Section 3. B shall thereafter be reduced in the ratio that the rental value of the portion of the Premises taken or condemned ( determined on a square footage or other equitable basis) bears to the rental value of the entire Premises at the time of the Partial Taking, as mutually determined by the parties. Additionally, each day a Partial Taking occurs shall count as an Event Day for purposes of Sections 2. B. and 2. C. hereof.
2. Award. Any award paid in respect of a Partial Taking, whether this Agreement continues or is terminated, shall be divided and shared by City and Tenant as provided in Section 9. A.3 hereof.
3. Restoration. As to the Premises not taken in such condemnation proceeding, Tenant shall proceed diligently, to the extent the portion of the condemnation award paid to Tenant or City is sufficient for such purpose, to restore, repair or reconstruct the Premises, to the extent practicable, to a functional unit of substantially the same usefulness, design, construction and quality as existed prior to such Partial Taking.
4. Successive Takings. In case of a second or any other additional Partial Taking from time to time, the provisions of this Section 9. B shall apply to each such Partial Taking.
C. Temporary Taking. If the whole or any part of the Premises or of Tenant' s interest under this Agreement is taken or condemned by any competent authority 16 Packet Pg. 403 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance for its temporary use or occupancy, ( a) Tenant shall continue to pay, in the manner and at the times herein specified, the full amounts of the Rent and all Impositions and other charges payable by Tenant hereunder, ( b) this Agreement shall continue and, ( c) except only to the extent that Tenant may be prevented from so doing pursuant to the terms of the order of the condemning authority, Tenant shall perform and observe all of the other terms, covenants, conditions and obligations hereof upon the part of Tenant to be performed and observed as though such taking or condemnation had not occurred. In the event of any such temporary taking or condemnation, Tenant shall be entitled to receive the entire amount of any award made for such taking, whether paid by way of damages, rent or otherwise, unless such period of temporary use or occupancy shall extend to or beyond the expiration date of the Term of this Agreement, in which case such award shall be apportioned between City and Tenant as of such date of expiration of the Term. Additionally, each day a Temporary Taking occurs shall count as an Event Day for purposes of Sections 2. B. and 2. C. hereof.
SECTION 10. COMPLIANCE WITH LAWS
A. Tenant to Comply With All Laws. From and after the date this Agreement commences, Tenant shall at all times during the Term of this Agreement, at Tenant' s sole cost and expense, comply in all material respects with Laws now or hereafter enacted or promulgated which are applicable to the Premises and the business of Tenant conducted on the Premises.
B. Nondiscrimination. Except as provided in Section 12940 et seq. of the Government Code, Tenant shall not discriminate against any person because of his/ her race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, mental status, sexual orientation or sex nor shall Tenant refuse to hire or employ such person or discriminate against such person in compensation or in the terms, conditions or privileges of employment.
SECTION 11. INSPECTION BY CITY
City and City' s agents and representatives shall be entitled, from time to time, upon reasonable notice to Tenant, to go upon and into the Premises during Tenant' s business operating hours for the purpose of inspecting the same or inspecting the performance by Tenant of the Contracts and conditions of this Agreement.
SECTION 12. INDEMNIFICATION
A. Tenant to Indemnify City. Notwithstanding that joint or concurrent liability may be imposed upon City by Law, to the extent the same arise or accrue during the Term of this Agreement, Tenant shall, upon demand, indemnify, defend, hold harmless and reimburse City, its elected representatives, officers, employees and agents ( individually, a " City Indemnified Party" and collectively, the " City 17 Packet Pg. 404 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Indemnified Parties") from and against and for any and all liabilities, obligations, penalties, fines, suits, claims, demands, actions, costs and expenses of any kind or nature including, without limitation, reasonable attorneys' fees actually incurred ( collectively, " Costs"), which may be imposed upon or asserted against any of the City Indemnified Parties by reason of:
1. Tenant' s Breach. Any breach, violation or non- performance by Tenant of any term or condition set forth in this Agreement.
2. Use or Occupancy. Any accident, injury or damage to person and/ or property arising from any use or occupancy of the Premises which Tenant may make, permit or suffer to be made or exist, or occasioned by any use or occupancy of or activity on the Premises by or for Tenant or its subtenants or any of their agents, contractors, employees, subtenants or invitees, or anyone claiming through any of them.
3. Tenant Negligence. Any negligence or wrongful act or omission on the part of Tenant or its subtenants or any of their agents, contractors, employees, subtenants or invitees, or anyone claiming through any of them; and
4. Tenant Work and Construction. Any work or thing done by or for Tenant in, on or about the Premises, or any part thereof, including all claims and liability arising by virtue of or relating to construction of the Improvements, alterations thereto or repairs, restoration or rebuilding thereof, unless performed by any of the City Indemnified Parties or any of their agents.
5. Challenge to the Validity of Agreement. Any challenge to the validity of this Agreement not claimed by City, or any part thereof, including administrative, constitutional ( federal or state), equitable or other legal challenges brought in any tribunal or court regardless of remedy sought.
6. Limitations. The indemnity provided in paragraphs ( 1) through ( 4), inclusive, shall not apply to ( a) any Costs to the extent caused by a breach of this Agreement by any of the City Indemnified Parties; ( b) the negligence or willful misconduct by any of the City Indemnified Parties or any of their contractors, invitees or anyone claiming through any of them; or ( c) any claim for diminution in value of the Property or the Improvements or for environmental remediation or clean- up costs arising out of or in connection with the mere fact of having discovered and/ or reported ( as may be required by Law) any adverse physical condition, title condition, or other defect with respect to the condition of the Premises or Improvements, except to the extent that Tenant may have caused the defect to exist.
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7. Legal Proceedings. If Tenant is required to defend any action or proceeding pursuant to this Section 12.A to which any City Indemnified Party is made a party, such City Indemnified Party shall also be entitled to appear, defend or otherwise take part in the matter involved, at its election, by counsel of its own choosing, and to the extent such City Indemnified Party is indemnified under this Section 12.A, Tenant shall bear the cost of such City Indemnified Party' s defense, including reasonable attorney' s fees actually incurred; provided, however, Tenant shall be liable for attorney' s fees of separate counsel selected by Tenant and reasonably approved by such City Indemnified Party only if a single legal counsel ( or a single firm of legal counsel) cannot represent both Tenant and such City Indemnified Party without there arising an actual conflict of interest.
B. City to Indemnify Tenant. Notwithstanding that joint or concurrent liability may be imposed upon Tenant by Law, to the extent the same arise or accrue during the Term of this Agreement, City shall upon demand indemnify, defend, hold harmless and reimburse Tenant, its shareholders, officers, partners, members, employees and agents ( individually, a " Tenant Indemnified Party" and collectively, the " Tenant Indemnified Parties") from and against and for any and all Costs which may be imposed upon or asserted against any of the Tenant Indemnified Parties by reason of:
1. City' s Breach. Any breach, violation or non- performance by City of any term or condition in this Agreement required by the terms of this Agreement on the part of City to be fulfilled, kept, observed or performed.
2. Use or Occupancy. Any accident, injury or damage to person and/ or property arising from or occasioned by any use or occupancy of or activity on the Premises by City or any of its agents, contractors, employees, invitees or anyone claiming through any of them.
3. City Negligence. Any negligence or wrongful act or omission on the part of City or any of its agents, contractors, employees, invitees or anyone claiming through any of them. For purposes for this section, a condition of the premises shall not be attributed to City as fault, negligence, a wrongful act or omission.
4. Limitation. The foregoing indemnity shall not apply to ( a) any Costs to the extent caused by a breach of this Agreement by any of the Tenant Indemnified Parties or their contractors, invitees or anyone claiming through any of them, or ( b) the negligence or willful misconduct of any of the Tenant Indemnified Parties or their contractors, invitees or anyone claiming through any of them.
5. Legal Proceedings. If City is required to defend any action or proceeding pursuant to this Section 12.B to which any Tenant Indemnified Party is 19 Packet Pg. 406 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance made a party, such Tenant Indemnified Party shall also be entitled to appear, defend or otherwise take part in the matter involved, at its election, by counsel of its own choosing, and to the extent such Tenant Indemnified Party is indemnified under this Section 12.B, City shall bear the cost of such Tenant Indemnified Party' s defense, including reasonable attorney' s fees actually incurred; provided, however, City shall be liable for attorney' s fees of separate counsel selected by City and reasonably approved by such Tenant Indemnified Party only if a single legal counsel or a single firm of legal counsel) cannot represent both City and such Tenant Indemnified Party without there arising an actual conflict of interest.
SECTION 13. SUBLETTING AND ASSIGNMENT
A. Subletting and Assignment. Tenant shall sublet the Premises as necessary to satisfy the performance criteria set forth in Sections 2.B. and 2. C. Except as necessary to let the Premises on a
temporary basis as an event venue ( and
subleasing to the Church and concessionaires), Tenant shall not be permitted to assign, sublet, license or otherwise convey any interest in the Premises. Any agreement entered into by Tenant to let the Premises on a temporary basis for any event shall be in accordance the Mandatory Operations Criteria set forth in Exhibit G (" Mandatory Operations Criteria"), attached and incorporated herein.
B. Non-Discrimination.
1. Covenant. By entering into this Agreement, Tenant covenants by and for itself, successors and assigns, and all persons claiming under or through it or them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision a) or ( d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926. 1, subdivision ( m) and paragraph ( 1) of subdivision ( p) of Section 12955, and Section 12955. 2 of the California Government Code, in the lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Premises, nor shall Tenant, or any person claiming under or through Tenant, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property.
2. Application. All leases, licenses or contracts entered into with respect to the lease, license, sublease or other transfer of the Property shall contain or be subject to substantially the following nondiscrimination/nonsegregation clauses:
20 Packet Pg. 407 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance A. In leases: " The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:
That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision ( a) or ( d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926. 1, subdivision ( m) and paragraph ( 1) of subdivision ( p) of Section 12955, and Section 12955. 2 of the California Government Code, in the leasing, subleasing, transferring, use or occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased.
B. In contracts: " The contracting party or parties hereby covenant by and for himself or herself and their respective successors and assigns, that there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision ( a) or ( d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926. 1, subdivision ( m) and paragraph ( 1) of subdivision ( p) of Section 12955, and Section 12955. 2 of the California Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the contracting party or parties, any subcontracting party or parties, or their respective assigns or transferees, establish or permit any such practice or practices of discrimination or segregation.
SECTION 14. DEFAULT
A. Tenant Default. The occurrence of any of the following shall constitute an event of default on the part of Tenant under this Agreement (an " Event of Default"):
1. Payments to City. Failure of Tenant to make any payment of Rent owing to City within five (5) business days after Notice is provided by City.
2. Nondiscrimination. Failure of Tenant to honor any covenant set forth herein regarding non- discrimination. In that this violation is not subject to cure, Tenant shall have no right to cure. Notwithstanding the preceding, Tenant shall have a right to notice of the alleged violation and shall have opportunity to dispute and/ or answer the alleged violation within fifteen 15) days after Notice is provided by City.
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3. Breach of Other Covenants. Tenant' s breach of, or failure to perform, comply with or observe any term, covenant, warranty, condition, agreement or undertaking of Tenant contained in or arising under this Agreement such failure continuing for a period of thirty (30) calendar days after Notice is provided by City, which Notice specifies the nature of the asserted breach and the cure City deems to be required.
4. Insolvency.
A. Tenant making an assignment for the benefit of creditors, filing (or having filed against it) a petition in bankruptcy, petitioning or applying to any tribunal for the appointment of a custodian, receiver or any trustee for it or a substantial part of its assets, or commencing ( or having commenced against it) any proceedings under any bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or liquidation Law, whether now or hereafter in effect, in which an order for relief is entered or which remains undismissed for a period of ninety ( 90) days or more; or Tenant by any act or omission indicating its consent to, approval of or acquiescence in any such petition, application or proceeding or order for relief or the appointment of a custodian, receiver or any trustee for it or any substantial part of any of its properties, or suffering any such custodianship, receivership or trusteeship to continue undischarged for a period of ninety ( 90) calendar days or more.
5. Materiality. All breaches in the Agreement which are an Event of Default are to be considered material to this Agreement.
B. City' s Remedies.
1. City' s Remedies. City shall have all rights and remedies available at law or in equity, including, without limitation, the right to specific performance, the right to self-help set forth in Section 14.H, the right to set- off for any breach relating to the payment of money, and the right to terminate this Agreement in respect of any Event of Default under this Agreement.
2. Effect of Termination. Upon termination of this Agreement under this Section 14, all rights and privileges of Tenant and all duties and obligations of City hereunder shall terminate. Immediately upon such termination, and without further notice to any other party, City shall have the right to assert, perfect, establish and confirm all rights reverting to City by reason of such termination by any means permitted by Law, including the right to take possession of the Premises together with all Improvements thereto, subject to Tenant' s rights to remove its property as 22 Packet Pg. 409 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance provided herein, and to remove all persons occupying the same and to use all necessary lawful force therefore and in all respects to take the actual, full and exclusive possession of the Premises and every part thereof as City' s original estate, thereby wholly terminating any right, title, interest or claim of or through Tenant as to the Premises or the Improvements or fixtures and alterations to the Improvements, and all personal property located on the Premises, all without incurring any liability to Tenant or to any person occupying or using the Premises for any damage caused or sustained by reason of such entry or such removal, except for damage resulting from City' s negligence or willful misconduct in affecting such removal. Notwithstanding the foregoing, City shall use commercially reasonable efforts to mitigate its damages.
C. City Default. The occurrence of any of the following shall constitute an event of default on the part of City under this Agreement ( a" City Event of Default"):
1. Breach of Covenants. City' s breach or failure to perform, comply with or observe any term, covenant, warranty, condition, agreement or undertaking of City contained in or arising under this Agreement and such failure continuing for a period of thirty ( 30) calendar days after Notice thereof is given by Tenant to City, which Notice specifies the nature of the asserted breach and the cure Tenant deems to be required.
2. Insolvency.
A. City making an assignment for the benefit of creditors, filing ( or having filed against it) a petition in bankruptcy, petitioning or applying to any tribunal for the appointment of a custodian, receiver or any trustee for it or a substantial part of its assets, or commencing ( or having commenced against it) any proceedings under any bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or liquidation Law of any jurisdiction, whether now or hereafter in effect, in which an order for relief is entered or which remains undismissed for a period of ninety ( 90) days or more; or City by any act or omission indicating its consent to, approval of or acquiescence in any such petition, application or proceeding or order for relief or the appointment of a custodian, receiver or any trustee for it or any substantial part of any of its properties, or suffering any such custodianship, receivership or trusteeship to continue undischarged for a period of ninety ( 90) days or more;
D. Tenant' s Remedies. Tenant shall have all rights and remedies available at law or equity for any City Event of Default, including the right to terminate this Agreement and the right to Self-Help set forth in Section 14. H., in respect to any City Event of Default under this Agreement. Because the Premises are public 23 Packet Pg. 410 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance property held in the public trust for the residents of the City of Redding, specific performance shall not be available to Tenant as a
remedy. Monetary damages
shall be limited to that amount equal to four ( 4) months' rent, as indicated in Section 3.B., at the time of the City Event of Default.
E. Notice and Cure Periods. City and Tenant acknowledge and agree that, except as provided in Section 14.A.2, no Event of Default or City Event of Default shall have occurred under this Agreement unless and until any and all applicable Notices shall have been given and cure or grace periods shall have expired.
G. No Waivers. No failure by any party hereto to insist upon the strict performance of any provision of this Agreement or to exercise any right, power or remedy consequent to any breach thereof, and no waiver of any such breach, or the acceptance of full or partial Rent or other payment during the continuance thereof, shall constitute a waiver of any such breach or of any such provision. No waiver of any breach shall affect or alter this Agreement, which shall continue in full force and effect, or the rights of any party hereto with respect to any other then existing or subsequent breach.
H. Self-Help. In case of an Event of Default or a City Event of Default resulting from a failure to pay any money or to do any act to satisfy any of the obligations or covenants which a party is required to pay, do, or satisfy under the provisions of this Agreement, the non- defaulting party may, at its option, after Notice to the defaulting party, pay any or all such sums, do any or all such acts or incur any expense whatsoever to remedy the failure to perform any one or more of the covenants herein contained. The defaulting party shall repay the same on demand, together with interest at the rate provided in Section 15.M hereof calculated from the date payment is made by the non- defaulting party.
No Personal Liability. Neither City nor Tenant nor any of the persons comprising City or Tenant ( whether partners, members, shareholders, officers, directors, members, trustees, employees, beneficiaries or otherwise) shall ever be personally liable for any judgment obtained against the other for breach of any obligation hereunder.
SECTION 15. MISCELLANEOUS
A. No Partnership. Nothing contained herein or in any instrument relating hereto shall be construed as creating a partnership or joint venture between City and Tenant or between City and any other party, or cause City to be responsible in any way for debts or obligations of Tenant or any other party.
B. CEQA Compliance; Condition Precedent. City hereby retains absolute and sole discretion to ( i) modify this Agreement, in its sole discretion, in order to comply with CEQA, ( ii) select other feasible alternatives to avoid significant environmental impacts, ( iii) balance the benefits of this Agreement against any 24 Packet Pg. 411 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance significant environmental impacts prior to taking final action if such significant impacts cannot otherwise be avoided, and/or ( iv) determine not to proceed with this Agreement. City shall have no legal obligations hereunder unless, and until, its has completed the CEQA review process and unless, and until, Tenant has received all necessary entitlements. Should City elect to modify this Agreement consistent with its findings under CEQA, it shall provide prompt written notice to Tenant of its election to amend this Agreement consistent with its CEQA review.
Tenant shall have thirty ( 30) calendar days upon receipt of said notice to enter into the amendment proposed by City or, in the alternative, cancel this Agreement without liability to City.
C. Time of the Essence. Time is hereby expressly declared to be of the essence of this Agreement and of each and every term, covenant, agreement, condition and provision hereof. The word " day" means calendar day as used for computation of time periods herein and the computation of time shall include Saturdays, Sundays and holidays in the Governing Jurisdiction. The phrase " business day" means any day on which commercial banks are generally open for business in the State of California ( other than a Saturday, Sunday or legal holiday in the State of California). Any period of time calculated in days which would otherwise end on a non- business day shall be extended to the next following business day.
D. Captions. The captions of this Agreement and the table of contents preceding this Agreement are for convenience and reference only, are not a part of this Agreement and in no way amplify, define, limit or describe the scope or intent of this Agreement, nor in any way affect this Agreement.
E. Meaning of Terms. Words of any gender in this Agreement shall be held to include any other gender and words in the singular number shall be held to include the plural when the sense requires.
F. Agreement Construed as a Whole. The language in all parts of this Agreement shall in all cases be construed as a whole according to its fair meaning and neither strictly for nor against City or Tenant.
G. Severability. If any provision of this Agreement or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.
H. Survival. Each provision of this Agreement which may require the payment of money by, to or on behalf of City or Tenant or third parties after the expiration of the Term hereof or its earlier termination shall survive such expiration or earlier termination. All indemnity obligations shall survive termination of this Agreement.
25 Packet Pg. 412 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Entire Agreement; Amendment. This Agreement and the exhibits hereto constitute the final and complete agreement between the parties with respect to the transaction contemplated herein, and supersede all prior correspondence, memoranda and agreements ( oral or written) between the parties relating to the subject matter hereof, including, without limitation, any letters of intent entered into between the parties. This Agreement may be amended only in a writing signed by both City and Tenant.
1. The City Manager is authorized to act on behalf of City to amend this Agreement or otherwise make prudential decisions relating to the same so long as the scope of amendment does not negatively impact revenue to City or otherwise effect a substantial change to the Agreement.
J. Commissions. In the event any claims for real estate commissions, fees or compensation ( collectively " Compensation") arise in connection with this transaction, the party so incurring or causing such claims or whom the claimant asserts to have represented agrees to indemnify, defend and hold harmless the other party from any loss or damage, including attorneys' fees, which said other party suffers because of said claims.
K. Notices. All notices, demands, requests, or other writings ( each a " Notice") provided by the terms of this Agreement to be given or made or sent, or which may be given or made or sent, by either party hereto to the other, shall be in writing, shall be given by ( a) personal delivery, ( b) delivery by a nationally recognized overnight delivery service, ( c) mailing or depositing same in the United States mail, registered or certified, return receipt requested, postage prepaid, or ( d) facsimile ( if a copy of such notice also is delivered by any other permitted method of delivery along with evidence that the facsimile was transmitted successfully), and in all cases shall be properly addressed to the parties at the following addresses:
City: City of Redding
Attention: Barry Tippin, City Manager
777 Cypress Avenue
Redding, CA 96001
Facsimile No.: ( 530) 225- 4325
With a copy to: Office of the City Attorney
Attention: Barry DeWalt, City Attorney
777 Cypress Avenue
Redding, CA 96001
Facsimile No.: ( 530) 225- 4362
26 Packet Pg. 413 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Tenant: Advance Redding
Attention: Julie Dyar??
700 Auditorium Dr.
Redding, CA 96001
Facsimile No.:
With a copy to: Brown and Streza, LLP
Attention: Casey S. Hale
40 Pacifica, Suite 1500
Irvine, CA 92618
Facsimile No.: ( 949) 453- 2918
or to such other address as either party may from time to time designate by Notice to the other. All Notices shall be deemed duly given upon actual receipt or refusal to accept delivery. Notices may be sent by the parties' respective counsel.
L. Attorneys' Fees. In any proceeding or controversy associated with or arising out of this Agreement or a claimed or actual breach hereof, or in any proceeding to recover the possession of the Premises, the substantially prevailing party shall be entitled to recover from the other party as a part of the substantially prevailing party' s costs, reasonable attorney' s fees and court costs, the amount of which shall be fixed by the court or arbitrator and shall be made a part of any judgment rendered.
M. Interest. Except as otherwise specifically provided herein, any amounts due from one party to the other pursuant to the terms of this Agreement, including amounts to be reimbursed one to the other, shall bear interest from the due date or the date the right to reimbursement accrues at the prime rate of interest published in The Wall Street Journal, or similar publisher of business statistical data; provided, however, that such rate shall not exceed, in any event, the highest rate of interest which may be charged under applicable Law without the creation of liability for penalties or rights of offset or creation of defenses. For purposes of interest calculations, the due date of amounts or the date the right to reimbursement accrues shall be deemed the date that it originally was owing but may have been disputed, as distinguished from the date of final settlement or the making of a judicial or arbitration award.
N. Consents and Approvals. Whenever the consent or approval of City or Tenant is required hereunder, such consent or approval shall not be unreasonably withheld, conditioned or delayed unless expressly set forth in this Agreement otherwise.
Any consent or amendment to this Agreement which does not have a deleterious affect on amounts due City may be approved and executed by the City Manager.
0. Governing Law. This Agreement shall be construed according to and governed by the Laws of the State of California.
27 Packet Pg. 414 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance P. Force Majeure. In the event that either party hereto shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes; lockouts; labor troubles; shortages of labor or materials generally applicable to the locality of the Property after due diligence in obtaining the same; unavailability or excessive price of fuel; power failure; riots; insurrection; civil disorder; war; terrorist acts; acts of the public enemy; fire or other casualty; condemnation; acts of God; unusually adverse weather conditions in the locality of the Property; governmental restrictions; temporary or permanent injunction or other court order; or by reason of any cause beyond the exclusive and reasonable control of the party delayed in performing work or doing acts required under the terms of this Agreement after the exercise of due diligence, including diligence in contracting, and the exercise of rights under contracts with contractors and suppliers ( each, an " Event of Force Majeure"), then performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay.
Except as otherwise provided in this Agreement, the provisions of this clause shall not operate to excuse Tenant from prompt payment of Rent or either party from the prompt payment of any other payments required by the terms of this Agreement.
Q. Counterparts; Facsimile Signatures. This Agreement may be executed in more than one counterpart, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Facsimile signatures on this Agreement or any Notice given hereunder shall constitute originals signatures of the parties.
R. Quiet Enjoyment. City covenants that Tenant may quietly and peaceably have, enjoy, and hold the Premises and rights hereunder for the full Term without hindrance, provided that no Event of Default by Tenant exists under the Agreement. City shall defend, indemnify, and hold Tenant harmless from and against any and all losses, costs, expenses, liabilities, claims, causes of action and damages of whatsoever kind that may result to Tenant, including reasonable attorneys' fees incurred by Tenant, arising from the wrongful disturbance of Tenant' s quiet possession: ( i) by City; ( ii) by persons deriving title from City; ( iii) because of liens or encumbrances incurred or suffered by City; ( iv) because of title paramount to City' s; or (v) because of any defect in City' s power or authority to execute and undertake City' s obligations under this Agreement except as provided for in Section 12.A.5. City' s duty to indemnify Tenant under this Section 15.R. shall survive the expiration or earlier termination of this Agreement.
28 Packet Pg. 415 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance S. Exhibits. All exhibits referenced in this Agreement are incorporated into and made a part of this Agreement as if fully set forth herein. Exhibits are as follows:
1. Exhibit A—Legal Description.
2. Exhibit B— Depiction of Premises.
3. Exhibit C - Lawn Area Map.
4. Exhibit D— Equipment Maintenance Schedule.
5. Exhibit E— Maintenance Compliance Sheet.
6. Exhibit F— Equipment Schedule.
7. Exhibit G— Mandatory Operations Criteria.
29 Packet Pg. 416 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance IN WITNESS WHEREOF, City and Tenant have executed this Agreement on the days and year set forth below:
CITY OF REDDING,
A Municipal Corporation
Dated: l2"/ 2021
By: Kristen Schreder, Mayor
ATTEST: APPROVED AS TO FORM:
City Attorney
LA,1/4) 2— 0117\ k4 tPAMIZE, City Clerk By: ` CeC I
ADVANCE REDDING
Dated: /( 9// , 2021.
Tax ID No.:
30 Packet Pg. 417 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance
EXHIBIT A
A parcel of land, situated in a portion of Sections 11 of the P. B. Reading Grant, City of Redding, County of Shasta, State of California, more particularly described as follows:
Commencing at a point on the northerly line of California Route 299 as shown on that certain map entitled " STATE OF CALIFORNIA DIVISION OF HIGHWAYS DISTRICT 02 RECORD OF SURVEY OF MONUMENTATION IN SHASTA COUNTY ON ROUTE299 PM24.5 TO P.M 25.7'; Sheet 3 of 4, filed in Book 36 of Land Surveys at Page 79, Shasta County Records; thence on and along said northerly line of California Route 299 , South 63° 25'22" East South 63° 32' 22" East per said map), 64.28 feet;
thence South 72° 14' 22" East, 255.80 feet;
thence South 84°25'40" East, 669. 16 feet to a point on the Turtle Bay Ground Lease, 5th Addendum;
thence leaving said northerly line, on and along said Turtle Bay Ground Lease North 78° 51' 55" West, 702.40 feet;
thence along a 518.43 foot radius curve to the right, having a central angle of 18° 14' 10", a length of 165. 01 feet;
thence North 60°37'45" West, 260.94 feet;
thence North 84°25' 31" West, 47.43 feet;
thence North 84°25'40" West, 35. 00 feet;
thence North 05°34'20" East, 147.09 feet;
thence North 29°06'45" East, 305.69 feet;
thence North 15° 31' 27" West, 186.35 feet;
thence North 36° 15' 14" East, 31. 05 feet;
thence North 52° 36'43" West, 185.78 feet to the TRUE POINT OF BEGINNING; thence continuing on and along said Turtle Bay Ground Lease and the extension thereof, North 52° 36'43" West, 537. 92 feet;
thence leaving said extension of said Turtle Bay Ground Lease along a 330.00 foot radius curve to the left, the center of which bears South 39°50' 06" East, having a central angle of 12°46' 38", a length of 73. 59 feet;
thence South 37°23' 17" West, 838. 71 feet;
Packet Pg. 418 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance thence South 52°36'43" East, 70. 12 feet;
thence along a 1240. 00 foot radius curve to the left, the center of which bears North 37°23' 17" East, having a central angle of 06°30' 00", a length of 140.67 feet; thence along a 1330.00 foot radius curve to the right, the center of which bears South 30°53' 17" West, having a central angle of 06°30'00", a length of 150. 88 feet; thence South 52°36'43" East, 14. 17 feet;
thence along a 300.00 foot radius curve to the left, the center of which bears North 37°23' 17" East, having a central angle of 22°05'59", a length of 115. 71 feet; thence North 37°23' 17" East, 408. 37 feet;
thence South 52°36'43" East, 77.85 feet;
thence North 11° 00'55" East, 55.97 feet;
thence North 26°23'36" West, 205.95 feet;
thence North 37°23' 17" East, 125. 95 feet;
thence South 78° 32'04" East, 211. 00 feet;
thence North 37°23' 17" East, 105.44 feet to the TRUE POINT OF BEGINNING.
