Agenda Packet — Redding City Council, October 6, 2026 (part 2 of 2)

Packet Pg. 172 Attachment: Budget Resolution (9.10(a)--Year End Budget Review and Budget Resolution) Resolution No. 2026 - ____
Expenditures (Continued)
101 1501 4005011 00000 0000000000 Accrued Pay - Sick Leave 54,470 101 1501 4005041 00000 0000000000 Accrued Pay - Birthday Leave 2,060 101 1502 4005001 00000 0000000000 Accrued Pay - Vacation 102,850 101 1502 4005011 00000 0000000000 Accrued Pay - Sick Leave 122,770 101 1502 4005041 00000 0000000000 Accrued Pay - Birthday Leave 570 101 1503 4005001 00000 0000000000 Accrued Pay - Vacation 35,380 101 1501 4003001 00000 0000000000 Overtime 64,850
101 1502 4003001 00000 0000000000 Overtime 1,168,280
101 1503 4003001 00000 0000000000 Overtime 23,370
351 3501 5082501 00000 0000000000 Vehicle Repair & Maintenacne 386,680 211 8003 8933831 00000 0000000000 Transportation Fleet Maintenance - Fix Charge 253,060 251 6502 5900081 00000 0000000000 Fixed Charge Fleet Maintenance 133,620 175 5211 4001001 00000 0000000000 Full Time Regular (10,830) 175 5211 4003001 00000 0000000000 Overtime 1,010
175 5211 4004001 00000 0000000000 Miscellaneous Pay 830 175 5211 4005001 00000 0000000000 Accrued Pay - Vacation 1,450 175 5211 4009031 00000 0000000000 Health Insurance Employer (9,760) 175 5211 4701450 00000 0000000000 Cross Charge To Police - Grants (1,090) 175 5201 4801621 00000 0000000000 Cross Charge From Streets (19,540) 175 5201 5040052 00000 0000000000 Miscellaneous Contracts 37,030 175 5201 5087501 00000 0000000000 Bank Service Fees 21,580 175 5201 5095001 00000 0000000000 Utility Expense (240) 175 5201 5125001 00000 0000000000 Operating Materials & Supplies 2,010 175 5201 5177501 00000 0000000000 Shasta County Surcharge 19,360 175 5201 5177521 00000 0000000000 Citation Processing Fees 5,030 175 5201 5270001 00000 0000000000 Rent - Land (3,000)
THAT the purpose is to increase appropriations by $4,496,560 for fiscal year 2025-2026 I HEREBY CERTIFY that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council for the City of Redding on the 6th day of October, 2026 and was duly adopted at said meeting by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

MIKE LITTAU, Mayor
ATTEST: FORM APPROVAL:

SHARLENE TIPTON, City Clerk MARY ANNE WAGNER, City Attorney 61st AMENDMENT TO CITY BUDGET RESOLUTION NO. 2025-049

Page 2 of 2 ends

Packet Pg. 173 Attachment: Budget Resolution (9.10(a)--Year End Budget Review and Budget Resolution) City of Redding – Year End Budget Report
Fiscal Year 2025-26

YEAR END BUDGET REPORT
Fiscal Year 2025-26
Packet Pg. 174 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) City of Redding – Year End Budget Report
Fiscal Year 2025-26

INTRODUCTION
The Finance Division has completed its year end budget review for fiscal year 2025-2026 and respectfully submits this report for the City Council’s review. This fiscal year ended (FYE) June 30, 2026 budget report is submitted in-lieu of the typical quarterly financial report.1 This report compares actual expenditures and revenues through June 30, 2026, to budget projections (or subsequent revisions, if applicable). The report focuses primarily on the General Fund, but also includes a brief review of revenues and expenditures for each enterprise fund, i.e., the Water, Wastewater, Storm Drainage, Electric, Airport, Solid Waste, and internal service funds. In the interest of time and space, we have not included information regarding all individual internal service funds or special revenue funds; however, staff would be pleased to provide this additional information upon request.

GENERAL FUND

REVENUES
Overview
General Fund revenue as of June 30, 2026, totals $114,087,503 which is $9,419,344 or 7.6 percent below staff’s cash flow projection. Total revenue represents 102.3 percent of the annual budget estimate, as amended by Council resolution. Below is a further discussion of various revenues of the General Fund.

Sales Tax
Sales tax revenue for FYE 2026 totals $30,261,418 or $613,418 (2.07 percent) above staff’s amended cash flow estimate of $29,648,000. Staff is not recommending changes to the sales tax revenue projection.

Property Tax
Property tax revenue for FYE 2026, totals $31,069,027 or $509,027 (1.67 percent) above staff’s cash flow estimate of $30,560,000. Staff is not recommending changes to the property tax revenue projection.

Transient Occupancy Tax
Transient Occupancy Tax (TOT) revenue for FYE 2026 totals $7,486,081 or $152,071 (2.07 percent) above staff’s cash flow estimate of $7,334,010. Staff is not recommending changes to the transient occupancy tax revenue projection.

Other Taxes
Other taxes (Business License Tax, Real Property Transfer Tax, Franchise Tax, and Cannabis Tax) revenue for FYE 2026 totals $4,231,970 or $32,820 (.7 percent) below staff’s cash flow estimate of $4,264,790. This includes Cannabis Tax revenue of $1,737,444 for FYE 2026, which was 41,346 (2.3 percent) below staff’s cash flow estimate. Staff is not recommending changes to the other tax revenue projections.

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

Packet Pg. 175 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) City of Redding – Year End Budget Report
Fiscal Year 2025-26
Revenue from Other Governmental Agencies
Revenue from Other Governmental Agencies total $5,346,573 for FYE 2026 or $1,439,267 (21.3 percent) below staff’s cash flow estimate of $6,785,840. This is due to timing differences of grant funding being received compared to budget.

Revenue from Internal Departments
Revenue from internal departments for FYE 2026 totals $23,179,376.

Licenses and Permits
Revenue from licenses and permits for FYE 2026 totals $2,366,564 or $958,836 (28.83 percent) below staff’s cash flow projection of $3,325,400. Staff is not recommending any changes at this time.

Fines and Penalties
Revenue from fines and penalties for FYE 2026 totals $2,664,230 or $1,322,060 (98.5 percent) above staff’s cash flow projection of $1,342,170. Staff is not recommending any changes at this time.

Charges for Current Services
Revenue from charge for current services for FYE 2026 totals $4,016,527 or $1,635,555 (28.9 percent) below staff’s cash flow projection of $5,652,082. Staff is not recommending any changes at this time.

All Other General Fund Revenues
Revenue from all other General Fund revenues total $2,501,301 for FYE 2026 or $121,126 (5.1 percent) above staff’s cash flow estimate of $2,380,175. Staff is not recommending any changes at this time.

EXPENDITURES
Overview
General Fund appropriations through June 30, 2026, total $125,354,034 which is an increase of $15,543,269 or 14 percent, since the budget was adopted by the City Council in June 2025. Of this increase, $10,433,710 is from carryover from the prior year (primarily relating to grants and projects). The remaining increase is due primarily to increases in grant and grant-like revenues and appropriations.

Police
The Police Department’s budget, including the grant division, totals $44,705,397, or 35.7 percent of total General Fund appropriations. The Police Department has expended $45,924,777 or 102.7 percent of its budget, as of June 30, 2026. There are two budget requests from the Police Department: Vehicle Fuel for $70,520, Semi-Annual Holiday Pay and Accrued cash outs due to retirements for $1,656,420.

Fire
The Fire Department’s budget totals $30,920,228, or 24.7 percent of total General Fund appropriations. The Packet Pg. 176 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) City of Redding – Year End Budget Report
Fiscal Year 2025-26
Fire Department has expended $31,594,707 or 102.2 percent of its budget, through June 30, 2026. The Fire Department is requesting $1,587,400 for overages related to overtime costs and accrued cash outs due to retirements for the fiscal year.

Public Works
The Public Works Department’s General Fund budget (Public Works Engineering, Transportation and Engineering, and Streets) totals $22,384,511 or 17.8 percent of total General Fund appropriations. The Transportation and Engineering Department’s General Fund has expended $16,590,127 or 74.1 percent of its budget, through June 30, 2026.

Development Services
The Development Services Department’s General Fund budget (Planning, Building, Permit Center, and Engineering & Design) totals $6,531,045 or 5.2 percent of total General Fund appropriations. The Department expended $6,054,265, or 92.7 percent of its budget, through June 30, 2026. Staff is not recommending any changes to the budget at this time.

Community Services
The Community Services Department’s General Fund budget (Recreation, Parks and Community Services Administration) totals $9,039,032, or 7.2 percent of total General Fund appropriations. The department has expended $8,595,816, or 95.1 percent of its budget, through June 30, 2026. Staff is not recommending any changes to the budget at this time.

Non-Departmental/Debt Service
The budgets for the Non-Departmental, Animal Regulation and Debt Service divisions total $4,537,970, or

3.6 percent of total General Fund appropriations. Expenditures through June 30, 2026 total $4,171,808, or

91.9 percent of the amount budgeted for this purpose. Staff is not recommending any changes to the budget at this time.

General Government
The current budgets for general government departments and divisions (i.e., City Council, City Clerk, City Treasurer, City Manager, City Attorney, Finance, Purchasing, Personnel and Midtown) total $7,235,851, or

5.8 percent of total General Fund appropriations. These departments and divisions have expended $7,499,543, or 103.6 percent of their budgets, through June 30, 2026. The following departments are requesting additional personnel budget: $53,560 for City Council unbudgeted health insurance cost and $306,060 for the City Manager unbudgeted retirement payouts. Additional, General Government budget requests are as follows: City Attorney for recruiting expense related to recruitment of the City Attorney $5,400.

Cash Flow Analysis
The attached Cash by Fund report for June 30, 2026 shows an ending cash balance of $4.8 million. This was adjusted for estimated cash transfers from the Gas Tax funds to offset the eligible costs incurred and paid from the General Fund. Staff is in the process of completing the annual audit for FY ending June 30, 2026.

Packet Pg. 177 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) City of Redding – Year End Budget Report
Fiscal Year 2025-26
After completion of the annual audit, staff will have a final adjusted cash number for use in the Ten-Year Plan

ENTERPRISE FUNDS

WATER UTILITY FUND
Expenditures
Appropriations from the Water Utility Fund total $49,170,254. Expenditures through June 30, 2026, total $41,117,761 or 83.6 percent of total appropriations. Staff is not recommending any changes to Water Utility Expenditures.

Revenue
Revenue in the Water Utility Fund through June 30, 2026 totals $38,454,196. This level of revenue represents 108.8 percent of the estimate contained in the amended FYE 2026 budget. No changes are being recommended.

WASTEWATER UTILITY FUND
Expenditures
Appropriations from the Wastewater Utility Fund total $70,066,497 through June 30, 2026. Expenditures to date total $34,156,479 or 48.75 percent of total appropriations. The ratio of expenditures to appropriations is low because expenditures related to capital projects are low. Without capital outlay, the Wastewater Utility expended 96.5 percent of its budget. No changes are being recommended.

Revenues
Revenue in the Wastewater Utility Fund through June 30, 2026 totals $41,038,745. This level of revenue represents 92.6 percent of the estimate contained in the amended 2026 budget. No changes are being recommended.

STORM DRAINAGE UTILITY
Expenditures
Appropriations from the Storm Drainage Utility Fund total $9,079,266 through June 30, 2026.

Expenditures to date total $4,037,620 or 44.5 percent of total appropriations. The ratio of actual expenditures to date to total appropriations is low due to the fact that expenditures associated with several capital projects are low at this point in time. Without capital outlay, the Storm Drainage Utility expended

96.7 percent of its FYE 2026 amended budget. No changes are being recommended.

Packet Pg. 178 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) City of Redding – Year End Budget Report
Fiscal Year 2025-26
Revenue
Revenue in the Storm Drainage Utility Fund totals $3,140,973 through June 30, 2026. This level of revenue represents 40.9 percent of the estimate contained in the amended FYE 2026 budget. No changes are being recommended.

ELECTRIC UTILITY
Expenditures
Appropriations from the Electric Utility Fund total $212,931,782 through June 30, 2026. Expenditures for FYE 2026 total $203,874,173, or 95.8 percent of total appropriations. One budget request has been made for the Electric Utility increasing fixed charge appropriations from Fleet in the amount of 253,060.

Revenue
Revenue in the Electric Utility Fund totals $169,672,450 through June 30, 2026. This level of revenue represents 100.13 percent of the estimate contained in the amended FYE 2026 budget. No changes are being recommended.

AIRPORTS FUND
Expenditures
Appropriations from the Airports Fund total $36,427,084 Expenditures total $31,565,644, or 86.7 percent of total appropriations, through June 30, 2026. No changes are being recommended.

Revenues
Revenue in the Airports Fund totals $28,343,310 through June 30, 2026 excluding grant revenue. This level of revenue represents 81 percent of the estimate contained in the amended FYE 2026 amended budget. No changes are being recommended.