Containing 9. 76 acres more or less.
End of Description
Bearings hereon are base on the original Turtle Bay ground lease dated January 7, 1992, which is the northerly line of California Route 299 as shown on that certain map entitled STATE OF CALIFORNIA DIVISION OF HIGHWAYS DISTRICT 02 RECORD OF SURVEY OF MONUMENTATION IN SHASTA COUNTY ON ROUTE 299 P.M 24. 5 TO P.M 25. 7", Sheet 3 of 4, filed in Book 36 of Land Surveys at Page 79, Shasta County Records, rotated clockwise 00°07'00". All distances hereon are ground. To obtain grid distances, multiply ground distances shown by 0. 99987965.
DATE: 9- 20 2
Charles Ken Iwamura, City of Redding Surveyor
PLS 8540
St`
4CHARLES IGEN
G\
rr 11.N MURA o
a z
iVo. 8540
f
OF CA‘.V
Packet Pg. 419 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance
EXHIBIT B
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ta
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F EXISTING GROUND LEASE
2064 r*0. ^
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IL?' 5th ADDENDUM F C3 '-" Qhi ak1!' ^ W
N84' 25' 40" W
2 C4 vi
135.00'
184.25' 31" W'
47. 43'
Sys?3ZIN60'3T45" W CITY OF REDDING TO STATE OF
sy 260.94'
CALIFORNIA PER 2006-0052505
N R= 518. 43'
18' 14' 10"
i
7-L= 165. 01'
POINT OF COMMENCEMENT—/
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7q Z N7 51 55, i, 702 187' LT. STA " C" 51+ 90 255.80,
2' e 40'
PER 36 LS 79, SHEET 3
S84' 25' 40" E 669. 16' 563' 25' 22" E
64.28'
q
SUNDIAL BRIDGE DR.— C HWy, 44 (FORMER ST. HWY. -----
CURVE DATA
C RADIUS DELTA LENGTH
Cl 330.00' 12°46' 38" 73. 59'
C21240. 00' 06°30' 00" 140. 67' NOTE
C31330. 00' 06°30' 00" 150. 88'
C4 300.00' 22°05' 59" 115. 71' BEARINGS ARE BASED ON THE ORIGINAL TURTLE BAY GROUND LEASE DATED JANUARY 7, 1992 WHICH IS 36 LS 79 ROTATED CLOCKWISE 00° 07'00". ALL DISTANCES SHOWN ARE GROUND.
RADIAL BEARING DATA
THIS MAP IS BASED ON RECORD DATA AND DOES NOT REPRESENT A R BEARING SURVEY. IT IS INTENDED FOR USE AS AN EXHIBIT FOR THIS LEASE R-7 S 39°50' 06" E ONLY.
02 N 52°36' 43" W
73 N 37°23' 17" E
74 S 30' 53' 17" ` J AREA OF LEASE( 9. 76 ACRES)
R5 N 37°23' 17" E
76 S 15°17' 18" W
ENGINEERING DIVISION LEASE SITE
tmil
o CIVIC AUDITORIUM
PORTION OF APN: 102- 020- 015
SEPTEMBER, 2021
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Packet Pg. 423 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance
EXHIBIT E
MAINTENANCE COMPLIANCE SHEET
In accordance with Exhibit D " Equipment Maintenance Schedule", maintenance was provided for the following equipment in the month of 20
Initials Description Date
Pneumatic air compressor
Hot water motor& pump
Hot water motor& pump
Cold water motor& pump
Cold water motor& pump
Hot water recirculating motor&
pump
Hot water storage motor& pump
Forklift# 105
Forklift# 106
Restroom vents
Handicap doors
Check wheelchair lift
Check bolts& nuts on all seats
Servicing of the stage roll- up door
Clean heating and cooling vents
Check water heater
Cleaning of grease traps
Seal entryway beams
ChubCo Oven
Balcony lift
Signed
Date
Packet Pg. 424 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain Replacement Equipment
Model Number
If Known Location
Condition
Discard Value
FOH Sound Console Allen& Heath GL3300 L3K3M32A002570 Booth ..':' --:.---,:;:::BR 7, 500 Lighting Console ETC Express 48/ 96 41797EXPS1747 Booth C R 7, 500 Compressor/Gate/ Limiter DBX 166XL V 1005265 Booth A R 340 Compressor/Gte%Limiter DBX 166 7716655243 Booth A R 340 Compressor/Gate/ Limiter DBX 166 C6797 Booth A R 340
Compro essr/Gate/ Limiter. DBX266XL IIV 27017 BoothAR ' ,.:$ 210 Compressor/Gate/ Limiter DBX266XL IIV 24895 Booth A R 210 Compressor/Gate/Limiter` DBX266XL IIV 24891, BoothA R.. 210k Dual Effects Processor Lexicon MPX550 1004 Booth A R 400 Dual Effects Processor TC Electronic's M OneXL s W 3524932 Booth A R 560 Dual Effects Processor TC Electronics M- OneXL 3524075 Booth A R 560 Dual 31 Band EQ Ashly. GQX3102i'- 703. 9397 Booth A ..• •, R 775- ..
Single 31 Band EQ Ashly GQX3101 701- 5187 Booth A R 475 Power Supply Ailen& Heath RPS 9
s' 120835569: Booth D D: 1, 100
Condition Legend A= Like New B = Minor wear& Tear C = Scratches may have some parts missing still functional D = Parts Or Needs Repair
Packet Pg. 425 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance I
Exhibit F - Redding Convention Center Technical & Stage Inventory Serial Number Equipment
Condition D scar
Audio
Stage & Technical
Model Number
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RetainisrRnetpvlaacieumee
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Audio Analyzer DOD RTA Series II N/ A Booth C R 295
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Follow 6:::-,::::-,: s : w,,:,: pot Power Supply ;:.:.: --:-' .'.:,(,.;,:,,;'••,,,,',..,-:',,::...,:::::( i„,7Ti.".,:;- 30017:i,,,,.:
1,: ic-:-',.,,!'.::: 2!?,:7::::,,,:::•••.`:::....,,:,:. 1 „,;,;::...;:::.- 4::;%::;:: f::::-.,,_ -:-..:-:•,;&.',,-:::':.:',: 1:! ,•,:, 6,.,- ; .. i,:: iic7: ::,„:.-:?..,--.;:::-.: leaom,:"' ' ','''' ;.!::),';,. 1' 89'''''- i i,411N'',.;.: T•...,",'; 5",iN/ANI-,,":..'"-" --''' 0''' ' : 139-oth,:• `::::-. 1-:--,:. .!"-',.::::::-'-'-,:-, • : ,:-' .'' -'' ""'' ' ' ff.,',>;•'''"';',;',":,";:;" 4-T,"=';''' „
t:..-" F1,:' iiii6i- dii-i-,iHeWS:Pt:-, i.,;'''SeneSII- , - ,,-,..--.- Mixer/Amplifier Bogen CT- 60 J- 55 Booth D D 50
Condition Legend A= Like New B = Minor wear& Tear C = Scratches may have some parts missing still functional D = Parts Or Needs Repair
Packet Pg. 426 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Model Serial Number Equipment Retain Replacement Equipment Number If Known Location
Condition
Discard Value
Walnut Finish Printer Stand N/ A N/ A Booth B R
4,Drawer,File Cabinet Steelcase City, ID`Tag 03206 Booth B R 3) 4ch Inse t Snakes Hoes N/ A Booth B' • R
2 Plastic File Cases Green/Tan N/A Booth C R
26 Follow Spot Gel Frames N/A N/A Booth C R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 427 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F- Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain Replacement Equipment
Model Number Condition
If Known Location Discard Value
Audio Power Amp QSC 4050HD 080430951 ' ' . Stage Bs ' •- R - ,- Audio Power Amp QSC 4050HD 080430952 Stage B R
Power Amp QSC 4050HD 080430956 Stage „, t.,--:,-. Ba ,...•, R;;,-....-y..?...;‘,.;„:...,., 4;......;-. 1i; F °'
Audio Power Amp QSC 4050HD 080430955 Stage B R
Audio Power Amp 055 4050HD. 080430950 Stage;; B'' , R'.' Audio Power Amp QSC 1850HD 010826406 Stage B R
Audio Power Amp - 0801850HD; 010826241. Stage: C R'
FOH Speakers Mid/ Hi EAW LA460 335811 Stage C R
FOH Speakers Mid/ Hi ` EAWLA460 `: 335808 Stage ' F C R FOH Speakers Mid/ Hi EAW LA460 335809 Stage C R
FOH Speakers Mid/ Hi EAW LA460 . • 335810 Stage: C;' R . , FOH Speakers Mid/ Hi EAW LA460 332413 Stage C R
FOH Speakers Mid/ Hi EAW LA460 335536 Stage C" R
FOH Speakers Subs EAW SB218z 335859 Stage C R
FOH Speakers Subs EAW SB218z 335868 Stage'' . C' R.
DSP Speaker Processor EAW MX8750 300590 Stage C R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 428 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain Replacement Equipment
Model Number Condition
If Known Location Discard Value
Dual 31 Band Graphic EQ . Ashly_GQX3102 703- 1556 Stage C Ra` Graphic EQ 31 Band Yamaha GQ1031 GX01039 Stage C R
Graphic -.6:27..Band Peavey EQ27CA510239 Stage C R
Graphic EQ 27 Band Peavey EQ27 CA716156 Stage C R
Audio PowerAmplifire 1 Yamaha P1250C PZ01006 Booth C"-{ R Audio Power Amplifire QSC MX300A 99906341 Stage B R
Audio Power Amplifire Yamaha P2700 Q001059 Stage C R
Audio PowerAmplifire Yamaha P2700= QL01059 Back Room C R Metal Equipment Rack For Monitor Audio System N/ A Stage C R 2or 3 way•Active•Crossover Ashly XR1001 G11- 8067 . Stage. C.,:..;.,!..-...,- R 2 or 3 way Active Crossover ElectroVoice EVT EX18 1040076 Stage C R 2;Metal Speaker Stands Atlas" N/ A Third Floor ' 6 C R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 429 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain
Model Number Condition
Discard Replacement Value
Equipment If Known Location
Small Parts Box Klien Tools N/ A' Backroom ; C R
Microphone Snake Cable Whirlwind;,32X10 225Ft N/A, Booth/Stag B R Curtain Control and Motor H& H Specialties 462 N/ A Stage B R K 12! 220V Extension Cables 70FT N/ A = Third Floor B R 10`FOH 5 De 9ree Sta99eli" hts' Altman, 1 KL8 N/A':- Attic D R 8 FOH 12 Degree Stagelights Berkey/ Colortran N/ A Attic D R 4 FOH`Stagelights . Altman.360Q 6X22 N/ A: Attic D R
16 FOH Par64 Stagelights BeCirkey/ ColortranneQueen N/ A Attic D R 14 3pin Extension Cables 10Ft N/ A Attic D R
4 3prn Extension Cables
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 430 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F- Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain
Model Number Condition Replacement Value
Equipment If Known Location o sea d P
ai 3
16Scoop- Lights ``, " Altman 14 . N/ A ; Stage B • R
5 4cell Cyc Lights Berkey/Colortran
N/ A Stage C R
SkyCyc
24 8 Fresnel Lights Major Corp. _ N/ A Stage - D D
48 Par can Lights L/ E Par64 N/ A Stage 24 A 24B R
12 LekoLights Altman 3600'6X16 N/ A Stage '. D ,' R
18 Leko Lights Altman 360Q 6X12 N/ A Stage D R
18 Leko Lights Altman 3600 6X9' _- N/ A Stage D ' R
18Ft Step Ladder On Wood Rolling Base N/ A Stage D D
Cyclorama 30Ft X 60Ft Sky Blue N/ A Stage D D
2 Grand Drape Panels 30Ft X50Ft Green ='. N/ A Stage . C ,.- R 2 Drape Panels 30Ft X 50Ft Black N/ A Stage C R
1 Grand Valence . c15Ft X`.85Ft Green. N/ A Stage C R
5 Teaser Drapes 15Ft X 60Ft Black N/ A Stage C R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 431 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F - Redding Convention Center Technical & Stage Inventory Stage & Technical Serial Number Equipment Retain Replacement Model NumberCondition
Equipment If Known Location Discard Value
4. k.',
1611p0f.?ze--,-;' Stgearps'(6..-10) 13F_..," t'.':X,2il4kt. B.--, ia,.,k,..'.'-....' N/Ai,-,.;', A
Sta§
E.2.-,.;.-- -,,,.-P.-...;,:-,'.,-,--.
R
12 Stage Drapes 13FT X 30Ft Black N/A Stage C R
Fly System '• . .,. .-- PEFM, Ifigtall_Stage',. '- . -, •'':.-:.;, N/A4:::;-. 1- 4-.'-:.'•. - ,' Stade,1.-,':-',;-''''-''-':% '-',; 13''':" '. '...,, R Fly System Counter JR Clancey 6000Lbs N/ A Stage B R
Weights
Lt',,,e.R.::.,:
r-.-„,..--,,-,-,...:,-,?-
4--,,,,,-.:,.,,..--.,,, J.,....-:-.-.-! '.,-.,', '',::::',;.--,,-,'SV.,i1-07:--y.i,-,f.,,,jnpl,• T--:, r,.',
Y,; 5'ErMi' V."'`'''',,''',-. r'. 4'.': '-''' 1.1.:'-'.'''' TJ'''.''19.i:9';IV'''4-' aifi!,:17.-. 1%,-,''' ,.:i. :. i''''''.','-.;.- 1-. '14,_6--:-- Y2--ZMI-Vc,',",..'.. ;`,! 2, 1. 1..,,'.. 5 11: 2'..f:alick Music Stands 4'.4 ', Manhasset/Peaveyy.,-,., .-.,.--:'.."-:-. 2"_!,- ,:! ,'-'-':„..- N/AStage 4_;-.'•:'-' j ''',!'!_ gr'-','''; : rf,..;,,,, :'.. i:111,7:- :'..,'''',.,; : .:?, ..-:-.-- 7., 4 Music stand Lights N/ A N/A Stage C R
2 15Ft Lighting Trees N/ A N/A Stage B R
171eqpipt! -..-.;•- 7: ....1`:..__,:. Telpx,Y2? 0 . ',.' : . . N/A Stage .,: i:.'.:.-'----,'-.'-.- '.' R Anchor Audio Single
2 Headsets
Muff
N/A Stage R
A66i6rA6--- d-'-i60-.----- 66--•• bre '.- .; ,.•-.-.1-•'.. ie-- -" ' 5 Headsets N/A Stage R
Muff
2 Intercom Belt Packs ClearCom 501 N/A Stage R
2 Intercom Belt Pack - - CleaeCottiiARS --,- 7, , '. • '."-::-. NiA--`,. i:',."---'''' -'-;:'- Stagef; ;',---7,•---.;-j-_, 1-_-::::';--,-- k - ,. 3...J- iR 6 Canvas Hampers Dandux 3X4X3 N/ A Stage B R
2WbEid,"rIbt4DcillieS -'. Custom Built In House --'';'';',-. 17,c.N/ 1V---,;,me--If - P'-,';,',•'., iStage.'''''' ' B,'''-, ,-,*,, R.,;-J.,;,. 10 XLR Cables 25Ft N/A Stage R
Dn4X-',5Piti-.) ILWCpble5k.,TT,',',-,.., 2,-', '',', , ' .,','-' , .7• N/A'') i,:ff::17-.:::' ---"--!,: Stadr-:;:-.----:'-'''',-,-'' ,- R 2 2 Drawer Metal
with Various Cuts Of Gel N/A Dimmer Room B R
Filing Cabinets
6 Drawer Cardboard'±-,---.. .;--,
With FUll."ShpetS-Of Gel' .-, '' ,:,....", N/ A- i'41-;,.. Dimmer Room ----:-;!:',-C--2,:,--,:',..,, iR Fiber:JFiliri ,-..(jat-iinet ..',. -,'..-------,-,,,---..,--.1-,' .,..:' :•; . .. ';,' r.- z----
7,,,
H1.. ,,,...,..,-,:;.?,-'-',. i..X`f,i---:,,,-,',..',,,,,. ,,-. • 7 Cardboard Gel Templates Custom Built In House N/A Dimmer Room B R l t I Ro
v\litrailsiu'eghi:Whiie":1- 6j6• ' Cu tom,..,, u!„.; ,,i,-1- Ho...19.L,•)! .:. :.„;:„ N/A -- , Din390j11: 1,Mefi)
1. R
Oscilloscope Heathkit EUW- 25 7- 1186 Dimmer Room C R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 432 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain Replacement Equipment
Model Number
If Known Location
Condition
Discard Value
Assorted Gel Frame Spares NIA N/ A Dimmer Room B RMisr Small Dimmer Parts In Cardboard Box N/ A Dimmer Room C R 1 Box Misc Dimmer Parts SCR' s/ Insulators N/ A Dimmer Room C R 4 Allen Wrenches Various Sizes N/ A
s Dimmer Room = B • R
Grounding Cable 25Ft With Clamp N/ A Dimmer Room B R
With Twee Co
1 Sets Wire Tads N/ A Dimmer Room B R Connectors .' z,
2 Grease Pencils N/A N/ A Dimmer Room B R
M k
1 Pair-Scissors N/A N/ A Dimmer Room B+ R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 433 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain Replacement Equipment
Model Number Condition
If Known Location Discard Value
Stage Monitor Speaker Yamaha CM15V 21) 0N01130 Back Room B R StageyMonitor Speaker Yamaha CM15V 21) 0N01129 Back Room B R Stage Monitor Speaker Yamaha CM15V 21) 0N01145 Back Room B R Stage Monitor Speaker Yamaha CM15V :( 21) 0N01'110 = Back Room B, " R Stage Monitor Speaker Peavey 115CX 5E2270278 Back Room D R a Stage,*Monitor Speaker Peavey 1545M` 6E02747237 Back Room D '-, R Stage Monitor Speaker ElectroVoice FM12- 2A 1700071259 Back Room D R Stage Mondor Speaker ! ElectroVoice FM12-2A 4:1700071263 ',..,;;; Back-Room D ; R; t 1 Speaker Stands N/ A N/ A Back Room B R
4 Spring Clamps N/ A N/ A Back Room R
SHUS` Dist-Tag Variable Power Supply 7;. °; g Back Room :.:. 7:7,',:!-,..,,;- 4.-.--", D ` i;,....,.:.;,.';,::' R-;
0277.1'
3 Boxes Misc Parts Altman 360Q 6x Lekos N/ A Stage D R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 434 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain Replacement Model Number Condition
Discard Equipment If Known Location Value
6 Instrument Mics Shure SM57 N/ A Back Room B R 124 ea
8' Vocal Mics Shure SM58 N/A Back Room 2A 6B R 124,ea
1 Vocal Mic Audix 0M5 256067- 332 Back Room C R 235
y" 1 Direct Boxes ProCo AV 1 N/ A Back Room C •: R 173
k a,......x Wim: ..... a- '. .:- . a. L. .... 4 ,., _ i.- n. . x,..... , 2 Direct Boxes Horizon N/ A Back Room C R 65 ea
Vocal Mic ElectroVoice RE16': 7923 Back Room ' C R 407
Instrument Mic ElectroVoice RE15 7212 Back Room C R 379 Instrument Mic ElectroVmce RE15-' 7212 Back Room C ',-.',.:' Rt,,":..'`''''. 4- 4.$37.9-- Instrument Mic ElectroVoice RE15 7740 Back Room C R 379 Instr'urrient Mic `_ ElectroVoice RE15 _ 7740 Back-Room - C R 379' ' ` Instrument Mic Audix i5 156100- 177 Back Room C R 150
Instrument Mic Audix i5 . r.-,',,''';‘:;. 1-..74..i-ii,‘ i,
156100 180: ` Back Room rte': ; C `", : R!..",(..,.. .:?..,; t41.,...R!'.-'4-2,54 ::.:„,..'.:','° $ 150 Drum-Mic Kit q ,. ,: Shure PGDMK6 N/A Back Room B R 422 Condenser Mic AKG C451 EB 556947 Back Room B R 799
Condenser Mic y AKG C451 EB 557265 Back Room ' B R 799
Condenser Mic AKG C451 B 26640 Back Room B R 799
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 435 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance I
Exhibit F- Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment RReplacement
Equipment
Model Number
If Known Location
Condition
DRi Value
Instrument ,MicSennheiser MD,-4-2_,1„41--, 1-::. ' 201412 Back Room B ` R ;$ 570 4 3" Desk Stands( mic) N/ A N/ A Back Room C R
47 Desk Stands( mic) : DSZ N/A Back Room C R s
1 away Power tap Orange N/ A Back Room R
4 6 Flexible' Mic stand
N/ A N/A ,, i ° Back Room D R
Adapters
4 18" Flexible Mic stand
N/ A N/ A Back Room D R
Adapters
118" Floor Boom Stand( mic) ., N/ A N/ A Back Room D R
1 18" Floor Stand( mic) N/ A N/ A Back Room D R
4 Choir Mics
AudioTechnica
N/A Back Room C R
Uni- point AT853A
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 436 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain
Model Number Condition Replacement Value
Equipment If Known Location Discard
1: 136i<Py(t0174010f.r.:s. 7, -,,-:-,:-:::''' ..::-' 41.-';'1'''''''. --':',.' 1;4;: i-i4P%-"ZT--,:-.1''-::-, t ;: 1,-, 6.1, Y,.,::-.:',' 7-,!.:i.:,,,, i;:,-' f':::;',,,,,,;-•:';', 4-:::1, : qr,-..:,-. 2,•4:4'.';:---te''':-. 1?.,5';, ki .',_,. ,..,,::.''''',-..!..'.:,-.', F-;:l.
N/A-.;',;. v-.4'.:fii.te•:-. 1 r'.... k7.4i•-:i2-..-:-.,. 1..:N/A:-.,:,-„,',:.,::-. a il.ii-i!"Under Stairs' i.. tii'ii-ii-',13i,i`i-iiiiir.--i- r;idaRtiViS T1. WIV4.0',','-'-: 7,:',,,t:',7:
1c5: PrtiprktciptObo... BO§ bidorfer:;,, Stag'e ::,...
74.1.-- f-''
A:':,.',
1'.:7;-:
R-' 2'30;'000
Stage Dimmer System ETC Sensor Dimmer Room A R 115, 000 Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 437 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F - Redding Convention Center General Inventory Serial Number Equipment Retain Replacement
Total
Item Qty Model Number Replacement
If Known Location
Condition Discard Value
Amount
s
Fire Cabinet 1 Grainger Paint Rm By 4' t $ 980 ea 980 00 ; Storage Cabinet 2 Grainger Paint Rm C 313 ea 626.00
Black`Cabinet 1 4 Paint Rm x x B : ,; ' $ 25sea 25 00 '- Caution Placards ,'. 5-. ; -.. Paint Rm A`. 25 ea '.. 7,i.,125:-00,' Cable Covers 21 Checker Paint Rm C 115 ea $ 2, 415. 00
12. Ladder ,'._-",,.. 1:,- Werner Grainger Paint Rm : B- 492•ea 492 00 8' Ladder 1 Werner Grainger Paint Rm B 175 ea 175. 00
40' Ladder 1 Werner Grainger Stage B 1050 ea $ 1, 050.00 Small 16" Stairs 2 sets
Manufactured
Stage B 20 ea 20. 00
in- house
Wheelchair Phone Rm C 350 ea 350. 00
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair Packet Pg. 438 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F - Redding Convention Center General Inventory Serial Number Equipment Retain/ Replacement
Total
Item Qty Model Number
If Known Location
Condition Discard Value
Replacement
Amount
4 z' 8 Riser.Platforms ' 20 Uersalite Stage t } B 635 e'a $ 12 700 00 15" Legs 120 Versalite Stage A 15 ea $ 1, 800. 00
7-. L-egs If 120 Uersalite Stage A 12 ea r $ 1 440 00
aY. ,. ` v... j'._ .. r-...-. .
S:. a:. ..-':' r.,. ,;... . a - Ar f v1,. _. > .».,.,.... __. i .. .. • xq... r.....
Riser Cart 2 Stage B 575 ea $ 1, 150. 00
Scaffold 1 Aluminum 3 tier Stage 1850 ea $ 1, 850. 00
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair Packet Pg. 439 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance Exhibit F - Redding Convention Center General Inventory Serial Number Equipment Retain! Replacement
Total
Item Qty Model Number
If Known Location
Condition Discard , value
Replacement
Amount
Freezer- Upright, 3
1 TRUE Kitchen A 5, 000 $ 5, 000.00
door
7.,,,.. .„-, 7„,...„-„.„--„.
77,..,•; y:,..i.,•-..„,„•,::.„....",,'",,,
i-,
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1?)? Jr....
117,..„.:„,„,....'.' .. .
1': r....,.'.......
7.]''., CH03,„C.-. Ort.i,pa6.y:,•,..,-. ',: 7,"0,..t.:. a',f,;4::.„,,.., :'.,[ i. : 1,,.I,-:',:;:„.,.!..: ±..,. . i.p,..i...:.: :-.::,,-.::..„:.,..,. r.„!..:., . ,... :.. ,:..„..:,: e.. 2,:, ..,:-..... 8k6r's. Rotatirig"Oven ,':,..,7, t7....,.'....;,.„......,.. r,,, :...,,„...... i,,,..i,,,-.- 7...... i.,-- ,,...:74. 74..., A„..„'„ nAltz.7„::::.„„..;'„_ 777..t i.„„
Food Warmers 2 Carter-Hoffman Kitchen B 3600 ea $ 7, 20:,1,00,, Coffe Urhs Seco''''-':''''''-'!"''"' 692354/.,•8/ 8. 7:-.;,..„.„ i„.;-: Kitchen..r„„,..,-7,„,„.,,,,,. 77...„ C.. i....,..,,,-. -,,..,- -,,,, , $.__ 0„ ea. :.. 7-.:2''''':-.''.".'''': 1:•.!;-'''''''-',''';:-. .,-". F'7,:....." 7„..."'',.1„-...',•;',' .„';',, 7'. 7P,..?„-:.:i':: 1-4.7,, L4.51-'i% i iP17•iiii.FiraCksiqi.-1,i1, 3--,I,.' 4,1;vi-iit.;,..., iiii',.,,i,:. ...... ii...,;•, 7... 7.iin,..,„,,,.... 7..„.,...., ..„.,..,.„.„ „„ ,. , _ ..... ......
Serving Carts 2 Titan Kitchen C 215 ea $ 430.00
Dish C- iis-', tciidn 661 ea 00. 7.,t.„„„'"i,,-' 7.-„.}.. 3'.i.',.',:-....'; ',.;„",,, i,.:•;,f,7"iTitan/ A,:i474-1„#,.. 7-,•27,..q,-,,,,zg,li-lq,,n•:$,-, ,.-•: „. e, 4.. ,,,..,- i.. J„,..„ Gas Ovens 6 Vulcan Kitchen D D $ 250 ea $ 1, 500.00
Gas „ irners. _
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EXHIBIT G
MANDATORY OPERATIONS CRITERIA
1. All rental agreements for the Premises, or any portion thereof or the use of the equipment provided by City to Tenant shall be in writing and shall be executed by a representative of Tenant who has been provided lawful authority to legally bind Tenant.
2. Tenant shall require that all rental agreements of the Premises for events include the following language:
Lessee hereby waives any claim against and shall indemnify and hold harmless the City of Redding, its officers, employees and representatives from any damage to the premises, fittings, equipment, building and furnishings of the Premises, inclusive of the Civic Auditorium and all ancillary improvements and landscaping, during the time the premises are used, occupied or under the control of the Lessee and against any claims of any and all persons for injury to persons or damage to property occasioned by or in connection with the use of the Premises, or any part thereof, or any equipment by Lessee its employees or agents.
3. Tenant may prescribe the forms of tickets, accounts, records and reports to be used in accounting for gross receipts in connection with percentage rentals. If civic organizations or other lessees elect to sell their own tickets, they shall do so at the discretion of the Tenant; and the Tenant shall have the right at any and all times to make an investigation or inspection of any or all of lessee' s tickets, accounts, records and reports for the purpose of verifying the amount of the receipts on which the percentage is based.
4. Tenant shall not permit a lessee to injure, mar, or in any way deface the Premises or any equipment therein, and shall not cause or permit anything to be done whereby it is in any manner marred or defaced, nor shall lessee be permitted to fasten wires, nails, hooks, tacks, pins or screws about or in any part of the Premises, nor shall lessee be permitted to make or allow to be made any alterations of any kind therein.
5. Tenant shall require all lessees by contract to pay to Tenant, on demand, the sum Tenant reasonably determines to be necessary to restore the Premises or equipment to its condition prior to damage in the event such Premises or equipment is damaged, marred or defaced by the act, default or negligence of the lessee or the lessee' s agent, employee or employees, patrons, guests or any person admitted to the auditorium by the lessee. Tenant shall require in said contract that such damages may be withheld, or set- off, from receipts due to lessee or that such damages may be recouped from a deposit made by lessee.
6. Tenant shall require that each lessee take the Premises in the condition he finds it, and in the event any lessee finds it necessary to remove or to change the location of any stage rigging or equipment, the change shall be made at his expense and lessee shall agree to change all of the stage rigging or other equipment back to the condition in which it was found. No lessee shall Packet Pg. 441 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance erect, remove or change any stand, platform, railing, booth, partition, enclosure or other structure in the Civic Auditorium or make any utility connection until and unless a plan or description thereof is filed with, and approved in writing by the Tenant.
7. Tenant shall require that each lessee use the Premises and every part thereof only in keeping with the design and purpose of the Premises. Tenant shall require that lessee will keep the Premises in good order at his own expense and the lessee will suffer no waste to be made of the building fixtures or furnishings. No portion of the sidewalks, promenade, entries, corridors, lobby or aisles shall be obstructed by lessee.
8. Tenant shall reserve the right to remove all equipment, merchandise, property, debris, etc., of any lessee immediately after the expiration of the lease, at the expense of the lessee, or, in the alternative, to charge rental after the expiration of such lease. When the time for which rent has been paid expires, all heat, electricity and water may be shut off by Tenant unless arrangements have been made in advance by lessee for the payment of additional rent to be paid by lessee, prorated on an hourly basis.
9. Tenant may permit any lessee to sell items, which are specialty items peculiar only to the performance, such as novelties, librettos, programs, flowers, etc. Tenant may contract to take a percentage of gross receipts if such permission is provided to lessee.
10. Tenant shall require that no lessee may assign any lease of the Premises, or any portion thereof, or any rights under the lease, without prior written consent of the Tenant.
11. Tenant shall retain the right to enter the Civic Auditorium, or any part thereof, at all times during the period covered by any lease contract. The lessee shall not be permitted to place any additional locks on doors.
12. Tenant shall require that persons employed by lessee to handle stage sets, sceneries, rigging properties, lighting, sound equipment or to perform other work of specialized or technical nature, including ushering and other duties, be experienced and competent and in every respect qualified to perform their duties without jeopardy or hazard to life or property or equipment and the qualifications of all such persons shall be subject to approval, rejection or dismissal by the Tenant.
13. Tenant shall require that each lessee of the Premises, or any part thereof, shall employ at his expense sufficient police protection for any event as in the Tenant's reasonable discretion is required to protect life and property, and to insure proper respectable use of the Premises.
14. Tenant is authorized to forbid entrance to or to reject from the auditorium any objectionable or disorderly person. Tenant shall require lessees to waive any claim for damages against the City of Redding, or its representatives, for any such action. No part of the auditorium shall be used by or rented to any person or organization advocating the overthrow of the government of the United States or of the State of California by force or violence nor for any meeting likely to cause or contribute to riot, breaches of the peace, destruction of life or property, or for use contrary to the public health, safety, or good order. Tenant may investigate and inquire into the Packet Pg. 442 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance general reputation and conduct of any individual or organization desirous of using the Premises or any part thereof, and if upon investigation, Tenant is satisfied that the individual or organization is likely to cause or contribute to riot, breaches of the peace or destruction of life, or property or that contemplated use would be contrary to the public health, safety, or good order, Tenant may refuse to rent or permit the use of the Premises or any part thereof to the individual or organization. This Paragraph shall not be construed by Tenant to excuse performance and compliance with any term or condition in the Lease Agreement requiring non-discrimination.
15. Every use of the auditorium or any part thereof or any equipment therein shall be in accordance, and shall comply, with the provisions of the Redding Municipal Code, the statutes of the State of California and the United States of America and the Tenant may discontinue any use of the Premises, or any part thereof, for failure to comply with or any violation or threatened violation of any of the provisions of this chapter until such time as satisfactory compliance is assured.
16. Tenant shall make no modifications to the exterior or interior of the Civic Auditorium without prior approval from City.
17. For purposes of Tenant subleasing the Premises to the Church for the Church' s ongoing regular use of the Premises for its educational activities, Tenant shall limit Church' s parking to the South parking lot( s) and enforce the same with permitting and fines.
18. Tenant shall in no way state or otherwise imply that the City of Redding in any way endorses or sponsors the religious activities of any of Tenant' s sublessees or authorized users. Tenant shall not permit any religious symbols to be displayed on the exterior of any Improvement on the Premises. Tenant shall require that any religious symbol displayed on the interior of any Improvement be removed from public view when the Premises are sublet or otherwise opened to the public for a Special Event or for an event not sponsored by the Church or another religious organization.
Packet Pg. 443 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(a)--Provide Direction on Funding Advance
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept Report and provide direction regarding the following options related to the Redding Civic Auditorium (C-5682):
(1) Allocation of approximately $675,000 through a grant or loan to Advance Redding for the purpose of assisting in covering operational expenses; (2) Deferment of lease payments of $5,000 per month until January 2026; and (3) Assign two City Council Members to work with staff and Advance Redding on development of a new contract structure to ensure the successful, future operations of the Civic Auditorium.
Fiscal Impact
In 2014, the City of Redding (City) received net proceeds of approximately $600,000 from the sale of property to The McConnell Foundation for the purpose of constructing the Sheraton Hotel. By City Council (Council) direction, the funds were deposited into a special account to be used for capital investment and deferred maintenance at the Civic Auditorium. Additionally, some of the proceeds from the Civic Auditorium lease payments have been distributed into this account. Between these sources, minus some previous expenditures, there is approximately $675,000 available. Therefore, should the Council wish to provide those funds to Advance Redding there would be no additional impact to the General Fund. However, future Civic Auditorium maintenance projects will have less available funding, and staff will be required to seek alternate sources.
Alternative Action
The Council could choose to not provide any direction at this time.
MEETING DATE: August 19, 2025
ITEM NO. 9.6(d)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(d)--Consider financial assistance options for Advance Redding regarding the Civic Auditorium located at 700 Auditorium Drive.
Travis Menne, Director of
Community Services
Packet Pg. 444 Attachment: Previous Staff Report - August 19, 2025, item 9.6(d) (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Report to Redding City Council August 13, 2025
Re: 9.6(d)‐‐Consider Financial Assistance Options for the Civic Auditorium and Advance Redding Page 2
Background/Analysis
At the August 4, 2025, Council meeting, Advance Redding presented the “State of the Civic” to the Council. During that presentation, General Manager Julie Dyar, had two requests from the Council: (1) to use the $675,000 to assist Advance Redding with current expenses; and (2) work with Advance Redding to re-structure the existing agreement to ensure future success.
As background, the Amended and Restated Civic Auditorium Lease Agreement (C-5682) between the City and Advance Redding, Inc. establishes the terms for leasing the Redding Civic Auditorium from January 1, 2022, to December 31, 2031. Advance Redding is responsible for managing the venue, ensuring a minimum of 60 event days per year, measured on a three-year rolling average, and accommodating specific community events like Kool April Nites and the July 4th Freedom Festival. The lease allows limited rent-free use of the facility by the City for municipal purposes and natural disaster response.
The rent structure is variable to account for a major subtenant’s presence. Rent was $10,000/month in 2022 and increased to approximately $23,356/month in 2023, with cost-ofliving adjustments in 2023 and 2024. However, when Advance Redding received written notice that its subtenant, Bethel Church, intended to terminate its sublease, the rent dropped to $5,000/month for the remainder of the lease. The rent reduction acknowledged the financial impact of losing a major source of stable income that supported the tenant’s operational viability.
Beyond rent, Advance Redding bears responsibility for interior maintenance, utility costs, and capital upgrades to auditorium seating systems. The City retains responsibility for structural systems such as HVAC, windows, restrooms, grounds maintenance, and parking lots.
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
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.”
Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
Reso 2014-025
C-5682 - Lease Agreement - 2021 - Advance Redding
C-5682_Lease Agreement_1st Amendment Convention Center_Advance Redding Packet Pg. 445 Attachment: Previous Staff Report - August 19, 2025, item 9.6(d) (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve the following actions relative to providing financial assistance to Advance Redding for the operations of the Redding Civic Auditorium:
(1) Adopt Resolution changing the initial designation of capital improvements and deferred maintenance to the Civic Auditorium to the purpose of providing a grant to assist with operational expenses at the Civic Auditorium;
(2) Authorize the Mayor to execute the First Amendment to the Amended and Restated Civic Auditorium Lease Agreement (C-5682) with Advance Redding deferring the $5,000 per month lease payments until January 2026;
(3) Authorize the Mayor to execute the Grant Agreement with Advance Redding in an amount not to exceed $675,445.27; and
(4) Adopt Resolution approving and adopting the 10th Amendment to City Budget Resolution No. 2025-049 appropriating $675,450 for the Advance Redding assistance grant.
Fiscal Impact
In 2014, the City of Redding (City) received net proceeds of approximately $600,000 from the sale of property to The McConnell Foundation for the development of the Sheraton Hotel. By City Council (Council) direction, the funds were deposited into a special account to be used for capital investment and deferred maintenance at the Civic Auditorium. Additionally, some of the proceeds from the Civic Auditorium lease payments have been distributed into this account.
Between these sources, minus some previous expenditures, there is approximately $675,000 available. Therefore, providing a grant to Advance Redding would not impact the General Fund.
However, future Civic Auditorium maintenance projects will have less available funding, and staff will be required to seek alternate sources.
MEETING DATE: September 2, 2025
ITEM NO. 9.6(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(b)--Consider Resolution approving financial assistance for Advance Redding and approving a lease amendment for the Civic Auditorium located at 700 Auditorium Drive.
Travis Menne, Director of
Community Services
Packet Pg. 446 Attachment: Previous Staff Report - September 2, 2025, item 9.6(b) (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Report to Redding City Council August 27, 2025
Re: 9.6(b)‐‐Authorize Financial Assistance for Civic Auditorium and Advance Redding Page 2
Alternative Action
The Council could choose to not authorize the financial assistance or provide staff with alternate direction.
Background/Analysis
At the August 4, 2025, Council meeting, Advance Redding presented the “State of the Civic.” During that presentation, General Manager, Julie Dyar, had two requests from the Council: (1) to use the $675,000 to assist Advance Redding with current expenses; and (2) work with Advance Redding to re-structure the existing agreement to ensure future success.
At the August 19, 2025, Council meeting, Council directed staff to develop a grant agreement for Advance Redding to help support operations of the Civic Auditorium with a total value of $675,445,57. Furthermore, Council directed staff to waive rent payments until January 1, 2026, as well as establish an ad hoc committee of two Community Services Advisory Commissioners to work with staff and Advance Redding to develop new lease terms for Council’s future consideration. While amending the lease will take time, the grant agreement and lease amendment waiving rents can be considered immediately, and the relevant documents are included with this report.
As background, the Amended and Restated Civic Auditorium Lease Agreement (C-5682) between the City and Advance Redding, Inc., establishes the terms for leasing the Redding Civic Auditorium from January 1, 2022, to December 31, 2031. Advance Redding is responsible for managing the venue, ensuring a minimum of 60 event days per year, measured on a three-year rolling average, and accommodating specific community events like Kool April Nites and the July 4th Freedom Festival. The lease allows limited rent-free use of the facility by the City for municipal purposes and natural disaster response.
The rent structure is variable to account for a major subtenant’s presence. In 2022, rent was $10,000 per month and in 2023, increased to approximately $23,356 per month, with cost-ofliving adjustments in 2023 and 2024. However, in December 2023, when Advance Redding received written notice that its subtenant, Bethel Church, intended to terminate its sublease, the rent dropped to $5,000 per month for the remainder of the lease. The rent reduction acknowledged the financial impact of losing a major source of stable income that supported the tenant’s operational viability.
Beyond rent, Advance Redding bears responsibility for interior maintenance, utility costs, and capital upgrades to auditorium seating systems. The City retains responsibility for structural systems such as HVAC, windows, restrooms, grounds maintenance, and parking lots.
Environmental Review
This is not a project defined under the California Environmental quality Act, and no further action is required.
Packet Pg. 447 Attachment: Previous Staff Report - September 2, 2025, item 9.6(b) (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Report to Redding City Council August 27, 2025
Re: 9.6(b)‐‐Authorize Financial Assistance for Civic Auditorium and Advance Redding Page 3
Council Priority/City Manager Goals
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.”
Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
^Resolution
^Budget Resolution
Advance Redding Grant Agreement
(C-5682) 2025 First Amendment to the Amended and Restated Lease Agreement Previous Staff Report - August 19, 2025, item 9.6(d)
(C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (C-5682) 2012 First Amendment to Lease Agreement
Packet Pg. 448 Attachment: Previous Staff Report - September 2, 2025, item 9.6(b) (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept the report; and provide direction to staff.
Fiscal Impact
In 2014, the City of Redding (City) received net proceeds of approximately $600,000 from the sale of property to The McConnell Foundation for the development of the Sheraton Hotel.
Subsequently, City Council (Council) authorized the funds to be deposited into a special account to be used for capital investment and deferred maintenance at the Civic Auditorium.
Additionally, some of the proceeds from the Civic Auditorium lease payments have been distributed into this account. Between these sources, minus some previous expenditures, there was approximately $675,000 available. There was no impact to the General Fund with this action.
On September 2, 2025, Council authorized the Mayor to execute a Grant Agreement providing $675,445.57 to Advance Redding, Inc. (Advance Redding), for operations of the Civic Auditorium along with an amendment to the lease agreement waiving the monthly payments of $5,000 until January 2, 2026. The Grant Agreement has been executed and the associated payment is in process.
Alternative Action
The Council could choose not to take action at this time and the agreement would continue as approved or provide staff with alternate direction.
MEETING DATE: October 7, 2025
ITEM NO. 9.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(a)--Consider terminating financial assistance (C-10981) and lease amendment (C-5682) for Advance Redding's operations of the Civic Auditorium located at 700 Auditorium Drive.
Travis Menne, Director of
Community Services
Packet Pg. 449 Attachment: Previous Staff Report - October 7, 2025, item 9.6 (a) (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Report to Redding City Council October 1, 2025
Re: 9.6(a)‐‐Consider Terminating Financial Assistance for Civic Auditorium and Advance Redding Page 2
Background/Analysis
At the August 4, 2025, Council meeting, Advance Redding presented the “State of the Civic.” During that presentation, General Manager, Julie Dyar, had two requests from the Council: (1) to use the $675,000 to assist Advance Redding with current expenses; and (2) work with the City to re-structure the existing agreement to ensure future success. On August 19, 2025, Council directed staff to develop a grant agreement for Advance Redding to help support operations of the Civic Auditorium with a total value of $675,445,27 and also directed staff to waive rent payments until January 2, 2026.
On September 2, 2025, Council authorized the Mayor to execute the Grant Agreement and Lease Amendment documents - both agreements were executed on September 9, 2025. On September 16, 2025, Council directed staff to return with a report for discussion and consideration of options, if any, at its next meeting, regarding the terms and conditions of both the Amended and Restated Civic Auditorium Lease Agreement (C-5682) and the executed Grant Agreement (C10981) with Advance Redding.
In general, the terms of the Grant Agreement are:
One-year term, expiring September 8, 2026;
The City can terminate with 30 days written notice to Advance Redding; A grant report shall be submitted detailing exact expenditures, with relevant records or invoices and outcomes noted, prior to the end of the grant term; The City shall provide a grant in an amount not to exceed $675,445.27 to Advance Redding for activities as set forth in the Scope of Work (Exhibit A, Page 8 of attached contract);
Payment of said funds shall be made in one lump sum payment within 30 days of the date of this Agreement;
Any funds paid to Advance Redding shall be used solely for the purposes set forth in the Scope of Work (Exhibit A, Page 8 of attached contract) and in accordance with the terms outlined within this contract;
Exhibit A details planned expenditures, which includes fencing, utility costs, outdoor stage rental, production costs, and rentals which include lighting and sound; and Upon termination of this agreement, any funds remaining shall be returned to the City, and any funds not used for the purposes specified in Exhibit A shall be repaid to the City in full.
Per the terms of the Grant Agreement, should the payment be received, and spent on eligible expenses, the City has no recourse to recuperate funds unless the terms of the contract were violated.
The sole term of the Lease Amendment is that rent, previously $5,000 per month, is waived until January 2, 2026.
Packet Pg. 450 Attachment: Previous Staff Report - October 7, 2025, item 9.6 (a) (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Report to Redding City Council October 1, 2025
Re: 9.6(a)‐‐Consider Terminating Financial Assistance for Civic Auditorium and Advance Redding Page 3
As further background, the Amended and Restated Civic Auditorium Lease Agreement between the City and Advance Redding, establishes the terms for leasing the Redding Civic Auditorium from January 1, 2022, to December 31, 2031. Advance Redding is responsible for managing the venue, ensuring a minimum of 60 event days per year, measured on a three-year rolling average, and accommodating specific community events like Kool April Nites and the July 4th Freedom Festival. The lease allows limited rent-free use of the facility by the City for municipal purposes and natural disaster response.
The rent structure is variable to account for a major subtenant’s presence. In 2022, rent was $10,000 per month and in 2023, increased to approximately $23,356 per month, with cost-ofliving adjustments in 2023 and 2024. However, in December 2023, when Advance Redding received written notice that its subtenant, Bethel Church, intended to terminate its sublease, the rent dropped to $5,000 per month for the remainder of the lease. The rent reduction acknowledged the financial impact of losing a major source of stable income that supported the tenant’s operational viability.
Beyond rent, Advance Redding bears responsibility for interior maintenance, utility costs, and capital upgrades to auditorium seating systems. The City retains responsibility for structural systems such as HVAC, windows, restrooms, grounds maintenance, and parking lots. To this end, Advance Redding has paid in excess of $1 Million dollars for various interior maintenance.
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
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.”
Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
^C-10981 - Grant Agreement - 2025 - Advance Redding
Reso. 2025-074 - Authorizing Financial Support for Advanced Reddings Operations of Redding Civic
Previous Staff Report - August 19, 2025, item 9.6(d)
Previous Staff Report - September 2, 2025, item 9.6(b)
(C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement C-5682 - First Amendment - 2025 - Advance Redding
Packet Pg. 451 Attachment: Previous Staff Report - October 7, 2025, item 9.6 (a) (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
(1) Provide direction to staff regarding the continued deferment of lease payments of $5,000 per month related to the Redding Civic Auditorium (C-5682); and (2) Consider providing direction to staff regarding the findings of the Ad Hoc Committee regarding funding for the Civic Auditorium.
Fiscal Impact
Advance Redding’s lease payments are currently deferred through January 2026. Should Council decide to continue deferring lease payments, the City will continue to forgo collecting $5,000 per month in lease payments. This will result in a $5,000 per month impact on the Civic Auditorium Fund for as long as Council defers lease payments.
Alternative Action
The Council could choose not to provide any direction at this time. Not approving lease payment deferment will result in the resumption of lease payments. This action would place additional financial burden on Advance Redding for their operation of the Civic Auditorium.
Background/Analysis
At the August 4, 2025, Council meeting, Advance Redding presented the “State of the Civic” to the Council. During that presentation, General Manager Julie Dyar, had two requests from the Council: (1) to use the $675,000 to assist Advance Redding with current expenses; and (2) work with Advance Redding to restructure the existing agreement to ensure future success. At their September 2, 2025 meeting, Council authorized a $675,445.57 grant to Advance Redding.
Council also authorized a lease amendment deferring lease payments until January 2026. Now that the deferment timeline has run out, Staff is seeking guidance on further deferrals and direction regarding the results of the Ad Hoc committee, if any. Should Council wish to continue deferring lease payments, staff will return to Council with a lease amendment to memorialize the deferment timeframe.
MEETING DATE: January 20, 2026
ITEM NO. 9.6(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(c)--Consider providing additional lease deferments and provide direction to staff for Advance Redding's operation of the Civic Auditorium located at 700 Auditorium Drive.
Travis Menne, Director of
Community Services/Airports
Packet Pg. 452 Attachment: Previous Staff Report - January 20, 2026, item 9.6(c) (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Report to Redding City Council January 16, 2026
Re: 9.6(c)--Consider Financial Assistance for the Civic Auditorium and Advance ReddingPage 2 As further background, the Amended and Restated Civic Auditorium Lease Agreement (C-5682) between the City and Advance Redding, Inc. establishes the terms for leasing the Redding Civic Auditorium from January 1, 2022, to December 31, 2031. Advance Redding is responsible for managing the venue, ensuring a minimum of 60 event days per year, measured on a three-year rolling average, and accommodating specific community events like Kool April Nites and the July 4th Freedom Festival. The lease allows the City to use the facility for limited rent-free municipal purposes and natural disaster response.
The rent structure is variable to account for a major subtenant’s presence. Rent was $10,000/month in 2022 and increased to approximately $23,356/month in 2023, with cost-ofliving adjustments in 2023 and 2024. However, when Advance Redding received written notice that its subtenant, Bethel Church, intended to terminate its sublease, the rent dropped to $5,000/month for the remainder of the lease. The rent reduction acknowledged the financial impact of losing a major source of stable income that supported the tenant’s operational viability.
Beyond rent, Advance Redding bears the responsibility for interior maintenance, utility costs, and capital upgrades to auditorium seating systems. The City retains responsibility for structural systems such as HVAC, windows, restrooms, grounds maintenance, and parking lots.
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
• 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.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
Reso 2014-025
C-5682 - Amended and Restated Lease Agreement - 2021 - Advance Redding (1) C-5682_Lease Agreement_1st Amendment Convention Center_Advance Redding
9.6(d) Consider financial Assistance options for Advance Redding regarding the Civic Auditorium
C-10981 - Grant Agreement - 2025 - Advance Redding
9.6(b) Consider Resolution Approving Financial Assistance for Advanced Redding and Approving a Lease Amendment for the Civic Auditorium
Packet Pg. 453 Attachment: Previous Staff Report - January 20, 2026, item 9.6(c) (9.6(a)--Provide Direction on Funding Advance Redding's Operations of the
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, 2025.
Fiscal Impact
There is no fiscal impact for accepting the Annual Comprehensive Financial Report (ACFR).
Alternative Action
The City Council could reject the ACFR for the fiscal year ended June 30, 2025, and provide alternate direction to staff.
Background/Analysis
The audit of the City of Redding (City) for the fiscal year that ended June 30, 2025, has been completed. The City received an unmodified opinion from the auditor, CLA (Clifton Larson Allen LLP), a firm of Certified Public Accountants, on the report as presented. The 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 for its ACFR for the fiscal year ended June 30, 2024. This was the 41st consecutive year that the City 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.
MEETING DATE: February 3, 2026
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, 2025.
Greg Robinett, Director of
Finance/City Treasurer
Packet Pg. 454
Report to Redding City Council January 28, 2026
Re: 9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025 Page 2 A Certificate of Achievement is valid for a period of one year only. Staff believes the current ACFR 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
FY2024-25 City of Redding ACFR FYE 2025
Packet Pg. 455
Annual Comprehensive
FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2025
Packet Pg. 456 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Packet Pg. 457 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) i
CITY OF REDDING
REDDING, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
Prepared by:
FINANCE DEPARTMENT
Packet Pg. 458 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) ii
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Packet Pg. 459 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025)
INTRODUCTORY
SECTION
Packet Pg. 460 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) i
v
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Packet Pg. 461 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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 ................................................................................................................................. 30 Statement of Activities and Changes in Net Position ....................................................................................... 32 Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ............................................................................................................................................. 38 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .............................................................................. 41 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................... 42 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 ............................................................................. 43 Proprietary Fund Financial Statements:
Statement of Net Position .......................................................................................................................... 46 Statement of Revenues, Expenses, and Changes in Net Position .............................................................. 50 Statement of Cash Flows ........................................................................................................................... 52 Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position .......................................................................................................... 58 Statement of Changes in Fiduciary Net Position ....................................................................................... 59 Notes to the Basic Financial Statements ............................................................................................................. 61 Index to Notes to the Basic Financial Statements ............................................................................................ 63 Required Supplementary Information (Unaudited):
Budgetary Principles ............................................................................................................................................. 147 Schedule of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual:
General Fund .................................................................................................................................................. 148 Community Development Special Revenue Fund ......................................................................................... 150 Schedules of Changes in Net Pension Liability and Related Ratios - Public Employees Retirement System Miscellaneous Plan (CalPERS) ......................................................... 152 Packet Pg. 462 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
vi
Page
FINANCIAL SECTION (Continued):
Required Supplementary Information (Unaudited):
Schedules of Plan Contributions - Public Employees Retirement System Miscellaneous Plan (CalPERS) .................................................................................................................... 154 Schedules of Changes in Net Pension Liability and Related Ratios - Public Employees Retirement System Safety Plan (CalPERS).................................................................... 156 Schedules of Plan Contributions - Public Employees Retirement System Safety Plan (CalPERS) ................................................................................................................................. 158 Schedules of Changes in Net Pension Liability and
Related Ratios - Public Agency Retirement Services Enhancement Plan (PARS) ...................................... 160 Schedules of Public Agency Retirement Services Retirement Enhancement Plan Contributions All Tiers (PARS) ................................................................................................................... 162 Schedules of Changes in Net OPEB Liability and Related Ratios ..................................................................... 164 Schedule of Contributions-OPEB ....................................................................................................................... 166 Supplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheet ............................................................................................................................ 172 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 174 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
Parking Special Revenue Fund .............................................................................................................. 176 Street Maintenance Special Revenue Fund ............................................................................................ 177 Housing Special Revenue Fund ............................................................................................................. 178 Continuum of Care Special Revenue Fund ............................................................................................ 179 General Special Revenue Fund .............................................................................................................. 180 Library Special Revenue Fund .............................................................................................................. 181 General Capital Projects Fund - Major Fund ......................................................................................... 182 Non-Major Enterprise Funds:
Combining Statement of Fund Net Position ................................................................................................. 184 Statement of Revenues, Expenses, and Changes in Fund Net Position ....................................................... 187 Combining Statement of Cash Flows ........................................................................................................... 188 Internal Service Funds:
Combining Statement of Net Position .......................................................................................................... 192 Combining Statement of Activities and Changes in Net Position ................................................................ 195 Combining Statement of Cash Flows ........................................................................................................... 196 Fiduciary Funds – Custodial Funds:
Combining Statement of Fiduciary Net Position.......................................................................................... 200 Combining Statement Changes in Fiduciary Net Position ........................................................................... 201 Other Supplementary Information:
Supplementary Information Regarding Passenger Facility Charges .................................................................. 205 Schedule of Passenger Facility Charges Collected and Expended and Interest Collected For the quarters ended September 30, 2024, December 31, 2024, March 31, 2025, and June 30, 2025 ............................................................................................................. 206 Packet Pg. 463 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
vii
Page
STATISTICAL SECTION
Index .......................................................................................................................................................................... 211 Financial Trends:
Net Position by Component – Last Ten Fiscal Years ......................................................................................... 212 Changes in Net Position – Last Ten Fiscal Years ............................................................................................... 214 Fund Balances of Governmental Funds – Last Ten Fiscal Years ....................................................................... 219 Changes in Fund Balance of Governmental Fund – Last Ten Fiscal Years ....................................................... 220 Revenue Capacity:
General Governmental Tax Revenues by Source – Last Ten Fiscal Years ........................................................ 223 Revenue Base – Own Source Revenue – Last Ten Fiscal Years ........................................................................ 224 Electric Utility Rates – Last Ten Fiscal Years .................................................................................................... 226 Principal Electric Utility Payers – Last Ten Fiscal Years ................................................................................... 229 Debt Capacity:
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ............................................................................ 230 Computation of Direct and Overlapping Debt .................................................................................................... 233 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................................... 234 Wastewater Revenue Bond Coverage – Last Ten Fiscal Years .......................................................................... 236 Water Revenue Bond Coverage – Last Ten Fiscal Years ................................................................................... 238 Electric Revenue Bond Coverage – Last Ten Fiscal Years ................................................................................ 240 Demographic and Economic Information:
Demographic Statistics – Last Ten Fiscal Years ................................................................................................ 241 Principal Employers in the Greater Redding Metropolitan Area – Last Ten Fiscal Years ................................. 242 Full-Time City Budgeted Employees by Function/Program – Last Ten Fiscal Years........................................ 243 Operating Information:
Capital Assets Statistics by Function/Program – Last Ten Fiscal Years ............................................................ 245 Operating Indicators by Function/Program – Last Ten Fiscal Years .................................................................. 246 Supplemental Historical Information:
Statement of Physical Condition of Airport Assets ............................................................................................ 251 History and Statement of Physical Condition of Electric Utility System Assets ................................................ 253 History and Statement of Physical Condition of Storm Drainage Utility System Assets ................................... 256 History and Statement of Physical Condition of Wastewater Utility System Assets ......................................... 258 History and Statement of Physical Condition of Water Utility System Assets .................................................. 261 Packet Pg. 464 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) viii
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Packet Pg. 465 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) ix
January 15, 2025
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, 2025. 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.