SOLID WASTE FUND
Expenditures
Appropriations for the Solid Waste Fund total $39,358,385 for FYE 2026. Expenditures through June 30, 2026 total $35,803,059 or 91 percent of total appropriations. One budget request has been made for the Electric Utility increasing fixed charge appropriations from Fleet in the amount of 133,620.

Revenues
Revenue in the Solid Waste Utility Fund totals $32,714,365 through June 30, 2026. This level of revenue represents 101.4 percent of the estimate contained in the amended FYE 2026 budget. No changes are being recommended.

Packet Pg. 179 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) City of Redding – Year End Budget Report
Fiscal Year 2025-26

INTERNAL SERVICE FUNDS
All internal service funds are trending as expected, with the following exceptions.  Fleet is requesting $386,680 for vehicle repair and maintenance. This is due to the increase in costs associated with inflation. This request requires an additional allocation to City Departments in order to replenish the cash held by the Fleet Department. This request is being made specific to REU and Solid Waste Utility as the work was direct to those departments.

Packet Pg. 180 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) Year End Budget Report

APPENDIX A

COMPARATIVE SUMMARY OF GENERAL FUND REVENUES AND

EXPENDITURES
For the Period
July 2025 through June 2026
Packet Pg. 181 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) Year End Budget Report
Section One
Actual Revenues Compared to Cash Flow Estimates Year to Date Packet Pg. 182 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) YTD Projection Actual Over (Under) %

GENERAL FUND TAXES
Property Taxes 30,560,000 31,069,027 509,027 101.67%
Sales Tax 29,648,000 30,261,418 613,418 102.07%
Transient Occupancy Tax 7,334,010 7,486,081 152,071 102.07% Franchise Tax 1,400,000 1,116,959 (283,041) 79.78%
Business License Tax 636,000 934,055 298,055 146.86%
Real Property Transfer Tax 450,000 443,512 (6,488) 98.56% Cannabis Tax 1,778,790 1,737,444 (41,346) 97.68%
TOTAL TAXES 71,806,800 73,048,496 1,241,696 101.73%

LICENSES AND PERMITS
Animal Licenses 50,000 31,183 (18,817) 62.37%
Building Permits 1,900,160 1,298,530 (601,630) 68.34%
Engineering Encroachment Permits 100,000 126,051 26,051 126.05% Electrical Permits 284,100 252,785 (31,315) 88.98%
Transportation Permits 11,740 10,504 (1,236) 89.47%
Plumbing Permits 132,430 90,046 (42,384) 68.00%
Mechanical Permits 216,970 317,329 100,359 146.25%
Engineering Grading Permits 630,000 240,136 (389,864) 38.12% TOTAL LICENSES AND PERMITS 3,325,400 2,366,564 (958,836) 71.17%

FINES AND PENALTIES
Traffic Safety Fines 1,071,570 1,036,668 (34,902) 96.74% Code Enforcement Fines 160,600 1,480,248 1,319,648 921.70% Other Fines & Fees 90,000 121,985 31,985 135.54%
Criminal Fines 20,000 25,329 5,329 126.64%
TOTAL FINES AND PENALTIES 1,342,170 2,664,230 1,322,060 198.50%

TRANSFERS AND INTERNAL DEPARTMENTS
Charges to Other Departments 7,322,340 7,325,368 3,028 100.04% Property In Lieu of Tax 5,996,600 5,996,600 0 100.00%
Internal Advances/Loans (72,000) (3,176) 68,824 4.41%
Fund Transfers From 21,088,590 12,558,431 (8,530,159) 59.55% Fund Transfers To (2,945,820) (2,697,847) 247,973 91.58% TOTAL TRANSFERS AND INTERNAL 31,389,710 23,179,376 (8,210,334) 73.84%

REVENUE FROM OTHER GOVERNMENTAL AGENCIES
Federal Grant Operating 2,108,720 - (2,108,720) 0.00%
State Grant Operating - 190,767 190,767 *
State Grant Capital - 58,662 58,662 *
State Non-Grant Funding 465,000 655,407 190,407 140.95% County Non-Grant Funding - 47,514 47,514 *
Other Government Grant Operating 4,212,120 4,394,223 182,103 104.32% TOTAL REVENUE FROM OTHER GOVT 6,785,840 5,346,573 (1,439,267) 78.79%

OTHER REVENUES
Late Fees 1,700,000 1,767,375 67,375 103.96%
Contributions 160,285 270,928 110,643 169.03%
Compensation - Loss & Property Damage - 268 268 *
Miscellaneous Receipts 204,890 120,226 (84,664) 58.68%
Reimbursements 315,000 342,504 27,504 108.73%
TOTAL OTHER REVENUE 2,380,175 2,501,301 121,126 105.09% Actual Revenue Compared to Cash Flow Estimates Year To Date City of Redding - General Fund
June 2026
Packet Pg. 183 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) YTD Projection Actual Over (Under) %
Actual Revenue Compared to Cash Flow Estimates Year To Date City of Redding - General Fund
June 2026

CHARGES FOR CURRENT SERVICES
Planning Permits - Subdivisions 489,890 378,786 (111,104) 77.32% Building Plan - Recording Fees 27,220 18,621 (8,599) 68.41% Plan Check Fees 879,730 771,907 (107,823) 87.74%
Engineering Land Development Fees - - - *
Technology Surcharge 267,860 193,714 (74,146) 72.32%
Cannabis App/Permit Fees 800,000 724,676 (75,324) 90.58% Animal Shelter Fees 6,000 4,957 (1,043) 82.62%
Inspection Fees 3,500 2,793 (707) 79.80%
Fingerprint Fees 5,900 8,121 2,221 137.64%
Fire Permits & Fees 122,000 76,539 (45,461) 62.74%
DUI Emergency Response 75,000 80,188 5,188 106.92%
Swimming Pool Receipts 105,110 97,406 (7,704) 92.67%
RAC Swim Shop/Rental 23,220 28,536 5,316 122.89%
RAC Admission 142,730 160,253 17,523 112.28%
RAC Swim Team 7,420 15,310 7,890 206.33%
Swimming Pool Concessions 58,010 54,661 (3,349) 94.23%
Other Charges and Fees 2,027,452 1,627,716 (399,736) 80.28% Recreation Sports 711,340 715,388 4,048 100.57%
Special Assessment District - 41 41 *
Bad Debt Write-Off (100,300) (943,084) (842,784) 940.26% TOTAL CHARGES FOR CURRENT SERVICES 5,652,082 4,016,527 (1,635,555) 71.06%