Clifton Larsen Allen, LLP, 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, 2025.
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 93,534 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. 466 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) 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 increase 0.01 percent. The City’s population represents approximately 52% of Shasta County’s population. The following table indicates population growth for the City and Shasta County from 1970 to 2025:
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 93,058 -0.07% 180,651 -0.06%
2023 92,164 -0.08% 179,122 -0.07%
2024 * 93,453 0.12% 180,599 0.07%
2025 93,534 0.01% 180,201 -0.02%
* Revised
City of Redding Shasta County
Source: 1970-2020 data from U.S. Census; 2021-2025 estimates from the California State Department of Finance as of May 1 (January 1, 2025 report).
The City’s population has remained largely unchanged over the past five years, decreasing by only .37%.
Projections indicate that population levels will stay relatively stable over the next decade. Shasta County reflects a similar trend, with a 1% decline over the same five-year period. The Redding area is expected to continue accounting for approximately 52% of the County’s total population.
Packet Pg. 467 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) xi
A variety of factors support continued residency within the City, including access to essential utilities (wastewater, storm drainage, water, electric, and solid waste), employment opportunities, regional shopping, transportation services, and reduced commuting distances.
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 2025:
Region Median Home Price
Shasta County $382,500
Sacramento $549,450
Los Angeles $903,650
Orange County $1,470,000
San Francisco $1,705,000
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 2025 are listed in the following table:
Employer Product/Services Employees
Mercy Medical Center Medical Facilities/Services 2,239
Shasta County County Services 1,779
City of Redding** City Services 961
Shasta Regional Medical Center Medical Facilities/Services 679 CA Transportation Department Highways, Freeways, etc. 599 Shasta Union High School District Education 582
Shasta Community College* Education 521
Shasta Community Health Medical Services 500
Win-River Casino Casino 366
Redding Rancheria Redding Rancheria 351
(* ) 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. 468 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) xii
According to the State Employment Development Department, the unemployment rate of the City’s metropolitan area was 5.5 percent on June 30, 2025. 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 2016 through June 2025:
Fiscal Year
Ending
June 30
Labor
Force
Unemployment
Number Rate
2016 74,420 5,236 7.0%
2017 74,073 4,366 5.9%
2018 73,786 3,773 5.1%
2019 72,960 3,467 4.8%
2020 73,812 7,215 9.8%
2021 73,145 5,288 7.2%
2022 73,014 3,313 4.5%
2023 73,449 3,730 5.1%
2024 74,200 4,000 5.4%
2025 81,200 4,500 5.5%
Source: State Department of Employment
All numbers revised annually to source.
Construction Activity - For the calendar year ending December 2024, 3,879 building permits were issued, with a total permit valuation of $151,760,984. This represents a .1% decrease in the number of permits from the previous calendar year. Commercial permit activity has been experiencing a slowdown which is likely related to economic uncertainty and inflation causing higher building costs and financing costs. Multi-family permit numbers tend to fluctuate from year-to-year due to planning and funding taking multiple years prior to construction. Single-family development has seen an uptick due to ongoing subdivision projects which provide a steady stream of building permits.
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:
2021 2022 2023 2024
Single Family Units 151 234 94 123
Value Single Family*** $42,510,729 $76,110,674 $36,660,286 $48,893,224 Multi-Family Units 244 52 0 61
Multi-Family Permits**3 4 0 3
Value Multi-dwellings $38,036,402 $9,031,632 $0 $9,295,845 Number of Permits 33232318
Value Business $46,433,721 $44,679,660 $36,936,113 $34,006,421 Total Permits*** 5,310 4,675 3,883 3,879
Value Total all
Permits*** $164,855,548 $192,655,276 $116,809,532 $151,760,984 * Value of new construction only.
** Includes hotel and apartment units - "R" occupancies. *** Numbers Revised
Source: City of Redding Development Services Department Packet Pg. 469 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) 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 129,100 in the primary trade area and approximately 260,900 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 $2.5 billion in calendar year 2024, a 1.48% decrease over the same period for 2023.
Taxable Taxable Transactions
Transactions Percentage
Year (in Thousands) Increase (Decrease)
2015 1,992,806.00 2.53%
2016 2,022,557.00 1.49%
2017 2,118,481.00 4.74%
2018 2,198,010.00 3.75%
2019 * 2,341,896.00 6.55%
2020 * 2,307,829.00 -1.45%
2021 * 2,623,448.00 13.68%
2022 * 2,614,732.00 -0.33%
2023 * 2,535,987.00 -3.01%
2024 2,498,562.00 -1.48%
* 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. Skywest Airlines provides air service from Redding Regional Airport to San Francisco and Los Angeles, California and Denver, Colorado operating as United Express. Alaska Airlines provides air service from Redding Regional 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 fifteen different fixed routes, rural service and demand response (curb-to-curb) services. RABA had a total ridership of 501,689 over the fiscal year which is an average total monthly ridership of approximately 41,807. 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. 470 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) xiv
Community Services - Youth in the area attend school at one of 45 elementary schools and middle/junior high schools, 15 charter schools, 1 regional occupation programs and 18 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 9,697 students. In addition, there are several Vocational & Technical schools offering a diverse range of programs.
The City’s parks system includes 59 developed parks and facilities, encompassing over 482 developed acres. This system includes nearly 180 acres of natural area parks, 40 plus miles of City-owned trails, and 17 special purpose facilities and almost 1,000 acres of natural open space. Among these special purpose facilities are the Redding Civic Auditorium, which hosts cultural/performing arts events, the Redding Aquatic Center; the Redding Big Sports Park; the California Soccer Park; the Senior Citizens Center; the Redding Rodeo Grounds, the Martin Luther King Jr. Community Center; three boat ramps along the Sacramento River. New for 2024, is the City’s .31 -acre Whistle Stop Park, a premier downtown plaza featuring a stage, cooling fog system and much more.
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 2,918 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. 471 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) 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, 2025, 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, 2024. This was the 41st 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.
Gregory Robinett
Director of Finance/City Treasurer
Packet Pg. 472 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) 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, 2024
Executive Director/CEO xvi Packet Pg. 473 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding Organization Chart City Clerk City Clerk Reprographics Records Management City Clerk Sharlene Tipton City Attorney Christian Curtis City Manager Barry Tippin City Council City Treasurer City Treasurer Greg Robinett Electorate City Attorney Risk Liability Parks Recreation Administration Building Maint. Communications Administration Redding Power Distribution Energy Services Resource Group Customer Service Field Services Administration Suppression Prevention Permit Center Building Planning Code Enforcement Revised 12/26/2023 Electric Nick Zettel Community Services Travis Menne 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 Administration Storm Drains Electrical Technician Water Wastewater Kari Kibler Financial Services Brian Barner Michael Webb Police Personnel Volunteer Svcs. Risk Mgmt. City Manager Finance Purchasing Treasurer Greg Robinett Information Technology Anthony Van Boekel Fire Jerrod Vanlandingham Housing & Economic Development Steve Bade Housing RABA Airports Personnel Assistant City Manager Steve Bade City ClerkCity Clerk Sharlene Tipton xvii Packet Pg. 474 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) xviii
MUNICIPAL OFFICIALS
City Council
Mayor ............................................................................................. Jack Munns Vice Mayor ..................................................................................... Mike Littau Mayor Pro Tempore ....................................................................... Erin Resner Council Member ...................................................................... Tenessa Audette Council Member ................................................................... Dr. Paul Dhanuka Administrative Personnel
City Manager ................................................................................ Barry Tippin Assistant City Manager ................................................................... Steve Bade City Attorney ............................................................................ Christian Curtis City Clerk .................................................................................Sharlene Tipton City Treasurer ............................................................................. Greg Robinett Director of Community Services ................................................. Travis Menne Director of Development Services .............................................. Jeremy Pagan Director of Electric .......................................................................... Nick Zettel Director of Financial Services .................................................... Greg Robinett Director of Information Technology ..................................... Tony Van Boekel Director of Personnel ....................................................................... Kari Kibler Director of Public Works .......................................................... Michael Webb Fire Chief ....................................................................... Jerrod Vanlandingham Police Chief .................................................................................. Brian Barner Packet Pg. 475 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025)
FINANCIAL
SECTION
Packet Pg. 476 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) 2 This page intentionally left blank
Packet Pg. 477 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
3 INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members
of the City Council of the City of Redding
Redding, California
Report on the Audit of the Financial Statements
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, 2025, and the related notes to the 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, 2025, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) 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 Auditors’ 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 opinions.
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.
Packet Pg. 478 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) To the Honorable Mayor and Members
of the City Council of the City of Redding
4 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 auditors’ 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 GAAS 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 GAAS 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.
Packet Pg. 479 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) To the Honorable Mayor and Members
of the City Council of the City of Redding
5 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Principles, Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual - General Fund and Community Development Special Revenue Fund, Schedules of Changes in Net Pension Liability and Related Ratios (CalPERS and PARS), Schedules of Plan Contributions (CalPERS and PARS), Schedule of Changes in Net OPEB Liability and Related Ratios, and Schedule of Contributions-OPEB, as listed in the accompanying table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, 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 GAAS. 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 and the Supplemental Historical Information but does not include the basic financial statements and our auditors’ 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.
Packet Pg. 480 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) To the Honorable Mayor and Members
of the City Council of the City of Redding
6 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 15, 2026, on our consideration of the 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 the 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 of Redding’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Roseville, California
January 15, 2026
Packet Pg. 481 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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, 2025. 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 27).
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. 482 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
8 The government-wide financial statements can be found on pages 29-33 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 twelve 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, General Capital Project Fund, and Community Development 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 37-43 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. 483 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
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 45-55 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 57-59 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 61-144 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. 484 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
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 $892 million (See Analysis of Statement of Activities and Changes in Net Position on page 12).
$797.7 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. $200.5 million is available for the City’s ongoing obligations related to programs with external restrictions. ($106.4) 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 increased by $50.1 million (net of bond premiums and discount and excluding deferred charges) during the year ending June 30, 2025. The City made $17.7 million in regular scheduled debt payments. The City added $67.2 million in Electric Utility debt, and $0.2 million in subscription debt. The City’s total net position increased by $44 million over the prior year. The $23.8 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 $66.1 million increase in restricted net position represents the change in resources that are subject to external restrictions on their use. The Electric Utility unspent bond proceeds of $47 million are included in this increase.
The ($45.7) 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 $141.6 million was an increase of $8.8 million from the prior year ending fund balance of $132.8 million. Amounts available for spending include Restricted, Assigned and Unassigned Fund Balances; these totaled $139.1 million, or 98.2 percent of fund balance. Of this amount:
$126.7 million is restricted by law or externally imposed requirements. Community Development and NonMajor Governmental Funds make up the majority of the restricted at $110.4 million, which includes primarily grants and streets funds.
$6.4 million is assigned or constrained by the City Council’s ‘intent” to be used for specific purposes, but are neither restricted nor committed. Assigned is primarily encumbrances and Rolling Stock funds which make up $6 million.
$6.0 million is unassigned fund balance.
Packet Pg. 485 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
11 GOVERNMENT-WIDE FINANCIAL ANALYSIS
2025 2024 2025 2024 2025 2024
Dollar
Change
Percent
Change
Assets:
Current and other assets 225,842$ 229,030$ 337,608$ 262,137$ 563,450$ 491,167$ 72,283$ 14.7% Capital assets, net 385,228 378,133 585,436 561,771 970,664 939,904 30,760 3.3% Total assets 611,070 607,163 923,044 823,908 1,534,114 1,431,071 103,043 7.2% Deferred outflow of resources 78,007 96,762 50,133 66,284 128,140 163,046 (34,906) -21.4% Liabilities:
Current liabilities 45,402 52,922 57,504 58,914 102,906 111,836 (8,930) -8.0% Long-term liabilities 325,485 333,838 325,579 283,410 651,064 617,248 33,816 5.5% Total liabilities 370,887 386,760 383,083 342,324 753,970 729,084 24,886 3.4% Deferred inflow of resources 5,308 5,918 11,210 11,507 16,518 17,425 (907) -5.2% Net position:
Net investment in capital assets 357,289 348,503 440,374 425,350 797,663 773,853 23,810 3.1% Restricted 145,321 131,862 55,179 2,576 200,500 134,438 66,062 49.1% Unrestricted (189,728) (169,118) 83,331 108,435 (106,397) (60,683) (45,714) 75.3% Total net position 312,882$ 311,247$ 578,884$ 536,361$ 891,766$ 847,608$ 44,158$ 5.2% 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 $891.8 million at the close of the current fiscal year.
Analysis of Summary of Net Position
The City’s total net position increased by 5.2% from a year ago, increasing from $847.6 million to $891.8 million.
Net position from governmental activities increased by $1.6 million or 0.5% and net position from business activities increased by $42.5 million or 7.9%. The $44.2 million change is primarily due to a $52.6 million dollar change in Business-type restricted net position, which is primarily related to Electric Utility unspent bond funds.
The negative unrestricted net position at June 30, 2025 is primarily the result of the City’s unfunded pension and OPEB obligations with a net effect of ($205) million.
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 $200.5 million represents resources that are subject to external restrictions as to how they may be used. The remaining unrestricted net position deficit of ($106.4) million experienced a negative change of $45.7 million, or 75%, from the prior year. This change means more resources are available to fund the City’s ongoing obligations to its citizens and creditors. The majority of the negative unrestricted net position is primarily the result of the City’s unfunded pension and OPEB obligations.
Packet Pg. 486 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
12 2025 2024 2025 2024 2025 2024
Dollar
Change
Percent
Change
Revenues
Program revenues
Charges for services 21,984$ 23,680$ 288,320$ 268,468$ 310,304$ 292,148$ 18,156$ 6.2% Operating grants and contributions 55,167 53,006 11,205 8,587 66,372 61,593 4,779 7.8% Capital grants and contributions 23,195 14,380 15,610 7,911 38,805 22,291 16,514 74.1% Total program revenue 100,346 91,066 315,135 284,966 415,481 376,032 39,449 10.5% General revenue
Sales tax 30,029 31,068 - - 30,029 31,068 (1,039) -3.3% Property tax 29,906 28,525 - - 29,906 28,525 1,381 4.8% Investment earnings 3,234 2,845 8,297 9,525 11,531 12,370 (839) -6.8% Other 12,482 12,139 23 663 12,505 12,802 (297) -2.3%
Total general revenues 75,651 74,577 8,320 10,188 83,971 84,765 (794) -0.9% Total revenue 175,997 165,643 323,455 295,154 499,452 460,797 38,655 8.4% Expenses:
General government 12,204 8,221 - - 12,204 8,221 3,983 48.4% Police 56,673 54,474 - - 56,673 54,474 2,199 4.0%
Fire 36,321 35,008 - - 36,321 35,008 1,313 3.8%
Public works 21,255 22,360 - - 21,255 22,360 (1,105) -4.9% Planning 7,803 8,047 - - 7,803 8,047 (244) -3.0%
Recreation and culture 16,669 14,565 - - 16,669 14,565 2,104 14.4% Community development 25,795 21,600 - - 25,795 21,600 4,195 19.4% Interest on long-term debt 1,580 1,662 - - 1,580 1,662 (82) -4.9% Electric - - 169,583 159,039 169,583 159,039 10,544 6.6% Water - - 23,707 22,977 23,707 22,977 730 3.2%
Wastewater - - 27,390 28,480 27,390 28,480 (1,090) -3.8% Storm drain - - 3,315 3,218 3,315 3,218 97 3.0%
Solid Waste - - 35,367 33,854 35,367 33,854 1,513 4.5%
Transportation - - 16,444 14,723 16,444 14,723 1,721 11.7% Convention center - - 1,188 1,191 1,188 1,191 (3) -0.3% Total expenses 178,300 165,937 276,994 263,482 455,294 429,419 25,875 6.0% (2,303) (294) 46,461 31,672 44,158 31,378 12,780 40.7%
Transfers 3,938 5,172 (3,938) (5,172) - - - 0.0%
Change in net position 1,635 4,878 42,523 26,500 44,158 31,378 12,780 40.7% Net position - beginning 311,247 306,369 536,361 509,861 847,608 816,230 31,378 3.8% Net position - ending 312,882$ 311,247$ 578,884$ 536,361$ 891,766$ 847,608$ 44,158$ 5.2% 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. 487 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
13 Governmental Activities
Revenue Highlights
Total revenues for the governmental activities were $176 million. The largest component of total revenue is taxes at $72.1 million, making up 41% 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 decreases by 3.3% from the prior year. The decrease of $1.0 million is in result of economic activity that has been at or near flat for three years since 2022-23 to 2024-25. Additionally, there were onetime adjustment made by the California Department of Tax and Fee Administration (CDTFA) to previous taxes collected that reduced the revenue performance in 2024-25.
Property taxes increased by 4.8% from the prior year. The $1.4 million increase is reflective of the rise in property values and the related re-assessment when properties are sold.
Transient occupancy taxes increased by 14.2% from the prior year. The $1.0 million increase represents an increase in tourism activity to the local area. This activity can fluctuate due to a variety of reasons including tourism levels and timing of local fire activity. As a result, this revenue can see significate increases and decreases in any single year.
Operating grants and contributions increased by $2.2 million primarily due to an increase in Library operating funding of $1.5 million
Charges for services decreased by $1.7 million primarily due to a decrease legal settlement.
Capital grants and contributions increased by $8.8 million primarily due to a change in capital grants for Public Works.
Expense Highlights
Functional expenses for the year totaled $178.3 million, an increase of $12.4 million from the prior year.
Community Development experienced an increase of $4.2 million, which includes a $2,9 million increase in Continuum of Care expenses and a $1.2 million increase in Redding Housing Authority rental assistance expenses. Recreation and Culture experienced an increase of $2.1 million, which is includes $0.4 million for the new department Redding Sports Complex. General Government increased $4 million which includes $1.8 million in increase Retiree health costs. Police increased $2.2 million and Fire increased $1.3 million primary related to personnel related costs, vehicle maintenance
The largest component of total expenses was for public safety (police and fire), representing $93.0 million or
52.2% of the total. A large portion of public safety costs are funded from general revenues, primarily taxes. In contrast, Public Works expenses, which total $21.3 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.
The following graphs show an illustrative picture of where the City funds come from and where they are spent:
Packet Pg. 488 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
14 Packet Pg. 489 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
15 Business-Type Activities
Business-type activities increased the City’s net position by $42.5 million. Funds are being accumulated for current and future capital projects, especially in the Electric Utility, Water Utility, Wastewater Utility, and Storm Drainage Utility Funds. Key elements of this increase are as follows:
Revenue Highlights
An increase of $19.9 million in charges for services primarily due to rate changes in Electric Utility of 4%, Water Utility of 12% in July-December and 6.5% in January-June, Wastewater Utility of 5%, and Solid Waste Collection/Disposal of 15% in July-December and 8% in January-June. The Water Utility also experienced an increase in water deliveries of 10.9%.
An increase of $2.6 million in operating grants and contributions due primarily to an increase in Transportation operating grants of $2.4 million. This increase is due to new SB125 grant funding for the bus authority of $3.3 million. Airport experienced a decrease in grant operating funding this year as the grant focus heavily turned to the capital runway project.
An increase of $7.7 million in capital grants and contributions primarily due to an increase of $4 in developer contributed capital assets and Solid Waste West Central Landfill contributions of $2.9 for equipment purchases.
Expense Highlights
Functional expenses for the year totaled $277 million, an increase of $13.5 million from the prior year. This change is primarily to Electric’s increase of $10.5 million, due to an increase in purchased power of $5.1 million, and an increase or $4.5 million in transmission & distribution costs. Another key change is an increase in the internal service fund elimination of $3.5 million.
The following schedule shows business-type activities revenues and expenses:
2025 2024 2025 2024 2025 2024
Electric 180,453$ 172,650$ 169,583$ 159,039$ 10,870$ 13,611$ Water 37,708 29,627 23,707 22,977 14,001 6,650
Wastewater 40,445 36,717 27,390 28,480 13,055 8,237
Storm drainage 4,498 3,078 3,315 3,218 1,183 (140)
Solid waste 37,309 29,587 35,367 33,854 1,942 (4,267)
Transportation 14,662 13,126 16,444 14,724 (1,782) (1,598) Convention center 60 182 1,188 1,191 (1,128) (1,009)
Investment earnings 8,297 9,525 - - 8,297 9,525
Transfers (3,938) (5,172) - - (3,938) (5,172)
Other 23 663 - - 23 663
Total 319,517$ 289,983$ 276,994$ 263,483$ 42,523$ 26,500$ Revenue Expense
Changes in
Net Position
Revenues, Transfers and Expenditures - Business-Type Activities (in thousands)
Packet Pg. 490 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
16 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 (89.1%) of the revenues of the business-type activities.
Analysis of the Governmental Fund Balances
Nonspendable Restricted Assigned Unassigned Total
General fund 2,398$ 1,473$ 6,440$ 6,581$ 16,892$
Major funds
Capital projects - 14,918 - - 14,918
Community Development 40 76,699 - - 76,739
Other governmental funds 48 33,659 - (628) 33,079
2,486$ 126,749$ 6,440$ 5,953$ 141,628$
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, 2025, the City’s governmental funds reported total fund balance of $141.6 million, an increase of $8.8 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 18 – Fund Balances):
Non-spendable Fund Balance, $2.5 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, Packet Pg. 491 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
17 (2) inventories, and (3) endowments. This is made up primarily of $1.1 million for prepaid the July 2025 health insurance due in June and $0.9 in endowment funds. Restricted Fund Balance, $126.7 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. This includes $1.5 Million in OPIOID Settlement funds.
Assigned Fund Balance, $6.4 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. Primarily $3.5 million in encumbrances and $2.9 in future expenditures. Unassigned Fund Balance, $6.0 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, 2025, unassigned fund balance was $6.6 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 5.4% of the total General Fund expenditures, while total fund balance represents 13.8% of total General Fund expenditures.
The fund balance of the City’s General Fund decreased by $6.7 million during the year ended June 30, 2025.
General Fund revenues decreased $2.2 million, and expenditures decreased by $0.8 million from fiscal year-end 2024 to 2025. The increase in revenue was primarily due to increases in property tax revenue of $1.3 million (4.7%). Tax rates were not changed during the year. Also, charges for services increased $0.9 million.
The $0.8 million decrease in expenditures is primarily due to an increase in expenditures for Police of $1.6 million and Fire of $3 million. The expenditures contributing to the increase are primarily due to increases in employee costs. Fire’s increase is due to a 4% wage increase and overtime due to mutual aid. A decrease in public works of $5.9 is primarily due to a reduction in maintenance projects as capital projects have begun.
Other financing sources decreased by $2.1 million. This is primarily due to a decrease in net transfers of $2.0 million.
General Fund
2025 2024
Dollar
Change
Percent
Change
Total revenue 101,621$ 103,839$ (2,218)$ -2.1%
Total expenditures 122,358 123,113 (755) -0.6%
Excess (deficiency) of revenues (20,737) (19,274) (1,463) 7.6% Other financing sources (uses) 14,082 16,259 (2,177) -13.4% Net change in fund balance (6,655) (3,015) (3,640) 120.7% Fund balance
Beginning of year 23,547 26,562 (3,015) -11.4%
End of year 16,892$ 23,547$ (6,655)$ -28.3%
Governmental Funds
Summary of Revenues, Expenditures, and Changes in Fund Balances (in thousands)
Packet Pg. 492 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
18 Capital Project Fund
The Capital Project Fund accounts for the financing and construction activities of the City. On June 30, 2025, the restricted fund balance was $14.9 million. Restricted fund balance represents 103.8% of the total Capital Project Funds expenditures.
The fund balance of the City’s Capital Project Fund increased $5.8 million during the year ended June 30, 2025.
Grant revenues decreased and expenses increased, however, revenues are still out pacing current year expenses.
Capital Project Fund revenues decreased $1.0 million and expenditures increased $0.7 million. The increase in revenue was primarily due to an increase in state grant revenue and the decrease in expenditures; however, revenues still surpassed expenses as impact fees have remained steady even growing slightly.
Capital Projects Fund
2025 2024
Dollar
Change
Percent
Change
Total revenue 20,186$ 21,226$ (1,040)$ -4.9%
Total expenditures 14,366 13,624 742 5.4%
Excess (deficiency) of revenues 5,820 7,602 (1,782) -23.4% Other financing sources (uses) - - - 0.0%
Net change in fund balance 5,820 7,602 (1,782) -23.4%
Fund balance
Beginning of year 9,098 1,496 7,602 508.2%
End of year 14,918$ 9,098$ 5,820$ 64.0%
Governmental Funds
Summary of Revenues, Expenditures, and Changes in Fund Balances (in thousands)
Packet Pg. 493 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
19 Community Development Fund
The Community Development Fund accounts for the financing and rehabilitation of homes and public facilities, financing of multifamily housing, and homeless services of the City. On June 30, 2025, the restricted fund balance was $76.7 million. Restricted fund balance represents 1037% of the total Community Development Fund expenditures. The greatest portion of the fund balance is the notes receivable of $73.1 million. It is important to note that these notes cannot be utilized to fund future expenditures until they are repaid.
The fund balance of the City’s Community Development fund increased $6.8 million during the year ended June 30, 2025 primarily due to a $2.3 million reduction in deferred inflows of resources, related to grant funds unavailable in the year they were expended. Also, the increase of $4.3 in notes receivable, when community development issues a note grant funds are used. An asset is recorded for the note and revenue recorded from the grant improving fund balance.
Community Development Fund revenues decreased $9.2 million and expenditures decreased $3.4 million. The decrease in revenue is primarily due to a prefunded encampment grant of $8.4 million received in the prior year.
The decrease in expenditures is due to grant projects that were completed in the prior year.
Community Development
2025 2024
Dollar
Change
Percent
Change
Total revenue 14,193$ 23,404$ (9,211)$ -39.4%
Total expenditures 7,395 10,761 (3,366) -31.3%
Excess (deficiency) of revenues 6,798 12,643 (5,845) -46.2% Other financing sources (uses) - - - 0.0%
Net change in fund balance 6,798 12,643 (5,845) -46.2%
Fund balance
Beginning of year 69,941 57,298 12,643 22.1%
End of year 76,739$ 69,941$ 6,798$ 9.7%
Governmental Funds
Summary of Revenues, Expenditures, and Changes in Fund Balances (in thousands)
Packet Pg. 494 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
20 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, 2024
Changes in
Net Position
Net Position
June 30, 2025
Electric Utility $ 145,812 9,324$ $ 155,136
Water Utility 134,976 16,979 151,955
Wastewater Utility 178,656 15,148 193,804
Solid Waste Collection/Disposal 17,523 3,583 21,106
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 $ 105,171 $ 46,967 $ 2,998 $ 155,136
Water Utility 92,839 3,041 56,075 151,955
Wastewater Utility 151,565 1,777 40,462 193,804
Solid Waste Collection/Disposal 22,342 - (1,236) 21,106 Net Position - Restricted and Unrestricted
Major Proprietary Funds as of June 30, 2025
(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. 495 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
21 General Fund Budgetary Highlights
The City adopts two one-year budgets every other year. The fiscal year ending June 30, 2025, was the second 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 $ 11,155 $ 10,918 $ (237)
Public safety:
Police 48,346 52,367 4,021
Fire 30,596 36,012 5,416
Public works 21,658 22,002 344
Planning 7,126 7,244 118
Recreation and culture 9,562 10,718 1,156
Principal payments 1,288 1,456 168
Interest payments and bond costs 726 789 63
Total expenditures $ 130,457 $ 141,506 $ 11,049
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 $11.0 million or approximately 8.5%. The reasons for this increase are as follows:
The Police budget increased by $4.0 million primarily due to grants and grant type agreements approved and received after the budget was originally adopted of $2.5 million. 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. Additionally, new OPIOD settlement revenues of $0.4 million were budget to cover CIRT Officers, red light camera program increases of $0.7 million, and staff costs increase of $0.2 million The Recreation and Culture budget increased by $1.2 million primarily due to $0.2 million for Redding Sports Park personnel, $1.0 million for operating grant funding. The Fire budget increased by $5.4 million primarily due to $2.3 for overtime and personnel contract increases, of this $2.1 million was due to mutual aid which was reimbursed. $1.4 million was due to operating grants.
The Public works budget increased by $0.3 million primarily due increased traffic maintenance materials of $0.13 traffic maintenance materials and increased sidewalk repair program of $0.1. 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 $0.6 million due to rolling stock transfers and $0.05 million due to equipment replacement transfers, and $.02 million due to technology replacement transfers.
Packet Pg. 496 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
22 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, 2025, totaled $970.7 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, bridges and right-to-use leases and subscriptions. The City’s total investment in capital assets for the current year increased by $30.8 million. Investment in capital assets for governmental activities increased $7.1 million or 1.9% and business-type activities increased $24.7 million or
4.4%.
Major capital asset events during the current fiscal year included the following:
Developers added an estimated $13.6 million of water, wastewater, electric, storm drainage improvements, parks, streets, sidewalks and traffic signals.
The City added $10.9 million in streets projects; including, $4.1 million on the Old Alturas Bridge project, $1.9 million on the Block 7 project, and $1.1 million on Magnolia Area improvements. Electric Utility added $21.7 million; including $7 million on system improvements, $3.4 million on Overhead and Underground Infrastructure, $2.0 million on the Unit 5 Gearbox Replacement project, $0.8 million on the Unit 9 Turbine project, and $1.8 million on vehicles. Water Utility added $12.5 million; including, $4.3 million on the Athens Area Water Main project, $2.1 on the HMGP Foothill Generator project, $1.9 on the PH1 Replacement project, $0.6 million on the Lake Boulevard Water Line project, and $0.1 million on vehicles. Wastewater Utility added $12.7 million; including $4.4 million on SWWTP Sludge Lagoons, $2.5 million on Biosolid Pyrolysis, $1.4 million on Magnolia Area Sewer, and $0.2 million on vehicles. Storm Drainage Utility added $2.2 million; including, $1.0 million on system improvements and $0.7 million on Eastside Road Storm Drain project, and $0.1 million on Old Alturas Road project. Solid Waste added $5.9 million; including $5.3 million on vehicles and heavy equipment and $0.2 million on Drop Boxes, and $0.4 million on Transfer Station Pavement Overly. Airport added $0.4 million; including, $0.1 million on a Passenger Boarding Ramp and $0.09 million on Runway Rehabilitation and Enhancements.
Fire added $0.08 million in vehicles and fire engines and trucks. Police added $0.2 million in vehicles. Parks added $3.4 million on ten parks projects; including, Stress Ribbon Bridge Art Installation, Redding Cultural Trail Overlook, and South City Park.
The City deleted assets, net depreciation, of $0.3 million in plant assets, $.3 million in equipment, and $0.02 million in vehicles. The City depreciated $52,7 million.
Packet Pg. 497 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
23 Balance Balance Dollar Percent
June 30, 2025 June 30, 2024 Change Change
Governmental activities:
Capital assets, not being depreciated
Land $ 41,552 $ 39,930 $ 1,622 4.1%
Construction in progress 83,431 74,521 8,910 12.0%
Capital assets, being depreciated
Buildings 19,414 21,032 (1,618) -7.7%
Improvements other than buildings 27,724 26,464 1,260 4.8% Infrastructure 198,434 199,715 (1,281) -0.6%
Automotive equipment 9,160 10,095 (935) -9.3%
Furnishings and equipment 1,826 1,900 (74) -3.9%
Assets under lease:
Improvements - 13 (13) -100.0%
Automotive equipment 699 612 87 14.2%
Subscriptions 2,988 3,851 (863) -22.4%
Governmental activities capital assets, net 385,228$ 378,133$ 7,095$ 1.9% Business-type activities:
Capital assets, not being depreciated
Land 20,394$ 20,394$ -$ 0.0%
Construction in progress 106,552 80,484 26,068 32.4%
Capital assets, being depreciated
Utility plants 385,027 386,219 (1,192) -0.3%
Buildings 22,429 24,254 (1,825) -7.5%
Improvements other than buildings 18,761 19,786 (1,025) -5.2% Automotive equipment 23,826 20,233 3,593 17.8%
Furnishings and equipment 5,483 6,352 (869) -13.7%
Assets under lease:
Equipment 37 81 (44) -54.3%
Subscriptions 2,927 3,968 (1,041) -26.2%
Business-type activities capital assets, net 585,436$ 561,771$ 24,706$ 4.4% Total entity-wide capital assets $ 970,664 $ 939,904 $ 30,760 3.3% See Note 6 to the Financial Statements for additional information regarding capital assets.
Changes in Capital Assets, net Depreciation
(in thousands)
Packet Pg. 498 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
24 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, 2024
Additions/
Transfers Reductions
Balance
June 30, 2025
Governmental activities:
Subscriptions payable $ 1,744 $ 106 $ 522 $ 1,328
Leases payable 554 264 183 635
Lease revenue bonds 23,965 - 1,555 22,410
Special assessment debt - - - - Loan 455 - 126 329
Total government activities 26,718 370 2,386 24,702
Business-type activities:
Subscriptions payable 2,989 228 1,071 2,146
Leases payable 83 - 44 39
Revenue bonds 117,530 67,175 14,135 170,570
State loan payable 303 - 32 271
Total business-type activities 120,905 67,403 15,282 173,026 Total outstanding long-term debt 147,623 $ $ 67,773 $ 17,668 $ 197,728 Changes in Long Term Debt
(in thousands)
The City’s total debt increased by $50.1 million (net of bond premiums and discounts excluding deferred charges) during the fiscal year ending June 30, 2025. The City made $17.7 million in regular scheduled debt payments.
The Electric Utility Fund issued $67.2 million in revenue bonds. The lease obligations increased by $0.26 million and subscription obligations increased by $0.33 million.
Currently, the City’s legal debt margin is $298 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 9 on pages 93-97 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 Packet Pg. 499 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
25 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.
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 17 and 18.
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.
This trended changed in 2024 as the City experienced an increase of 0.3%. While the unemployment rate has decreased from 10% in 2020 to 5.5% in 2025, which included a slight increase of 0.1% in 2025. Inflationary trends in the region compare favorably to national indices. Overall tax revenue for the City’s General Fund decreased by $0.9 million during the year. This was primarily due to the increase in property tax ($1.3 million) and decreases in sales tax ($1.0 million), cannabis tax ($0.3 million), and an increase in transient occupancy tax ($1.0 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 2.0% in fiscal year 2025-26. Property tax revenue is budgeted to increase by 3% in fiscal year 2025-26.
The City’s residential building activity is expected to remain steady during 2025. However, building permit activity has yet to match record highs seen in the years following the Carr fire. In 2025 total permit numbers are expected to be nearly identical to 2024. Overall, building activity is expected to be consistent Packet Pg. 500 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2025
26 with the prior year with the exception of residential units having seen a slight boost. Permit activity is expected to maintain these moderate levels through the end of fiscal year 2026. The future economic activity is uncertain at this time given the pressures of inflation and other factors on the economy. The uncertainty is illustrated in reading a wide range of economic forecast opinions.
All of these factors were considered in preparing and updating the City’s budget for the 2025-26 fiscal year.
During the current fiscal year fund balance in the General Fund decreased by $6.7 million to $16.9 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 17, 2025 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 November 7, 2023. The current Electric rates were adopted by City Council on December 5, 2023.
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.gov 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. 501 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025)
BASIC FINANCIAL
SECTION
Packet Pg. 502 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) This page intentionally left blank.
28 Packet Pg. 503 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025)
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
29 Packet Pg. 504 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments $ 85,764,357 $ 206,517,076 $ 292,281,433 Receivables:
Interest 6,916,168 1,019,996 7,936,164
Accounts, net 4,291,811 30,468,017 34,759,828
Lease 183,298 761,755 945,053
Taxes 6,666,875 - 6,666,875
Intergovernmental 14,183,199 4,238,803 18,422,002
Notes, net 88,106,527 - 88,106,527
Special assessments 324,719 - 324,719
Other 1,349,824 - 1,349,824
Inventories 1,256,938 19,207,322 20,464,260
Prepaid items 1,853,918 1,444,418 3,298,336
Deposits - 182,100 182,100
Total current assets 210,897,634 263,839,487 474,737,121 Noncurrent assets:
Internal balances 12,322,775 (12,322,775) -
Restricted assets:
Cash and investments 1,036,228 55,179,242 56,215,470
Interest receivable 14 156,495 156,509
Lease receivable, net 1,584,586 8,505,845 10,090,431
Capital assets:
Land and construction in progress 124,982,744 126,946,111 251,928,855 Depreciable capital assets, net 260,245,690 458,489,435 718,735,125 Investment in JPA - 8,681,102 8,681,102
Storage base gas - 13,570,000 13,570,000
Total noncurrent assets 400,172,037 659,205,455 1,059,377,492 Total assets 611,069,671 923,044,942 1,534,114,613
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding bonds or debt 73,227 4,432,175 4,505,402 Deferred outflows related to other post employment benefits 20,020,535 13,869,502 33,890,037 Deferred outflows related to pensions 57,913,590 31,830,946 89,744,536 Total deferred outflows of resources 78,007,352 50,132,623 128,139,975 (Continued)
See accompanying Notes to the Basic Financial Statements.
City of Redding
Statement of Net Position
June 30, 2025
Primary Government
30 Packet Pg. 505 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Governmental Business-Type
Activities Activities Total
LIABILITIES
Current liabilities:
Accounts payable 6,324,825 14,105,905 20,430,730
Accrued liabilities 2,597,586 2,183,457 4,781,043
Intergovernmental payable 3,370,407 6,158,047 9,528,454 Accrued interest payable 282,344 490,175 772,519
Unearned revenue 16,325,559 2,664,161 18,989,720
Deposits 100,022 7,598,171 7,698,193
Accounts payable from restricted assets 37,819 - 37,819 Landfill closing costs, due within one year - 216,359 216,359 Claims and judgements payable, due within one year 5,601,700 - 5,601,700 Compensated absences, due within one year 5,700,974 4,071,406 9,772,380 Long-term debt, due within one year 2,600,135 19,203,375 21,803,510 Aggregate other post employment benefits liability 2,460,624 812,886 3,273,510 Total current liabilities 45,401,995 57,503,942 102,905,937 Noncurrent liabilities:
Landfill closing costs, due in more than one year - 2,716,756 2,716,756 Claims and judgements payable, due in more than one year 12,770,250 - 12,770,250 Accrued compensated absences, due in more than one year 11,011,558 7,374,491 18,386,049 Long-term debt, due in more than one year 24,547,526 173,664,159 198,211,685 Aggregate other post employment benefits liability 44,883,226 31,985,225 76,868,451 Aggregate net pension liability 232,272,294 109,838,746 342,111,040 Total noncurrent liabilities 325,484,854 325,579,377 651,064,231 Total liabilities 370,886,849 383,083,319 753,970,168
DEFFERED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits 2,719,023 1,883,641 4,602,664 Deferred inflows related to pensions 821,344 58,707 880,051 Deferred inflows related to leases 1,767,884 9,267,600 11,035,484 Total deferred inflows of resources 5,308,251 11,209,948 16,518,199
NET POSITION
Net investment in capital assets 357,289,353 440,374,272 797,663,625 Restricted for:
Capital outlay - 55,164,571 55,164,571
Debt service 316,794 14,673 331,467
Housing 19,249,098 - 19,249,098
Community development 81,695,544 - 81,695,544
Public works 28,888,048 - 28,888,048
Public safety 6,210,308 - 6,210,308
Community services 7,515,026 - 7,515,026
Other 1,445,554 - 1,445,554
Total restricted 145,320,372 55,179,244 200,499,616
Unrestricted (deficit) (189,727,802) 83,330,782 (106,397,020) Total net position $ 312,881,923 $ 578,884,298 $ 891,766,221 (Concluded)
See accompanying Notes to the Basic Financial Statements.
Primary Government
City of Redding
Statement of Net Position (Continued)
June 30, 2025
31 Packet Pg. 506 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Operating Capital Total
Charges for Grants and Grants and Program
Functions / Programs Expenses Services Contributions Contributions Revenues Primary government:
Governmental activities:
General government $ 12,204,139 $ 10,074,535 $ 1,026,626 $ 398,360 $ 11,499,521 Police 56,673,461 2,866,254 3,630,441 68,451 6,565,146
Fire 36,321,220 2,476,510 1,579,432 777,639 4,833,581
Public works 21,254,465 1,489,772 12,187,421 19,281,561 32,958,754 Planning 7,803,158 3,380,017 64,132 - 3,444,149
Recreation and culture 16,668,609 1,610,142 4,728,546 2,668,521 9,007,209 Community development 25,795,260 86,885 31,950,925 - 32,037,810 Interest on long-term debt 1,579,723 - - - -
-
Total governmental activities 178,300,035 21,984,115 55,167,523 23,194,532 100,346,170 Business-type activities:
Electric 169,583,186 176,245,879 262,457 3,945,076 180,453,412 Water 23,707,346 33,283,372 1,597,579 2,826,654 37,707,605 Wastewater 27,389,448 37,239,308 - 3,205,130 40,444,438 Storm drainage 3,315,301 2,738,065 583,737 1,176,528 4,498,330 Solid waste 35,366,920 34,184,813 208,598 2,915,788 37,309,199 Transportation 16,444,319 4,568,575 8,552,273 1,541,283 14,662,131 Convention center 1,187,879 60,000 - - 60,000
Total business-type activities 276,994,399 288,320,012 11,204,644 15,610,459 315,135,115 Total primary government $ 455,294,434 $ 310,304,127 $ 66,372,167 $ 38,804,991 $ 415,481,285 (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, 2025
Program Revenues
32 Packet Pg. 507 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Governmental Business-Type
Functions / Programs Activities Activities Total
Primary government:
Governmental activities:
General government $ (704,618) $ - $ (704,618)
Police (50,108,315) - (50,108,315)
Fire (31,487,639) - (31,487,639)
Public works 11,704,289 - 11,704,289
Planning (4,359,009) - (4,359,009)
Recreation and culture (7,661,400) - (7,661,400)
Community development 6,242,550 - 6,242,550
Interest on long-term debt (1,579,723) - (1,579,723)
-
Total governmental activities (77,953,865) - (77,953,865) Business-type activities:
Electric - 10,870,226 10,870,226
Water - 14,000,259 14,000,259
Wastewater - 13,054,990 13,054,990
Storm drainage - 1,183,029 1,183,029
Solid waste - 1,942,279 1,942,279
Transportation - (1,782,188) (1,782,188)
Convention center - (1,127,879) (1,127,879)
-
Total business-type activities - 38,140,716 38,140,716
Total primary government (77,953,865) 38,140,716 (39,813,149) General revenues and transfers:
Taxes:
Property taxes, levied for general purpose 29,905,866 29,905,866 - Transient occupancy taxes 8,147,375 8,147,375 -
Sales taxes 30,028,628 30,028,628 -
Motor vehicle taxes 147,810 147,810 -
Franchise taxes 1,200,915 1,200,915 -
Other taxes 2,685,386 2,685,386 -
Total taxes 72,115,980 72,115,980 -
Investment income (loss) 3,233,533 8,297,215 11,530,748 Other 126,884 5,473 132,357
Gain (Loss) on sale of assets 174,448 18,234 192,682
Transfers 3,938,474 (3,938,474) -
Total general revenues and transfers 79,589,319 4,382,448 83,971,767 Changes in net position 1,635,454 42,523,164 44,158,618 Net position:
Beginning of year 311,246,469 536,361,134 847,607,603
End of year $ 312,881,923 $ 578,884,298 $ 891,766,221
(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, 2025
and Changes in Net Position
Net (Expenses) Revenues
33 Packet Pg. 508 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) This page intentionally left blank
34 Packet Pg. 509 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025)
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
35 Packet Pg. 510 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) This page intentionally left blank
36 Packet Pg. 511 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025)
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
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.
Community Development Fund
General Capital Projects Fund
General Fund
This fund was established to account for financing and rehabilitation of homes and public facilities, homeless services and the financing of multifamily housing. Financing is provided by Federal Department of Housing and Urban Development and the California Department of Housing and Community Development
This fund was established to account for the financing and construction activities of the general government.
37 Packet Pg. 512 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) General Community Non-Major Total
General Capital Projects Development Governmental Governmental Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 13,630,059 $ 16,319,014 $ 10,367,626 $ 25,385,164 $ 65,701,863 Accounts receivable, net 3,557,215 408,604 1,069 48,621 4,015,509 Lease receivable 1,767,884 - - 1,767,884 -
Intergovernmental receivable 2,903,789 7,881,724 1,207,561 2,189,848 14,182,922 Interest receivable 68,008 92,450 3,734,462 2,938,158 6,833,078 Taxes receivable 6,666,875 - - 6,666,875 -
Other receivable 1,293,218 - 10,752 45,854 1,349,824
Due from other funds 580,886 - - 580,886 -
Prepaid items 1,124,420 - 40,425 47,752 1,212,597
Inventories 341,169 - - 341,169 -
Restricted assets:
Cash and investments 934,440 2,718 - 99,070 1,036,228
Interest receivable 5 9 - - 14
Interfund receivable 68,875 - - - 68,875
Advances to other funds 220,330 - - 220,330 -
Special assessments receivable - - 324,719 - 324,719
Notes receivable - 73,105,302 - 15,001,225 88,106,527
Total assets 33,157,173 24,704,519 88,467,197 46,080,411 192,409,300 (Continued)
See accompanying Notes to the Basic Financial Statements.
City of Redding
Balance Sheet
Governmental Funds
June 30, 2025
38 Packet Pg. 513 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) General Community Non-Major Total
General Capital Projects Development Governmental Governmental Fund Fund Fund Funds Funds
LIABILITIES
Accounts payable 653,769 1,263,569 330,099 263,669 2,511,106 Accrued liabilities 2,088,906 22,425 31,553 60,033 2,202,917 Intergovernmental payable 186,916 - 42,954 519,253 749,123 Accounts payable from restricted assets - - - 37,819 37,819 Interfund payable - - 68,875 - 68,875
Unearned revenue 3,093,957 640,086 4,476,156 8,061,658 16,271,857 Deposits 952 - - 99,070 100,022
Advances from other funds 3,614,209 2,000,693 - 641,024 6,255,926 Total liabilities 9,638,709 1,926,080 6,950,330 9,682,526 28,197,645
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 4,858,897 7,860,768 4,776,961 3,319,433 20,816,059 Leases 1,767,884 - - 1,767,884 -
Total deferred inflows of resources: 6,626,781 7,860,768 4,776,961 3,319,433 22,583,943 Fund balances:
Nonspendable 2,397,937 - 40,425 47,752 2,486,114
Restricted 1,472,873 14,917,671 76,699,481 33,658,895 126,748,920 Assigned 6,439,740 - - 6,439,740 -
Unassigned 6,581,133 - (628,195) - 5,952,938
Total fund balances 16,891,683 14,917,671 76,739,906 33,078,452 141,627,712 Total liabilities, deferred inflows of
resources and fund balances $ 33,157,173 $ 24,704,519 $ 88,467,197 $ 46,080,411 $ 192,409,300 (Concluded)
See accompanying Notes to the Basic Financial Statements.
Balance Sheet (Continued)
Governmental Funds
June 30, 2025
City of Redding
39 Packet Pg. 514 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) This page intentionally left blank
40 Packet Pg. 515 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Statement of Internal
Net Position Service Funds Net
$ 141,627,712
Capital assets (net) have not been included as financial resources in governmental fund activity. $ 385,228,434 $ 7,676,309 377,552,125 Deferred charges have not been included as financial resources in governmental fund activity. 73,227 - 73,227 Deferred outflows related to pensions and OPEB have not been included in governmental fund activity. 77,934,125 10,034,520 67,899,605
Long-term debt that has not been included in the governmental fund activity. (27,147,661) (1,257,742) (25,889,919)
Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. (282,344) (282,344) -
The net other post employment benefit obligation has not been reported in the governmental funds. (47,343,850) (7,306,838) (40,037,012)
Net pension liability is not due and payable in the current period and therefore is not reported in the fund financial statements. (232,272,294) (25,125,152) (207,147,142) Revenue reported as unavailable revenue in the governmental funds is recorded as revenue in the statement of activities. 20,816,059 20,816,059 -
Deferred inflows related to pensions and OPEB have not been included in governmental fund activity. (3,540,367) (429,780) (3,110,587)
Internal service fund net position included in the governmental activities on the statement of activities. 3,897,873 - (3,897,873)
Accrued vacation and other leave not reported in governmental funds, but recorded as expense in the Statement of Activities. (16,712,532) (1,990,604) (14,721,928)
$ 312,881,923
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, 2025
Fund balances governmental funds
Amounts reported for governmental activities in the Statement of Net Position are different because:
41 Packet Pg. 516 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) General Community Non-Major Total
General Capital Projects Development Governmental Governmental Fund Fund Fund Funds Funds
REVENUES:
Property taxes $ 29,781,963 $ - $ - $ - $ 29,781,963
Sales and use taxes 29,752,534 - - 272,517 30,025,051
Other taxes 12,033,676 - - - 12,033,676
Special assessments 26,196 - - 1,065,699 1,091,895
Licenses and permits 2,543,088 - - 225,344 2,768,432
Intergovernmental revenues 7,750,961 13,813,711 13,499,661 31,302,200 66,366,533 Charges for services 5,843,187 8,656 60,000 1,698,434 7,610,277 Fines, forfeitures, and penalties 1,035,461 127,126 - 99,430 1,262,017 Use of money and property 9,510,914 12,536 - 855 9,524,305 Net investment earnings (loss) 855,083 413,165 632,605 723,415 2,624,268 Other 2,487,841 5,811,385 1,000 119,363 8,419,589
Total revenues 101,620,904 20,186,579 14,193,266 35,507,257 171,508,006 EXPENDITURES:
Current:
General government 8,605,675 9,840 - - 8,615,515
Community development - - 4,790,658 20,297,157 25,087,815 Public safety:
Police 49,456,124 - - 31,157 49,487,281
Fire 33,077,506 - - - 33,077,506
Public works 7,272,237 2,550,775 - 1,369,789 11,192,801 Planning 6,728,307 - - - 6,728,307
Recreation and culture 8,536,156 41,460 - 2,844,819 11,422,435 Capital outlay 6,132,988 11,024,140 2,539,533 342,222 20,038,883 Debt service:
Principal 1,455,532 315,000 - 138,451 1,908,983
Interest and fiscal charges 1,093,671 425,037 64,939 26,551 1,610,198 Total expenditures 122,358,196 14,366,252 7,395,130 25,050,146 169,169,724 Excess (deficiency) of revenues
over (under) expenditures (20,737,292) 5,820,327 6,798,136 10,457,111 2,338,282 OTHER FINANCING SOURCES (USES):
Sale of assets 174,447 - - - 174,447
Long-term debt issued 370,874 - - - 370,874
Transfers in 15,485,144 - 1,024,062 - 16,509,206
Transfers out (1,948,613) - - (8,620,944) (10,569,557)
Total other financing sources (uses) 14,081,852 - (7,596,882) - 6,484,970 NET CHANGE IN FUND BALANCES (6,655,440) 5,820,327 6,798,136 2,860,229 8,823,252 Fund balances:
Beginning of year 23,547,123 9,097,344 69,941,770 30,218,223 132,804,460 End of year $ 16,891,683 $ 14,917,671 $ 76,739,906 $ 33,078,452 $ 141,627,712 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, 2025
42 Packet Pg. 517 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Net change in fund balances - total governmental funds $ 8,823,252
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. 20,038,883
In the Statement of Activities, donated assets are reported as a capital contribution. 6,225,282 Transfer of capital assets between governmental, enterprise, and internal service funds. (2,001,175) 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 $1,302,744 was not reported in the governmental funds. (17,380,638)
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 (22,147)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental funds. (1,944,437)
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. (4,189,648) 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 1,908,983
Amortization of bond premium 130,904
Amortization of bond discounts (1,678)
Proceeds from debt are a financing source in the governmental funds, but a liability in the Statement of Net Position (370,874) 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. (32,512)
Compensated absences in the Statement of Activities is reported as an expense but is not reported in the governmental funds. (805,982)
In the Statement of Activities, pension expense that does not require the use of current financial resources is not reported as revenue or expenditure. (6,398,755)
Net income (loss) before transfers and contributions - internal service funds (4,493,684) Less: portion allocated to business activities 2,149,680 Change in net position of governmental activities $ 1,635,454 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, 2025
43 Packet Pg. 518 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) This page intentionally left blank
44 Packet Pg. 519 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) 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
45 Packet Pg. 520 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Solid Waste
Electric Water Wastewater Collection/
Utility Utility Utility Disposal
ASSETS
Current assets:
Cash and investments $ 71,686,878 $57,920,522 45,771,358 $ $ 21,386,099 Accounts receivable, net 18,621,984 4,279,645 3,282,128 4,003,695 Lease receivable 127,452 - - -
Intergovernmental receivable 304,169 - 507,914 -
Interest receivable 348,481 296,206 228,311 103,887
Interfund receivable - - - -
Prepaid items 591,105 94,578 110,763 601,498
Inventories 17,395,628 1,360,341 11,630 279,728
Deposit 140,000 20,100 22,000 -
-
Total current assets 108,784,076 64,403,013 49,934,104 26,374,907 Noncurrent assets:
Restricted assets:
Cash and investments 46,966,856 3,041,592 1,776,795 -
Interest receivable 155,969 - 526 -
Total restricted assets 47,122,825 3,041,592 1,777,321 - Capital assets:
Land 5,240,779 508,799 2,984,167 1,697,818
Construction in progress 25,212,667 33,433,909 35,477,700 1,602,878 Depreciable capital assets, net 178,590,759 59,884,296 152,918,355 19,080,797 Total Capital assets 209,044,205 93,827,004 191,380,222 22,381,493 Other assets:
Advances to other funds 4,968,378 440,153 300,104 140,048 Lease receivable, net current 122,907 - - -
Investment in JPA 8,681,102 - - -
Storage base gas 13,570,000 - - -
Total other assets 27,219,480 563,060 300,104 140,048
Total noncurrent assets 283,386,510 97,431,656 193,457,647 22,521,541 Total assets 392,170,586 161,834,669 243,391,751 48,896,448
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 3,779,639 652,536 - -
Deferred outflows related to other post employment benefits 9,084,420 961,882 1,263,862 2,097,579 Deferred outflows related to pensions 21,332,527 2,454,974 2,304,685 4,775,111 Total deferred outflows of resources 34,196,586 3,416,856 4,221,083 6,872,690 (Continued)
See accompanying Notes to the Basic Financial Statements.
Enterprise Funds
City of Redding
Statement of Net Position
Proprietary Funds
June 30, 2025
46 Packet Pg. 521 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Governmental
Activities
Non-Major Internal
Enterprise Service
Funds Total Funds
ASSETS
Current assets:
Cash and investments $ 9,752,219 $ 206,517,076 $ 20,062,494 Accounts receivable, net 280,565 30,468,017 276,302
Lease receivable 634,303 761,755 -
Intergovernmental receivable 3,426,720 4,238,803 277
Interest receivable 43,111 1,019,996 83,090
Interfund receivable - - 34,000
Prepaid items 46,474 1,444,418 641,321
Inventories 159,995 19,207,322 915,769
Deposit 182,100 - -
Total current assets 14,343,387 263,839,487 22,013,253
Noncurrent assets:
Restricted assets:
Cash and investments 3,393,999 55,179,242 -
Interest receivable 156,495 - -
Total restricted assets 3,393,999 55,335,737 -
Capital assets:
Land 9,962,746 20,394,309 110,810
Construction in progress 10,824,648 106,551,802 3,324,176 Depreciable capital assets, net 48,015,228 458,489,435 4,241,323 Total Capital assets 68,802,622 585,435,546 7,676,309
Other assets:
Advances to other funds 5,848,683 - 3,152,240
Lease receivable, net current 8,382,938 8,505,845 -
Investment in JPA 8,681,102 - -
Storage base gas 13,570,000 - -
Total other assets 8,382,938 36,605,630 3,152,240
Total noncurrent assets 80,579,559 677,376,913 10,828,549 Total assets 94,922,946 941,216,400 32,841,802
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 4,432,175 - -
Deferred outflows related to other post employment benefits 461,759 13,869,502 3,089,881 Deferred outflows related to pensions 963,649 31,830,946 6,944,639 Total deferred outflows of resources 1,425,408 50,132,623 10,034,520 (Continued)
See accompanying Notes to the Basic Financial Statements.