FINES AND PENALTIES
Traffic Safety Fines 1,071,570 1,036,668 (34,902) 96.74% Code Enforcement Fines 160,600 1,480,248 1,319,648 921.70% Other Fines & Fees 90,000 121,985 31,985 135.54%
Criminal Fines 20,000 25,329 5,329 *
TOTAL FINES AND PENALTIES 1,342,170 2,664,230 1,322,060 198.50%

REVENUE FROM OTHER GOVERNMENTAL AGENCIES
Federal Grant Operating 2,108,720 - (2,108,720) 0.00%
State Non-Grant Funding 465,000 655,407 190,407 140.95% County Non-Grant Funding - 47,514 47,514 *
Other Government Grant Operating - 4,394,223 4,394,223 * Other Government Non-Grant Funding 4,212,120 - (4,212,120) 0.00% TOTAL REVENUE FROM OTHER GOVT 6,785,840 5,346,573 (1,439,267) 78.79% Actual Revenue Compared to Total Budget Forecast
City of Redding - General Fund
June 2026
Packet Pg. 186 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) Amended Budget Actual Over (Under) %
Actual Revenue Compared to Total Budget Forecast
City of Redding - General Fund
June 2026

OTHER REVENUES
Late Fees 1,700,000 1,767,375 67,375 103.96%
Contributions 160,285 270,928 110,643 169.03%
Miscellaneous Receipts 204,890 120,226 (84,664) 58.68%
Reimbursements 315,000 342,504 27,504 108.73%
TOTAL OTHER REVENUE 2,380,175 2,501,301 121,126 105.09%

CHARGES FOR CURRENT SERVICES
Planning Permits - Subdivisions 489,890 378,786 (111,104) 77.32% Building Plan - Recording Fees 27,220 18,621 (8,599) 68.41% Plan Check Fees 879,730 771,907 (107,823) 87.74%
Engineering Land Development Fees - - - *
Technology Surcharge 267,860 193,714 (74,146) 72.32%
Cannabis App/Permit Fees 800,000 724,676 (75,324) 90.58% Animal Shelter Fees 6,000 4,957 (1,043) 82.62%
Inspection Fees 3,500 2,793 (707) 79.80%
Fingerprint Fees 5,900 8,121 2,221 137.64%
Fire Permits & Fees 122,000 76,539 (45,461) 62.74%
DUI Emergency Response 75,000 80,188 5,188 106.92%
Swimming Pool Receipts 105,110 97,406 (7,704) 92.67%
RAC Swim Shop/Rental 23,220 28,536 5,316 122.89%
RAC Admission 142,730 160,253 17,523 112.28%
RAC Swim Team 7,420 15,310 7,890 206.33%
Swimming Pool Concessions 58,010 54,661 (3,349) 94.23%
Other Charges and Fees 2,027,452 1,627,716 (399,736) 80.28% Recreation Sports 711,340 715,388 4,048 100.57%
Bad Debt Write-Off (100,300) (943,084) (842,784) 940.26% TOTAL CHARGES FOR CURRENT SERVICES 5,652,082 4,016,527 (1,635,555) 71.06%

REVENUE FROM THE USE OF MONEY & PROPERTY
Property Rentals 724,670 1,063,378 338,708 146.74%
Investment Income 100,000 (98,943) (198,943) -98.94%
TOTAL REVENUE - USE OF MONEY & PROPERTY 824,670 964,435 139,765 116.95% TOTAL GENERAL FUND 123,506,847 114,087,503 (9,419,344) 92.37% Packet Pg. 187 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) Year End Budget Report
Section Three
Actual Expenditures Compared to Cash Flow Estimates
Packet Pg. 188 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) YTD Projection Actual Over (Under) Percentage
1001-City Council 208,431 259,188 50,757 124.35%
1011-City Manager 646,758 1,351,668 704,910 208.99%
1021-City Clerk 1,248,075 1,044,488 (203,587) 83.69%
1031-City Attorney 1,013,962 886,962 (127,000) 87.47%
1041-City Treasurer 702,023 637,876 (64,147) 90.86%
1045-Finance 1,886,054 1,931,536 45,482 102.41%
1048-Purchasing 552,911 511,102 (41,809) 92.44%
1051-Personnel 965,437 742,629 (222,808) 76.92%
1061-Animal Regulation 1,094,480 1,092,358 (2,122) 99.81% 1091-General Fund Debt Service 1,970,890 1,970,304 (586) 99.97% 1099-Non-Departmental 1,472,600 1,436,397 (36,203) 97.54% 1101-Permit Center 716,793 735,095 18,302 102.55%
1111-Building Department 2,541,772 2,113,537 (428,235) 83.15% 1121-Planning 2,098,473 2,333,064 234,591 111.18%
1131-Code Enforcement 1,066,507 816,979 (249,528) 76.60% 1191-Subdivision & Land Planning 107,500 49,387 (58,113) 45.94% 1401-Police - Administration 4,729,847 4,700,394 (29,453) 99.38% 1402-Police - Field Operations 29,175,692 30,650,362 1,474,670 105.05% 1403-Police - Investigations 6,269,618 6,129,544 (140,074) 97.77% 1404-Police - Services Division 4,530,240 4,351,462 (178,778) 96.05% 1501-Fire - Administration 2,573,541 2,696,876 123,335 104.79% 1502-Fire - Suppression 26,695,189 26,628,744 (66,445) 99.75% 1503-Fire - Prevention 1,651,498 1,639,225 (12,273) 99.26% 1601-Public Works - Engineering 1,355,307 1,074,091 (281,216) 79.25% 1611-Engineering and Design 630,000 482,612 (147,388) 76.61% 1621-Streets - General and Administrative 6,099,884 5,472,278 (627,606) 89.71% 1631-Streets - Capital 14,299,320 7,592,050 (6,707,270) 53.09% 1701-Community Services Administration 673,037 570,221 (102,816) 84.72% 1711-Parks 4,559,512 4,212,022 (347,490) 92.38%
1721-Recreation Programs 2,303,194 2,381,315 78,121 103.39% 1725-Aquatic Center 603,592 578,878 (24,714) 95.91%
1726-Redding Sports Complex 899,697 797,126 (102,571) 88.60% 1750-Midtown Mall 12,200 10,634 (1,566) 87.16%
Total 125,354,034 117,880,404 -7,473,630 94.04%
Actual Expenditures Compared to Budget Cash Flow Estimates City of Redding - General Fund
June 2026
*Actual Includes Payments on Previous Year Obligations/Encumbrances.