City of Redding
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025
Enterprise Funds
47 Packet Pg. 522 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Solid Waste
Electric Water Wastewater Collection/
Utility Utility Utility Disposal
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 5,346,386 1,723,500 1,944,507 1,115,872 Accrued liabilities 1,481,491 135,455 188,843 293,237
Accrued interest payable 361,372 127,171 - -
Claims and judgements payable - - - -
Intergovernmental payable 2,852,529 43,023 2,170,283 108 Due to other funds - - - -
Interfund payables - - - -
Unearned revenue 740,600 20,094 295,661 -
Deposits 3,844,482 - 3,659,150 -
Accrued compensated absences, due with in one year 2,715,835 304,104 339,996 631,619 Landfill closure costs, due with in one year - - 216,359 - Long-term debt, due with in one year 14,245,555 23,581 4,850,096 39,013 State loan, due with in one year - - - -
Aggregate net OPEB liability 453,381 44,727 172,805 91,599 Total current liabilities 32,041,631 2,294,484 7,623,526 8,512,793 Long-term liabilities:
Accrued compensated absences, due in more than one year 4,807,453 565,743 565,430 1,306,500 Landfill closure costs, due in more than one year - - 2,716,756 - Advances from other funds - - - -
Claims and judgements, due in more than one year - - - - Long-term debt, due in more than one year 138,662,977 26,531 34,723,610 - State loan, due in more than one year - - - -
Aggregate net OPEB liability 21,029,135 2,229,900 2,815,934 4,868,678 Aggregate net pension liability 73,416,245 7,792,992 7,903,877 16,965,214 Total long-term liabilities 237,915,810 10,615,166 46,008,851 25,857,148 Total liabilities 269,957,441 12,909,650 53,632,377 34,369,941
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits 1,233,773 130,635 171,648 284,875 Deferred inflows related to pensions 39,793 6,087 4,362 7,687 Deferred inflows related to leases 250,359 - - -
Total deferred inflows of resources 1,273,566 387,081 176,010 292,562
NET POSITION
Net investment in capital assets 105,170,694 92,838,635 151,565,478 22,342,436 Restricted for:
Capital projects 46,966,856 3,041,593 1,762,123 -
Debt service - 14,673 - -
Unrestricted (deficit) 2,998,615 56,074,566 40,462,173 (1,235,801) Total net position (deficit) $ 155,136,165 $ 151,954,794 $ 193,804,447 $ 21,106,635 (Continued)
See accompanying Notes to the Basic Financial Statements.
Enterprise Funds
City of Redding
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025
48 Packet Pg. 523 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Governmental
Activities
Non-Major Internal
Enterprise Service
Funds Total Funds
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 3,975,640 14,105,905 3,813,719
Accrued liabilities 84,431 2,183,457 394,669
Accrued interest payable 1,632 490,175 -
Claims and judgements payable - - 5,601,700
Intergovernmental payable 1,092,104 6,158,047 2,621,284 Due to other funds 580,886 580,886 -
Interfund payables 34,000 34,000 -
Unearned revenue 1,607,806 2,664,161 53,702
Deposits 94,539 7,598,171 -
Accrued compensated absences, due with in one year 79,852 4,071,406 710,468 Landfill closure costs, due with in one year - 216,359 - Long-term debt, due with in one year 11,791 19,170,036 493,162 State loan, due with in one year 33,339 33,339 -
Aggregate net OPEB liability 50,374 812,886 145,737
Total current liabilities 7,646,394 58,118,828 13,834,441 Long-term liabilities:
Accrued compensated absences, due in more than one year 129,365 7,374,491 1,280,136 Landfill closure costs, due in more than one year - 2,716,756 - Advances from other funds 2,965,327 2,965,327 -
Claims and judgements, due in more than one year - - 12,770,250 Long-term debt, due in more than one year 13,265 173,426,383 764,580 State loan, due in more than one year 237,776 237,776 - Aggregate net OPEB liability 1,041,578 31,985,225 7,161,101 Aggregate net pension liability 3,760,418 109,838,746 25,125,152 Total long-term liabilities 8,147,729 328,544,704 47,101,219 Total liabilities 15,794,123 386,663,532 60,935,660
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits 62,710 1,883,641 419,640 Deferred inflows related to pensions 778 58,707 10,140
Deferred inflows related to leases 9,017,241 9,267,600 - Total deferred inflows of resources 9,080,729 11,209,948 429,780
NET POSITION
Net investment in capital assets 68,457,029 440,374,272 6,418,567 Restricted for:
Capital projects 3,393,999 55,164,571 -
Debt service - 14,673 -
Unrestricted (deficit) (377,526) 97,922,027 (24,907,685) Total net position (deficit) $ 71,473,502 $ 593,475,543 $ (18,489,118) Net position reconciliation to statement of net position:
Net position of proprietary funds $ 593,475,543
Less business-type portion of the internal service fund (14,591,245) Net position of business-type activities $ 578,884,298
See accompanying Notes to the Basic Financial Statements. (Concluded) City of Redding
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025
Enterprise Funds
49 Packet Pg. 524 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Solid Waste
Electric Water Wastewater Collection/
Utility Utility Utility Disposal
OPERATING REVENUES:
User fees and charges $ 144,112,668 $ 33,146,550 $ 37,245,693 $ 32,759,205 Wholesale sales 23,732,890 - - -
Rental charges 138,000 - - -
Other operating revenue 8,398,730 18,881 8,913 1,425,987 Total operating revenues 176,382,288 33,165,431 37,254,606 34,185,192 OPERATING EXPENSES:
Cost of power, water, and transportation 52,835,271 759,917 - - Maintenance, operations, and administration 96,632,077 18,536,378 18,772,478 31,387,226 Depreciation and amortization 14,862,240 4,081,052 7,296,084 3,242,492 Total operating expenses 164,329,588 23,377,347 26,068,562 34,629,718 OPERATING INCOME (LOSS) 12,052,700 9,788,084 11,186,044 (444,526) NONOPERATING REVENUES (EXPENSES):
Net investment earnings (loss) 2,857,411 2,301,857 1,720,364 908,749 Interest expense (4,152,548) (1,027,486) - (5,218)
Intergovernmental revenues 258,165 111,470 206,191 -
Gain (loss) on disposal of assets (219,848) (29,165) 543 150 Other non-operating revenues (expenses) (315,137) 1,614,206 1,686,579 2,028 Total nonoperating revenues (expenses) (1,571,957) 3,998,368 2,380,000 1,111,900
INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS 10,480,743 13,786,452 13,566,044 667,374 Capital contributions 5,457,861 3,192,221 1,581,845 2,915,788 Transfers in - - - -
Transfers out (6,614,200) - - -
Change in net position 9,324,404 16,978,673 15,147,889 3,583,162 NET POSITION:
Beginning of year 145,811,761 134,976,121 178,656,558 17,523,473 End of year $ 155,136,165 $ 151,954,794 $ 193,804,447 $ 21,106,635 (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, 2025
50 Packet Pg. 525 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Governmental
Activities
Non-Major Internal
Enterprise Service
Funds Total Funds
OPERATING REVENUES:
User fees and charges $ 4,459,998 $ 251,724,114 $ 89,378,835 Wholesale sales 23,732,890 - -
Rental charges 1,453,806 1,591,806 -
Other operating revenue 551,861 10,404,372 187,389
Total operating revenues 6,465,665 287,453,182 89,566,224 OPERATING EXPENSES:
Cost of power, water, and transportation 5,587,909 59,183,097 - Maintenance, operations, and administration 10,575,169 175,903,328 93,075,636 Depreciation and amortization 4,612,122 34,093,990 1,258,476 Total operating expenses 20,775,200 269,180,415 94,334,112 OPERATING INCOME (LOSS) (14,309,535) 18,272,767 (4,767,888) NONOPERATING REVENUES (EXPENSES):
Net investment earnings (loss) 349,094 8,137,475 693,973 Interest expense (14,673) (5,199,925) (150,947)
Intergovernmental revenues 9,095,566 9,671,392 14,069
Gain (loss) on disposal of assets 17,541 (230,779) (282,891) Other non-operating revenues (expenses) 937,814 3,925,490 - Total nonoperating revenues (expenses) 10,385,342 16,303,653 274,204
INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS (3,924,193) 34,576,420 (4,493,684) Capital contributions 2,888,358 16,036,073 -
Transfers in 924,551 924,551 -
Transfers out (250,000) (6,864,200) -
Change in net position (361,284) 44,672,844 (4,493,684) NET POSITION:
Beginning of year 71,834,786 548,802,699 (13,995,434)
End of year $ 71,473,502 $ 593,475,543 $ (18,489,118)
Change in net position reconciliation to statement of activities:
Change in net position of proprietary funds $ 44,672,844 Add internal service funds income - business-type activity (2,149,680) Change in net position of business-type activities $ 42,523,164 (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, 2025
Enterprise Funds
51 Packet Pg. 526 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Electric Water Wastewater
Utility Utility Utility
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 165,751,241 $ 32,564,454 $ 37,381,894 Cash paid to suppliers (130,034,598) (17,610,977) (14,364,170) Cash paid to employees (16,903,859) (5,156,350) (6,916,744) Other income received 8,398,730 18,881 8,913
Net cash provided by (used in) operating activities 27,211,514 9,816,008 16,109,893
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Intergovernmental revenue received 258,165 111,470 -
Advances from other funds - - -
Repayment of advances from other funds - - -
Advances to other funds (26,120) - -
Repayment of advances to other funds 488,142 191,771 130,752 Transfers in - - -
Transfers out (6,566,876) - -
Net cash provided by (used in) noncapital financing activities (5,846,689) 303,241 130,752
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Capital grant received (117,803) - (407,938)
Proceeds from sale of assets 71,117 9,656 543
Purchase of capital assets (17,778,957) (9,604,131) (10,148,425) Rents received - - -
Interest paid (1,366,102) (1,740,500) -
Principal paid on long-term debt (11,226,699) (27,467) (3,906,200) Long-term debt issued 66,820,642 - -
Cash collected for future capital outlay 39,221 1,614,206 1,686,579 Net cash provided by (used in) capital
and related financing activities 36,559,222 (8,125,539) (14,515,941) CASH FLOWS FROM INVESTING ACTIVITIES:
Net investment earnings (loss) 2,534,515 2,175,145 1,621,472 Net cash (used in) investing activities 2,534,515 2,175,145 1,621,472 Net increase (decrease) in cash and cash equivalents 60,458,562 4,168,855 3,346,176 CASH AND CASH EQUIVALENTS:
Beginning of year 58,195,172 56,793,259 44,201,977
End of year $ 118,653,734 $ 60,962,114 $ 47,548,153
Reconciliation to statement of net position:
Cash and cash equivalents $ 71,686,878 $ 57,920,522 $ 45,771,358 Restricted cash and cash equivalents 46,966,856 3,041,592 1,776,795 $ 118,653,734 $ 60,962,114 $ 47,548,153
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, 2025
52 Packet Pg. 527 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Governmental
Activities
Solid Waste Non-Major Internal
Collection/ Enterprise Service
Disposal Funds Total Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 36,010,655 $ 6,375,118 $ 278,083,362 $ 89,440,551 Cash paid to suppliers (21,231,025) (11,158,344) (194,399,114) (73,309,136) Cash paid to employees (12,793,284) (2,449,933) (44,220,170) (15,279,006) Other income received 1,426,135 541,683 10,394,342 31,589 Net cash provided by (used in) operating activities 3,412,481 (6,691,476) 49,858,420 883,998
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Intergovernmental revenue received 145,583 8,421,755 8,936,973 18,079 Advances from other funds 580,886 - 580,886 -
Repayment of advances from other funds (718,236) - (718,236) (6,250) Advances to other funds - (26,120) - -
Repayment of advances to other funds 61,018 871,683 - 42,250 Transfers in 924,551 - 924,551 -
Transfers out (250,000) - (6,816,876) -
Net cash provided by (used in) noncapital financing activities 206,601 8,958,956 3,752,861 54,079
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Capital grant received 4,095,932 - 3,570,191 -
Proceeds from sale of assets 150 17,541 99,007 13,756
Purchase of capital assets (5,503,668) (3,398,587) (46,433,768) (1,792,801) Rents received 30,120 - 30,120 -
Interest paid (5,218) (19,199) (3,131,019) (150,947)
Principal paid on long-term debt (43,485) (78,131) (15,281,982) (477,563) Long-term debt issued - 66,820,642 - -
Cash collected for future capital outlay 711,688 - 4,051,694 - Net cash provided by (used in) capital
and related financing activities (5,552,221) 1,359,364 9,724,885 (2,407,555) CASH FLOWS FROM INVESTING ACTIVITIES:
Net investment earnings (loss) 876,275 336,861 7,544,268 662,858 Net cash provided (used) by investing activities 878,155 336,861 7,546,148 662,858 Net increase (decrease) in cash and cash equivalents (1,054,984) 3,963,705 70,882,314 (806,620) CASH AND CASH EQUIVALENTS:
Beginning of year 22,441,083 9,182,513 190,814,004 20,869,114 End of year $ 21,386,099 $ 13,146,218 $ 261,696,318 $ 20,062,494 Reconciliation to statement of net position:
Cash and cash equivalents $ 21,386,099 $ 9,752,219 $ 206,517,076 $ 20,062,494 Restricted cash and cash equivalents 3,393,999 - 55,179,242 - $ 21,386,099 $ 13,146,218 $ 261,696,318 $ 20,062,494
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, 2025
Enterprise Funds
53 Packet Pg. 528 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) 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) $ 12,052,700 $ 9,788,084 $ 11,186,044 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Other non-operating revenue and expense - - -
Depreciation and amortization 14,862,240 4,081,052 7,296,084 (Increase) decrease in accounts receivable (2,232,317) (582,096) 136,201 (Increase) decrease in inventories (3,624,473) (153,138) 3,927 (Increase) decrease in prepaid items 179,869 26,066 (22,349) (Increase) decrease in investment in JPA (566,617) - -
(Increase) decrease in deposits 210,900 450 -
Increase (decrease) in accounts payable 604,416 (3,715,822) (1,074,683) Increase (decrease) in accrued liabilities 373,642 (15,783) 42,257 Increase (decrease) in claims and judgements payable - - - Increase (decrease) in deposits liability 435,846 - -
Increase (decrease) in intergovernmental payable (479,709) 29,433 (11) Increase (decrease) in unearned revenue 660,397 - -
Increase (decrease) in accrued compensated absences 204,089 65,392 (5,552) Increase (decrease) in accrued landfill closure costs - - - Other post employment benefits related items 2,519,875 254,980 295,839 Pension related items 2,010,656 37,390 (1,747,864)
Total adjustments 15,158,814 27,924 4,923,849
Net cash provided by (used in) operating activities $ 27,211,514 $ 9,816,008 $ 16,109,893
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES:
Plant contributed from developers $ 5,457,861 $ 3,192,221 $ 1,581,845 Right-to-use subscription debt issued - 75,811 113,717
Right-to-use subscription assets capitalized from debt issued (75,811) - (113,717) Transfer in of capital assets (6,566,876) - -
Total non-cash capital and related financing activities $ (1,109,015) $ 3,192,221 $ 1,581,845 (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, 2025
54 Packet Pg. 529 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) 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) $ (444,526) $ (14,309,535) $ 18,272,767 $ (4,767,888) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Other non-operating revenue and expense 148 547,353 547,501 - Depreciation and amortization 3,242,492 4,612,122 34,093,990 1,258,476 (Increase) decrease in accounts receivable (1,179,084) (96,217) (3,953,513) (137,536) (Increase) decrease in inventories (7,937) (20,326) (3,801,947) (338,446) (Increase) decrease in prepaid items (55,182) (10,318) 118,086 (5,506) (Increase) decrease in investment in JPA - (566,617) - - (Increase) decrease in deposits - 211,350 - -
Increase (decrease) in accounts payable (146,476) 1,949,148 (2,383,417) 2,901,143 Increase (decrease) in accrued liabilities 49,532 19,874 469,522 55,917 Increase (decrease) in claims and judgements payable - - (267,580) - Increase (decrease) in deposits liability 424,383 8,300 868,529 - Increase (decrease) in intergovernmental payable 1,014,501 (167,827) 396,387 850,746 Increase (decrease) in unearned revenue 315,236 - 975,633 43,452 Increase (decrease) in accrued compensated absences (96,353) 16,085 183,661 (89,071) Increase (decrease) in accrued landfill closure costs 68,744 - 68,744 - Other post employment benefits related items 466,626 157,133 3,694,453 762,471 Pension related items 75,613 287,496 663,291 617,820
Total adjustments 3,857,007 7,618,059 31,585,653 5,651,886 Net cash provided by (used in) operating activities $ 3,412,481 $ (6,691,476) $ 49,858,420 $ 883,998
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES:
Plant contributed from developers $ 2,915,788 $ 2,520,228 $ 15,667,943 $ - Right-to-use subscription debt issued 37,906 - 227,434 - Right-to-use subscription assets capitalized from debt issued (37,906) - (227,434) - Equipment transfers - (6,566,876) - -
Total non-cash capital and related financing activities $ 2,915,788 $ 2,520,228 $ 9,101,067 $ - (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, 2025
55 Packet Pg. 530 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) This page intentionally left blank
56 Packet Pg. 531 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Custodial Funds
Custodial funds use the economic resource measurement focus and accural basis of accounting. 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.
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
57 Packet Pg. 532 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Successor Agency
Custodial Private-Purpose
Funds Trust Fund
ASSETS
Cash and investments $ 3,028,393 $ 6,162,372
Restricted cash and investments - 25
Interest receivable 23,753 64,599
Accounts receivable, net 109,452 -
Intergovernmental receivable 433,136 -
Prepaid costs - 39,390
Capital assets:
Construction in progress 2,380,119 -
Depreciable capital assets, net 27,659 -
Net capital assets 2,407,778 -
Total assets 6,002,512 6,266,386
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 19,772
Total deferred outflows of resources - 19,772
LIABILITIES
Accounts payable 496,058 -
Accrued liabilities 9,186 -
Accrued interest payable - 118,016
Intergovernmental payable 186,481 223,569
Unearned revenue - 124,943
Deposits payable 1,723,897 -
Long-term debt - 7,795,423
Total liabilities 2,415,622 8,261,951
NET POSITION (DEFICIT)
Restricted for:
Individuals, organizations, and other governments 3,586,890 - Unrestricted (deficit) - (1,975,793)
Total net position $ 3,586,890 $ (1,975,793)
See accompanying Notes to the Basic Financial Statements.
City of Redding
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
58 Packet Pg. 533 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) Successor Agency
Custodial Private-Purpose
Funds Trust Fund
ADDITIONS:
Property taxes $ - $ 1,807,231
Intergovernmental revenues 1,454,847 -
User fees 760,395 -
Net investment earnings (loss) 54,728 307,477
Total additions 2,269,970 2,114,708
DEDUCTIONS:
Administrative costs 1,428,247 250,000
Payment on recognized obligation payment schedule - 304,446 Software maintenance and support 51,913 -
Project payments 409,170 -
Loss on property disposal 15,800 -
Depreciation 22,204 -
Total deductions 1,927,334 554,446
Net change in net position 342,636 1,560,262
NET POSITION:
Beginning of period 3,244,254 (3,536,055)
End of period $ 3,586,890 $ (1,975,793)
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, 2025
59 Packet Pg. 534 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) This page intentionally left blank
60 Packet Pg. 535 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) 61 NOTES TO THE BASIC
FINANCIAL STATEMENTS
Packet Pg. 536 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) 62 This page intentionally left blank
Packet Pg. 537 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Index to Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
63 Note 1 – Summary of Significant Accounting Policies ...................................................................................... 65 A. Reporting Entity .................................................................................................................................. 65 B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation ............................. 66 C. Cash and Investments .......................................................................................................................... 70 D. General Receivables and Property Taxes Receivable ......................................................................... 71 E. Inventories and Prepaid Items ............................................................................................................. 71 F. Capital Assets ...................................................................................................................................... 71 G. Leases .................................................................................................................................................. 72 H. Subscription Based Information Technology Arrangements (SBITA) ............................................... 74 I. Pensions ............................................................................................................................................... 74 J. Other Postemployment Healthcare Benefits (OPEB) .......................................................................... 75 K. Vacation and Sick Pay ......................................................................................................................... 75 L. Unearned Revenue ............................................................................................................................... 76 M. Long-Term Obligations ....................................................................................................................... 76 N. Net Position ......................................................................................................................................... 76 O. Fund Balances ..................................................................................................................................... 76 P. Spending Policy ................................................................................................................................... 77 Q. Use of Estimates .................................................................................................................................. 77 R. New Governmental Accounting Standards Implemented for the Year Ended June 30, 2025 ............. 77 S. Upcoming Governmental Accounting Standards Implementation ...................................................... 78 Note 2 – Cash and Investments ............................................................................................................................ 79 A. Demand Deposits ................................................................................................................................. 80 B. Investments .......................................................................................................................................... 80 C. Investments in Local Agency Investment Fund .................................................................................. 80 D. Investments in California Asset Management Program (CAMP) ....................................................... 81 E. Risk Disclosures .................................................................................................................................. 82 Note 3 – Governmental Notes Receivable ........................................................................................................... 84 Note 4 – Lease Receivable..................................................................................................................................... 84 Note 5 – Interfund Activities ................................................................................................................................ 86 A. Due From and Due To Other Funds .................................................................................................... 86 B. Interfund Receivable and Payable ....................................................................................................... 86 C. Advances To and From Other Funds ................................................................................................... 87 D. Internal Balance Summary .................................................................................................................. 88 E. Transfer In and Out ............................................................................................................................. 89 Note 6 – Capital Assets ......................................................................................................................................... 90 A. Governmental Activities ...................................................................................................................... 90 B. Business-Type Activities ..................................................................................................................... 91 Note 7 – Storage Base Gas .................................................................................................................................... 92 Note 8 – Unavailable Revenue .............................................................................................................................. 92 Packet Pg. 538 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Index to Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
64 Note 9 – Long Term Debt ..................................................................................................................................... 93 Note 10 – Pledged Revenue................................................................................................................................... 98 Note 11 – Compensated Absences……………………………………………………………………………….100 Note 12 – Self Insurance…………………………………………………………………………………………100 Note 13 – Individual Fund Disclosures ............................................................................................................... .101 Note 14 – Joint Ventures ..................................................................................................................................... .102 A. M-S-R Public Power Agency ............................................................................................................. 102 B. M-S-R Energy Authority .................................................................................................................... 104 C. Transmission Agency of Northern California .................................................................................... 105 D. Balancing Authority of Northern California ...................................................................................... 106 E. Modesto Irrigation District Financing Authority ................................................................................ 107 F. Contingent Liability ............................................................................................................................ 107 Note 15 – Postclosure Care Costs ....................................................................................................................... 108 Note 16 – Retirement Plans ................................................................................................................................. 109 A. Summary............................................................................................................................................. 109 B. CalPERS ............................................................................................................................................. 115 C. PARS .................................................................................................................................................. 123 Note 17 – Other Postemployment Healthcare Benefits ..................................................................................... 129 Note 18 – Fund Balances ..................................................................................................................................... 138 Note 19 – Net Investment in Capital Assets ....................................................................................................... 139 Note 20 – Commitments and Contingencies ...................................................................................................... 140 A. Construction Commitments ................................................................................................................ 140 B. Redding Electric Utility (REU) .......................................................................................................... 140 C. West Central Landfill ........................................................................................................................ 141 D. Grants ................................................................................................................................................. 141 E. Litigation ............................................................................................................................................ 141 Note 21 – Successor Agency Trust for Assets of the Former Redevelopment Agency ................................... 142 Note 22 – Subsequent Events .............................................................................................................................. 143 A. Community Development Block Grant Section 108........................................................................... 143 B. Continuum of Care Special Revenue Fund........................................................................................... 144 Packet Pg. 539 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
65 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 and subscription-based information technology agreements (SBITAs), is expected to be re-paid 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.
Packet Pg. 540 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
66 Note 1 – Summary of Significant Accounting Policies (Continued) A. Reporting Entity (Continued)
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.
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.
Packet Pg. 541 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
67 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) 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.
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.
Packet Pg. 542 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
68 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental Fund Financial Statements (Continued)
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.
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.
The Community Development Fund accounts for the financing and rehabilitation of homes and public facilities, homeless services and the financing of multifamily housing.
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.
Packet Pg. 543 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
69 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Proprietary Fund Financial Statements (Continued)
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.
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 revenues, expenses 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.
Packet Pg. 544 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
70 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) 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 and the accrual basis of accounting.
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 monthly 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. 545 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
71 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 and Prepaid Items
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.
Payments made to vendors that will benefit future accounting periods are recorded as prepaid items. Prepaid items, as reported in the governmental funds balance sheet, are offset by a nonspendable fund balance account to indicate such amounts are not in spendable form. The cost of prepaid items is recorded as expenditure/expenses when consumed rather than when purchased.
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.
Packet Pg. 546 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
72 Note 1 – Summary of Significant Accounting Policies (Continued) F. Capital Assets (Continued)
Major outlays for capital assets and improvements are capitalized as projects are constructed.
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 Term of Contract
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. 547 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
73 Note 1 – Summary of Significant Accounting Policies (Continued) G. Leases (Continued)
Lessee (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. 548 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
74 Note 1 – Summary of Significant Accounting Policies (Continued) H. Subscription Based Information Technology Arrangements (SBITA) The City has a policy to recognize a SBITA liability and a right‐to‐use subscription asset (subscription asset) in our financial statements with an initial, individual value of $15,000 or more with a term greater than one year.
At the commencement of a SBITA, the SBITA liability is measured at the present value of payments expected to be made during the SBITA term. Subsequently, the SBITA liability is reduced by the principal portion of SBITA payments made.
Subscription assets are recorded at the amount of the initial measurement of the SBITA liabilities and modified by any SBITA payments made to the vendor at or before the commencement of the subscription term, plus capitalizable implementation costs less any incentives received from the vendor at or before the commencement of the subscription term. Subscription assets are amortized using the straight–line method over the subscription term.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) SBITA term, and (3) SBITA payments.
1. The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs.
2. The lease term includes the non-cancelable period of the SBITA, plus any option periods that are reasonably certain to be exercised.
3. SBITA payments included in the measurement of the SBITA liability are composed of fixed payments.
The City monitors changes in circumstances that would require a remeasurement of a SBITA and will remeasure any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the SBITA liability.
Subscription assets are reported as right-to-use along with other capital assets and SBITA liabilities are reported on the statement of net position as long-term debt.
I. 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 16). 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, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
PARS:
Valuation Date June 30, 2024
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Packet Pg. 549 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
75 Note 1 – Summary of Significant Accounting Policies (Continued) I. Pensions (Continued)
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.
J. 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 17). 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, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
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.
K. 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.
Packet Pg. 550 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
76 Note 1 – Summary of Significant Accounting Policies (Continued) L. 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.
M. 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 and subscription 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.
N. 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.
Unrestricted net position is the net amount of assets, deferred outflows of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories.
O. 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.
Packet Pg. 551 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
77 Note 1 – Summary of Significant Accounting Policies (Continued) O. Fund Balances (Continued)
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.
P. 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. It is presumed that the order of spending is first committed fund balance, then assigned fund balance, and last of all, unassigned fund balance.
Q. 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.
R. New Governmental Accounting Standards Implemented for the Year Ended June 30, 2025 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, 2025. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.
The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements:
Packet Pg. 552 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
78 Note 1 – Summary of Significant Accounting Policies (Continued) R. New Governmental Accounting Standards Implemented for the Year Ended June 30, 2025 (Continued) 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 did not have a significant effect on the City’s financial reporting for the fiscal year ended June 30, 2025.
GASB Statement No. 102 - In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints which may limit a government's ability to acquire resources or control spending. Application of this statement did not have a significant effect on the City’s financial reporting for the fiscal year ended June 30, 2025.
S. Upcoming Governmental Accounting Standards Implementation GASB Statement No. 103 - In April 2024, GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. Application of this statement is effective for the City’s fiscal year ending June 30, 2026.
GASB Statement No. 104 - In September 2024, GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement No. 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and PublicPublic Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class. Application of this statement is effective for the City’s fiscal year ending June 30, 2026.
Packet Pg. 553 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
79 Note 2 – Cash and Investments
At June 30, 2025, 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 85,764,357 $ $ 206,517,076 $ 292,281,433 $ 9,190,765 $ 301,472,198 Restricted cash
and investments $ 1,036,228 $ 55,179,242 $ 56,215,470 $ 56,215,495 25 $ Government-Wide
Statement of Net Position
At June 30, 2025, 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, 2025:
Measurement
Unrestricted Restricted Total Input
Deposits $ 71,999,524 $ 99,069 $ 72,098,593 N/A
Medium Term Corporate Notes 9,796,000 9,796,000 - Level 2 Federal Agency Bonds 110,243,029 110,243,029 - Level 2
Mutual Funds* 101,332,648 56,116,426 157,449,074 Level 1 Local Agency Investment Fund 8,100,997 8,100,997 - Uncategorized Total investments 229,472,674 56,116,426 285,589,100
Total cash and investments $ 301,472,198 $ 56,215,495 $ 357,687,693 *Includes CAMP Investments
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.
Packet Pg. 554 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
80 Note 2 – Cash and Investments (Continued)
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, 2025, the carrying amount of the City’s deposits was $72,098,593 of which $99,069 was restricted and $71,999,524 was unrestricted. The bank balance was $73,603,155. Of the bank balance, $1,881,365 was covered by Federal depository insurance, and $71,721,790 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 fair 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.
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 (LAIF)
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, 2025, 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.
Packet Pg. 555 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
81 Note 2 – Cash and Investments (Continued)
C. Investments in Local Agency Investment Fund (LAIF) (Continued) As of June 30, 2025, there is a total LAIF investment of $8,100,997, which had invested 3.00% of the investment funds in Structured Notes (1.40%) and Asset-Back Securities (1.60%). Of the total investment, $5,779,744 is in a dedicated account for Redding Redevelopment Agency, $1,063,676 is in a dedicated account for Redding Housing Authority, $153,927 is in a dedicated account for Redding Area Bus Authority, and $1,103,650 is in a City of Redding dedicated account and is a part of the City’s pooled cash. 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, 2025, 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, 2025.
D. Investments in California Asset Management Program (CAMP) The City is a participant in CAMP which is a JPA (Joint Powers Authority) created by the Declaration of Trust and established under the provisions of the Act for the purpose of exercising the common power of its Participants to invest funds. The Trust is a JPA and a separate Public Agency established as a common law trust under the laws of the State of California by execution of a Declaration of Trust by two California Public Agencies as the initial Participants in the Trust.
The Trust is currently governed by a Board of seven Trustees, all of whom are officials or employees of Public Agencies that are Participants in the Trust. Trustees are appointed pursuant to, and are provided authority under, the Declaration of Trust.
PFMAM (PFM Asset Management) is an investment and advisory firm with offices in San Francisco, CA and Harrisburg, PA, is the Trust’s investment advisor and administrator. The daily management of the investment affairs and research relating to the Portfolios is conducted by or under the supervision of the Investment Advisor.
The following Cash Reserve Portfolio invests exclusively in the following types of investments all of which are authorized investments for Public Agencies pursuant to California Government Code Section 53601: U.S.
Government and agency obligations; Repurchase agreements collateralized by U.S. Government and agency obligations; Bankers’ acceptances; Negotiable certificates of deposit; Commercial paper, Corporate notes; Supranationals; Asset-back Securities and Money Market Funds.
As of June 30, 2025, the City has $110,458,898 invested in CAMP, which had invested the pool investment funds in a fully liquid, stable net asset value investments.
Packet Pg. 556 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
82 Note 2 – Cash and Investments (Continued)
E. Risk Disclosures
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, 2025, 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 $ 9,796,000 $ 4,947,000 4,849,000$ -$ -$ Federal Agency Bonds 110,243,029 39,710,148 26,321,700 11,497,852 32,713,329 Investment in State Treasurer's
Investment Pool 8,100,997 8,100,997 - - - Mutual Funds 101,332,648 101,332,648 - - - Total $ 229,472,674 $ 154,090,793 31,170,700$ 11,497,852$ 32,713,329$ Investments Maturities (in Years)
Restricted:
Fair Less More
Investment Type Value Than 1 1-5 Than 5
Investment in State Treasurer's Investment Pool $ - $ - $ - $ - Mutual Funds 56,116,426 56,116,426 - - Total $ 56,116,426 $ 56,116,426 $ - $ - Investments Maturities (in Years)
Packet Pg. 557 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
83 Note 2 – Cash and Investments (Continued)
E. Risk Disclosures (Continued)
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, 2025, the City’s investments in Federal Agency Bonds were rated AA and AAA by S&P. The City’s investments in Medium Term Corporate Notes were rated AA and AAA by S&P. 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.
As of June 30, 2025, the City’s investments in CAMP were rated AAA by S&P and exempt.
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 $ 13,963,228 Federal Home Loan Bank Federal Agency Securities $ 47,760,369 Federal Home Loan Mortgage Corporation Federal Agency Securities $ 14,194,973 Federal National Mortgage Association Federal Agency Securities $ 32,299,770 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, 2025.
Packet Pg. 558 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
84 Note 3 - Governmental Notes Receivable
Notes receivable represent loan agreements entered into between the City or Successor Housing Agency (the former RDA) and unrelated non-governmental 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, 2025, approximately $73.1 million of notes receivable, net of $1.15 million allowance for doubtful accounts, were reported in the Community Development major fund. At June 30, 2025, approximately $15.0 million of notes receivable were reported in the Housing non-major special revenue fund.
Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
General governmental activities:
Community development fund loans
Community Development Block Grant (CDBG) $ 2,879,021 $ (34,262)$ 640 $ 2,845,399 HOME Investment Program (HOME) 24,730,248 - (600,136) 24,130,112 CalHome Program 1,828,034 - (4,643) 1,823,391
Other California Programs (AHSC, IIG) 35,543,514 4,977,611 - 40,521,125 City Affordable Housing Loan Fund (AHLF) 4,928,473 - - 4,928,473 Total community development fund loans 69,909,290 4,978,251 (639,041) 74,248,500 Allowance for bad debt (1,146,538) 3,340 - (1,143,198)
Community development fund notes receivable, net 68,762,752 4,981,591 (639,041) 73,105,302 Housing fund loans
Low Mod Income Housing Asset Fund 15,136,740 - (135,515) 15,001,225 Housing fund loans receivable, net 15,136,740 - (135,515) 15,001,225 Total governmental note receivable 83,899,492 4,981,591 (774,556) 88,106,527 Total note receivable $ 83,889,492 $ 4,981,591 (774,556)$ $ 88,106,527 Note 4 – Lease Receivable
Summary of changes in governmental activities leases receivable for the year ended June 30, 2025, is as follows:
Balance Balance Due within Due in more
July 1, 2024 Additions Deletions June 30, 2025 One Year than One Year Lease receivable
Governmental-type activities 2,079,175$ -$ (311,291)$ 1,767,884$ $ 183,298 $ 1,584,586 Business-type activities 9,910,749 161,247 (804,396) 9,267,600 761,755 8,505,845 Total lease receivable 11,989,924$ 161,247$ (1,115,687)$ 11,035,484$ $ 945,053 $ 10,090,431 Packet Pg. 559 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
85 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, 2025, of $8,279,629.
Governmental-type activities
Lease receivable
Year Ending June 30, Principal Interest Total Deferred Inflows 2026 $ 183,298 $ 72,581 $ 255,879 $ 183,298
2027 180,899 64,568 245,467 180,899
2028 171,494 56,821 228,315 171,494
2029 181,117 49,029 230,146 181,117
2030 192,775 40,737 233,512 192,775
2031-2035 416,509 120,272 536,781 416,509
2036-2040 190,572 69,105 259,677 190,572
2041-2045 195,897 31,107 227,004 195,897
2046-2050 55,323 1,359 56,682 55,323
Total $ 1,767,884 $ 505,579 $ 2,273,463 $ 1,767,884
Business-type activities
Lease receivable
Year Ending June 30, Principal Interest Total Deferred Inflows 2026 $ 761,755 $ 492,990 $ 1,254,745 $ 761,755
2027 674,961 461,167 1,136,128 674,961
2028 691,554 430,131 1,121,685 691,554
2029 507,381 402,183 909,564 507,381
2030 426,649 381,449 808,098 426,649
2031-2035 1,917,052 1,606,787 3,523,839 1,917,052
2036-2040 1,112,965 1,205,857 2,318,822 1,112,965
2041-2045 1,039,811 871,356 1,911,167 1,039,811
2046-2050 1,107,387 541,152 1,648,539 1,107,387
2049-2054 765,020 174,321 939,341 765,020
Thereafter 263,065 83,863 346,928 263,065
Total $ 9,267,600 $ 6,651,256 $ 15,918,856 $ 9,267,600
Packet Pg. 560 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
86 Note 5 – Interfund Activities
A. Due From and Due To Other Funds
At June 30, 2025, due to and due from other funds balances are as follows:
Due From
Other Funds
Due To Other Funds General Fund Total
Enterprise funds:
Nonmajor enterprise funds $ 580,886 580,886$
Total $ 580,886 580,886$
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, 2025, interfund receivable and payable balances are as follows:
Internal
General Service
Interfund Payable Fund Funds Total
Governmental Funds:
Community Development 68,875$ -$ 68,875 $
Enterprise funds:
Nonmajor enterprise funds - 34,000 34,000
Total 68,875$ 34,000$ $ 102,875
Interfund Receivable
Interfund receivables and payables represent the portion of Advances that are expected to be repaid within one year.
Packet Pg. 561 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
87 Note 5 – Interfund Activities (Continued)
C. Advances To and From Other Funds
At June 30, 2025, long-term advances consisted of the following:
Solid Internal
General Electric Wastewater Water Waste Service
Fund Utility Utility Utility Utility Funds Total
Governmental funds:
General fund -$ 3,614,209$ -$ -$ -$ -$ 3,614,209$
Community Development - 1,120,388 300,104 440,153 140,048 - 2,000,693 Nonmajor: governmental funds 220,330 233,781 - - - 186,913 641,024 Enterprise funds:
Nonmajor: enterprise funds - - - - - 2,965,327 2,965,327 Total 220,330$ 4,968,378$ 300,104$ 440,153$ 140,048$ 3,152,240$ 9,221,253$ Advances from other funds
Advances to Other Funds
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 $233,781; all of which is classified as long-term. b) 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 $430,436; all of which is classified as long-term. c) 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.
d) 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 $7,417,600 to date. At year-end the balance was $1,499,384. Of this amount $1,474,384 is classified as long-term.
e) 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 $714,936; of this amount $705,936 is classified as longterm. f) The Risk Management Fund advanced funds to the Convention Center Fund to finance additional improvements. At year-end the balance was $785,007; all of which is classified as long-term at year-end. g) 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 and $1,384,510 in fiscal year 2022-23. The outstanding balance of the advance including accrued interest at the City’s average earnings on its pooled cash is $3,183,773; all of which is classified as long term.
h) The Utilities Funds (Electric, Water, Wastewater and Solid Waste) advanced funds totaling $2,872,376 to the Community Development Fund to finance the improvements for the Block 7 Downtown Project. (Electric - $1,608,531 Water - $631,923; Wastewater - $430,856; and Solid Waste - $201,066). The balance at year end was $2,000,693 (Electric $1,120,388, Water $440,153, Wastewater $300,104, and Solid Waste $140,048); of this amount $2,000,693 is classified as long term.
i) During fiscal year 2024-25 General fund transferred $220,330 to the Parking fund to cover operating shortfalls.
At year-end $220,300 is classified as long term.
Packet Pg. 562 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
88 Note 5 – Interfund Activities (Continued)
D. Internal Balance Summary
At June 30, 2025, the internal balance summary consisted of the following:
Governmental Funds
General
Fund
Community
Development
Special
Revenue
Internal
Service
Funds Total
Assets
Due from other funds 580,886$ $ - -$ $ 580,886 - $
Interfund receivable 68,875 - - 34,000 102,875
Advances to other funds 220,330 - - 3,152,240 3,372,570 870,091 - - 3,186,240 4,056,331
Liabilities
Due to other funds - - - - Interfund payable - 68,875 - - 68,875 Advances from other funds 3,614,209 2,000,693 641,024 - 6,255,926 3,614,209 2,069,568 641,024 - 6,324,801
Net difference (2,268,470)
Business-type portion of the internal service funds 14,591,245 Statement of net assets internal balance $ 12,322,775
Electric
Utility
Wastewater
Utility Water Utility
Solid
Waste
Nonmajor
Enterprise Total
Assets
Due from other funds -$ $ - -$ $ - $ - $ -
Interfund receivable - - - - - - Advances to other funds 4,968,378 300,104 440,153 140,048 - 5,848,683 4,968,378 300,104 440,153 140,048 - 5,848,683
Liabilities
Due to other funds 580,886 580,886
Interfund payable - - - - 34,000 34,000
Advances from other funds - - - - 2,965,327 2,965,327 - - - - 3,580,213 3,580,213 Net difference 2,268,470
Business-type portion of the internal service funds (14,591,245) Statement of net assets internal balance $ (12,322,775) Proprietary Funds
Packet Pg. 563 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
89 Note 5 – Interfund Activities (Continued)
E. Transfer In and Out
The following operating transfers were made during the fiscal year ended June 30, 2025:
Transfers In
Transfers Out General Fund
Nonmajor
Governmental
Funds
Nonmajor
Enterprise
Funds Total
Governmental funds:
Major funds:
General fund $ 1,024,062 - $ 924,551$ 1,948,613$
Nonmajor governmental funds 8,620,944 - - 8,620,944
Enterprise funds:
Major enterprise funds:
Electric 6,614,200 - - 6,614,200
Nonmajor enterprise funds 250,000 - - 250,000
Total $ 15,485,144 $ 1,024,062 924,551$ 17,433,757$
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 Electric Enterprise Fund transferred funds to the General Fund in lieu of property tax. d) The Airport Fund transferred funds to the General Fund to reimburse a portion of personnel cost for the Aircraft Rescue and Firefighting unit.
e) 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. f) Funds transferred for used vehicles purchased internally by City policy between General Fund, Electric and Internal Service Funds.
g) The Debt Service Fund transferred funds to the General Fund for reimbursement of debt payments made previously.
Packet Pg. 564 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
90 Note 6 – Capital Assets
A. Governmental Activities
Summary of changes in capital assets for the year ended June 30, 2025, consisted of the following:
Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Total governmental activities:
Capital assets, not being depreciated:
Land $ 39,929,610 $ 839,843 -$ 782,301 $ $ 41,551,754
Construction in process 74,520,946 19,930,021 - (11,019,977) 83,430,990 114,450,556 20,769,864 - (10,237,676) 124,982,744
Capital assets, being depreciated:
Buildings 65,038,767 - - 395,510 65,434,277
Improvements other than buildings 107,769,592 - - 4,905,515 112,675,107 Infrastructure 361,466,887 5,385,440 - 2,888,151 369,740,478 Automotive equipment 24,028,681 745,395 (773,900) 131,054 24,131,230 Furnishings and equipment 12,567,956 (3,599,651) 730,395 9,698,700 - Assets under lease:
Right-to-use improvements 113,677 (113,677) - - - Right-to-use automotive equipment 857,417 319,383 (99,873) 1,076,927 - Right-to-use subscription 4,921,585 106,491 (45,418) 4,982,658 - 576,764,562 7,287,104 (4,632,519) 8,320,230 587,739,377 Accumulated depreciation:
Buildings (44,006,593) (2,013,384) - (46,019,977) - Improvements other than buildings (81,305,065) (3,646,480) - (84,951,545) - Infrastructure (161,751,600) (9,554,827) - (171,306,427) - Automotive equipment (13,933,423) (1,722,522) 768,863 (83,730) (14,970,812) Furnishings and equipment (10,667,638) (505,212) 3,300,094 (7,872,756) - Assets under lease:
Right-to-use improvements (100,862) (12,815) 113,677 - - Right-to-use automotive equipment (245,729) (214,602) 82,763 (377,568) - Right-to-use subscription (1,070,748) (969,272) 45,418 (1,994,602) - Total accumulated depreciation (313,081,658) (18,639,114) 4,310,815 (83,730) (327,493,687) Total capital assets,
being depreciated, net 263,682,904 (11,352,010) (321,704) 8,236,500 260,245,690 Total governmental activities $ 378,133,460 $ 9,417,854 $ (321,704) $ (2,001,176) $ 385,228,434 Total capital assets, being depreciated
Total capital assets, not being depreciated
Depreciation expense was charged to governmental activities as follows:
Program Depreciation
General government $ 1,680,689
Police 1,687,818
Fire 1,036,066
Public works 9,951,496
Recreation and culture 4,230,970
Community development 52,075
Total $ 18,639,114
Packet Pg. 565 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
91 Note 6 – Capital Assets (Continued)
B. Business-Type Activities
Summary of changes in capital assets for the year ended June 30, 2025, consisted of the following:
Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Business-type activities:
Capital assets, not being depreciated:
Land $ 20,394,310 $ - $ - $ 20,394,310 - $
Construction in progress 80,484,064 33,052,948 - (6,985,211) 106,551,801 100,878,374 33,052,948 - (6,985,211) 126,946,111
Capital assets, being depreciated:
Utility plants 930,912,322 14,559,974 (1,530,175) 7,819,033 951,761,154 Buildings 78,207,472 - - 250,941 78,458,413
Improvements other than buildings 57,184,074 - - 797,779 57,981,853 Automotive equipment 53,263,249 7,727,915 (1,043,829) (131,054) 59,816,281 Furnishings and equipment 33,630,195 519,022 (849,486) 165,957 33,465,688 Assets under lease:
Right-to-use equipment 264,602 - (124,056) - 140,546
Right-to-use subscription 6,105,804 227,434 (136,253) - 6,196,985 1,159,567,718 23,034,345 (3,683,799) 8,902,656 1,187,820,920 Less accumulated depreciation for:
Utility plants (544,693,202) (23,241,590) 1,200,391 - (566,734,401) Buildings (53,953,861) (2,075,764) - - (56,029,625) Improvements other than buildings (37,397,584) (1,823,153) - - (39,220,737) Automotive equipment (33,031,669) (4,086,435) 1,043,829 83,730 (35,990,545) Furnishings and equipment (27,277,969) (1,554,032) 849,486 - (27,982,515) Assets under lease:
Right-to-use equipment (183,485) (44,572) 124,056 - (104,001) Right-to-use subscription (2,137,470) (1,268,444) 136,253 - (3,269,661) Total accumulated depreciation (698,675,240) (34,093,990) 3,354,015 83,730 (729,331,485) Total capital assets,
being depreciated, net 460,892,478 (11,059,645) (329,784) 8,986,386 458,489,435 Total business-type activities $ 561,770,852 $ 21,993,303 $ (329,784) $ 2,001,175 $ 585,435,546 Total capital assets, not being depreciated
Total capital assets, being depreciated
Depreciation expense was charged to the business-type activities as follows:
Program Depreciation
Electric $ 14,862,240
Water 4,081,052
Wastewater 7,296,084
Storm drainage 1,281,608
Solid waste 3,242,492
Airport 1,847,207
RABA 1,411,324
Convention center 71,983
Total $ 34,093,990
Packet Pg. 566 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
92 Note 7 – 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, 2025, the lease agreement between Redding Electric Utility and Gill Ranch Storage, LLC continues to be in effect.
Note 8 – Unavailable Revenue
On the fund financial statements, unavailable revenue consisted of the following as of June 30, 2025:
General Community Nonmajor
General Capital Projects Development Governmental
Fund Fund Fund Funds Total
Unavailable revenues:
Sales tax $ 59,541 $ - $ - $ 59,541 - $
Property taxes 1,034,570 - - 1,034,570 - Grant revenue 2,591,600 7,860,768 934,930 41,956 11,429,254 Assessments - - 313,640 - 313,640
Developer Deposits 1,173,186 - - 1,173,186 - Housing loans - interest - 3,842,031 - 2,963,837 6,805,868 Total $ 4,858,897 $ 7,860,768 $ 4,776,961 $ 3,319,433 $ 20,816,059 Packet Pg. 567 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
93 Note 9 – Long-Term Debt
Summary of changes in long-term debt for the year ended June 30, 2025, is as follows:
Balance Balance Due within Due in more
July 1, 2024 Additions Deletions June 30, 2025 One Year than One Year Governmental activities:
Long-term debt:
SBITAs $ 1,744,069 $ 106,491 $ (522,427) $ 1,328,133 $ 526,286 $ 801,847 Leases 553,257 264,383 (182,863) 634,777 169,753 465,024 Revenue bonds 23,965,000 (1,554,999) - 22,410,001 1,640,000 20,770,001 Loan 455,373 (126,257) - 329,116 134,870 194,246
Long-term debt before
unamortized amounts 26,717,699 370,874 (2,386,546) 24,702,027 2,470,909 22,231,118 Bond premium 2,607,173 (130,904) - 2,476,269 130,904 2,345,365 Bond discount (32,313) - 1,678 (30,635) (1,678) (28,957) 29,292,559 370,874 (2,515,772) 27,147,661 2,600,135 24,547,526 Business-type activities:
Long-term debt:
SBITAs 2,989,483 227,434 (1,071,259) 2,145,658 822,390 1,323,268 Leases 82,498 (43,485) - 39,013 39,013 - Revenue bonds 117,530,000 67,175,000 (14,135,000) 170,570,000 15,975,000 154,595,000 State loans payable 303,356 (32,241) - 271,115 33,339 237,776 Long-term debt before
unamortized amounts 120,905,337 67,402,434 (15,281,985) 173,025,786 16,869,742 156,156,044 Bond premium 18,748,545 3,324,870 (2,231,667) 19,841,748 2,333,633 17,508,115 139,653,882 70,727,304 (17,513,652) 192,867,534 19,203,375 173,664,159 Total long-term debt $ 168,946,441 $ 71,098,178 $ (20,029,424) $ 220,015,195 $ 21,803,510 $ 198,211,685 Total governmental
activities long-term debt
Total business-type
activities long-term debt
Current year amortization expense for bond premiums and discounts was $129,226 for the governmental activities and $2,231,667 for the business-type activities.
The annual requirements to amortize all debt outstanding as of June 30, 2025, excluding obligations associated with bond premiums (discounts) are as follows:
Year Ending
June 30, Principal Interest Principal Interest Principal Interest 2026 2,470,909 $ $ 1,236,819 $ 16,869,742 $ 8,406,497 $ 19,340,651 $ 9,643,316 2027 1,919,494 1,088,180 18,547,504 7,544,378 20,466,998 8,632,558 2028 1,383,084 967,923 18,035,885 6,603,348 19,418,969 7,571,271 2029 1,348,518 889,958 18,751,861 5,713,225 20,100,379 6,603,183 2030 1,318,012 817,299 19,873,116 4,776,219 21,191,128 5,593,518 2031-2035 6,877,010 2,995,960 34,992,678 15,034,037 41,869,688 18,029,997 2036-2040 5,340,000 1,393,752 6,395,000 10,482,375 11,735,000 11,876,127 2041-2045 4,045,000 374,778 10,445,000 8,307,125 14,490,000 8,681,903 2046-2050 - 12,870,000 - 5,886,688 12,870,000 5,886,688 Thereafter - 16,245,000 - 2,516,250 16,245,000 2,516,250 Total $ 24,702,027 $ 9,764,669 $ 173,025,786 $ 75,270,142 $ 197,727,813 $ 85,034,811 Governmental Activities Business-Type Activities Government-Wide Packet Pg. 568 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
94 Note 9 – Long-Term Debt (Continued)
Governmental activities Issue
Amount
Balance
06/30/2025 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
2013 Lease Revenue Bonds, Series B
Principal Payment $ 9,046,060 $ 5,535,001 $ 245,000 255,000$ $ 265,000 $ 280,000 Bond Discount (120,916) (30,635) (1,678) (1,678) (1,678) (1,678) 2013 Lease Revenue Bonds, Series C
Principal Payment 2,135,000 1,160,000 120,000 125,000 130,000 140,000 2019 Lease Revenue Bonds, Series A
Principal Payment 24,085,000 15,715,000 1,275,000 695,000 735,000 770,000 Bond Premium 3,272,602 2,476,269 130,904 130,904 130,904 130,904 2022 Parking Loan
Principal Payment 648,138 329,116 134,870 144,071 50,175 - Leases Payable Principal Payment 984,513 634,777 169,753 178,544 159,518 109,373 SBITAs Payable
Principal Payment 2,541,481 1,328,133 526,286 521,879 43,391 49,145 Total governmental activities $ 42,591,878 $ 27,147,661 $ 2,600,135 2,048,720$ $ 1,512,310 $ 1,477,744 Business-type activities
2013 California Airport Loan-Benton
Principal Payment $ 350,000 $ 148,470 $ 22,579 23,404$ $ 24,260 $ 25,146 2018 California Airport Loan- Benton
Principal Payment 190,000 122,645 10,760 11,069 11,388 11,715 2020 Wastewater Revenue Bonds
Principal Payment 52,420,000 30,945,000 4,060,000 4,260,000 4,475,000 4,425,000 Bond Premium 12,075,581 8,553,536 754,724 754,724 754,724 754,724 2018 Electric Systems Revenue
Bonds, Series A
Principal Payment 39,510,000 18,275,000 3,305,000 3,475,000 3,645,000 3,830,000 Bond Premium 6,232,541 2,382,052 525,067 525,067 525,067 525,067 2017 Electric Systems Revenue
Bonds, Series A
Principal Payment 55,785,000 28,020,000 5,075,000 5,320,000 5,590,000 5,870,000 Bond Premium 9,436,880 3,387,598 733,246 733,246 733,246 733,246 2015 Electric Systems Revenue
Bonds, Series A
Principal Payment 37,955,000 26,155,000 2,405,000 2,530,000 2,650,000 2,790,000 Bond Premium 4,195,346 2,202,557 209,767 209,767 209,767 209,767 2025 Electric Systems Revenue
Bonds, Series A
Principal Payment 67,175,000 67,175,000 1,130,000 2,045,000 1,200,000 1,800,000 Bond Premium 3,324,870 3,316,005 110,829 110,829 110,829 110,829 Leases Payable
Principal Payment 140,546 39,013 39,013 - - - Interest Rate 2.89% SBITAs Payable
Principal Payment 5,186,737 2,145,658 822,390 883,031 440,237 - Total business-type activities $ 293,977,501 $ 192,867,534 $ 19,203,375 20,881,137$ $ 20,369,518 $ 21,085,494 *Additional Information on the Bond Issues follows this note.
Packet Pg. 569 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
95 Note 9 – Long-Term Debt (Continued)
FY 2029-30 FY 2031-35 FY 2036-40 FY 2041-45 FY 2046-50 Thereafter Final
Maturity
Interest
Rate
2043 2-5%
$ 295,000 $ 1,575,001 $ 1,300,000 $ 1,320,000 $ - -$
(1,678) (8,390) (8,390) (5,465) - - 2032 3.75-6.5%
145,000 500,000 - - - - 2044 3.125-5%
805,000 4,670,000 4,040,000 2,725,000 - - 130,904 654,520 654,520 512,709 - - 2027 6.62% - - - - - - 2030 3.89%
17,589 - - - - - 2033 7.13%
55,423 132,009 - - - - $ 1,447,238 $ 7,523,140 $ 5,986,130 $ 4,552,244 $ - -$ 2031 3.655%
$ 26,064 $ 27,017 $ - $ - $ - -$
2035 2.87%
12,052 65,661 - - - - 2036 5%
4,330,000 9,210,000 185,000 - - - 754,724 3,773,619 1,006,297 - - - 2030 4-5% 4,020,000 - - - - - 281,784 - - - - - 2030 3-5%
6,165,000 - - - - - 454,614 - - - - - 2035 2-5%
2,925,000 12,855,000 - - - - 209,767 1,153,722 - - - - 2025 4-5% 2,395,000 12,835,000 6,210,000 10,445,000 29,115,000
110,829 554,145 554,145 554,145 554,145 545,280
2026 3.89%
- - - - - - 2028 7.13%
- - - - - - $ 21,684,834 $ 40,474,164 $ 7,955,442 $ 10,999,145 $ 29,669,145 545,280$ Packet Pg. 570 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
96 Note 9 – 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.
2022 Parking Loan
The 2022 Parking Loan was for the purchase of electronic parking meter pay stations for downtown Redding. 2013 California Airport Loan (Benton)
The 2013 California Airport Loan (Benton) was to repay the California Highway Patrol Hangar at the Benton Airpark. 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. 571 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
97 Note 9 – 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 a 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.