Packet Pg. 189 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) Year End Budget Report
Section Four
Actual Expenditures Compared to Budget
Packet Pg. 190 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) Adopted Budget
Budget
Amendments Total Budget YTD Actual
Encumbrances &
Commitments
Total
Consumption
Unencumbered
Balance
%
Consumed
1001-City Council 208,421.00 10.00 208,431.00 259,188.34 170.00 259,358.34 (50,927.34) 124.43% 1011-City Manager 614,428.00 32,330.00 646,758.00 1,351,668.13 0.00 1,351,668.13 (704,910.13) 208.99% 1021-City Clerk 899,031.00 349,044.00 1,248,075.00 1,044,487.97 0.00 1,044,487.97 203,587.03 83.69% 1031-City Attorney 933,468.00 80,494.00 1,013,962.00 886,962.15 123,289.61 1,010,251.76 3,710.24 99.63% 1041-City Treasurer 701,383.00 640.00 702,023.00 637,875.52 0.00 637,875.52 64,147.48 90.86% 1045-Finance 1,884,094.00 1,960.00 1,886,054.00 1,931,536.23 (0.00) 1,931,536.23 (45,482.23) 102.41% 1048-Purchasing 552,455.00 456.00 552,911.00 511,102.35 0.00 511,102.35 41,808.65 92.44% 1051-Personnel 964,138.00 1,299.00 965,437.00 742,628.95 0.00 742,628.95 222,808.05 76.92% 1061-Animal Regulation 1,052,340.00 42,140.00 1,094,480.00 1,092,357.69 (0.00) 1,092,357.69 2,122.31 99.81% 1091-General Fund Debt Service 1,970,890.00 0.00 1,970,890.00 1,970,303.76 0.00 1,970,303.76 586.24 99.97% 1099-Non-Departmental 1,285,390.00 187,210.00 1,472,600.00 1,436,397.05 (327,250.03) 1,109,147.02 363,452.98 75.32% 1101-Permit Center 716,119.00 674.00 716,793.00 735,094.53 0.00 735,094.53 (18,301.53) 102.55% 1111-Building Department 2,592,309.00 -50,537.00 2,541,772.00 2,113,537.15 0.00 2,113,537.15 428,234.85 83.15% 1121-Planning 2,096,653.00 1,820.00 2,098,473.00 2,333,064.01 0.00 2,333,064.01 (234,591.01) 111.18% 1131-Code Enforcement 988,822.00 77,685.00 1,066,507.00 816,979.25 0.00 816,979.25 249,527.75 76.60% 1191-Subdivision & Land Planning 107,500.00 0.00 107,500.00 49,387.14 6,202.67 55,589.81 51,910.19 51.71% 1401-Police - Administration 4,578,496.00 151,351.00 4,729,847.00 4,700,393.98 50,075.00 4,750,468.98 (20,621.98) 100.44% 1402-Police - Field Operations 26,885,239.00 2,290,453.00 29,175,692.00 30,650,362.13 48,742.89 30,699,105.02 (1,523,413.02) 105.22% 1403-Police - Investigations 6,251,456.00 18,162.00 6,269,618.00 6,129,543.77 (344.00) 6,129,199.77 140,418.23 97.76% 1404-Police - Services Division 4,560,678.00 -30,438.00 4,530,240.00 4,351,462.27 (5,458.75) 4,346,003.52 184,236.48 95.93% 1501-Fire - Administration 2,571,222.00 2,319.00 2,573,541.00 2,696,875.93 0.00 2,696,875.93 (123,334.93) 104.79% 1502-Fire - Suppression 24,011,390.00 2,683,799.00 26,695,189.00 26,628,744.06 629,774.56 27,258,518.62 (563,329.62) 102.11% 1503-Fire - Prevention 1,572,171.00 79,327.00 1,651,498.00 1,639,224.83 87.61 1,639,312.44 12,185.56 99.26% 1601-Public Works - Engineering 1,348,777.00 6,530.00 1,355,307.00 1,074,091.43 (202,166.04) 871,925.39 483,381.61 64.33% 1611-Engineering and Design 630,000.00 0.00 630,000.00 482,611.94 0.00 482,611.94 147,388.06 76.61% 1621-Streets - General and Administrative 5,452,484.00 647,400.00 6,099,884.00 5,472,277.83 247,794.56 5,720,072.39 379,811.61 93.77% 1631-Streets - Capital 5,719,050.00 8,580,270.00 14,299,320.00 7,592,050.23 1,923,466.61 9,515,516.84 4,783,803.16 66.55% 1701-Community Services Administration 672,444.00 593.00 673,037.00 570,221.02 0.00 570,221.02 102,815.98 84.72% 1711-Parks 4,271,888.00 287,624.00 4,559,512.00 4,212,021.83 49,275.78 4,261,297.61 298,214.39 93.46% 1721-Recreation Programs 2,230,562.00 72,632.00 2,303,194.00 2,381,315.33 30.43 2,381,345.76 (78,151.76) 103.39% 1725-Aquatic Center 603,584.00 8.00 603,592.00 578,877.84 6,948.44 585,826.28 17,765.72 97.06% 1726-Redding Sports Complex 871,683.00 28,014.00 899,697.00 797,125.73 0.00 797,125.73 102,571.27 88.60% 1750-Midtown Mall 12,200.00 0.00 12,200.00 10,633.54 0.00 10,633.54 1,566.46 87.16% Total 109,810,765.00 15,543,269.00 125,354,034.00 117,880,403.91 2,550,639.34 120,431,043.25 4,922,990.75 96.07% Actual Expenditures Compared to Budget Year to Date
City of Redding - General Fund
June 2026
Packet Pg. 191 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) Year End Budget Report
Section Five
Carryover Fiscal Year 2025 to Fiscal Year 2026
Packet Pg. 192 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) Carryovers
1001-City Council
-
1011-City Manager
-
1021-City Clerk
-
1031-City Attorney
-
1041-City Treasurer
-
1045-Finance
-
1048-Purchasing
-
1051-Personnel
-
1061-Animal Regulation
-
1091-General Fund Debt Service
-
1099-Non-Departmental
-
1101-Permit Center
-
1111-Building Department 7,450
1121-Planning
-
1131-Code Enforcement
-
1191-Subdivision & Land Planning
-
1401-Police - Administration
-
1402-Police - Field Operations 1,401,100
1403-Police - Investigations
-
1404-Police - Services Division
-
1501-Fire - Administration
-
1502-Fire - Suppression 444,210
1503-Fire - Prevention
-
1601-Public Works - Engineering
-
1611-Engineering and Design
-
1621-Streets - General and Administrative
-
1631-Streets - Capital 8,509,440
1701-Community Services Administration
-
1711-Parks 71,510
1721-Recreation Programs
-
1725-Aquatic Center
-
1726-Redding Sports Complex
-
1750-Midtown Mall
-
1999-Transportation & RABA Support
-
Total 10,433,710
Carryovers
City of Redding - General Fund
FY 2025 to FY 2026
Packet Pg. 193 Attachment: FY26 Year-End Budget Report (9.10(a)--Year End Budget Review and Budget Resolution) Fund Fund Description Ending Balance
101 101-General Fund 4,849,176.10
102 102-Grants General Fund 4,749,468.30
103 103-Capital Projects General Fund 3,793,434.13
151 151-Development/Construction Fund 17,641,462.51
152 152-Development/Construction Grants Fund (2,278,780.21) 161 161-General Special Revenue (0.00)
165 165-Asset Seizure Fund 192,582.02
171 171-Special Gas Tax Street Improvements 7,277,973.58 172 172-Local Transportation/TDA 6,699,519.37
175 175-Parking Fund (168,840.76)
181 181-Library 1,029,042.84
182 182-Branch Libraries 641,125.46
191 191-Housing & Community Development Fund 8,460,713.01 192 192-Norcal Continuum of Care (CoC) (0.00)
195 195-Successor Housing Agency Fund 946,037.17
196 196-Redding Housing Authority (22,132.11)
201 201-Airports (2,441,226.51)
206 206-Convention Center 164,292.07
211 211-Electric Utility Fund 56,648,865.16
221 221-Water Utility Fund 66,063,265.88
231 231-Wastewater Utility Fund 50,896,806.11
241 241-Storm Drain Utility Fund 6,740,128.11
251 251-Solid Waste Utility Fund 13,085,259.98
255 255-West Central Landfill 11,305,026.83
291 291-Redding Area Bus Authority (194,604.74)
311 311-Information Technologies 901,028.79
315 315-Geographic Information Services 75,340.38
317 317-Communications - Radios 597,602.27
321 321-Electrical Technicians & USA Locates 2,353,244.99 325 325-Redding Municipal Utilities Administration 546,431.87 331 331-Public Relations, Media, & Communications 256,245.34 335 335-Building Maintenance 423,653.85
341 341-Records Management (46,628.78)
345 345-Reprographics 321,611.88
351 351-Fleet Maintenance (386,684.58)
361 361-Customer Service 5,254,627.34
365 365-Field Service 199,697.28
381 381-Risk - Liability/Insurance 389,331.79
383 383-Risk - Workers Compensation 5,503,198.96
391 391-Employer Services 698,418.66
393 393-Volunteer Services (58,982.06)
398 398-Employee Benefits Payroll 3,121,155.66
399 399-Employee Benefits Insurance 1,238,620.81
401 401-Special Deposits Fund 7,478,346.43
411 411-Integrated Public Safety (IPS) Fund 1,595,136.55 421 421-EAGSA (Enterprise Anderson Groundwater Sustainability Agency) 175,067.82 431 431-GASB 45 Trust Fund 43,529.12
441 441-RORF-CHC Capital Project -
443 443-RORF-Market Street Capital -
444 444-RORF-SHASTEC Capital Project 673,701.27
451 451-Tierra Oaks 1993-1 0.00
452 452-Refinanced A/D 1997-1 -
453 453-Teton Drive 1998-1 (0.00)
501 501-LMD A #80089 15,130.14
502 502-LMD B #80090 (19,962.86)
503 503-LMD C #80091 (207.08)
Cash by Fund
City of Redding
June 2026
Packet Pg. 194 Attachment: Cash by Fund June 2026 (9.10(a)--Year End Budget Review and Budget Resolution) Fund Fund Description Ending Balance
Cash by Fund
City of Redding
June 2026
504 504-LMD D #80120 19,959.50
505 505-LMD E #80118 9,784.06
506 506-LMD F #80120 8,127.71
507 507-LMD G #80121 14,522.46
508 508-LMD H #80135 50,701.47
509 509-LMD 1-06 19,656.87
510 510-LMD J #80122 7,099.19
511 511-LMD K #80136 4,096.44
512 512-LMD L #80123 7,335.22
513 513-LMD M #80124 11,720.47
514 514-LMD N #80125 9,024.91
515 515-LMD O #80126 (2,513.76)
516 516-LMD P #80127 5,657.67
517 517-LMD Q #80128 13,709.56
518 518-LMD R #80129 5,087.71
519 519-LMD S #80130 22,529.50
520 520-LMD T #80131 5,599.60
521 521-LMD U #80137 4,597.98
522 522-LMD V #80132 17,240.77
523 523-LMD 2-06 #80134 748.34
524 524-LMD 3-06 #80139 12,920.02
525 525-LMD 4-06 #80140 24,875.40
526 526-LMD W #80133 6,246.23
527 527-LMD 5-06 #80141 (256.74)
528 528-LMD #1 1992 #80087 10,576.40
529 529-LMD 6-06 #80142 14,714.94
530 530-LMD 7-06 #80145 4,294.94
531 531-LMD 8-06 #80146 429,521.18
532 532-LMD 9-06 #80143 5,842.10
533 533-LMD 10-06 -
534 534-LMD 11-06 #80148 5,471.05
535 535-LMD 01-07 #80149 4,397.95
536 536-SANITARY SEWER MAINT DIST 01-07 #80150 55,543.21 537 537-LMD 02-07 #80151 16,005.99
539 539-LMD ADMIN FRMLYL 02-09 #Holding Acct (57,116.85) 540 540-LMD 03-09 #80156 212,759.63
541 541-LMD PLACER WEST 02-09 #80155 9,171.40
543 543-LMD RIVER RIDGE #80157 52,722.72
544 544-LMD RIVER PARK #80158 29,598.91
545 545-LMD RIVER HEIGHTS #80159 42,799.71
547 547-LMD LANCER HILLS 02-12 (120.02)
548 548-LMD WESTERN HIGHLAND 03-12 (550.26)
549 549-LMD COLLEGE HIGHLAND 01-13 #80160 38,696.51
550 550-LMD WESTSIDE 02-14 #80163 67,582.22
551 551-LMD HIDDEN HILLS 01-15 #80162 19,072.12
552 552-LMD BROWNING POINTE 03-14 #80165 3,445.66
553 553-LMD SHASTAVIEW SW 02-16 #80164 49,933.80
554 554-LMD RIVER POINTE 03-16 #80166 13,383.16
555 555-LMD SALT CREEK HEIGHTS 01-07 #80167 127,321.37
556 556-LMD SEVEN BRIDGES 01-19 #80168 29,527.29
557 557-LMD SEVEN BRIDGES SSMD 01-19 #80169 4,517.21
558 558-LMD CENTER COURT 02-19 #80170 31,572.82
559 559-LMD WYNDHAM POINT #80171 61,605.49
560 560-LMD RANCHO RD 07-19 34,672.85
561 561-LMD Luke Estates 01-22 5,694.25
951 951-Rolling Stock Fund 9,255,664.52
Packet Pg. 195 Attachment: Cash by Fund June 2026 (9.10(a)--Year End Budget Review and Budget Resolution) Fund Fund Description Ending Balance
Cash by Fund
City of Redding
June 2026
952 952-Equipment Replacement Fund 1,956,925.91
953 953-Technology Replacement Fund 88,211.32
954 954-Major Maintenance Fund 6,382,670.68
999 999-Cash Transfer Fund 0.00
306,711,850.90
-
Packet Pg. 196 Attachment: Cash by Fund June 2026 (9.10(a)--Year End Budget Review and Budget Resolution)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Accept the baseline City of Redding General Fund ten-year plan (Plan); and (2) Adopt the recommended transition plan, potentially including revisions per City Council direction, to incorporate financial stabilization measures and commence restoring reserves; and
(3) Direct the City Manager to return at the next regularly scheduled City Council Meeting scheduled to be held on October 20, 2026 with the necessary budgetary amendments associated with the transition plan; or
(4) Provide alternative direction to staff.

Fiscal Impact
Accepting the baseline City of Redding (City) General Fund ten-year plan as of October 1, 2026 (Baseline Plan, Attachment 1) does not appropriate funds or authorize fee changes, staffing reductions, closure of a fire station, borrowing, or transfers for unmet needs. Staff will return at the regularly scheduled City Council Meeting scheduled for October 20, 2026, or as directed otherwise, with the financial stabilization measures approved for implementation by Council, their financial and service effects, and any necessary FY2027 budget amendments.

The Baseline Plan projects FY2027 cash use of $4.97 million and year-end cash of negative $0.12 million. The proposed General Fund Transition ten-year plan (Transition Plan, Attachment 3) increases cash by $0.80 million and preserves $5.65 million of FY2027 year-end cash reserves. It does not immediately restore reserves, cash is anticipated to reach the 10% reserve target in FY2031.

MEETING DATE: October 6, 2026
ITEM NO. 9.10(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.10(b)-Consider mid-cycle presentation of the City of Redding's General Fund Ten-Year Financial Plan and policy direction.

Joseph Bowers, Interim
Finance Director
Packet Pg. 197
Report to Redding City Council October 1, 2026
Re: 9.10(b)--Mid-Cycle Review of 10 Year Plan Page 2
Alternative Action
Council may select some or all of the recommended financial stabilization measures included in the Transition Plan, detailed in Attachment 2, or direct staff to evaluate different measures, schedule a special meeting to consider service levels and implementation before providing direction, or provide alternative direction to staff.

Background/Analysis
The mid-cycle review follows the first fiscal year of the City’s two-year budget and updates the second fiscal year with known adjustments and the ten-year plan. A mid-year review occurs within each fiscal year. This presentation uses the completed FY2026 fiscal year ending cash as the launch point for FY2027 and separates the adopted budget, adjustments, amended budget, and current Transition Plan scenario (Transition Plan, Attachment 3 only).

Preliminary FY2026 closing cash is approximately $4.85 million, compared with $11.6 million anticipated at budget adoption. The budgetary opening balance was reduced from $9.0 million to $5.4 million for omitted entries, delayed SAFER grant receivables, and encumbrance/carryover adjustments.

Baseline and Transition Plan Comparison
The Baseline Plan (Attachment 1) contains the most current Council approved revenue assumptions, expenditure forecast, and known FY2027 one-time obligations. The Transition Plan (Attachment 3) includes the full proposed package as outlined in Attachment 2 – Recommended Financial Stabilization Measures. Baseline cash, as shown in the Baseline Plan, remains negative through FY2036. The adopted and amended budget comparison columns are unchanged between the scenarios.

Measure ($ millions unless noted) Baseline Plan Transition Plan FY2027 beginning cash 4.85 4.85
FY2027 revenue and net transfers 112.28 113.42
FY2027 net expenditures 117.25 112.62
FY2027 annual surplus / (deficit) (4.97) 0.80
FY2027 ending cash (0.12) 5.69
FY2027 required reserve target 11.73 11.26
FY2027 reserve shortfall 11.85 5.61
FY2027 cash / reserve base (0.1%) 5.0%
First year at proposed 10% target Not reached FY2031
FY2036 ending cash (29.6) 13.42
FY2032–36 allocations for unmet needs — 33.74
FY2027 Budget and Carryover Reconciliation
The FY2027 Baseline Plan forecasts $112.28 million in revenue and net transfers. Personnel costs are $2.61 million above the adopted budget, primarily due to health insurance, pension costs and employee payouts, partially offset by cost-allocation corrections. These adjustments are incorporated into the personnel forecast. Other operating amendments add approximately $333,000.

Packet Pg. 198
Report to Redding City Council October 1, 2026
Re: 9.10(b)--Mid-Cycle Review of 10 Year Plan Page 3
Both plans also include $2.6 million carried forward from FY2026: $1.10 million of unspent funding for continuing projects and $1.50 million for purchases and contracts already committed but not yet received or paid. These costs are expected to reduce cash in FY2027.

The Baseline includes these carryovers in operating costs. The Transition Plan shows them separately, along with $1.25 million of proposed one-time vacancy savings. Both plans count the carryovers once. The Baseline assumes $52,000 of savings (2%) on these costs; the Transition Plan includes their full cost.

Both plans begin FY2027 with preliminary cash of $4.85 million, including a $1.13 million cash reconciliation adjustment. This adjustment is separate from ongoing savings and remains subject to confirmation through year-end close.

Financial Stabilization Measures Recommended for Implementation Attachment 2 – Recommended Financial Stabilization Measures, describes the initial financial stabilization measures and associated details. The Transition Plan includes all six measures as a scenario for discussion:
• Realistic, yet Conservative Recurring Tax Revenue: Re-baseline property and sales tax based on prior fiscal year end actuals and historic annual growth rates within the realistic bandwidth, yet near the conservative end of the bandwidth. The Transition Plan assumes no growth in sales tax for FY2027, 1.5% year over year growth in FY2028 and FY2029, then 2% year over year growth thereafter. The Transition Plan also assumes 4% property tax growth for FY2027, and then 3.5% year over year growth thereafter. • Credit card fee recovery: $200,000 in FY2027 beginning January 1, 2027, and $400,000 annually thereafter, subject to validation of recoverable costs and the implementation approach.
• Recurring public safety personnel reductions: A $4 million annual goal, with $3.5 million modeled in FY2027 (approximately $2.0 million each in Fire and Police by FY2028). The Fire concept requires closing Fire Station 3 and avoiding overtime backfill. The Police concept reduces sworn staffing from 114 to 105, reduces non-sworn staffing by 4.5 positions, and seeks alternate funding for one Community Work Program Officer. Note, four American Rescue Plan Act (ARPA) funded Police positions were scheduled for elimination by December 31, 2026 in alignment with the ARPA funding timeline requirements. • Reorganization: A $500,000 annual personnel savings goal commencing FY2028 associated with reorganization within identified departments pending completion of an organizational study.
• Investment earnings: An increase to investment earnings to 3% of beginning cash in FY2027,

2.5% in FY2028 and 2% thereafter. These are forecast assumptions, not guaranteed earnings or a change in authorized investment risk. For reference, June’s interest earnings were 3.4%. • FY2027 hiring freeze: A $1.25 million one-time savings from holding 13 non-public-safety vacancies. The plan does not continue this separate saving beyond FY2027.

Exclusion of Gas-Tax Revenue from Reserve Percentage Calculation: The Transition Plan provides, for purposes of Council consideration, an additional reserve percentage calculation methodology that excludes gas-tax revenues to the General Fund. Given that gas-tax revenues reside outside of the general fund with a sufficient reserve balance. The current balance of the Streets account is approximately $14.0 million of which, approximately $6.64 are uncommitted.

Packet Pg. 199
Report to Redding City Council October 1, 2026
Re: 9.10(b)--Mid-Cycle Review of 10 Year Plan Page 4
The personnel measures recommended above require position-level analysis of timing, service effects, overtime, vacancies, labor obligations, and implementation costs. Savings are applied to non-UAL personnel expenditures. UAL means unfunded accrued liability: the pension cost of benefits already earned that are not covered by pension assets. The scheduled UAL payments are not reduced by a staffing reduction.

Additional Financial Stabilization Measures for Council Consideration In addition to the financial stabilization measures recommended for implementation, as described above, there are a number of other additional measures that could be implemented at Council’s direction that would accelerate the rebuilding of unrestricted cash reserves, including:
• Reductions to Unrepresented Employee Compensation: A 1%, 5%, or 10% reduction to unrepresented employees’ compensation, if implemented, is anticipated to result in approximately $41,000, $207,000 and $414,000 per FY to the General Fund, respectively. • Collaboration with Labor Partners: A $1.0 million to $1.5 million annual temporary personnel cost reduction, potentially achievable through (but not limited to) furloughs, targeted reductions-in-force “RIF” and/or adjustments to overall staff compensation packages.
• Community Contractual Commitments: Revisit all community contracts such as, but not limited to, the Chamber of Commerce, animal control (Haven Humane), Economic Development Corporation (EDC), Shasta Community Arts Council, Turtle Bay Exploration Park, etc., to identify any feasible scope adjustments and associated potential cost savings.

Reserve Policy and Unmet Needs
Both plans retain a 10% reserve target; however, the Transition Plan shows both a reserve percentage calculated in accordance with current policy (Council Policy 412) as well as a potential revised version of Council Policy 412 that excludes gas-tax revenue transfer from reserve calculation. Note, removal of gas-tax expenditures from the reserve calculation does not create cash, reduce streets spending, or resolve the underlying deficit. Additionally, staff have prepared a Staff Report for the October 8, 2026 Financial Advisory Committee (FAC) meeting for the committee to consider and provide feedback and input regarding any recommended changes to Council Policy 412. Assuming the FAC recommends modifications to Council Policy 412, staff will prepare a draft revised version of the Policy and ultimately present to Council for consideration and approval.

The Transition Plan forecast allocates cash above the proposed reserve target to unmet needs beginning in FY2031, keeping General Fund cash reserves at 10%. Cumulative allocations total approximately $33.74 million through FY2036. These are modeled set-asides, not approved projects or scheduled payments. The plan uses a historical $100 million plus planning allowance for unmet needs; staff should return with a current, prioritized inventory, project costs and funding sources before recommending expenditures.

Assumptions and Implementation Risks
Both plans include the revised SAFER forecast already received, but no additional one-time SAFER receipt or property-sale proceeds.

Packet Pg. 200
Report to Redding City Council October 1, 2026
Re: 9.10(b)--Mid-Cycle Review of 10 Year Plan Page 5
Investment assumptions differ between plans: The Baseline Plan retains $100,000 in FY2027 and 1% of beginning cash thereafter; the Transition Plan uses the phased rates described above.

Earnings therefore change with both the yield and available cash. The existing 2% expenditure savings assumption remains in both plans; it reduces the incremental net benefit of recurring personnel cuts to 98% of their gross amount.

The Transition Plan is sensitive to the timing and delivery of personnel savings, public safety service choices, overtime backfill, pension and health costs, tax growth, and completion of the year-end and carryover reconciliation. Delayed implementation or weaker revenue would postpone reserve restoration.

Requested Direction and October 20 Return
Staff requests direction on which initial financial stabilization measures to implement, whether Council prefers a special meeting for service-level decisions. The October 20 report is anticipated to include:
• The selected measures, responsible departments, implementation dates, recurring versus onetime savings, and service and staffing effects. • An updated ten-year plan with adopted-to-amended reconciliation, finalized FY2027 carryovers, funding sources, and any necessary budget resolutions.

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

Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
Attachments
Ten-Year Plan Attachments
Packet Pg. 201
Packet Pg. 202
Attachment: Ten-Year Plan Attachments (9.10(b)--Mid-Cycle Review of 10 Year Plan) Packet Pg. 203
Attachment: Ten-Year Plan Attachments (9.10(b)--Mid-Cycle Review of 10 Year Plan) Packet Pg. 204
Attachment: Ten-Year Plan Attachments (9.10(b)--Mid-Cycle Review of 10 Year Plan) Packet Pg. 205
Attachment: Ten-Year Plan Attachments (9.10(b)--Mid-Cycle Review of 10 Year Plan) Packet Pg. 206
Attachment: Ten-Year Plan Attachments (9.10(b)--Mid-Cycle Review of 10 Year Plan)

Redding City CouncilOctober 6, 2026

Redding City Council
October 6, 2026