2025 Electric System Revenue Bonds
The 2025 Electric System Revenue Bonds, Series A, were issued to fund additions, upgrades, and improvements to the Electric System. Projects include modernizing overhead and underground infrastructure, enhancing substation security, improving the Redding Power Plant maintenance and operations building, upgrading transmission and distribution facilities, relocating and enhancing the backup power control center, and replacing or upgrading software for the geographic information system utility network. The payments are payable from the operating revenues of the Electric Utility Fund. The 2025 bonds are a special obligation of the City payable solely from and secured by a pledge of and lien on net revenues of the electric system.
Leases
The leases are contracts that convey control of the right to use another entity’s non-financial asset as specified in the contract for a period of time in exchange or exchange-like transaction. The City primarily leases vehicles, parking lots, and solar trashcans.
Subscription Based Information Technology Arrangements (SBITA’s) SBITA’s are subscription-based contracts that convey the control of the right to use vendor-provided information technology software, which provides governments with access to vendors’ IT software and associated tangible capital assets for subscription payments without granting government perpetual license or title to the IT software and associated tangible capital assets.
Packet Pg. 572 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
98 Note 10 – 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 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 Net Revenues Plus
Reserves
Electric Utility Bond Electric system improvements 2025 67,175,000 Packet Pg. 573 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
99 Note 10 – 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
2036 26% 26% 31,072,171 5,605,500 21,889,071 - 2035 11% 3% 26,253,735 3,600,520 33,445,472 72,996,573 2030 19% 6% 28,135,151 6,472,500 33,445,472 72,996,573
2030 13% 4% 18,350,103 4,226,500 33,445,472 72,996,573
2030 1% 0% 67,247,384 462,623 33,445,472 72,996,573
Packet Pg. 574 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
100
Note 11 – 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, 2025, were as follows:
Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Governmental activities 15,995,621 $ $ 10,259,160 $ (9,542,250) $ 16,712,531 $ 5,700,974 $ 11,011,558 Business-type activities 11,262,234 7,294,625 (7,110,961) 11,445,898 4,071,406 7,374,491 Total $ 27,257,855 $ 17,553,785 $ (16,653,211) $ 28,158,429 $ 9,772,380 $ 18,386,049 Note 12 – 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, 2024, and prior on June 30, 2025, 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, 2025, has been included in the Risk Management Fund’s claims payable amount as of June 30, 2025.
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 have been included in the claims payable amount as of June 30, 2025.
Packet Pg. 575 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
101
Note 12 – 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, 2025.
The following is a reconciliation of changes in claims liability amounts for fiscal years ended June 30, 2025:
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
2023 13,285,170 2,918,791 (3,316,091) 12,887,870 4,614,008 8,273,862 2024 12,887,870 3,188,576 (2,585,236) 13,491,210 3,590,830 9,900,380 2025 13,491,210 4,334,683 (2,636,653) 15,189,240 4,022,550 11,166,690 General Liability
2023 4,189,380 2,972,395 (1,645,155) 5,516,620 3,495,427 2,021,193 2024 5,516,620 2,038,611 (2,536,901) 5,018,330 1,312,760 3,705,570 2025 5,018,330 312,180 (2,150,630) 3,179,880 1,576,320 1,603,560 Health and Dental
2023 182,390 26,676,115 (26,745,755) 112,750 112,750 - 2024 112,750 31,902,144 (31,881,994) 132,900 132,900 - 2025 132,900 30,817,930 (30,948,000) 2,830 2,830 - Total 2023 17,656,940 32,567,301 (31,707,001) 18,517,240 8,222,185 10,295,055 2024 18,517,240 37,129,331 (37,004,131) 18,642,440 5,036,490 13,605,950 2025 18,642,440 35,464,793 (35,735,283) 18,371,950 5,601,700 12,770,250 Note 13 – Individual Fund Disclosures
The following fund reported a deficit fund balance as of June 30, 2025:
Equipment Fund – The deficit of $4,160,710 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 $3,167,007 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.
Packet Pg. 576 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
102
Note 13 – Individual Fund Disclosures (Continued)
Risk Management Fund – The deficit of $8,414,952 in the fund resulted from the City funding Internal Service Funds on a cash flow basis. Until the City funds the Claims & Judgments, Other Post Employment Benefits (OBEB) and pension liability, the fund will continue to have a deficit balance.
Municipal Utilities Support Fund – The deficit of $4,221,544 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.
Parking Fund – The deficit of $580,443 in this fund arose from operational losses which have been covered by the General Fund. This project is being financed by parking meter funds, parking fines and property tax increment payments. This deficit will take a number of years to eliminate.
Note 14 – Joint Ventures
The City participates in the following five joint ventures:
M-S-R Public Power Agency
M-S-R Energy Authority
Transmission Agency of Northern California
Balancing Authority of Northern California
Modesto Irrigation District Financing Authority
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 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 2025, 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. 577 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
103
Note 14 – Joint Ventures (Continued)
A. M-S-R Public Power Agency (Continued)
The majority of activities are 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 products, 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 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, M-S-R Public Power Agency has no ongoing or regular cash called expenses with regard to this divested asset other than for administrative activities and existing bonds expired in early FY 2023.
Additionally, in 2005, M-S-R entered into a 20-year power purchase agreement (PPA) 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. Avangrid recently notified M-S-R of their intention to repower the project. M-S-R Public Power Agency members have firstrefusal rights and are actively discussing potential options to continue receiving energy from Big Horn I. If Avangrid and M-S-R Public Power Agency members cannot agree to new terms, the contract will terminate effective September 30, 2026.
In addition to the procurement of energy from the Big Horn Wind Energy facility, the M-S-R Public Power Agency has also signed an agreement with 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. 578 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
104
Note 14 – 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, 2024, is as follows (in thousands):
Total revenues 51,778$
Total assets and deferred outflows 49,381$ Total expenses (50,139) Total liabilities and deferred inflows 16,815 Net income 1,639 Total members' deficit 32,566 Members' deficit, January 1, 2024 40,927 Member distributions (10,000)
Total liabilities and members' deficit 49,381$ Members' deficit, December 31, 2024 32,566$ The debt of the Power Agency is comprised entirely of revenue bonds totaling $0. The agency made its last payment on the revenue bonds in 2022. These bonds are secured by a pledge and assignment of the net electric revenues of the Power Agency and are supported by take-and-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 $4.9 million at December 31, 2024. 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, 2025, 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.
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.
Packet Pg. 579 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
105
Note 14 – Joint Ventures (Continued)
B. M-S-R Energy Authority (Continued)
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 exceed its investment and, therefore, the equity method of accounting has been suspended. As of December 31, 2022, the City’s unrecognized share of member’s deficit of the M-S-R Energy Authority was $127,928,026.
The long-term debt of the M-S-R Energy Authority totaled $854,750,000 at December 31, 2024. The M-S-R Energy Authority made principal payment of $14,185,000 in 2024.
Summarized financial information of M-S-R Energy Authority as of and for the year ended December 31, 2024, is as follows (in thousands):
Total assets and deferred outflows $ 858,823
Total liabilities and deferred inflows $ 858,823
Total net position $ - Total liabilities and net position $ 858,823 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 of providing electric transmission or other facilities for the use of its members. The City has an 8.41% ownership interest in TANC equating to a $8,681,102 member’s equity balance at June 30, 2025. 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.
From Pacific Gas and Electric Company (PG&E), TANC also receives 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, 2025.
The debt of the Transmission Agency of Northern California is comprised entirely of revenue bonds totaling $159,565,000. 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 $ 8,681,102
Summarized financial information of TANC as of and for the year ended June 30, 2025, is as follows (in thousands):
Total assets and deferred outflows $ 504,881
Total liabilities and deferred inflows 397,725
Total net position 107,156
Total liabilities and net position $ 504,881
Net increase (decrease) in net position $ 7,077
Packet Pg. 580 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
106
Note 14 – Joint Ventures (Continued)
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 with an ownership voice in all balancing authority decisions consistent with the principle of maximizing consumer value. It also provides members with 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.
The members’ rights and expense-sharing are based on the participation percentages in most BANC activities.
BANC member’s participation percentages are based on the member’s retail sales and stand 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, 2024, is as follows (in thousands):
Total assets $ 7,752,935
Total liabilities 7,752,935
Total net position - Total liabilities and net position $ 7,752,935 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.
Packet Pg. 581 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
107
Note 14 – Joint Ventures (Continued)
E. Modesto Irrigation District Financing Authority
The Modesto Irrigation District Financing Authority (MIDFA) is a joint powers agency consisting of the Modesto Irrigation District (District) and the City of Redding (City) formed July 1, 1989, pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Marks-Roos Local Bond Pooling Act of 1985”). Which authorizes and empowers the Authority to enter into contracts to assist the District and the City in financing public capital improvements, working capital, liability, and other insurance needs, or projects whenever there are significant public benefits, as determined by the City or the District.
The agreement states “any obligations incurred or any bonds issued by the Authority shall not constitute general obligations of the Authority” and “In the event either the City or the District separately contract for specific debts, liabilities or obligations, the member of this Authority not party to such contact shall not be liable or responsible for such debts, liabilities or obligations of the Authority.
The City has no debts, liabilities or obligations issued through the Authority.
On March 21, 2023, City Council adopted resolution 2023-025 which extended the agreement from August 2, 2019 to August 1, 2040.
F. 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 undertake-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 $ - 15.000% $ - TANC (2)
Bonds (2016A) 152,120,000 8.3912% 12,764,693
TANC subtotal 152,120,000 12,764,693
Total $ 152,120,000 $ 12,764,693
(1) As of December 31, 2024
(2) As of June 30, 2025
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. 582 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
108
Note 15 – 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 $2,933,115 as of June 30, 2025, 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, 2025. 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, 2025, were as follows:
Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Postclosure care liability 2,864,371 $ 318,936$ 250,192$ $ 2,933,115 $ 216,359 $ 2,716,756 Packet Pg. 583 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
109
Note 16 – 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) $ 55,647,159 $ 151,817,165 $ (317,182) $ 207,147,142 Internal Service Funds:
Equipment 5,301,750 (12,796) - 5,288,954
Information Systems 5,033,959 (23,063) - 5,010,896
General Support Services 6,478,792 (35,645) - 6,443,147 Risk Management 1,664,192 (18,592) - 1,645,600
Municipal Utilities Support 6,802,132 (65,577) - 6,736,555 Total Internal Service Funds 25,280,825 (155,673) - 25,125,152 Total Governmental Activities 80,927,984 151,817,165 (472,855) 232,272,294 Enterprise funds:
Electric Utility 74,027,130 - (610,885) 73,416,245
Water Utility 7,886,418 - (93,426) 7,792,992
Wastewater Utility 7,970,853 - (66,976) 7,903,877
Solid Waste Utility 17,083,213 - (117,999) 16,965,214
Airport 2,448,592 - 2,448,529 (63) Storm Drainage Utility 1,323,766 - (11,877) 1,311,889 Total Enterprise funds 110,739,972 (901,226) - 109,838,746 Total $ 191,667,956 $ 151,817,165 $ (1,374,081) $ 342,111,040 Packet Pg. 584 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
110
Note 16 – 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) $ 6,576,693 $ 17,196,134 $ 1,727,074 $ 25,499,901 Internal Service Funds:
Equipment 626,591 69,676 - 696,267
Information Systems 594,942 125,580 - 720,522
General Support Services 765,700 194,094 - 959,794
Risk Management 196,684 101,233 - 297,917
Municipal Utilities Support 803,914 357,073 - 1,160,987 Total Internal Service Funds 2,987,831 847,656 - 3,835,487 Total Governmental Activities 9,564,524 17,196,134 2,574,730 29,335,388 Enterprise funds:
Electric Utility 8,748,942 3,326,323 - 12,075,265
Water Utility 932,061 508,713 - 1,440,774
Wastewater Utility 942,040 364,688 - 1,306,728
Solid Waste Utility 2,018,990 642,509 - 2,661,499
Airport 289,388 - 342 289,730
Storm Drainage Utility 156,450 64,672 - 221,122
Total Enterprise funds 13,087,871 4,907,247 - 17,995,118 Total $ 22,652,395 $ 17,196,134 $ 7,481,977 $ 47,330,506 Packet Pg. 585 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
111
Note 16 – Retirement Plans (Continued)
A. Summary (Continued)
Deferred Outflows of Resources (Continued)
Difference between Projected and Actual Earnings of Pension Plan Investments Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) $ 1,546,096 $ 3,586,260 $ 5,132,356 - $ Internal Service Funds:
Equipment 147,303 - 147,303 - Information Systems 139,863 - 139,863 - General Support Services 180,006 - 180,006 - Risk Management 46,238 - 46,238 - Municipal Utilities Support 188,990 - 188,990 - Total Internal Service Funds 702,400 - 702,400 - Total Governmental Activities 2,248,496 3,586,260 5,834,756 - Enterprise funds:
Electric Utility 2,056,766 - 2,056,766 - Water Utility 219,116 - 219,116 - Wastewater Utility 221,462 - 221,462 - Solid Waste Utility 474,639 - 474,639 - Airport 68,032 - 68,032 - Storm Drainage Utility 36,779 - 36,779 - Total Enterprise funds 3,076,794 - 3,076,794 - Total $ 5,325,290 $ 3,586,260 $ 8,911,550 - $ Changes of Assumptions
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) $ 801,948 $ 4,384,645 $ 5,186,593 - $ Internal Service Funds:
Equipment 76,405 - 76,405 - Information Systems 72,546 - 72,546 - General Support Services 93,368 - 93,368 - Risk Management 23,983 - 23,983 - Municipal Utilities Support 98,028 - 98,028 - Total Internal Service Funds 364,330 - 364,330 - Total Governmental Activities 1,166,278 4,384,645 5,550,923 - Enterprise funds:
Electric Utility 1,066,828 - 1,066,828 - Water Utility 113,654 - 113,654 - Wastewater Utility 114,870 - 114,870 - Solid Waste Utility 246,191 - 246,191 - Airport 35,288 - 35,288 - Storm Drainage Utility 19,077 - 19,077 - Total Enterprise funds 1,595,908 - 1,595,908 - Total $ 2,762,186 $ 4,384,645 $ 7,146,831 - $ Packet Pg. 586 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
112
Note 16 – 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) $ 4,157,398 $ 10,679,561 $ 313,142 $ 15,150,101 Internal Service Funds:
Equipment 396,091 12,632 - 408,723
Information Systems 376,087 22,769 - 398,856
General Support Services 484,032 35,192 - 519,224
Risk Management 124,334 18,355 - 142,689
Municipal Utilities Support 508,188 64,742 - 572,930
Total Internal Service Funds 1,888,732 153,690 - 2,042,422 Total Governmental Activities 6,046,130 10,679,561 466,832 17,192,523 Enterprise funds:
Electric Utility 5,530,561 603,107 - 6,133,668
Water Utility 589,193 92,237 - 681,430
Wastewater Utility 595,502 66,123 - 661,625
Solid Waste Utility 1,276,286 116,496 - 1,392,782
Airport 182,934 - 62 182,996
Storm Drainage Utility 98,899 11,726 - 110,625
Total Enterprise funds 8,273,375 889,751 - 9,163,126
Total $ 14,319,505 $ 10,679,561 $ 1,356,583 $ 26,355,649 Total Deferred Outflows
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) $ 13,082,135 $ 35,846,600 $ 2,040,216 $ 50,968,951 Internal Service Funds:
Equipment 1,246,390 82,308 - 1,328,698
Information Systems 1,183,438 148,349 - 1,331,787
General Support Services 1,523,106 229,286 - 1,752,392
Risk Management 391,239 119,588 - 510,827
Municipal Utilities Support 1,599,120 421,815 - 2,020,935 Total Internal Service Funds 5,943,293 1,001,346 - 6,944,639 Total Governmental Activities 19,025,428 35,846,600 3,041,562 57,913,590 Enterprise funds:
Electric Utility 17,403,097 3,929,430 - 21,332,527
Water Utility 1,854,024 600,950 - 2,454,974
Wastewater Utility 1,873,874 430,811 - 2,304,685
Solid Waste Utility 4,016,106 759,005 - 4,775,111
Airport 575,642 - 404 576,046
Storm Drainage Utility 311,205 76,398 - 387,603
Total Enterprise funds 26,033,948 5,796,998 - 31,830,946 Total $ 45,059,376 $ 35,846,600 $ 8,838,560 $ 89,744,536 Packet Pg. 587 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
113
Note 16 – Retirement Plans (Continued)
A. Summary (Continued)
Deferred Inflows of Resources
Differences between Expected and Actual Experience
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) $ 790,543 - $ $ 790,543 - $ Internal Service Funds:
Equipment - - - -
Information Systems - - - - General Support Services - - - - Risk Management - - - - Municipal Utilities Support - - - - Total Internal Service Funds - - - - Total Governmental Activities 790,543 - 790,543 - Enterprise funds:
Electric Utility - - - - Water Utility - - - - Wastewater Utility - - - - Solid Waste Utility - - - - Airport - - - - Storm Drainage Utility - - - - Total Enterprise funds - - - - Total $ 790,543 - $ $ 790,543 - $ Packet Pg. 588 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
114
Note 16 – Retirement Plans (Continued)
A. Summary (Continued)
Deferred Inflows of Resources (Continued)
Difference between Expected and Actual Experience
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) $ - $ 20,661 - $ $ 20,661 Internal Service Funds:
Equipment - - 833 833
Information Systems - - 1,502 1,502
General Support Services - - 2,322 2,322
Risk Management - - 1,211 1,211
Municipal Utilities Support - - 4,272 4,272
Total Internal Service Funds - 10,140 - 10,140
Total Governmental Activities - 30,801 - 30,801
Enterprise funds:
Electric Utility - 39,793 - 39,793
Water Utility - - 6,087 6,087
Wastewater Utility - - 4,362 4,362
Solid Waste Utility - - 7,687 7,687
Airport - - 4 4
Storm Drainage Utility - - 774 774
Total Enterprise funds - 58,707 - 58,707
Total $ - $ 89,508 - $ $ 89,508
Total Pension-related Deferred Inflows
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) $ 790,543 - $ $ 20,661 $ 811,204 Internal Service Funds:
Equipment - - 833 833
Information Systems - - 1,502 1,502
General Support Services - - 2,322 2,322
Risk Management - - 1,211 1,211
Municipal Utilities Support - - 4,272 4,272
Total Internal Service Funds - 10,140 - 10,140
Total Governmental Activities 790,543 - 30,801 821,344
Enterprise funds:
Electric Utility - 39,793 - 39,793
Water Utility - - 6,087 6,087
Wastewater Utility - - 4,362 4,362
Solid Waste Utility - - 7,687 7,687
Airport - - 4 4
Storm Drainage Utility - - 774 774
Total Enterprise funds - 58,707 - 58,707
Total $ 790,543 - $ $ 89,508 $ 880,051
Packet Pg. 589 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
115
Note 16 – Retirement Plans (Continued)
A. Summary (Continued)
Pension Expense
The total pension expense related to all retirement plans is $5,4077,833. This is comprised of three parts CalPERS Miscellaneous Plan, CalPERS Safety Plan, and the PARS plan. The CalPERS Miscellaneous Plan pension expense was $30,322,992, the CalPERS Safety Plan pension expense was $20,896,405, and the PARS plan was $2,858,436.
Responsible Governmental Funds
The governmental funds responsible for liquidating pension liabilities include; General Fund, Community Development and Parking.
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.
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.
Packet Pg. 590 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
116
Note 16 – Retirement Plans (Continued)
B. CalPERS (Continued)
The Plans’ provisions and benefits in effect at June 30, 2025, 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 10.54% 10.54%
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% 14.50%
Required employer contribution rates 21.840% 21.840% 21.84% Safety
a. Net Pension Liability
Employees Covered by Benefit Terms
At June 30, 2023 (actuarial valuation date), the following employees were covered by the benefit terms for each Plan:
Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 931 329 Inactive employees entitled to but not yet receiving benefits 414 100 Active employees 676 216
Total 2,021 645
Packet Pg. 591 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
117
Note 16 – Retirement Plans (Continued)
B. CalPERS (Continued)
a. Net Pension Liability (Continued)
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, 2024, using an annual actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. A 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, 2023, actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous Safety
Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2024
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Payroll Growth 2.80% 2.80%
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 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
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
6.80% Net of Pension Plan Investment Expense,
Packet Pg. 592 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
118
Note 16 – Retirement Plans (Continued)
B. CalPERS (Continued)
a. Net Pension Liability (Continued)
All other actuarial assumptions used in the June 30, 2023, 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.
Discount Rate
The discount rate used to measure the total pension liability was 6.90 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 6.90 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 6.90 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 November 17, 2021.
Packet Pg. 593 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
119
Note 16 – Retirement Plans (Continued)
B. CalPERS (Continued)
a. Net Pension Liability (Continued)
Asset Class1
Current Target
Allocation Real Return 1,2
Public Equities - Cap-weighted 30.0% 33.10%
Public Equities - Non-Cap-weighted 12.0% 12.00%
Treasury 5.0% 5.10%
Mortgage-backed Securities 5.0% 5.10%
Investment Grade Corporates 10.0% 6.60%
High Yield 5.0% 4.50%
Emerging Market Debt 5.0% 5.10%
Private Equity 13.0% 12.90%
Real Assets 15.0% 15.20%
Private Debt 5.0% 2.20%
Strategic Financing -5.0% -1.80%
2 Figures are based on the 2023 Asset Liability Management study. 1An expected inflation of 2.0% used for this period 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, 2023 (Measurement date) $ 546,680,572 $ 356,051,901 $ 190,628,671 Changes in the year:
Service costs 10,201,771 10,201,771 - Interest on the total pension liability 37,774,933 37,774,933 - Changes of benefit terms - - - Differences between actual and expected experience 12,080,526 12,080,526 - Change in assumptions - - - Plan to plan resource movement - - - Contributions - employer 19,678,117 - (19,678,117) Contribution - employee 5,432,301 - (5,432,301)
Net investment income 34,197,248 - (34,197,248)
Benefit payments, including refunds of employee
contributions (32,798,340) (32,798,340) - Administrative expense - (289,721) 289,721 Other miscellaneous income/(expense) - - - Net changes 27,258,890 26,219,605 1,039,285 Balance at June 30, 2024 (Measurement date) $ 573,939,462 $ 382,271,506 $ 191,667,956 Packet Pg. 594 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
120
Note 16 – 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, 2023 (Measurement date) $ 398,114,943 $ 242,780,884 $ 155,334,059 Changes in the year:
Service costs 7,994,626 7,994,626 - Interest on the total pension liability 27,305,076 27,305,076 - Changes of benefit terms - - - Differences between actual and expected experience 4,089,103 4,089,103 - Change in assumptions - - - Plan to plan resource movement - - - Contributions - employer 15,375,993 - (15,375,993) Contribution - employee 4,249,597 - (4,249,597)
Net investment income 23,477,661 - (23,477,661)
Benefit payments, including refunds of employee
contributions (20,951,260) (20,951,260) - Administrative expense - (197,552) 197,552 Other miscellaneous income/(expense) - - - Net changes 18,437,545 21,954,439 (3,516,894) Balance at June 30, 2024 (Measurement date) $ 416,552,488 $ 264,735,323 $ 151,817,165 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 6.90 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 (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net pension liability $ 262,375,720 $ 209,174,946
Current discount rate 6.90% 6.90%
Net pension liability $ 191,667,955 $ 151,817,165
1% Increase 7.90% 7.90%
Net pension liability $ 132,795,492 $ 104,928,839
Packet Pg. 595 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
121
Note 16 – 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, 2025, the City recognized pension expense of $51,219,397, which is comprised of $30,322,992 of pension expense related to the CalPERS Miscellaneous plan and $20,896,405 of pension expense related to the CalPERS Safety plan. At June 30, 2025, 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 $ 22,652,395 $ - Changes of Assumptions 2,762,186 - Difference between expected and actual experience 14,319,505 - Net difference between projected and actual earnings on pension plan investments 5,325,290 - Total $ 45,059,376 $ - Safety Plan:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions made after measurement date $ 17,196,134 $ - Changes of Assumptions 4,384,645 - Difference between expected and actual experience 10,679,561 (790,543) Net difference between projected and actual earnings
on pension plan investments 3,586,260 - Total $ 35,846,600 $ (790,543) Packet Pg. 596 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
122
Note 16 – 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 2023-24 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 2023-24 measurement is 3.8 and 4.9 years, which was obtained by dividing the total service years of 7,612 and 3,155 (the sum of remaining service lifetimes of the active employees) by 2,021 and 645 (the total number of participants: active, inactive and retired), respectively.
The $22,652,395 and $17,196,134 reported as deferred outflows of resources related to pension resulting from the City’s contributions subsequent to the measurement date during the fiscal year ended June 30, 2025, will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. 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
2025 $ 8,750,795 $ 5,670,276
2026 14,662,920 11,093,978
2027 981,537 1,702,631
2028 (1,988,271) (606,962)
2029 - - Thereafter - - Total $ 22,406,981 $ 17,859,923 d. Payable to the Pension Plan
At June 30, 2025, The City reported a payable of $ -0- for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2025.
Packet Pg. 597 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
123
Note 16 – 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, 2025, 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 2.70% 2.26% 1.71% 2.21% 2.08% 2.62%
Required employer
contribution rates 54.24% 45.38% 46.73% 41.64% 36.19% 46.58% Packet Pg. 598 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
124
Note 16 – Retirement Plans (Continued)
C. PARS (Continued)
a. General Information about the Pension Plans (Continued) Employees Covered
At July 1, 2024, 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 124 235 11 107 51 17 545
Inactive employees entitled to
but not yet receiving benefits 4 3 - 4 2 - 13
Active employees 29 61 1 43 19 8 161
Total 157 299 12 154 72 25 719
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, 2024, actuarial valuation were determined using the following actuarial assumptions:
Valuation Date June 30, 2024
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal
Actuarial Assumptions:
Discount Rate 7.00%
Inflation 2.30%
Projected Salary Increase Graded rates based on years of services, 3.34% after 30 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, 2021
Packet Pg. 599 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
125
Note 16 – 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, 2025.
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 2.33% 0.83% 0.80%
US Core Fixed Income Barclays Aggregate 37.64% 2.35% 2.20% US Equity Market Russell 3000 47.30% 5.48% 3.76%
Foreign Developed Equity MSCI EAFE NR 6.90% 6.61% 4.79% Emerging Markets Equity MSCI EM NR 3.81% 8.78% 5.73%
US REITs FTSE NAREIT Equity REIT 2.02% 6.71% 4.46%
Assumed inflation - mean 2.28% 2.28%
1.47% 1.47%
Portfolio real mean return 4.42% 3.75%
Portfolio nominal mean return 6.70% 6.14%
Portfolio standard deviation 11.13%
7.00%
Assumed inflation - standard deviation
Long-term expected rate of return
Packet Pg. 600 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
126
Note 16 – 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 July 1, 2023 (Measurement date) $ 94,451,621 $ 79,545,153 $ 14,906,468 Changes in the year:
Service costs 818,815 818,815 - Interest on the total pension liability 6,455,732 6,455,732 - Changes of benefit terms - - - Effect of economic/demographic gains or losses 2,863,897 2,863,897 - Differences between actual and expected experience - - - Change in assumptions - - - Contributions - employer 16,143,046 - (16,143,046) Contribution - employer (paid by member) 467,357 - (467,357) Net investment income 10,048,112 - (10,048,112)
Administrative expenses (239,522) - 239,522
Benefit payments, including refunds of employee
contributions
Net changes 3,942,269 20,222,818 (16,280,549)
Balance at June 30, 2024 (Measurement date) $ 98,393,890 $ 99,767,971 $ (1,374,081) (6,196,175) (6,196,175) -
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 108,734,696 $ $ 98,393,890 $ 89,583,309 Fiduciary net position 99,767,971 99,767,971 99,767,971 Net pension liability 8,966,725 (1,374,081) (10,184,662) Packet Pg. 601 Attachment: FY2024-25 City of Redding ACFR FYE 2025 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2025) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
127
Note 16 – 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, 2025, the City recognized pension expense of $2,858,436. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: