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Home My WebLink About _ 9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023 � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: January 16, 2024 FROM: Greg Robinett, Director of ITEIVI NO. 9.10(a) Finance/City Treasurer ***APPROVED BY*** � � � ��, �r s t,t7' tc�� , �it��zac��C'i�y T��e:�t�e� l��r�ij?� t�trE� , ;S 1 " �� 1,'��'?C}? , grobinett@cityofredding.org btippin@cityofredding.org SUBJECT: 9.10(a)--Consider acceptance of the City of Redding Annual Comprehensive Financial Re ort for the ear ended J�une 30, 2023. Recommendation Accept the City of Redding Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023. Fiscal Impact There is no fiscal impact far accepting the Annual Comprehensive Financial Report(ACRF). Alternative Action The City Council could reject the ACRF for the fiscal year ended June 30, 2023, and provide alternate direction to staff. Background/Analysis The audit of the City of Redding (City) for the �scal year that ended June 30, 2023, has been completed. The City received an unmodified opinion from the auditor, The 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, 2022. This was the 39th 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. Tl�is report must satisfy both generally accepted accounting principles and applicable legal requirements, Report to Redding City Council January 9,2024 Re: 9.10(a)--Annual Comprehensive Financial Report year ended June 30,2023 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 P�^iority/City Mccnager Goals • This is a routine operational item occurring on an annual basis. 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This page intentionally left blank iv City of Redding Annuai Comprehensive Financial Report For the Year Ended June 30, 2023 Table of Contents Page INTRODUCTORY SECTION Tableof Contents............................................................................................................................................................v TransmittalLetter...........................................................................................................................................................ix Certificate of Achievement for Excellence in Financial Reporting—GFOA...............................................................xvi OrganizationChart..................................................................................................................................................... xvii Directoryof City Officials ........................................................................................................................................xviii. FINANCIAL SECTION Independent Auditors' Report on Financiai Statements...........................................................................................3 Management's Discussion and Analysis (Required Supplementary Information—Unaudited) ...........................7 Basic Financial Statements: Government-Wide Financial Statements: Statementof Net Position................................................................................................................................. 30 Statement of Activities and Changes in Net Position....................................................................................... 32 Fund Financial Statements: Governmental Fund Financial Statements: BalanceSheet............................................................................................................................................. 38 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of N�et 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: Statementof Net Position..........................................................................................................................46 Statement of Revenues,Expenses, and Changes in Net Position.............................................................. 50 Statementof Cash Fiows........................................................................................................................... 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): BudgetaryPrinciples.............................................................................................................................................147 Schedule of Revenues,Expendit�ures, and Changes in Fund Balances-Budget and Actual: GeneralFund..................................................................................................................................................148 Schedules of Changes in Net Pension Liability and Related Ratios- Public Employees Retirement System Miscellaneous Plan(CalPERS).........................................................150 v City of Redding Annuai Comprehensive Financial Report For the Year Ended June 30, 2023 Table of Contents (Continued) Pa�e FINANCIAL SECTION(Continued): Required Supplementary Information(Unaudited): Schedules of Plan Contributions -Public Em�ployees Retirement System Miscellaneous Plan(CaIPERS).................................................................................................................... 152 Sched�ules of Changes in Net Pension Liability and Related Ratios - Public Employees Retirement System Safety Plan(Ca1PERS)....................................................................154 Schedules of Plan Contributions-Public Employees Retirement System SafetyPlan(CaiPERS)................................................................................................................................. 156 Schedules of Changes in Net Pension Liability and Related Ratios -Public Agency Retirement Services Ennancement Plan(PARS)......................................158 Schedules of Public Agency Retirement Services Retireinent Enhancement Plan Contributions All Tiers (PARS)................................................................................................................... 16d Schedules of Changes in Net OPEB Liability and Related Ratios.....................................................................162 Schedule of Contributions-OPEB....................................................................................................................... 164 Supplementary Information: Non-Major Governmental Funds: CombiningBalance Sheet............................................................................................................................ 170 Combining Statement of Revenues,Expenditures, and Changes in Fund Balances....................................172 Statement of Revenues, Expenditures, and Changes in Fund Balances—Budget and Actual: ParkingSpecial Revenue Fund.............................................................................................................. 174 Street Maintenance Special Revenue Fund............................................................................................ 175 Community Development Special Revenue Fund.................................................................................176 Housing Special Revenue Fund............................................................................................................. 177 General Special Revenue Fund.............................................................................................................. 178 LibrarySpecial Revenue Fund.............................................................................................................. 179 General Capital Projects Fund-Major Fund......................................................................................... 180 Non-Major Enterprise Funds: Combining Statement of Fund Net Position................................................................................................. l 82 Statement of Revenues,Expenses, and Changes in Fund Net Position.......................................................185 Combining Statement of Cash Fiows........................................................................................................... 186 Internal Service Funds: Combining Statement of Net Position.......................................................................................................... 190 Combining Statement of Activities and Changes in Net Position................................................................193 Combining Statement of Cash Flows........................................................................................................... 194 Fiduciary Funds: Combining Statement of Fiduciary Net Position.......................................................................................... 198 Other Supplementary Information: Supplementary Information Regarding Passenger Facility Charges ..................................................................203 Schedule of Passenger Facility Charges Collected and Expended and Interest Collected For the quarters ended September 30,2022, December 31,2022, March 31, 2023, and June 30, 2023 .............................................................................................................204 vi. City of Redding Annuai Comprehensive Financial Report For the Year Ended June 30, 2023 Table of Contents (Continued) Pa�e STATISTICAL SECTION Index..........................................................................................................................................................................209 Financial Trends: Net Position by Component—Last Ten Fiscal Years.........................................................................................210 Changes in Net Position—Last Ten Fiscal Years...............................................................................................212 Fund Balances of Governmental Funds—Last Ten Fiscal Years.......................................................................217 Changes in Fund Balance of Governmental Fund—Last Ten Fiscal Years.......................................................218 Revenue Capacity: General Governmental Tax Revenues by Source—Last Ten Fiscal Years ........................................................221. Revenue Base—Own Source Revenue—Last Ten Fiscal Years........................................................................222 Electric t7tility Rates—Last Ten Fiscal Years....................................................................................................224 Principal Electric Utility Payers—Last Ten Fiscal Years...................................................................................227 Debt Capacity: Ratios of Outstanding Debt by Type—Last Ten Fiscal Years............................................................................228 Com�putation of Direct and Overlapping Debt....................................................................................................231 Legal Debt Margin Information—Last Ten Fiscal Years...................................................................................232 Wastewater Revenue Bond Coverage—Last Ten Fiscal Years..........................................................................234 Water Revenue Bond Coverage—Last Ten Fiscal Years...................................................................................236 Electric Revenue Bond Coverage—Last Ten Fiscal Years................................................................................238 Demographic and Economic Information: Demographic Statistics—Last Ten Fiscal Years ................................................................................................239 Principal Employers in the Greater Redding Metropolitan Area—Last Ten Fiscal Years.................................240 Full-Time City Budgeted Employees by Function/Program—Last Ten Fiscal Years........................................241 Operating Information: Capital Assets Statistics by Function/Program—Last Ten Fiscal Years............................................................243 Operating Indicators by Function/Program—Last Ten Fiscal Years..................................................................244 Supplemental Historical Information: Statement of Physical Condition of Airport Assets............................................................................................249 History and Statement of Physical Condition of Electric Utility System Assets................................................250 History and Statement of Physical Condition of Storm Drainage Utility System Assets...................................253 History and Statement of Physical Condition of Wastewater Utility System Assets.........................................255 History and Statement of Physical Condition of Water Utility System Assets ..................................................258 vii This page intentionally left blank viii � � �` � � ��'�� C:I`�"Y` � � � ;:� =� ��°� �y�� ,��r�t��, ��c��i�� .a''� ��C}�1 �� ,� &�� 9� �9��, f��dc�it�c�, ��, ��9-�� w yw�� r� �i��r�c�di� .�t��r �� December 13, 2023 Honorable Mayor,Meinbers 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 encled June 30, 2023. 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 be]ieve that the data, as presented, is accurate in a11 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 firin of licensed certified public accountants has issued an unmodified opinion on the City of Redding's financial statements for fiscal year ended June 30, 2023. 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 (NZD&A). This ]etter 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, Vice- Mayor, City Manager, and City Attorney are appointed by the City Council. The City Clerk and City Treasurer are also elected officials and seroe four-year terms. Redding is the county seat for Shasta County and is located on the Sacramento River approximately 160 mi�les north of Sacramento, the state capital, and 150 lniles east of the Pacific Ocean at the northernmost end of the Sacramento Valley. The City has an estimated population of 92,465 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 Autharity and the Redding Capital Services Corparation. All are accounted for in the City's financial. statements in accardance 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. ix 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 eight- member governing board of the Redding Area Bus Authoriry 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 l, Subparagraph A of the financial statements. Redding is a full-service city. This includes public safety (police and fire), highways ancl streets, public improvements, planning and zoning, recreation and parks, library, airports, convention and auditorium faciliry, 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 indicatars. Listed below are some of these indicators in the Redding area. Population Characteristics - The City was one of the fastest growing cities in California between 1970 and 1990, growing to 66,432 residents in 1990 from 16,659 in 1970. However, lately the City's population growth has slowed. From 2000 to 2010 the City's population grew by an average of 1.11 percent and from 2010 to 2020 grew by an average of.35 percent. During the last year the chart below shows the City's population decreased.OS 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 2023: City of Redding Shasta County Annualize d Annualize d Pe rce nt Pe rce nt Change Change over over Year Population Interval Population Intervai 1970 16,659 --- 77,640 --- ]980 41,995 9.69% 119,4/�9 4.40% 1990 66,432 4.69% 147,036 210% 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 OA2% 182,020 -0.01% 2022 * 93,058 -0.07% * 180,651 -0.06% 2023 92,465 -0.05% 179,436 -0.06% Source:1970-2020 data from U.S. Census;2021-2023 estimates from the California State Depardnent of Finance as of May 1(January 1,2023 report). *Revised The City's population, over the next 10 years, is projected to increase by approximately 392 an increase of approximately .4%. The Redding area is expected to contribute approximately �8% of the total Shasta County population because of a variety of factors that will support urban development, including utilities (wastewater, storm drainage, water, electric, and solid waste), employment, regional shopping, transportation services, and reduced commuting. x. IIousing 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 2023: Region 1VIedian Home Price Shasta County $385,000 Sacramento $530,000 Los Angeles $832,210 Orange County $1,260,000 San Franci�co $1,595,000 Source: California Association of Realtors Industry and Empioyment - Extracting timber and the processing of wood by-products, together with agriculture,tourisin, medical seroices, 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 econom�y 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 prod'ucts or services, and the approximate number of their respective full-time em�ployees as of June 2023 are listed in the following table: Empioye r Product/Se rvice s Employe e s Mercy Medical Center Medical Facilities/Services 2,555 Shasta County County Services 1,863 City of Redding** City Services 913 Shasta Regional Medical Center Medical Facilities/Services 860 Redding Rancheria Casino/Redding Rancheria 665 CA Transportation Department Highways,Freeways,etc. 585 Shasta Union High School District Education 567 Shasta Community Health Medical Services 499 Shasta Community College* Education 470 Walmart Retail 413 (*)Full—tiine equivalent positions. This includes employees who work outside of ihe City. (**)Full-tiuie budgeted positions Source: Deiived from the EmploymentDevelopmentDepar2ment's(EDD)listing of the top employers in Shasta County. xi According to the State Employment Development Department, the unemployment rate of the City's metropolitan area was 5.1 percent on June 30, 2023. 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 2014 through June 2023: Fis cal Ye ar Ending Labor Unemployment June 30 Force Number Rate 2014 74,814 7,204 9.6% 2015 74,192 5,805 7.8% 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% Source: StateDepartmentofEinployment All numbers revised annually tv source. Construction Activity-For the calendar year ending December 2022,4,696 building permits were issued, with a total permit valuation of $193,625,100. This represents a 12% decrease in the number of permits from the previous calendar year. Permit activity has been decreasing over the past few years, the city had seen a spike in permits as people rebuilt after widespread damage caused by wildfire, snow, and haii events. As those reconstructions have begun to slow down the number of permits issued has seen a steady decrease. Multi-family permits have also increased due to increased available grant funding for affordable housing. Commercial pennits have seen a decrease in recent years. 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: 2019 2020 2021 2022 Single Farn�y Units 223 204 151 234 Value Single Family* $65,182,744 $59,295,326 $42,964,568 $76,963,501 Multi-Family Units 91 4 244 52 Multi-Famity Permits** 7 1 3 4 Va1ue Multi-dwellings*** $9,220,325 $518,276 $38,036,402 $9,031,632 Number of Permits 24 37 33 23 Value Business*** $2'7,756,921 $35,'738,443 $46,433,'721 $44,679,660 Total Permits*** 5,146 6,'756 5,31'7 4,696 Value Total all Permits�*� �157,668,086 $165,6]3,379 $165,423,886 $193,625,100 * Ualue of new construction only. �* Includes hotel and apartment units-"R" occupancies, ***Numbers Revised Source: Cityof'ReddingDevelopmentServicesDeparlment xii Commerce - The City is a regional center of commerce for several Northern California counties. This is evidenced by its many shopping centers and inalls. Support for retail sales is derived from a retail trade area population of approximately 127,300 in the primary trade area and approximately 257,000 in the secondary trade area. The primary trade area consists of the metropolitan urban area, including the cities of Redding, Shasta Lake, Anderson, and Red Bluff. The secondary trade area consists of Shasta, Trinity, and Tehama counties. Taxable transactions in the City were approximately $2.6 billion in calendar year 2022, a .71% decrease over the same period for 2021. Taxable Taxable Transactions Trans actions Pe rce ntage Year (in Thousands) Increase (Decrease) 2013 $1,924,122 4.52% 2014 $1,943,607 1.01% 2015 $1,992,806 2.53% 2016 $2,022,557 1.49% 2017 $2,118,481 4.74% 2018 $2,198,010 3.75% 2019 * $2,350,397 6.93% 2020 * $2,309,818 -1.73% 2021 * $2,623,'720 13.59% 2022 $2,605,204 -0.71% *Revised Source:CalifoNrzia Department of Tax and Fee Adminis�tration Transportation-The City enjoys a strategic location on U.S. Tnterstate Highway 5,the principal transportation artery running north-south from Mexico to Canada. The City is also bisected by State Highway 299 and State Route 44,key east-west transportation arteries in Northern California. The City is served by the Union Pacific Railroad and Amtrak for rail transportation. Greyhound serves the City with bus service. United Express Airlines provides air service from Redding Municipal Airport to San Francisco and Los Angeles, California. Alaska Airlines provides air service from Redding Municipal Airport to Seattle, Washington. Avelo Airlines provides air service from Redding Municipal Airport to Burbank,California. Redding Area Bus Authority (RABA) is the City's multi-bus transportation system and offers fourteen different fixed routes, rural service and demand response (curb-to-curb) services. RABA had a total ridership of 360,045 over the fiscal year which is an average total monthly ridership of approximately 30,004. Ridership over the past three fiscal years has declined following the onset of the Coronavirus pandemic. Utilities - Electricity, solid waste collection and disposal, water, storm drainage, and wastewater services are provided by enterprise operations owned and operated by the City. Natural gas is provided by Pacific Gas and Electric Company(PG&E);basic telephone service by AT&T. xiii Community Services - Youth in the area attend school at one of 39 elementary schools, 9 middle/junior high schools, 16 charter schools, 1 regional occupation programs and 12 high schools. There are several higher educational institutions in the immediate area offering bachelor and master's degrees; Chico State University Center for Regional and Continuing Education (located in the Health Science & University Center, downtown Redding), National University, Simpson University, and Shasta Bible College & Graduate School. Shasta Community College, a two-year institution, offers both clay and evening courses to over 9,584 students. In addition,there are several Vocational&Technicai schools offering a diverse range of programs. The City's parks system includes 56 developed parks and facilities, encompassing over 59'7 developed acres. This system includes nearly 180 acres of natural area parks, 40 plus miles of City-owned trails, and 16 special purpose facilities. Among these special purpose facilities are the Redding Civic Auditorium, which hosts cultural/performing arts programs, conferences, and conventions; the Redding Aquatic Center; the Redding Big League Dreams Sports Park; the California Soccer Park; the Senior Citizens Center; the Martin Luther King Jr. Community Center, the Benton Dog Park; three boat ramp facilities that provide access to the Sacramento River; and almost 1,000 acres of natural open space. The City serves as the primary medical center for Northern California. The City's two general care hospitals serve approximately 330,000 people in Shasta, Tehama, Trinity, Siskiyou, and Lassen counties. The two largest hospitals have a total of 492 beds and employ approximately 3,454 full-ti�ne staff inembers. 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 �nancial 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 govermnental 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 adeauately 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. xiv 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 ]984, 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, 2023, 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 Com�prehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022. This was the 39th 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 inust satisfy both generally accepted accounting principles and applicable legal requirements. A Certifieate 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 fmancial report and the Finance Department's staff who made this presentation possible. It is the combined effort of ail participants that resuited in the issuance of this document. �'�� irl�� ...5 � Gregory Robinett Director of Finance/City Treasurer xv � Government Finance Officers Association Certificate of Achlevement for Excellence in Flnancial Reporting Presented to City of Redding California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2022 �� Executive Director/CEO xvi N a � � � � g s � � � = ro � a o G � � U Y C K �c � � `G � � °a. � � d Q � m a U '9 ,��, � � � 3 o u � � w t- � v� w c, v w 3 3 i 4) U � � � � U � t° � Q � r/�i o. � � O � �, CTl '� -o � '� c � ? > `� d u: � vi C7 F T J C � �a � � � C � �Q � Y � � V � �' Q} L G v � � N c � � Y � � � � o � e � Q � o > c� � o ¢ a r� � Q` Y � � � Y L T Vr N � O m � O � � � U � _ � p � � � � � `o� �. F � ■ >, (g � � � o ,� c� � � -t- -S � F c *� _ � �} m `L C7 e°. � G � f6 � ■ � � � N � 'a N � ,� Q N m � � C2, O > � � � h �N c � � � � � �' tyB x ( � _ ia m {"1 I � � � �r� �.. Q �. p �� c � I GS �+ � "Qy� � � o � o W U � � � � � �� > � � S > C v� a ' I ° o � a �' v � � � � � U U 'Q O _ W � � � a� � � � � � � � r � � � G 4 LL u F^ T F C � � d � �. � Y 4. � U N o °' � o � L t� v y z � � � - � „ m cD N r o � � � � � (j N 4t ,Y v a .� � � '� � i � '��^ .0 � -o � � � v: � U � � o -o � � ■ � d � (� W x U w � g � c ;p m c s � � � @ � x � � o� � � � � � y, a � �(n � � c � w CJ a � � '� �' '� c .� � � � o c, Cc c. V � �' � o ° � � U N � 'cx �� M E � Z � � � N � Q) � bA � O O CI) � J 'p � � U � .L � �� ° � � � a aJ'� <G 0? C�i 'S N � XV�1 1VIUNICIPAL OFFICIALS City Council Mayor..................................................................................Michael Dacquisto Vice Mayor................................................................................Mark Mezzano Council Meinber............................................................................ Julie Winter Council Member.............................................................................Jack Munns Council Member......................................................................Tenessa Audette Administrative Personnel City Manager................................................................................Barry Tippin Assistant City Manager...................................................................Steve Bade City Attorney...............................................................................Barry DeWalt City C1erk.................................................................................Sharlene Tipton City Treasurer.............................................................................Greg Robinett Director of Community Services...................................................Kim Niemer 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 .........................................................Chuck Aukland Fire Chief.......................................................................Jerrod Vanlandingham Police Chief.................................................................................Bill Schueller xviii. �S, J, i t ( � ��}� ��t�4s5 `��,'��1�;��'� � �t�°�7i�1�'r�3s kT�� $�S�?ii��f��i#ttf�t!��YSs {� t{}r t�g��r k�r tfi}tt��+��'}�� ctP �rn ��}��fjr�§ �,i�{'}��i�� f', yS;��q��t iii��'��r`� i k�it�i'x�} . $c ��h�k�it{�t� ; k, 4 �l#�� t 4 { 4 t�i4JG } 4 t . f2t�i� � frf��t��fi4�'�ri ty t y,,tt ��4{S Y i�t i )m�l 1� f;f� 4 � � � �� ; ,:<i � ; /#�n7 4��4?4��)t tt('�$�,''� ��;��`��;��_ 4r��j$�tk�t��"�� f � � � ��tt � ��k� � �'�t��Y�t ;�, �yi��fi � � { ��. 1'��#�4��f�7,��; �t�;��r��t�it��i�i`��' ,��}��t�;��il��r'£�� z �53{ ��;��f,��gi1�j��` ' �rt`�'��`�irta��g , ��{��`�4�`��1�� }�� `��f �s�tft�s��t��r��< � ��t��t,Y��1�� 3sti+`,�at ��. t i�, ..i s} ." t'r {5fl 12l.�.i� tt't t �� >a f+ 't ixt i't l.t �23}t tJ'�s i4:r i�.{ �..�Itrr t4� 7�+14 r}t.+.3s a 1i E .-lftt .s,Ul s�tf,.z tiix> 7tj t f2�{¢)t .1.t srr 7t�,tt.» ,�,tl, ,i 2,zU}-if)S,��r{��t. �r�,f,fS. ,�., it�i.�l,):l ,.l.,�f� .;,,s st,�f. f ,t4, } �.st,}r�t .i, f„ <�, � s�.s� 4: rt ,� ��, �4.t ,,,�%� }. ��3, r� .�,#,{� �,� .� 7 � l ,sr �rr, r,t �{ 1„ �s,i,�;,,, i� �r P t s ..rf st�y c �,Si..y,�t t� r i. t� # �3,s{,f„ 1 .,Yr .l •�t�„?t� } .2 St �tl, ,t�'�fi.r �t 1'1> {Sti4r .} ,.� Y },r}r .1�� .z.i,ttf(t t } �f 4 ,.},t{ ��i IS>t l7„�{, .��t t,� t ,{ r{� ..s�r ts,a�t .��,?�r,�.,,�.t,��„�.t�,,, ,��. i , s. f .it:� ..t,�,'i�,,.,rl.,rt �.�� n,,. �� i.c� ,.,� t �t „s.i j t s�, ,7 � �t,.51,.t ..sf t l,tt t l, t s a<rt..� }. ti I � t i � �5. `S t i t� t �ss, s5 r,s,i s. ,t ,t7,.�`�i . i si. 7�, 5 .��>l,��1i („ .�„Jt sr+�t.� ,yff .} r tit�,<� �k f,..�f r rt �l rr3� ,}.. .l t.�{ � ..s. it .t�ti� .r4sr ,t. «,i. , t. ..,4� x, < i�, ..!�t��.c�,; � ��r}< £ 7, ,s� t,'t, t�� t rt !4. ,}, ( J t3, :�i r i. �.r t ?„ l .i . ,t. �.tt ,t�„.�t.�..,,��, „st ,��s,�., .�a,. ,t. �t�u,r,,r ..c ...r r�t,s} ,��t {�`t,,� , ,},,.n S�t� . 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In our opinion, the fmancial statements referred to above present fairly, in a11 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, 2023, 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. Emphasis of Matter Change in Accounting Principle As discussed in Note 1 to the financial statements, effective July 1, 2022, the City adopted new accounting guidance for subscription-based information technology arrangements (SBITA}. The guidance requires entities to recognize a right-to-use subscription asset and corresponding SBITA liability for all SBITAs with terms greater than twelve months. Our opinions are not modified in respect to this matter. Responsibilities of Management foN 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. �-:CLAalobal.comldisclaimer. 3 To the Honorable Mayor and Members of the City Council of the City of Redding 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 financiai statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors'Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 inaterial 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, individ�ually 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 Standa�d.s,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 con�rol related matters that we identified during the audit. 4 To the Honorable Mayor and Members of the City Council of the City of Redding Required Supplementary Informatzon Accounting principles generally accepted in the United States of Ainerica require that the Management's Discussion and Analysis, Budgetary Principles, Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual - General Fund, Schedules of Changes in Net Pension Liability and Related Ratios, Sehedules of Plan Contributions (CaLPERS and PARS), Schedule of Changes in N�et 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 financiai stateinents in an appropriate operational, economic, or historical context. We have applied certain ]imited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of manageinent 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 �nancial 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 speci�ed in the Pas.senger Facility Charge Guide fo�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 �nancial stateinents 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. OtheN 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 basie �nancial 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 perfonned,we conclude that an uncorrected material misstatement of the other information exists,we are required to describe it in our report. 5 To the Honorable Mayor and Members of the City Council of the City of Redding Other Reporting Required by Government Auditzng Standards In accordance with Governrnent Auditing Standard.s, we have also issued our report dated December 13,2023, on our consideration of the City's internal control over�nancial reporting and on our tests of its compliance with certain provisions of 1aws,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 resuits 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 Gove�nment Auditing Standards in considering City of Redding's internal control over financial reporting and compiiance. ��--�`��.��.�.�'i.�'.;� CliftonLarsonAllen LLP Roseville, California December 13,2023 6 City of Redding Management's Discussion and Analysis For the Year Ended June 30, 2023 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, 2023. 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)iclentify individual fund issues or concerns. We encourage readers to consider the informa�ion 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 REPORTiOVERVIEW 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-wicle financial statements consist of the following parts: Statement of Net Position: This statement presents information on al1 of the City's assets and deferred outflows of resaurces 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 tiine, the change in net position may seroe 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 unusecl 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 a11 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 pri�nary govermnent. � City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 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 �inance-related 1ega1 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�nancing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so,readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains eleven individual governmental funds. Information is presented separately in the governmental fund balance sheet and in governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, General Capital Project Fund, and Community Development Fund,which are considered to be major funds. Data from the other eight govermnental 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 stateinents 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-wic3e 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. 8 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 Proprietary funds provide the same type of inforination as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Electric Utility, Water U�tilit}�, 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 financiai 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 founcl 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 infonnation, suppleinentary 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. 9 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 FINANCIAL HIGHLIGHTS Government-Wide Financial Hi�hlights 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 $816 million(See Analysis of Statement of Activities and Changes in Net Position on page 12). • $728 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. • $133 million is available for the City's ongoing obligations related to programs with external restrictions. • ($44.8) million represents the unrestricted deficit and is primarily the result of the City's unfunded pension and Other Postemployment Benefits (OPEB)obligations. • The City's total debt decreased by $1'7.6 million (net of bond prelniums and discount and excluding deferred charges) during the year ending June 30, 2023. The City made $18.8 million in regular scheduled debt payments. The City added$1.2 million in lease, subscription and loan debt. • The City's total net position increased by$59 million over the prior year. • The $41.8 million increase in net investment in capital assets represents the capital assets less accumulated depreciation/amortization, outstanding prineipal of capital debt, original issue premiums on outstanding capital debt, reiated deferred inflows, plus original issue discounts on outstanding capital debt, related deferred outflows. • The $26 million increase in restricted net position represents the change in resources that are subject to external restrictions on their use. • The ($8.9) million decrease 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$115 million was an increase of$12.4 million from the prior year ending fund balance of$102.6 million. Amounts available for spending include Restricted, Assigned and Unassigned Fund Balances; these totaled $111.'7 million, or 97.1 percent of fund balance. Of this amount: • $89.2 million is restricted by law or externally imposed requirements. • $7.9 million is assigned or constrained by the City Council's `intent" to be used for specific purposes, but are neither restricted nor committed. • $14.6 million is unassigned fundbalance. 10 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 GOVERNMENT-WIDE FINANCIAL ANALYSIS Summary ofNet Position (in tho us ands) Governmental Business-Type Activities Activities ToYal Total Dollar Per^cent 2023 2022 2023 2022 2023 2022 Change Change Assets: C�rrent and other assets $226,005 $196,5'71 $262,286 $260,954 $488,291 $45'7,525 $ 30,766 6.7% Capital assets,net 364,798 348,337 542,813 531,21� 90�,6ll 8�9,554 28,057 3.2% Total assets 590,803 544,908 805,099 '792,171 1,395,902 1,337,079 58,823 4.4% Deferredoutflowofresources 75,394 41,582 55,070 35,871 130,464 77,453 53,011 68.4% Liabilities: C�rrent liabilities 55,023 44,670 44,709 50,078 103,732 94,748 8,984 9.5% Z,ong-termliabilities 296,980 225,0'73 290,089 258,105 587,069 483,178 103,891 21.5% Totalliabilities 352,003 269,743 338,798 308,183 690,801 577,926 112,875 19.5% Deferredinflowofresonrees 7,826 45,380 11,510 34,025 19,336 79,405 �6( 0,069) -75.6% Net position: Net investment in capitalassets 335,471 317,743 392,864 368,787 728,335 686,530 41,805 61% Restricted 123,734 99,800 8,922 6,782 132,656 106,582 26,074 24,5°/a Unrestricted 152,837 146,176) 108,075 ll0,265 44,762 35,911 8,851 24.6°/a Total net position $306,368 $271,36� $509,861 $485,834 $816,229 $757,201 $ 59,028 7.8% 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$816.21nillion at the close of the current fiscal year. Analvsis of Summary of Net Position The City's total net position increased by 7.8%from a year ago, increasing from$757.2 million to $816.2 million. Net position from governmental activities increased by $35.0 million or 12.9% and net position from business activities increased by $24 million or 4.9%. The $35 million in net position is primarily due to an increase in notes and intergovernmental receivables and increases in capital assets. The negative unrestricted net position at June 30,2023 is primarily the result of the City's unfunded pension and OPEB obligations. The $24 million increase in net position from business-type activities is primarily due to funds being accumulated for current and future capital projects, especially in the Electric Utility Fund and Wastewater Utility Fund. Most of the City's net position is invested in capital assets (i.e., 1and, 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 $132.7 million represents resources that are subject to external restrictions as to how they may be used. The remaining unrestricted net position deficit of($44.8)million experienced a negative change of$8.9 million, or 24.6%, from the prior year. This change means less resources 11 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 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. Statement of Activities and Changes in Net Position (in thousands) Governmental Business-Type Activities Activities Total Total Dollar Percent 2023 2022 2023 2022 2023 2022 Change Change Revenues Program revenues Charges for services $ 21,599 $ 18,951 $ 290,901 $251,057 $312,500 $270,008 $42,492 15.7% Operating grants and contributions 62,613 26,365 �,021 11,231 70,634 37,596 33,038 87.9% Capital�rants and contributions 23,464 18,621 13,998 5,308 37,462 23,929 13,533 56.6% Total program�evenue 10'7,6'76 63,93'7 3'12,920 267,596 420,596 331,533 89,063 26.9% General revenue Sales tax 30,469 31,846 - - 30,469 31,846 (1,377) -4.3% Property tax 26,375 24,231 - - 26,375 24,231 2,144 8.8% Investment earnings 1,113 (2,242) 2,410 (6,125) 3,523 (�,367) 11,890 -1421% Other 12,067 15,639 l6 - 12,083 15,639 (3,556 -22.7% Totalgeneralrevenues 70,024 69,474 2,426 (6,125) 72,450 63,349 9,101 14.4% Total revenue 177,700 133,411 315,346 261,471 493,046 394,882 98,164 24.9% �pens es: C�neral government 11,843 7,445 - - 11,843 7,445 4,398 59.1% Police 46,860 36,227 - - 4b,860 36,227 10,633 29.4% Fire 27,823 24,061 - - 27,823 24,061 3,762 15.6% Public works 17,061 17,139 - - 17,061 17,139 (78) -0.5% Planning 6,856 5,530 - - 6,856 5,530 1,326 24.0% Reereation and culture 14,16� 12,086 - - 14,168 12,086 2,082 17.2% Community development 24,470 l 1,713 - - 24,470 11,713 12,757 108.9% Tnterest on long-termdebt 1,451 1,448 - - 1,451 1,448 3 0.2% Electric - - 187,015 158,141 187,015 158,141 28,874 18.3% W ater - - 21,305 20,379 21,305 20,379 926 4.5% Wastewater - - 27,966 24,957 27,966 24,957 3,009 12.1% Storm drain - - 2,653 2,024 2,653 2,024 629 31.1% Solid Waste - - 29,546 24,546 29,546 24,546 5,000 20.4% Transportation - - 13,�01 13,907 13,701 13,907 (206) -1.5% Convention center - - 1,300 1,222 1,300 1,222 78 6.4% Total elcpenses 150,532 115,649 283,486 245,176 434,018 360,825 73,193 20.3% increase in net position before transfers andspecial item 27,168 17,762 31,860 16,295 59,028 34,057 24,971 73.3% Transfers 7,834 4,134 7,834 4,134 - - - 0.0% Change in netposition 35,002 21,896 24,026 ]2,161 59,028 34,057 24,971 73.3% Net position-beginning 271,367 249,471 485,835 473,6'74 75'7,202 723,145 34,057 4.7% Netposition-ending $306,369 $271,367 $ 509,861 $485,835 $816,230 $757,202 $59,028 7.8% 12 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 Governmental Activities Revenue Highlights Total revenues for the governmental activities were $1'7'7.'7 lnillion. The largest component of total revenue is taxes at $68.5 million, making up 38.5% 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 4.3% from the prior year. The decrease of$1.� million is the result of a dynamic econom�y weathering the impacts of high inflationary pressure. During fiscal year 2022-23 the average inflation was 3.2% with the first half of the year being higher('7-8%)than the latter half of the year(3-6%). The Federal Reserve has responded to inflation by increasing interest rates with the goal of slowing inflation but could have a negative impact on the economy. These various economic pressures are likely causing decreases to available discretionary income used for taxable purchases. Additionally, in prior years there could have been an artificial spike resulting from the Federal Reserve's monetary policies and government policy to stimulate the economy as a result of the impacts of COVID-19 pandemic. Property taxes increased by 8.8% from the prior year. The $2.1 million increase is reflective of the rise in properry values and the related re-assessment when properties are sold. Transient occupancy taxes decreased by 11.8%from the prior year. The$0.97 million decrease is likely a result of the same pressures outlined in the discussion of sales tax. Transient Occupancy Tax is driven by travel to the area. This has likely decreased as spending habits change with a slowing economy. Operating grants and contributions increased by $36 million primarily due to an increase in operating grant revenue for Community Development of $30.7 million, including increase of $25 for housing development projects, $1.8 for homeless activities, and$3.4 for section $housing and Public Works of$3.$million. Charges for services increased by $2.6 million primarily due to an increase in CommuniLy Development fees of $1 million related to project solar rebate and an increase in General Government fees of$1.6 million related to late fees and risk program fees of$1.3 million. Capital grants and contributions increased by$4.8 million primarily due to capital grants for Public Works. Expense Highlight.r Functional expenses for the year totaled approximately $150.5 million, an increase of$34.9 million from the prior year. The increase is a result of an increase Community Development housing projects, homeless activities and Section 8 programs. Increases in Police due to retireinent payouts and becoming fully staffed. The largest component of total expenses was for public safety (police and fire), representing $74.'7 million or 49.6% of the total. A large portion of public safety costs are funded from general revenues, primarily taxes. In contrast,Public Works expenses,which total$17.1 million, are funded largely from restricted revenues, including gas tax and federal and state grants. These resources pay for street maintenance and iinprovements, street, sweeping,transportation planning and other related costs. 13 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 The following graphs show an illustrative picture of where the City funds come from and where they are spent: Expense by Source-Governmental Activities Planning 4.6% Interest on L/T Debt General Government 7.9% 1.0% Police � "w^��.� 31.1% Recreafion and Culture `' � � ' t 9.4% „„,»-��,� `��,n��„t, '., ��„„,. ��"' f}$}yf t 2{55; j t��.,,��. Public Warks � � � 11.3% Fire 18.5% Community Development 16.3% Revenues by Source-Governmental Activities Capital Grants and Operating Grants and Contributions Contributions �� 13.2/� 35.2% ��„ °,"�-�.�- '}�»». ,. .„��"""� � "`.W.""""�„- � Sales Tax � � 17.1% Charges�tby Ser ` e ,=��i�{�;�" � 1G.2��0 ��'��tE}17f}}4f.' 4 . t ((� �� Other Property Tax 0.2% 1a.8"/o Investment Earnings Other Taxes 0.6% 6.5% 14 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 Business-Type Activities Business-type activities increased the City's net position by $24.0 million. Key elements of this increase are as follows: • Revenues exceed expenses for electric, water, wastewater, solid waste and storm drain as funcls are being accumulated for current and future capital projects. • Expenses exceed revenues for the convention center as the operating transfer from the general fund is not shown as revenue. The following schedule shows business-type activities revenues and expenses: Revenues, Transfers and Expenditures -Business-Type Activities (in thous ands) Changes in Revenue FYpense Net Position 2023 2022 2023 2022 2023 2022 Electric $ 201,023 $ 162,911 $ 187,015 $ 158,141 $ 14,008 $ 4,770 Water 27,907 26,820 21,305 20,379 6,602 6,441 Wastewater 36,194 34,011 27,966 24,958 8,228 9,053 Stormdrainage 3,872 2,473 2,653 2,024 1,219 449 Solid waste 27,167 26,895 29,546 24,546 (2,379) 2,349 Transportation 16,546 ]4,291 ]3,701 13,907 2,845 384 Convention center 212 196 1,300 1,222 (1,088) (1,02� Investment earnings 2,409 (6,125) - - 2,409 (6,125) Transfers (7,834) (4,134) - - (7,834) (4,134) Other 16 - - - 16 - Totai $ 307,512 $ 257,338 $ 283,486 $ 245,177 $ 24,026 $ 12,161 Revenues by Source-Business-Type Activities Charges for Services 92.3�/0�,� ��ti�� "��.� �,�.: s: , � � `t'j}��1`, r+, ��"�.t}, �' Investment Earnings Operating Grants& ��8% Contributions 2.5% Capital Grants& Contributions 4.4% 15 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 Typically, business-type activities charge custoiners 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 (92.3%) of the revenues of the business-type activities. Analysis of the Governmental Fund Balances Gove rnme ntal Fund B alance s (in thousands) Nonspendable Restricted Assigned Unassigned Total General fund $ 3,283 $ 605 � '7,924 � 14,750 � 26,562 Major funds Capital projects - 1,496 - - 1,496 Comirn�nity Development 1 57,297 - - 57,298 Other governmental funcl� 77 29,854 - (192) 29,739 $ 3,361 $ 89,252 $ 7,924 $ 14,558 $ 115,095 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, 2023, the City's governmental funds reported total fund balance of$115.1 million, an increase of $12.4 million in comparison with the prior year's total ending fund balance. The components of total fund balance are as follows(for more information see Note 20—Fund Balances}: • Non-spendable Fund Balance, $3.� million are amounts that are not spendable in form, or are legally or contractually required to be maintained intact, and are made up of (1) prepaid expenses, (2) inventories, and (3) endowments. $2 million for fire trucks is included in prepaid expenses for fire trucks ordered but not received at fiscal year ended June 30,2023. • Restricted Fund Balance, $89.2 mi]lion 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 far(1)purpose of fund, (2)reserves associated with issued bonds, and(3)grants for capital outlay. • Assigned Fund Balance, $79 million are resources that are set aside for a particular purpose, and are made up of amounts that reflect resources for specific purposes such as (1) encumbrances, and (2) future expenditures/contingencies. • Unassigned Fund Balance, $14.6 million represents the residual balance for the City's governmental funds. 16 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 General Fund The General Fund is the chief operating fund of the City. At June 30, 2023, unassigned fund balance was $14.8 million. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total funcl balance to total fund expenditures. tJnassigned fund balance represents 13% of the total General Fund expenditures,while total fund balance represents 23.3%of total General Fund expenditures. The fund balance of the City's General Fund decreased by $2.2 million during the year ended June 30, 2023. General Fund revenues increased $33 million, and expenditures increased by $7.0 million from fiscal year-end 2022 to 2023. The increase in revenue was primarily due to increases in property tax revenue of$2.1 million (8.5%). Tax rates were not changed during the year. The increase is also contributed to late fees of$1.6 million. The $7 million increase in expenditures is primarily due to an increase in expenditures for Public Safety of$4.5 million and General Government of$2.0 million. The expenditures contributing to the increase are primarily due to increases in staffing costs and an ARAP grant expenditure for the Block 7 project of$2.4 million. Other financing sources increased by $3.2 million. This is primarily due to an increase in net transfers of$4.5 million and decrease in gains on sale of assets of$1.3 million. Governmental Funds Summary ofRevenues, Expenditures, and Changes in Fund Balances (in tho us ands) General Fund Dollar Percent 2023 2022 Change Change Total revenue $ 94,350 $ 91,020 $ 3,330 3.7% Total e�enditu�res 113,�59 106,777 6,982 6.5% F�cess (deficiency)ofrevenues (19,409) (15,757) (3,652) 23.2% Otherfmancin�sources (uses) 1�,246 13,975 3,271 23.4% Net change in fund balance (2,163) (1,782) (3�1) 21.4% F�nd balance Beginning ofyear 28,725 30,507 (1,782) -5.8% End ofyear $ 26,562 $ 28,725 $ (2,163) -7.5% 17 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 Capital Project Fund The Capital Project Fund accounts for the financing and construction activities of the City. On June 30, 2023, the restricted fund balance was $1.5 million. Restricted fund balance represents 8.2% of the total Capital Project Funds expenditures. The fund balance of the City's Capital Project Fund decreased $0,2 million during the year ended June 30, 2023 primarily due to an increase in capital outlay. Capital Project Fund revenues increased $5.5 million and expenditures increased $03 million. The increase in revenue was primarily due to an increase in state grant revenue and the increase in expenditures was the result of increased capital outlay for construction project activity. Gove rnme ntal Funds Summary ofRevenues, Expenditures, and Changes in Fund Balances (in thous ands) Capital Projects Fund Dollar Percent 2023 2022 Change Change Total revenue $ 17,989 $ 12,489 $ 5,500 44.0% Total e�penditures 18,1�2 1�,840 332 l.9% Excess (deficiency)ofrevenues (183) (5,351) 5,16$ -96.6% Otherfinancingsources (uses) (33) (]22) 89 -'73.0% Net change in fund balance (216) (5,473) 5,257 -96.1% Fund balance Beginning ofyear 1,712 7,185 (5,473) -76.2% Fald ofyear $ 1,496 $ 1,712 $ (21� -12.6% 18 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 Community Development Fund The Community Development Fund accounts for the financing and rehabilitation of homes and public facilities, financing of mu]tifamily housing, and homeless services of the City. On June 30, 2023, the restricted fund balance was $5'7.3 million. Restricted fund balance represents 542% of the total Community Development Fund expenditures. The fund balance of the City's Community Development fund increased$12.$million during the year ended 7une 30, 2023 primarily d�ue to the increase in notes receivable. Community Development Fund revenues increased$209 million and expenditures increased$9.0 million. The increase in revenue was primarily due to an increase in grant revenue and the increase in expenditures was the result of development expenditures and homeless services. Governmental Funds Summary ofRevenues, Expenditures, and Changes in Fund Balances (in thousands) Community Development Dollar Percent 2023 2022 Change Change Totalrevenue $ 23,379 $ 2,466 $ 20,913 8481% Total e�enditures 10,558 1,530 9,028 5901% Excess (deficiency)ofrevenues 12,821 936 11,885 1269.8% Other fmancing sources (uses) - - - 0.0% Net change in fund balance 12,821 936 ll,885 1269.8% FY�nd balance Beginning ofyear 44,477 43,541 936 21% End ofyear $ 57,298 $ 44,477 $ 12,821 28.8% 19 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 Analysis of Proprietary Funds Proprietary Funds: The City's proprietary funds provide the same type of information found in the government- wide financial statements, but in more detail. The fo1]owing schedule shows the cl�anges in net position of the major proprietary funds and restricted and unrestricted portions of net position of the major proprietary funds of the City. Changes in Net Position-Major Proprietary Funds (in thousands) Net Position Changes in Net Position June 30,2022 Net Position June 30,2023 Eiectric Utility $ 130,373 $ 5,239 $ ]35,612 WaterUtility 118,830 6,886 125,716 W astewater U'tility 161,368 8,261 ]69,629 Solid Waste Collec�ion/I}isposal 22,414 (1,783) 20,631 Net Position-Restricted and Unrestricted Major Proprietary Funds as of June 30, 2023 (in thousands) Net investment in RestrictedNet Unrestricted Total Net Capital Assets Position Net Position Posifion Eleciric Utility $ 95,974 $ - $ 39,63� $ 135,612 WaterUtility 72,865 5,065 47,786 125,716 WastewaterU'tility 135,14� 53� 33,945 169,629 Solid Waste Collection/Disposal 19,249 - 1,382 20,631 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 20 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 General Fund Budgetarv F[ighli�hts The City adopts two one-year budgets every other year. The fiscal year ending June 30, 2023, 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: General Fund Original and Amended Budget (in thousands) Increase Original Amenc�d (Decrease) C�neral govemment $ 13,220 $ 15,009 $ 1,789 Public safety: Police 43,420 52,734 9,314 Fire 24,337 29,101 4,764 Public works 20,372 23,370 2,998 Planning 11,078 8,803 (2,275) Recreation and culture 12,122 10,482 (1,640) Principal paymenis 1,749 1,918 169 Interest payments and bond costs 872 902 30 Totalexpenditures $ 12�,1�0 $ ]42,319 $ 15,149 As shown in the previous table, the General Fund's original budget was amended to include increase of$15.1. Inillion or approximately 11.8%. The reasons for this increase are as follows: • The Planning budget decreased by $2.3 million primarily due to transferring $2.5 million in ARPA grant funding to public safety. • The Police budget increased by $9.3 million primarily due to grants and grant type agreements approved and received after the budget was originally adopted. Of these grants $4.0 million are ARPA grants budgeted for park rangers, the police 8th beat, and police vehicles. It is the City policy not to include grant expenditures in the original adopted budget if grant approval has not been finalized. These grants were for traffic enforcement,police officers and school resource officers along with other Police related activities. • The General Government budget increased$1.8 million primarily due to $0.7 million in projects, including improvements of council chambers, tiger field, and downtown street maintenance. A1so, increases in fixed charges, staff costs and operating materials of$1 million. • The Recreation ancl Culture budget decreasecl by $1.6 million primarily tlue to transferring $2.4 million in ARPA grant funding to Community Development. • The Fire budget increased by $4.7 million primarily due to $1.5 million in operating grant funding for fire vehicles and fire risk reduction and$l.7 in equipment. • The Public works budget increased by $3.0 million primarily due to $2.1 million increase in the Bechelli proj ect. • 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 $2.0 million due to rolling stock transfers and$0.2 million d'ue to equipment replacement transfers. 21 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 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, 2023, totaled $907.6 million (net of accuinulated 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 $28.1 million. Investment in capital assets for governinental activities increased $16.5 million or 4.7% and business-type activities increased $7.8 million or 1.5%. Major capital asset events during the current fiscal year included the following: • Developers added an estimated $10.2 million of water, wastewater, electric, storm drainage improvements, parks, streets, sidewalks and traffc signals. • The City added $6.4 million on Bechelli Active Transportation Project (ATP), $6.9 million on the South Bonnyview at I-5 and Bechelli project, $1 million on Girvan Road railroad crossing improvements, $1 million on Pedestrian Crossing iinprovements, $2.2 million on other Street improvements, and $0.2 million on bike paths/lane improvements. • Electric Utility added $7.9 million on system improvements, $0.8 million on vehicles, $2 million on an. emergency communications platform and$0.9 million on Unit 4 turbine overhaul. • Water Utility added$1.7 million on water line replacement projects, $1.5 million on the Masonic to Hilltop water main project, $0.5 million on the pump house replacement, $0.4 million in meters and$0.7 million on vehicles. • Wastewater Utility added$4.4 million on Magnolia Area improvements, $1.7 million on Biosolid Pyrolysis, $0.6 million on Woodacre Drive replacement, and$1.2 million on other iinprovementprojects. • Storm Drainage Utility added $0.7 million on Bechelli ATP improvements and $0.6 million on Hollow Lane box culvert. • Solid Waste added$2.6 million on vehicles and heavy equipment. • Airport added$3.9 million on Terminal Loop Construction. • Fire added $1.1 million in vehicies. Police added $0.'7 million in vehicles and $1.4 million on the radio communication equipment project. • Parks added $1 million in Redding Aquatic Center Improvements and $1.5 million in City other park improvements. • The City deleted assets,net depreciation, of$0.4 million in plant assets, and$0.5 million in vehicles. 22 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 Changes in Capital Assets, net Depreciation (in thousands) Balance Balance Dollar Percent June 30,2023 June 30,2022 Change Change Governmental activities: Capital assets,not being depreciated I.and $ 36,427 $ 36,207 $ 220 0.6% Construction in progress 67,370 43,134 24,236 56.2% Capital as s ets,being depreciated Buildings 22,881 24,905 (2,024) -$.1% Improveinents other than buildings 29,261 32,554 (3,293) -10.1% Infrastructure 197,852 202,404 (4,552) -2.2% Automotive equipment 7,864 6,998 866 12.4% Furnishings and equipment 2,408 1,'795 613 34.2% Assets underlease: Improvements 43 51 (8) -15.7% Autolnotive equipment 427 290 137 4�.2% Subscriptions 265 - 265 100.0% Governmental activities capital assets,net $ 364,798 $ 348,338 $ 16,460 4.7% Business-type activities: Capital assets,not being depreciated Land $ 20,394 $ 20,394 $ - 0.0% Construction in progress 55,200 34,488 20,712 60.1% Capital as s ets,being depreciated Utility plants 388,322 394,488 (6,16� -1.6% Buildings 26,433 28,623 (2,190) -7.7% Improvements other than buildings 21,152 23,034 (1,882) -8.2% Automotive eguipment 19,529 20,565 (1,036) -5.0% Furnishings and equipment 7,890 9,564 (1,674) -17.5% Assets underlease: Equipment 130 61 69 113.1% Subscriptions 3,763 - 3,763 100.0% Business-type activities capital assets,net $ 542,813 $ 531,217 $ 7,833 1.5% Total entity-wide capital assets $ 907,611 $ 879,555 $ 28,056 3.2% See Note 6 to the Financial Statements foN additional infor^mauon regar^ding capital assets 23 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 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). Changes in Long Term Debt (in thousands) Balance Additions/ Balance June 30,2022 Transfers Reductions June 30,2023 Governmental activities: Subscriptions payable $ 100 $ 249 $ 76 $ 273 I.eases payable 338 217 129 426 I.ease revenue bonds 27,639 - 2,034 25,605 Loan - 648 �4 5�4 Total govetnment activities 28,077 1,114 2,313 26,878 Business-type activities: Subscriptions payable 4,791 15 975 3,$31 I.eases payable 65 141 75 131 Revenue bonds 145,'761 - 14,691 131,0�0 State loan payable 1,128 - �93 335 Certificates ofparticipation - - - - Totalbusiness-type activities 151,745 156 16,534 135,367 Totaloutstandinglong-termdebt $ 179,822 $ 1,270 $ 18,847 $ 162,245 The City's total debt decreased by $17.5 million (net of bond premiums and discounts excluding deferred charges) during the fiscal year ending June 30, 2023. The City made $18.8 million in regular scheduled debt payments. The lease obligations increased by $0.53 million and subscription obligations increased by $4.1. inillion. Currentiy, the City's legal debt margin is $287 million. However, this relates only to general obligation type bonds. Other factors such as available revenues, special assessinent 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 l 0 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 24 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 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 d�ue 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 tbe Statement of Net Position. Deferred inflows of resources are not technically liabilities of the City as of the date of the �nancial statements. When all the recognition criteria are met, the deferred inflow of resources wili 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 infonnation pertaining to deferred outflows and inflows for pensions and OPEB can be found in notes 18 and 19. Economic Factors and Next Year's Bud�ets and Rates • The City of Redding has experienced a decrease in population since 2020 of less than one percent per year while the unem�ployment rate has decreased from 10% in 2020 to 5%in 2023. • 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 ($2.1 million) and decreases in sales tax ($1.4 million), cannabis tax($0.6 million), and�ransient occupancy tax($1 million). • The City's General Fund two most major tax revenue sources are sales tax ancl property tax. Sales tax revenue is budgeted to increase by 2.5% in fiscal year 2023-24. Property tax revenue is budgeted to increase by 3% in fiscal year 2023-24. • The City's residential building activity has slowed from the record highs of the last few years but appears to be leveling off into the second half of fiscal year 2023-24. Commercial building activity continues to be on pace with previous fiscal year. Overall, building activity is tapering off, but is expected to maintain moderate levels through the end of fiscal year 2023-24. 25 City of Redding Management's Discussion and Analysis (Continued) For the Year Ended June 30, 2023 • The future economic activity is uncertain at this time as many experts are predicting a recession in calendar year 2023. The duration and severity of the recession is uncertain as forecasts are from early to late 2023 with predictions from a moderate recession to a painful recession. A1l of these factors were considered in preparing and updating the City's budget for the 2022-23 fiscal year. During the current fiscal year fund balance in the General Fund decreased by $2.2 million to $26.6 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 a11 years of the plan. The City Council passed a 10-year Financial Plan on June 20, 2023 which lnaintains this standard for a11 years. The fund balance is different than cash, which is used as the basis of ineasurement 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 wi11 increase either as approved by City Council or at rates proposed to City CounciL The current rates for Water, Wastewater and Solid Waste were adopted by City Council on February 4, 2020. The current Electric rates were adopted by City Council on December 7, 2021. Request for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. This report can be found on the City of Redding website, www.cityofredding,gov under Departments, under Finance Department. 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' 3 , ��,2, ,t,t„r, ,,<rr1. ��.� .a� ct � ,.t<ri��..l , �.,, . ...�� t� �s ,�. �t,. � t �} .. 1:,,,,c,.<4 � 4 � �..,�..,��t ir}.ib...�s4.�s C,s,.a� ��,tt�� t .4l t.t{fl,�a,�{ c .,,a,it,tt,.,.f( s�.f7 i. , . � r� .}r, 1�1S.,t�, �.��cr tt1 ...ti.�,ht�itr,rt{..�.}.,.cjt y� .} �2r, „t�T� l��'�tat.l�a.is�,�l�.��t;,�t>-�t,iz.tU.�bs.,.x�,i.. ..t.,zSS�tr��Et.d�t�t�,��.��r�+tt7n�3,r{,�{l��tTh},�„ct,�,t�;�t,ti�,}f��)�Sttr�,t.,,,.��r.;itf�n,t,�,�1s.J,tit��f��F�{t3rrtf�+t�i� ��'�tr ,��j?�� '"'��,i'�;��Y :,,��"��';�i��{`�;�, „� x��a�P�rl��z� This page intentionally left blank 28 GOVEl�:NMENT-WIDE FINANCIAL STATEMENTS 29 City of Redding Statement of Net Position June 30, 2023 Primary Government Governmental Business-Type Activities Activities Total ASSETS Current assets: Cash andinveshnents $ 75,728,479 $ 188,855,923 $ 264,584,402 Receivables: Interest 5,610,680 1,043,750 6,654,430 Accounts,net 2,038,573 22,840,453 24,879,026 Lease 354,147 794,272 1,148,419 Taxes 6,844,361 - 6,844,361 Inter�overnmental 31,726,455 7,224,960 38,951,415 Notes '78,985,20'7 90,688 '79,075,895 Special assessments 318,735 - 318,735 Other 746,625 - 746,625 Inventorics 695,047 12,429,055 13,124,102 Prepaid items 4,414,809 1,622,288 6,037,09'7 Deposits - 393,200 393,200 Total current assets 207,463,118 235,294,589 442,75'7,'707 Noncurrent assets: Internal balances 15,308,550 (15,308,550) - Restricted assets: Cash and investments 1,l 54,876 12,835,696 13,990,5'72 Interest receivable 55 66 121 Lease receivable,net 2,0�9,175 8,309,466 10,388,641 Capital assets: Land and construction in progress 103,796,691 �5,594,286 179,390,9�7 Depreciable capital assets,net 261,000,853 467,218,673 728,219,526 Invest�nent in JPA - '7,584,638 '7,584,638 Stora�e base�as - 13,570,000 13,570,000 Total noncurrent assets 383,340,200 569,804,2�5 953,144,4�5 Total asseYs 590,803,318 805,098,864 1,395,902,182 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding bonds or debt 1'72,591 6,364,04'7 6,536,638 Deferred outflows related to other post employinent benefits 12,482,718 8,584,258 21,066,976 Deferred outflows related to pensions 62,738,9'76 40,122,422 102,861,398 Total deferred outflows of resources 75,394,285 55,070,727 130,465,012 (Continued) See accompanying Notes to the Basic Financial Statements. 30 City of Redding Statement of Net Position (Continued) June 30, 2023 Primary Government Governmental Business-Type Activities Activities Total LIABILITIES Current liabilities: Accountspayable 14,314,157 9,285,939 23,600,096 Accrued liabilities 1,919,418 1,438,474 3,357,892 Inter�overnmental payable 1,463,804 3,635,3'77 5,099,181 Accrued interestpayable 321,355 526,'783 848,138 Unearned revenue 19,561,770 2,318,053 21,879,823 Deposits 281,350 9,884,838 10,166,188 Accounts payable from restricted assets 24,830 - 24,830 Landfill closing costs,due within one year - 183,640 183,640 Claims and jud�ements payable,due within one year 8,222,185 - 8,222,185 Compensated absences,due within one year 4,961,543 3,403,589 8,365,132 Long-term dcbt,due within one year 2,162,338 16,801,322 18,963,660 Aggregate ofher post employment benefits liability 1,'790,397 1,231,241 3,021,638 Total current liabilities 55,023,147 48,709,256 103,732,403 Noncurrent liabilities: Inter�overnmental payable,due in more than one year ll 6,994 - ll 6,994 Landfill closing costs,due in more than one year - 2,581,19'7 2,581,197 Claims and jud�ements payable,due in more than one year 10,295,055 - 10,295,055 Accrued compensated absences,due in mare than one year 9,425,422 6,958,544 16,383,966 Accrued liabilities,due in more than one year - 447,705 447,705 Long-term debt,due in mare than one year 27,418,954 139,536,881 166,955,835 A��regate other post einployment benefits liability 28,763,107 19,780,147 48,543,254 Aggregate net pension liability 220,960,810 120,784,127 341,744,937 Total noncurrent liabilities 296,980,342 290,088,601 587,068,943 Totalliabilities 352,003,489 338,797,857 690,801,346 DEFFERED INFLOWS OF RESOURCES Deferred inflows related to other post employment benefits 2,'715,326 1,867,303 4,582,629 Deferred inflows related to pensions 2,6'76,816 539,347 3,216,163 Deferred inflows related to leases 2,433,322 9,103,738 11,537,060 Total deferred inflows of resourees '7,825,464 11,510,388 19,335,852 NET POSITION Net investment in capital assets 335,471,207 392,864,351 728,335,558 Restricted for: Capital outlay - 8,921,648 8,921,648 Debt service 6'78,034 - 678,034 Housing 19,210,255 - 19,210,255 Community development 68,588,939 - 68,588,939 Public works 26,880,146 - 26,880,146 Public safety 1,141,23'7 - 1,141,23'7 Community services 5,505,184 - 5,505,184 Other 1,731,022 - 1,'731,022 Total restricted 123,734,817 8,921,648 132,656,465 Unrestricted(deficit) (152,83'7,3�4) 108,0'75,347 (44,�62,02�) Total net position $ 306,368,650 $ 509,861,346 $ 816,229,996 (Conclucled) See accompanying Notes to the Sasic Financial Statements. 31 City of Redding Statement of Activities and Changes in Net Position For the Year Ended June 30,2023 Program Revenues Operating Capital Total Charges for Grants and Grants and Pro�ram Functions J Programs Expenses Services Contributions Contributions Revenues Primary government: Governmental activities: General government $ 11,842,912 $ 8,075,361 $ 2,7'73,910 $ - $ 10,849,271 Police 46,859,911 2,290,496 2,127,587 12,159 4,430,242 Fire 2'7,823,146 888,854 186,099 793,237 1,868,190 Public works 17,061,623 1,196,177 12,176,758 18,730,452 32,103,387 Planning 6,855,'776 5,392,509 428,061 - 5,820,5'70 Recreation and culture 14,167,809 2,450,295 695,474 3,927,904 7,073,673 Community development 24,4'70,351 1,305,212 44,225,092 - 45,530,304 Interest on long-term debt 1,450,653 - - - - Totalgovernmentalactivities 150,532,181 21,598,904 62,612,981 23,463,752 107,675,637 Business-type activities: Electric 18'7,014,653 199,349,597 '7,276 1,666,030 201,022,903 Water 21,304,950 26,106,650 - 1,800,133 27,906,783 Wastewater 2'7,965,652 33,662,337 1,673,885 85'7,485 36,193,'707 Storm drainage 2,653,578 2,238,207 - 1,633,321 3,871,528 Solid waste 29,546,236 27,086,15'7 81,154 - 2'7,16�,311 Transportation 13,700,891 2,246,283 6,259,360 8,040,840 16,546,483 Convention center 1,299,'789 211,�67 - - 2l 1,76'7 Total business-type aetivities 283,485,749 290,900,998 8,021,6�5 13,99'7,809 312,920,482 Total primaty government $ 434,017,930 $ 312,499,902 $ '70,634,656 $ 3'7,461,561 $ 420,596,119 (Continued) See aeeompanying Notes to the Basic Finaneial Statements. 32 City of Redding Statement of Activities and Changes in Net Position (Continued) For the Year Ended June 30,2023 Net(Expenses)Revenues and Chan�es in Net Position Governmental Busincss-Type Funetions J Programs Activities Activities Total Primary government: Governmental activities: General government $ (993,641) $ - $ (993,641) Police (42,429,669) - (42,429,669) Fire (25,954,956) - (25,954,956) Public works 15,041,764 - 15,041,764 Planning (1,035,206) - (1,035,206) Recreation and culture (7,094,136) - (7,094,136) Communiry development 21,059,953 - 21,059,953 Interest on long-term debt (1,450,653) - (1,450,653) Total governmental activities (42,856,544) - (42,856,544) Business-type activities: Electric - 14,008,250 14,008,250 Water - 6,601,833 6,601,$33 Wastewater - 8,228,055 8,228,055 Storm drainage - 1,217,950 1,217,950 Solid waste - (2,378,925) (2,378,925) Transportation - 2,845,592 2,845,592 Convention center - (1,088,022) (1,088,022} Total business-type activities - 29,434,733 29,434,�33 Total primaty government (42,856,544) 29,434,733 (13,421,811) General revenues and transfers: Taxes: Property taxes,levied far general pu.rpose 26,3�5,135 - 26,375,135 Transient occupancy taxes 7,293,033 - 7,293,033 Sales taxes 30,469,277 - 30,469,277 Motor vehicle taxes 96,183 - 96,183 Franchise taxes 1,325,'736 - 1,325,'736 Other taxes 2,912,615 - 2,912,615 Total taxes 68,471,979 - 68,471,979 Investmentincome(loss) 1,112,841 2,409,343 3,522,184 Other 200,627 - 200,627 Gain(Loss)on sale of assets 239,11'7 16,2�5 255,392 Transfers 7,833,896 (7,833,896) - Total general revenues and transfers 77,858,460 (5,408,278) 72,450,182 Changes in net position 35,001,916 24,026,455 59,028,371 Net position: Be�innin�of year 271,366,734 485,834,891 757,201,625 End of year $ 306,368,650 $ 509,861,346 $ 816,229,996 (Concludecl) See aceompanying Notes to the Basic Finaneial Statements. 33 T'his page intentionally left blank 34 FZJND FINANCIAL STATEMENTS Governmental Fund Financial Statements P�oprietary Fund Financial Statements 35 T'his page intentionally left blank 36 GOVEl�:NMENTAL FUND FINANCIAL STATEMENTS General Fund This fund is the general operating fund of the City which accounts for a11 financial resources except those required to be accounted for in another fund. General Capital Projects Fund This fund was established to account for the�nancing and construction activities of the general government. Community Development Fund This fund was established to account for financing and rehabilitation of hoines and public facilities, homeless services and the�nancing of multifamily housing. Financing is provided by Federal Department of Housing and Urban Development and the California Department of Housing and Community Development 37 City of Redding Balance Sheet Governmental Funds June 30, 2023 General Community Non-Major Total General Capital Projects Devclopment Govermnental Govermnental Fund Fund Fund Funds Funds ASSETS Cash and investments $ 29,881,436 $ 5,456,766 $ 6,135,048 $ 16,094,003 $ 57,567,253 Accounts receivable,net 1,835,780 4,586 400 44,145 1,884,911 Lease receivable 2,433,322 - - - 2,433,322 Intergovermnentalreceivable 1,396,955 19,126,736 8,745,205 2,457,282 31,726,178 Interest receivable 171,821 21,627 2,701,862 2,616,785 5,512,095 Taxesreceivable 6,844,361 - - - 6,844,361 Otherreceivable 714,595 - 16,579 15,451 746,625 Due from other funds 5,815,600 - - - 5,815,600 Prepaid items 2,157,218 - 508 77,069 2,234,795 Inventories 218,079 - - - 218,079 Restricted assets: Cash and investments 909,152 13,959 - 231,765 1,154,876 Interest receivable 3 52 - - 55 Interfund receivable 25,000 - - - 25,000 Advances to other funds 6,250 - - - 6,250 Special assessments receivable - - - 318,735 318,735 Notes receivable - - 63,749,090 15,236,117 78,985,207 Total assets 52,409,572 24,623,'726 81,348,692 37,091,352 195,4'73,342 (Continued) See aeeompanying Notes to the Basic Finaneial Statements. 38 City of Redding Balance Sheet(Continued) Governmental Funds June 30, 2023 General Community Non-Majar Total General Capital Projects Development Govermnental Governmental Fund Fund Fund Funds Funds LIABILITIES Accounts payable 2,524,435 3,001,313 7,560,910 122,171 13,208,829 Accrued liabilities 1,468,670 34,992 29,570 47,200 1,580,432 Inter�ovcrnmental payable 414,363 - 14,912 10,729 440,004 Due to other funds - - - 82,385 82,385 Accounts payable from restricted assefs - - - 24,830 24,830 Interfund payable - - 3,146,454 - 3,146,454 Unearned revenue 12,954,462 994,529 2,00'7,399 3,415,640 19,3'72,030 Deposits 48,585 - - 232,765 281,350 Advancesfrom otherfunds 4,006,270 - - 420,694 4,426,964 Totalliabilities 21,416,785 4,030,834 12,759,245 4,356,414 42,563,278 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 1,997,503 19,097,241 ll,291,090 2,995,520 35,381,354 Leases 2,433,322 - - - 2,433,322 Total deferred inflows of resourees: 4,430,825 19,097,241 11,291,090 2,995,520 3'7,814,676 Fund balances: Nonspendable 3,283,430 - 508 77,069 3,361,007 Restricted 604,458 1,495,651 5'7,297,849 29,853,'771 89,251,'729 Assigned '7,923,890 - - - 7,923,890 Unassigned 14,'750,184 - - (191,422) 14,558,�62 Total fund balances 26,561,962 1,495,651 57,298,357 29,739,418 ll5,095,388 Total liabilities,deferred inflows of resources and fund balances $ 52,409,572 $ 24,623,�26 $ 81,348,692 $ 3'7,09],352 $ 195,473,342 (Concluded) See accompanying Notes to the Basic Financial Statements. 39 T'his page intentionally left blank 40 City of Redding Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position June 30,2023 Statement of Internal Net Position Service Funds Net Fund balances governmental funds $ 115,095,388 Amounts reported for governmcntal activities in the Statcinent of Net Position are diffcrent becausc: Capital assets(net)havc not been included as finaneial resources in governmental fund activity. $ 364,797,544 $ 2,073,801 362,723,743 Deferred charges have not been included as financiat resources in governmental fund activity. 172,591 - 172,591 Dcferred outflows rclatcd to pensic�ns and OPEB have not bcen included in g�vcrnmcntal fund activity. 75,221,694 10,147,215 65,074,479 Long-term debt that has not been included in the govermnental fund activity. (29,581,292) (227,207) (29,354,085) Acerued interest payable for thc currcnt porYion of interest due on bonds has not been reporCed in the governmental funds. (321,355) - (321,355) T`he nct other p�st employmenC benefit obligation has not been reported in the governmental funds. (30,553,504) (4,739,585) (25,813,919) Net pension liability is not due and payablc in the current period and therefare is not reported in the fund fmancial statetnents. (220,960,810) (25,036,061) (195,924,749) Revenue reported as unavailable rcvenue in thc governmental funds is recorded as revenue in thc statement of activities. 35,381,354 - 35,381,354 Deferred inflows relaCed to pensions and OPEB ha�e noC been included in governmcntal fund activiry. (5,392,142) (524,404) (4,867,738) Internal service fund net posirion included in the governmental activities on the statement of activities. - 3,424,318 (3,424,318) Accrued vacation and other leave noC reported in governmental funds,but recorded as expense in the Statement of Activities. (14,386,965) (2,014,224) (12,372,741) Net position of governmental acYivities $ 306,368,650 See accompanying Notes to the Basic Financial Statements. �l City of Redding Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2023 General Community Non-Major Total General Capital Projects Development Governmental Governmental Fund Fund Fund Funds Funds REVENUES: Properrytaxes $ 26,249,843 $ - $ - $ - $ 26,249,843 Sales and use taxes 30,199,056 - - 272,517 30,471,573 Other taxes 11,531,384 - - - ll,531,384 Special assessments 10,110 - - 983,939 994,049 Licenses and pennits 2,390,036 - - 106,571 2,496,607 Inter�overmnental revenues 6,499,493 11,083,533 18,987,296 25,647,503 62,217,825 Char�es for services 4,676,990 - 165,000 1,561,266 6,403,256 Fines,forfeitures,and penalties 1,497,514 40,000 - 93,030 1,630,544 Use of money and properry 8,823,765 - - - 8,823,765 Net inveslanent earnin�s(loss) 828,729 (93,161) 66,514 203,322 1,005,404 Other 1,642,627 6,958,885 4,160,062 170,766 12,932,340 Total revenues 94,349,54� 17,989,25� 23,378,8'72 29,038,914 164,�56,590 EXPENDITURES: Current: Generalgovernment 10,803,ll6 - - - 10,803,116 Community development - - 10,491,216 13,981,798 24,473,014 Public safety: Police 43,332,841 - - 53,450 43,386,291 Fire 25,770,361 - - - 25,770,361 Public works 7,324,530 140,599 - 1,186,ll2 8,651,241 Planning 6,582,099 - - - 6,582,099 Recreation and culture 6,531,197 678,081 - 2,629,301 9,838,579 Capital outlay 10,471,609 16,614,013 45,000 713,310 27,843,932 Debt service: Principal 1,870,603 285,000 - ll0,367 2,265,970 Interest and fiscal char�es 1,072,308 454,288 21,318 2,424 1,550,338 Total expenditures ll3,758,664 18,171,981 10,557,534 18,676,762 161,164,941 Excess(deficiency)of revenues over(under)expenditures (19,409,117) (182,724) 12,821,338 10,362,152 3,591,649 OTIIER FINANCING SOURCES(USES): Sale of assets 239,117 - - - 239,11"7 Lon�-term debt issued 189,326 - - 675,787 865,ll 3 Transfers in 19,693,790 - - 965,276 20,659,066 Transfers out (2,876,336) (33,'711) - (9,961,536) (12,871,583) Total other�nancing sources(uses) 17,245,89� (33,'711) - (8,320,473) 8,891,'713 NET CHANGE IN FUNll BALANCES (2,163,220) (216,435) 12,821,338 2,041,679 12,483,362 Fund balances: Beginning of year 28,725,182 1,712,086 44,47'7,019 27,69'7,�39 102,612,026 End of year $ 26,561,962 $ 1,495,651 $ 57,298,35� $ 29,�39,418 $ 115,095,388 See accompanying Notes to the Basic Financial Statements. 42 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, 2023 Net chan�e in fund balances-total governmental funds $ 12,483,362 Amounts reported far governmental activities in the Statement of Activities were different because: Governmental funds reported acquisition of capital assets as part of capital outlay expenditures. However,in the �overnment-wide Statement of Activitics and Chan�cs in Net Position,the cost of those assets was allocated over their estimatcd useful lives as depreciation expense. This was thc amount of capital assets recorded in thc current period. 2�,843,932 In the Statement of Activities,donated assets are reported as a capital contribution. 4,939,008 Transfer of capital assets between goven�mental,enterprise,and internal service fands. 6,520,312 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 fu.nds of$1,230,665 was not reported in the in governmental funds. (16,888,580) Disposal of capital assets is reported in the�overnment-wide Statement of Activities and Changes in Net Position, but it does not require the use of current financial resources. Therefore,it is not reportcd as expenditures in �overnmental funds. -Net book value of the assets disposed (5,392) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental funds. 8,833,796 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 ar expenditure. (2,685,128) Repayment of long-term liabilitics was an cxpenditure in�overnmental funds,but thc repayment reduccd long-term liabilities in the Government-Wide Statement of Net Position, Principal payment of long-term debt 2,265,970 Ainortization of bond premium 130,904 Ainortization of bond discounts (3,644) Proceeds from debt are a financin�source in the governmcntal funds,but a liabIlity in the Statement of Net Position (865,113) 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. (16,389) Compensated absences in the Statement of Activities is reported as an expense but is not reported in the governmental funds. (327,253) In the Statement of Activities,pension expense that does not require the use of current financial resources is not reported as revenue or expenditure. 162,692 Net income(loss)befare transfers and contributions-internal service funds (7,055,455) Less: portion allocated to business activities (331,10� Change in net position of governmental activities $ 35,001,916 See accompanying Nofes to the Basic Financial Statemenfs. 43 T'his page intentionally left blank 44 PROPRIETARY FUND FINANCIAL STATEMENTS Major Enterprise Funds: Electric Utility—This fund was established to account 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. Water Utility—This fund was established to account 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. 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. 45 City of Redding Statement of Net Position Proprietary Funds June 30,2023 Enterprise Funds Solid Waste Electric Water Wastewater Collection/ Utility Utility Utility Disposal ASSETS CurrenY assets: Cash and investments $ 67,511,671 $50,909,698 $ 37,433,659 $ 25,572,769 Accounts receivable,net 14,417,81] 2,735,616 3,041,861 2,543,230 Leasc receivable - 109,089 - - Intergovernmental receivable - 64,531 - - Interestreceivable 304,262 312,123 232,658 144,999 Interfund receivable ],'762,014 692,220 471,96$ 220,252 Prepaid itcros 1,128,'766 4,888 6,118 240,390 Inventories 10,846,269 1,075,600 15,109 327,820 Dcposit 350,900 20,300 22,000 - Tota1 current assets 96,321,693 55,924,065 41,223,373 29,049,460 Noncurrent assets: Restricted assets: Cash and investments 11,985 5,078,294 4,619,599 - Interest receivable 45 - 21 - Total restricted assets 12,030 5,078,294 4,619,620 - Capital assets: Land 5,240,780 508,799 2,984,167 1,697,818 Construction in progress 16,617,311 8,550,52$ 19,233,916 $61,56$ Dcpreciable capital assets,net 175,614,699 63,818,906 160,752,810 16,816,245 Capital assets 197,472,790 72,878,233 182,970,893 19,375,631 Other assets: Advances to other funds 4,240,051 - - - Lease receivable,net current - 368,364 - - Investment in JPA 7,584,638 - - - Storage base gas 13,570,000 - - - Note receivable 90,688 - - - Total other assets 25,485,377 368,364 - - Total noncurrent assets 222,970,197 78,324,891 187,590,513 19,375,631 ToYal assets 319,291,890 134,248,956 228,813,886 48,425,091 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding 5,596,324 - 767,723 - Deferred outflows related to other post employment benefits 5,498,909 605,095 831,116 1,360,929 Deferred outflows related to pensions 26,259,433 3,028,149 3,818,883 6,024,708 Total deferred outflows of resources 37,354,666 3,633,244 5,417,722 7,385,637 (Continued) See accampanying Nates ta the Basic Financial Statements. 46 City of Redding Statement of Net Position (Continued) Proprietary Funds June 30, 2023 Governmental Enterprise Funds Activities Non-Majar Internal Enterprise Service Funds Total Funds ASSETS Current assets: Cash and investments $ 7,428,126 $ 188,855,923 $ 18,161,226 Accounts receivable,net 10],935 22,840,453 153,662 Leasc receivable 685,183 794,2�2 - Intergovernmental receivable 7,160,429 7,224,960 277 Interest receivable 49,708 1,043,'750 98,585 Interfund receivable - 3,146,454 ll2,571 Prepaid items 242,126 1,622,288 2,180,014 Inventories 164,25'7 12,429,055 476,968 Deposit - 393,200 - Tota1 current assets 15,831,764 238,350,355 21,183,303 Noncurrent assets: Restricted assets: Cash and investments 3,125,818 12,835,696 - Interest receivable - 66 - Total restricted assets 3,125,818 12,835,762 - Capital assets: Land 9,962,746 20,394,310 110,810 Constructioninprogress 9,936,653 55,199,976 508,145 Depreciable capital assets,net 50,216,013 467,218,6'73 1,454,846 Capital assets 70,115,412 542,812,959 2,073,801 Other assets: Advances to other funds - 4,240,051 3,195,449 Lease reeeivable,net current 7,941,102 8,309,466 - Investment in JPA - 7,584,638 - Storage base gas - 13,570,000 - Note receivable - 90,688 - Total other assets 7,941,102 33,794,843 3,195,449 Total noncurrent assets 81,182,332 589,443,564 5,269,250 Total assets 97,014,096 827,793,919 26,452,553 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding - 6,364,047 - Deferred outflows related to other post employment benefits 288,209 8,584,258 1,936,368 Deferred outflows related to pensions 991,249 40,122,422 8,210,847 Total deferred outflows of resources 1,279,458 55,070,727 10,147,215 (Continued) See accampanying Nates ta the Basic Financial Statements. 47 City of Redding Statement of Net Position (Continued) Proprietary Funds June 30,2023 Enterprise Funds Solid Waste Electric Water Wastewater Collection/ Utiliry Uriliry Utiliry Disposal LIABILITIES Current liabilities(payable from current assets): Accounts payable 4,522,629 583,540 1,547,756 953,657 Accrued liabilities 895,364 125,'7'71 139,'716 221,194 Acerued interest payable 365,813 - 158,178 - Claims and judgements payable - - - - Intergovernmental payable 3,451,822 14,151 381 44,446 Due to other funds - - - - Interfund payables - - - - Unearned revenue 126,731 20,094 - 138,855 Deposits 2,693,829 12,714 - 7,091,156 Accrued compensated absences,due with in one year 2,151,413 266,046 295,444 621,414 Landfill closure eosts,due with in one year - - - 183,640 Long-term debt,due with in one year 12,111,610 24,51 l 4,470,255 43,934 State loan,due with in one year - - - - Aggregate net OPEB liability 788,709 86,789 119,207 195,198 Total current liabilities 27,107,920 1,133,616 6,730,937 9,493,494 L,ong-term liabilities: Aecrued compensated absenees,due in more than one year 4,452,411 475,643 545,534 1,360,692 Landfill closure costs,due in more than one year - - - 2,581,197 Advances from other funds - - - - Accrued liabilities,due in more than one year 447,705 - - - Claims and judgements,due in more than one year - - - - Long-term debt,due in more than one year 94,995,093 l,$39 44,121,019 $2,498 State loan,due in more than one year - - - - Aggregate net OPEB liabiliry 12,670,775 1,394,281 1,915,088 3,135,899 Aggregatenetpensionliabiliry 79,828,632 8,496,680 11,047,002 18,148,976 Total long-tern�liabilities 192,394,616 10,368,443 57,628,643 25,309,262 Totalliabilities 219,502,536 11,502,059 64,359,580 34,802,756 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to other post employment benefits 1,196,159 131,624 180,790 296,038 Deferred inflows related to pensions 335,450 54,678 61,472 80,712 Deferred inflows related to leases - 477,453 - - Total deferred inflows of resources 1,531,609 663,755 242,262 376,750 NET POSITION Net investment in capital assets 95,974,396 72,865,443 135,147,342 19,249,199 Restricted for: Capital projects - 5,064,734 537,2$2 - Unrestrieted(defieit) 39,638,015 47,786,209 33,945,142 1,382,023 Total net position(de�cit) $ 135,612,411 $ 125,716,386 $ 169,629,766 $ 20,631,222 (Co�atinued) See aeeornpanying Notes to the Basie Finaneial Statements. 48 City of Redding Statement of Net Position (Continued) Proprietary Funds June 30, 2023 Governmental Enterprise Funds Activities Non-Major Internal Enterprise Service Funds Total Funds LIABILITIES Current liabilities(payable from current assets): Accounts payable 1,678,357 9,285,939 1,105,328 Accrued liabilities 56,429 1,438,4'74 338,986 Acerued interest payable 2,792 526,783 - Claims and judgements payable - - 8,222,185 Intergovernmentalpayable 124,577 3,635,377 1,140,794 Due to other funds 5,'733,214 5,733,214 - Interfund payables 112,571 112,571 25,000 Unearned revenue 2,032,373 2,318,053 189,740 Deposits 87,139 9,884,838 - Accrued compensated absences,due with in one year 69,272 3,403,589 657,224 Landfill closure eosts,due with in one year - 183,640 - Long-term debt,due with in one year 119,831 16,770,141 93,030 State loan,due with in one year 31,181 31,181 - Aggregate net OPEB liability 41,338 1,231,241 277,734 Total current liabilities 10,089,0'74 54,555,041 12,050,021 I,ong-term liabilities: Accrued compensated absences,due in more than one year 124,264 6,958,544 1,357,000 Landfill closure costs,due in more than one year - 2,5$1,197 - Advances from other funds 3,008,537 3,008,537 6,250 Accrued liabilities,due in more than one year 447,705 - Claims and judgements,due in more than one year - - 10,295,055 Long-term debt,due in more than one year 33,077 139,233,526 134,177 State loan,due in more than one year 303,355 303,355 - Aggregate net OPEB liability 664,104 19,780,147 4,461,851 Aggregatenetpensionliabiliry 3,262,837 120,784,127 25,036,061 Total long-tern�liabilities 7,396,174 293,097,138 41,290,394 Totalliabilities 17,485,248 347,652,179 53,340,415 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to other post employment benefits 62,692 1,867,303 421,2ll Deferred inflows related to pensions 7,035 539,347 103,193 Deferred inflows related to leases 8,626,285 9,103,738 - Total deferred intlows of resources 8,696,012 11,510,388 524,404 NET POSITION Net investtnent in capital assets 69,627,971 392,864,351 1,846,594 Restricted for: Capital projects 3,319,632 8,921,648 - Unrestricted(deficit) (835,309) 121,916,080 (19,111,645} Total net position(deficit) $ 72,112,294 $ 523,702,079 $ (17,265,051) Net position reconciliation to statement of net position: Net position of proprietary funds $ 523,702,079 Less business-type portion of the internal service func (13,840,'733) Net position of business-type activities $ 509,861,346 See aeeompanying Notes to the Basie Finaneial Statements. (Concluded) 49 City of Redding Statement of Revenues,Expenses, and Changes in Net Position Proprietary Funds For the Year Ended June 30,2023 Enterprise Funds Solid Waste Electric Water Wastewater Collection/ Utility Utility Utility Disposal OPERATING REVENUES: User fees and charges $ 131,400,744 $ 24,327,828 $ 33,593,933 $ 26,256,121 Wholesale sales 44,591,721 48,420 - - Rental charges 138,000 - - - Other operatin�revenue 23,236,061 - 57,019 828,132 Total operating revenues 199,366,526 24,376,248 33,650,952 27,084,253 OPERATING EXPENSES: Cost of power,water,and transportation 80,993,472 1,002,971 - - Maintenance,operations,and administration 86,200,380 16,743,718 19,389,793 27,534,468 Depreciation and amortization 15,241,870 4,102,715 7,319,789 2,889,534 Total operating expenses 182,435,722 21,849,404 26,709,582 30,424,002 OPERATING INCOME(LOSS) 16,930,804 2,526,844 6,941,370 (3,339,749) NONOPERATING REVENUES(EXPENSES): Net investment earnings(loss) 776,999 579,629 515,892 404,224 Interest expense (4,377,051) (39,502) (1,437,'704) (1,508) Intergovernmental revenues - 4,952 - 81,154 Gain(loss)on disposal of assets (427,852) (159,000) 8,794 (113,474) Other non-operating revenues(expenses) ll 6,791 2,265,456 1,685,270 1,904 Total nonoperating revenues(expenses) (3,911,113) 2,651,535 772,252 372,300 iNCOME(LOSS)BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS 13,019,691 5,178,379 7,713,622 (2,967,449) Capital contributions 1,666,030 1,833,043 857,485 1,184,298 Transfers in 24,250 6,500 - - Transfers out (9,471,150) (132,306) (309,922) - Change in net position 5,238,821 6,885,616 8,261,185 (1,783,151) NET POSITION: Beginning ofyear 130,373,590 ll8,830,770 161,368,581 22,414,373 End of year $ 135,612,4ll $ 125,716,386 $ 169,629,766 $ 20,631,222 (Continued) See aceompanying Notes to the Basic Finaneial Statements. 50 City of Redding Statement of Revenues,Expenses, and Changes in Net Position (Continued) Proprietary Funds For the Year Ended June 30, 2023 Governmentai Enterprise Funds Activities Non-Majar Internal Enterprise Service Funds Total Funds OPERATING REVENUES: User fees and charges $ 3,944,629 $ 219,523,255 � 8],146,565 Wholesale sales - 44,640,141 - Rental charges 1,819,311 1,957,31] - Other operatin�revenue 986,438 25,10�,650 59,195 Total opera�ing revenues 6,750,378 291,228,357 81,205,760 OPERATING EXPENSES: Cost of power,water,and transportation 4,308,340 86,304,783 - Maintenance,operations,and administration 9,008,673 158,877,032 81,607,889 Depreciation and amortization 4,384,501 33,938,409 394,901 Total operating expenses 17,701,514 279,120,224 82,002,790 OPERATING INCOME(LOSS) (10,951,136) 12,108,133 (797,030) NONOPERATING REVENUES(EXPENSES): Net investment earnnlgs(loss) ]39,527 2,416,271 177,172 Interest Expense (42,ll7) (5,897,882) (12,262) Intergovernmental revenues 7,865,8'76 7,951,982 14,818 Gain(loss}on disposal of assets 7,481 (684,051) 35,473 Other non-operating revenues(expenses) 420,081 4,489,502 (6,473,b2b) Total nonoperating revenues(expenses) 8,390,848 8,275,822 (6,258,425) INCOME(LOSS)BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS (2,560,288) 20,383,955 (7,055,455) Capital contributions 5,591,865 11,132,721 - Transfers in 2,306,301 2,337,051 102,886 Transfers out (245,000) (10,158,378) (69,042) Change in net position 5,092,878 23,695,349 (7,021,611) NET POSITION: Beginning of year 67,019,416 500,006,730 (10,243,440) End of year $ 72,ll2,294 $ 523,'702,079 $ (17,265,051) Change in net position reconcilitttion to statement of activities: Change in nEt position of propriEtary funds $ 23,695,349 Add internal serviee funds incolne- business-type activity 331,106 Change in net position of business-type activities $ 24,026,455 (Concluded) See accompanying Notes to the Basic Finaneittl Statements. 51 City of Redding Statement of Cash Flows Proprietary Funds For the I'ear Ended June 30, 2023 Enterprise Funds Electric Water Wastewater Utiliry Utiliry Utiliry CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 178,075,637 $ 24,242,902 $ 33,597,693 Cash paid to suppliers (126,455,919) (12,642,738) (12,669,567) Cash paid to employees (39,637,972) (4,702,510) (6,071,002) Other income received 23,236,061 - 57,019 Net cash provided by(used in)operating activities 35,21�,807 6,897,654 14,914,143 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Intergovemmental revenue received - 4,952 - Advances from other funds - - - Repayment of advances from other funds - - - Advances to other funds (3,146,610) (692,220) (522,291) Repayment of advances to other funds 3,219,304 144,594 50,323 Transfers in 24,250 3,244,422 - Transfers out (9,471,150) (3,236,909) (309,922) Other revenue,contributions - - - Net cash provided by(used in)noncapital financing activities (9,374,206) (535,161) (781,890) CASI3 FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Capital�rant received - - - Proceeds from sale of assets 300,486 35,953 318,716 Purchase of capital assets (13,132,180) (5,720,610) (9,079,722) Rents received - 12,746 Interestpaid (4,964,519) (28,847) (2,153,614) Proceeds from long-term debt - - - Principal paid on long-term debt (10,203,645) (754,571) (4,627,087) Principal paid on - - - Cash collected for future capital outlay - 2,265,456 1,672,524 Net cash provided by(used in)capital and related�nancing activities (2'7,999,858) (4,202,619) (13,856,437) CASH FLOWS FROM INVESTING ACTIVITIES: Net invesianent earnings(loss) 655,884 412,501 392,268 Net cash(used in)investing activities 655,884 412,501 392,268 Net increase(decrease)in cash and cash equivalents (1,500,373) 2,572,375 668,084 CASII AND CASII EQUIVALENTS: Beginning of year 69,024,029 53,4]5,617 41,385,174 End of year $ 6'7,523,656 $ 55,987,992 $ 42,053,258 Reconciliation to statement of net position: Cash and cash equivalents $ 6'7,511,671 $ 50,909,698 $ 3'7,433,659 Restricted cash and cash equivalents 11,985 5,078,294 4,619,599 $ 67,523,656 $ 55,987,992 $ 42,053,258 See accompanying Notes to the Basic Financial Statements. (Continued) 52 City of Redding Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended June 30, 2023 Governmental Enterprise Funds Activities Solid Waste Non-Major Internal Collection/ Enterprise Service Disposal Funds Total Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 30,3ll,780 $ 6,768,018 $ 272,996,030 $ 81,120,900 Cash paid to suppliers (20,109,231) (12,034,577) (183,912,032} (66,566,819) Cash paid to einployees (10,549,438) (1,915,536) (62,876,458) (12,616,698) Other income received 828,156 32,626 24,153,862 - Net cash provided by(used in)operating activities 481,267 (7,149,469) 50,361,402 1,93'7,383 CASH FLOWS FROM NONCAPTTAL FINANCING ACTIVITIES: Inter�overnmental revenue received 79,050 8,309,603 8,393,605 8,023 Advances from other funds - 5,733,214 5,'733,214 - Repayment of advances from other funds - (1,815,037) (1,815,037) (105,210) Advances to other funds (220,252) - (4,581,373) (28,720) Repayment of advances to other funds - - 3,414,221 117,250 Transfers in - 2,266,298 5,534,970 - Transfers out - (245,000) (13,262,981) - Other revenue,eontributions - - - 2'73 Net cash provided by(used in)noncapital financing activities (141,202) 14,249,078 3,416,619 (8,384) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Capital grant reccived - (343,024) (343,024) - Proceeds from sale of assets 10,308 - 665,463 35,964 Purchase of capital assets (3,029,759) (7,792,109) (38,754,380) (2,755,484) Rents received 1,880 57,249 71,8'75 - Interest paid (1,508) (50,165) (7,198,653) (12,262) Proceeds from long-term debt 140,546 - 140,546 94,402 Principal paid on 1on�-term debt - (912,776) (16,498,079) (27,604) Principal paid on (23,156) - (23,156) - Cash collected for future capital outlay - 330,223 4,268,203 - Net cash provided by(used in)capital and related�nancing activities (2,901,689) (8,710,602) (57,671,205) (2,664,984) CASH FLOWS FROM INVESTING ACTIVITIES: Net investment carnings(loss) 333,589 105,896 1,900,138 122,636 Net cash provided(used)by investing activities 333,5$9 105,896 1,900,138 122,636 Netincrease(decrease)in cash and cash equivalents (2,228,035) (1,505,097) (1,993,046) (613,349) CASH AND CASH EQUIVALENTS: Beginning of year 27,800,804 12,059,041 203,684,665 18,'7�4,575 Endofyear $25,572,769 $ 10,553,944 $ 201,691,619 $ 18,161,226 Reconciliation Yo sYatement of net position: Cash and cash equivalents $25,572,769 $ 7,428,126 $ 188,855,923 $ 18,161,226 Restricted cash and cash cquivalents - 3,125,818 12,835,696 - $25,572,769 $ 10,553,944 $ 201,691,619 $ 18,161,226 See accompanyirrg Notes to the Bc�sic Financial Statements. (Continued) 53 City of Redding Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended June 30, 2023 Enterprise Funds 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) $ 16,930,804 $ 2,526,844 $ 6,941,370 Adjustments to reconcile operating income(loss)to net cash provided(used)by operating activities: Other non-operating revenue and expense - - - Depreciation and amortization 15,241,870 4,102,715 7,319,789 (Increase)decrease in accounts receivable 1,945,1'72 (133,346) 3,'760 (Increase)decrease in inventories 102,585 (71,509) 6,572 (Inerease)decrease in prepaid items 503,994 - (2,'760) (Increase)decrease in investment in 7I'A (1,230,810) - - (Increase)decrease in deposits (255,52'7) 700 19,000 Increase(decrease)in accounts payable 639,882 361,876 629,809 Increase(decrease)in accrued liabilities 187,801 49,252 42,044 Increase(dccrease)in claims and judgements payable - - - Inerease(decrease)in deposits liability 619,574 12,714 - Increase(decrease)in inter�overnmental payable (1,947,479) 9,962 (25,278) Increase(decrease)in unearned revenue 126,731 - - Inerease(dcerease)in accrucd compensated absenecs 787,157 ll 7,549 60,924 Inerease(decrease)in accrued landfill closure costs - - - Increase(decrease)in accrued liabilities lon�-term 447,705 - - Other post employment benefits related items 1,136,682 1'76,210 (25,�29) Pension related items (18,334) (255,313) (55,358) Total adjustments 18,287,003 4,370,810 7,972,773 Net cash provided by(used in)operating activities $ 35,217,807 $ 6,897,654 $ 14,914,143 SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: Plant contributed from developers $ 1,666,030 $ 1,833,043 $ 857,485 Non-cash change in deposits - - - Transfer in of capital assets - 125,806 - Total non-cash capital and related financing activities $ 1,666,030 $ 1,958,849 $ 857,485 (Continued) See accorrzpanying Notes tv the Basic Fina�cial Statements. 54 City of Redding Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended June 30, 2023 Governmental Enterprise Funds Activities Solid Waste Non-Major Internal Collectionl Enterprise Service Disposai Funds Total Funds RECONCILIATION OF OPERATTNG INCOME(LOSS)TO NET CASH PROVIDED BY(USED IN)OPERATING ACTIVITIES: Operating income(loss)to net cash providcd by(used in) $ (3,339,749) $ (10,951,136) $ 12,108,133 $ (797,030) Adjustments to reconcile operating income(loss)to net cash provided(used)by operatin�activities: Other non-operating revenue and expense 24 32,609 32,633 - Depreciation and amortization 2,889,534 4,384,501 33,938,409 394,901 (Increase)decrease in accounts receivable (93,76'7) 18,557 1,'740,376 ('76,837) (Increase)decrease in inventories (327,820) (49,857) (340,029} (85,524) (Increase)decrease in prepaid items - (1) 501,233 (33,482) (Increase)dccrease in investmcnt in JPA - - (1,230,810) - (Inerease)decrease in deposits - - (235,827) - Increase(decrease)in accounts payable 62,183 (52,023) 1,641,727 708,040 Tncrease(decrease)in accrued liabilities 68,346 17,650 365,093 52,193 Increase(decrease)in claims and judgements payable - - - 860,300 Increase(decrease)in deposits liability 940,860 (900) 1,5�2,248 - Increase(decrease)in intergovernmental payable 3,795 (685,770) (2,644,770) 482,072 Increase(decrease)in unearned revenue - 13,74'7 140,4'78 (8,023) Increase(decrease)in acerued compensated absences 304,647 34,589 1,304,866 307,569 Increase(decrease)in accrued landflll closure costs 180,877 - 180,877 - Increase(decrease)in accrued liabilities long-tenn - - 447,705 - Other post employment benefits relaYed items 335,604 113,891 1,736,658 601,759 Pension related iteins (543,267) (25,326) (897,598) (468,555) Total adjustments 3,821,016 3,801,667 38,253,269 2,734,413 Net cash provided by(used in}operating activities $ 481,267 $ (7,149,469) $ 50,361,402 $ 1,937,383 SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: Plant contributed froln developers $ 1,184,298 $ 969,489 $ 6,510,345 $ - Non-cash change in deposits (1,184,298) - (1,184,298) - Equipinent transfers - 403,990 529,796 (51,435) Total non-cash capital and related financing activities $ - $ 1,373,479 $ 5,855,843 $ (51,435) (Concluded) See accompanying Notes to the Basic Financial Statements. 55 T'his page intentionally left blank 56 FIDUCIARY FUND FINANCIAL STATEMENTS Custodial Funds These funds are custodial in nature and do not involve measurement of results of operations. They are used to account for assets held in an agency capacity for others and therefore cannot be used to support the City's programs. This includes the Special Deposits Fund, Integrated Public Safety System (IPSS) Fund, and Enterprise Anderson Groundwater Fund. These funds use the economic resources measurement focus. The Successor Agency to the Redding Redevelopment Agency Private-purpose Trust Fund ("Successor Agency") This fund is used to account for monies received from the Shasta County Auditor-Controller for the repayment of the enforceable obligations of the former Redding Redevelopment Agency. These funds are restricted for the sole purpose of payment of items on an approved Recognized Payment Obligation Schedule(ROPS). 57 City of Redding Statement of Fiduciary Net Position Fiduciary Funds June 30, 2023 Successor Agency Custodial Private-Purpose Funds Trust Fund ASSETS Cash and investulents $ 7,964,098 $ 2,133,796 Restricted cash and investments - 6,38'7,'726 Interest receivable 26,365 41,777 Accounts receivable,net 131,123 - Intergovernmental receivable - 29,574 Capital assets: Land - 175,877 Construction in progress 2,380,119 - Depreciable capital assets,net 78,870 - Nef capital assets 2,458,989 175,87� Total assets 10,580,575 8,768,750 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding - 4,172 Total deferred outflows of resources - 4,172 LIABILITIES Accounts payable 2,607 - Accrued liabilities 15,27'7 - Accruedinterestpayable - 191,619 Intergovernmental payable 33,178 - Unearned revenue - 184,363 Deposits payable '7,251,915 - Long-term debt - ll,701,204 Total liabilities 7,302,977 12,077,186 NET POSITION(DEFICIT) Restricted for: Tndividuals,organizations,and other governments 3,27�,598 - Held in trust - (3,304,264) Total net position $ 3,277,598 $ (3,304,264) See aecompanying Notes to the Basic Finaneial Statements. 58 City of Redding Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30,2023 Successor Agency Custodial Private-Purpose Funds Trust Fund ADDTTIONS: Property taxes $ - $ 3,641,023 Inter�overnmental revenues 1,467,241 - User fees 144,937 - Net investment earnin�s(loss} 37,769 181,450 Total additions 1,649,947 3,822,473 DEDUCTTONS: Adn�inistrative costs 1,036,892 250,000 Payment on recognized obligation payment schedure - 629,913 Sof�ware maintenance and support 52,578 - Project payments 868,592 - Depreciation 39,018 - Total deductions 1,99'7,080 879,913 Net change in net position (347,l 33) 2,942,560 NET POSITION: Beginning of period 3,624,'731 (6,246,824) End of period $ 3,2'7'7,598 $ (3,304,264) See accompanying Notes to the Sasic Financial Statements. 59 T'his page intentionally left blank 60 NOTES TO T��E BASIC FINANCIAL STATEl��IENTS 61 This page intentionally left blank 62 City of Redding Index to Notes to the Basic Financial Statements For the Year Ended June 30, 2023 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...........................................................................................................................................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 30,2023.............77 S. Upcoming Governmental Accounting Standards Implementation......................................................78 Note 2—Cash and Investments............................................................................................................................79 A. Demand Deposits.................................................................................................................................80 B. Inve stments..........................................................................................................................................8 0 C. Investments in Local Agency Investment Fund..................................................................................80 D. Investments in California Asset Management Program(CAMP}.......................................................81 E. Risk Disclosures..................................................................................................................................81 Note 3—Governmental Notes Receivable...........................................................................................................83 Note4—Lease Receivable.....................................................................................................................................84 Note5—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...................................................................................................8'7 D. Internal Balance Summary..................................................................................................................88 E. Transfer In and Out.............................................................................................................................89 Note6—Capital Assets .........................................................................................................................................90 A. Governmental Activities......................................................................................................................90 B. Business-Type Activities.....................................................................................................................91 Note 7—Power Acquisition Costs........................................................................................................................92 Note8—Storage Base Gas....................................................................................................................................92 63 City of Redding Index to Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note9—Unavailable Revenue..............................................................................................................................92 Note10—Long Term Debt...................................................................................................................................93 Note11 —Pledged Revenue...................................................................................................................................98 Note 12—Compensated Absences...........................................................................................100 Note13—Self Insurance......................................................................................................100 Note 14—Individual Fund Disclosures................................................................................................................]01. Note15—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 ......................................................................................105 E. Modesto Irrigation District Financing Authority................................................................................106 F. Contingent Liability............................................................................................................................107 Note 16—Postclosure Care Costs .......................................................................................................................107 Note 1'7—Public Transportation 1Vlodernization Improvement and Service Enhancement Account (PTMISEA) Grant Information.........................................................................................................108 Note18—Retirement Plans.................................................................................................................................109 A. Summary ............................................................................................................................................109 B. Ca1PERS.............................................................................................................................................115 C. PARS..................................................................................................................................................123 Note 19—Other Postemployment Healthcare Benefits....................................................................................129 Note20—Fund Balances .....................................................................................................................................138 Note 21—Net Investment in Capital Assets.......................................................................................................139 Note 22—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 23—Successor Agency Trust for Assets of the Former Redevelopment Agency...................................142 Note24—Subsequent Events.............................................................................................................................144 64 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 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 (IJ.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 fnancial reporting entity(the government) includes all the funds of the primary government (i.e., the City as legally defined), as we11 as a11 of its component units. Component units are legally separate entities for which the priinary government is financially accountable. The governinent 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 �nancia] 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 saine 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 repaid entirely or almost entirely with resources of the City. Management determined that the following component units should be blended based on the criteria above: ♦ Redding Housing Authority ♦ Redding Joint Power Financing Authority ♦ Redding Capital Services Corporation ♦ Redding Area Bus Authority These component units are included in the primary government because of the significance of their financial or operational relationship and the same City governing body. Each of the blenc3ed 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 goveming board of the Authority. The financial activity of the Authority has been included in the City's financial statements as a special revenue fund. Redding Joint Powers Financing Authority(JPA)was created by a joint exercise of power agreement between the City and the JPA with the purpose of financing public capital improvements. City Council members, in a 65 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 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 nonpro�t public benefit corporation, was organized under the Nonprofit Public Benefit Corporation Law of the State of California to provide �nancial 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�nancing 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 fonned 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 adc3ition, 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 �nancial 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. Measu�ement Focus,Basis of Accounting, and Financial Statement Presentation The accounts of the City are arganized 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 far Deferred Outflows of Resources,and Deferred Inflows of Resources,when applicable. DefeNred Outflows ofResouNces represent a consumption of net assets that applies to future periods and that, therefore,wi11 not be recognized as an expense untii that time. DefeNred Inflows of ResouNces represent an acquisition of net assets that applies to future periods and that, therefore, are not recognized as revenue until that time. Government-Wide Financial Statements The government-wide financial statements(i.e.,the statement of net position and the statement of activities)report information on all of the non-fiduciary activities of the primary government and its com�ponent units. For the most part, the effect of interfund activity has been removed froin 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. 66 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 1 —Summary of Significant Accounting Policies(Continued) B. Measurement Focus,Basis of Accounting, and Financial Statement Presentation (Continued) Government-Wide Financial Statements �Continued) The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identi�able 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 resou�ces" 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,inciuding special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include a11 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 a11 major funds that met the applicable criteria. Governmental fund financial statements are reported using the "current f nancial�esources"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 colleetible 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 clauns 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. 67 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 1 —Summary of Significant Accounting Policies(Continued) B. Measurement Focus,Basis of Accounting, and Financial Statement Presentation (Continued) Governmental Fund Financial Statements�(Continued) Property taxes, sales taxes,transient occupancy tax, grants,licenses,fees,charges and interest associated with the current fiscal period are a11 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 ineasurable 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 a11 fiinancial resources of the general government, except those required to be accounted for in another fund. The General Capitai 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 fnancing of multifamily housing. Pro�rietarv 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 F1ows for each major Proprietary Fund. A separate column representing internal service funds is also presented in these statements. �Iowever, 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. InformaZion Systems - this fund is used to provide computer technology services as well as providing programining and general information systems support services. General Support Services - this fund is used to provide printing,reprographics, geographic services,records retention,building and maintenance services,volunteer services and employee services. Risk Management—this fund is used to account for the accumulation of monies necessary to pay for worker's compensation claims,health, dental and visions claims and liability claims under a self-insurance program. Municipal Utilities SuppoNt—this fund is used to account for the management and technician support given to the Utilities and Street Maintenance funds. 68 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 1 —Summary of Significant Accounting Policies(Continued) B. Measurement Focus,Basis of Accounting, and Financial Statement Presentation (Continued) ProprietaN�Fund Financial Statements (Continued� Proprietary funds are accounted for using the "econo�nic resou�ces"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. U�nder 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 froin 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 de�nition 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 activiry which renders a service on a user-charge basis to residents and businesses. The Solid Waste Collection l 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. Fiduciar�v Fund Pinancial 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 eustodial 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. 69 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 1 —Summary of Significant Accounting Policies(Continued) B. Measurement Focus,Basis of Accounting, and Financial Statement Presentation (Continued) Fiduciary Fund Financial Statements(Continued� Fiduciary fund types are accounted for according to the nature of the fund. The Cit�'s Custodial funds are used to account for assets held by a governmental unit as an agent for inclividuals, 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 casb 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 ail investments and the average daily cash balance of each fund. For purposes of the statement of cash flows of the proprietary fund types, cash and cash equivalents include all investments, as the City operates an internal cash management pool. which maintains the general characteristics of a demand deposit account. A11 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. 70 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 1 —Summary of Significant Accounting Policies(Continued) C. Cash and Investments(Continued) U.S. GAAP defines fair value, establishes a framework for ineasuring 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 tl�eir 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 Levell,which are observable for the assets or liabilities through corroboration with market data at the measureinent date. Level 3—ITnobservable 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 properiy taxes for the City. Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on July l. They become due Noveinber 1 and February 1 and beeome 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. A11 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 wi11 benefit future accounting periods are recorded as prepaid items. Prepaid iteins, 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 expenditurelexpenses 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 l�istorical 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. 71 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 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 estunated useful lives are as foliows: Asset T�pes 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 undercapitallease 4-30 System infrastructure 30 Right-to-us e as s ets Term of Contract For a11 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 exainple, 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 subsysteins. 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 perfonnance 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. 72 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 1 —Summary of Significant Accounting Policies(Continued) G. Leases (continued) Key estimates and judginents 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 terin includes the non-cancelable period of the lease,plus any option periods that are reasonably certain to be exercised. 3. Lease payments incl�uded in the measurement of the lease liability are composed of fixed payinents 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 iease 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. L 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 coinposed of fixed payments froin 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. 73 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 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 SBTTA, the SBITA liability is measured at the present value of payments expected to be made during the SBITA term. Subsequentiy, the SBITA iiability 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 coinmencement 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. L 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. f Pensions For purposes of ineasuring 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 18).For this purpose,benefit payments(including refunds of employee contributions) are recognized when due and payable in accordance with benefit tenns.Investments are reported at fair value. The following timeframes are usecl for pension reporting: Ca1PERS: Valuation Date June 30, 2021 Measurement Date June 30,2022 Measurement Period July 1, 2021 to June 30,2022 PARS: Valuation Date June 30, 2022 Measurement Date June 30,2022 Measurement Period Ju1y 1, 2021 to June 30, 2022 74 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 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 expectecl remaining service lives of all members that are provided witl� benefts (active, inactive, and retired) as of the beginning of the measurement period. J. Othe�Postemployment Healthcare Benefits(OPEB) For purposes of ineasuring 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 19). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Tnvestments are reported at fair value. The following timeframes are used for OPEB reporting: Valuation Date June 30, 2021 Measurement Date June 30,2022 Measurement Period July 1, 2021 to June 30,2022 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 al1 members tl�at are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. K. Tlacation 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 elnployed 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 tenns of services equal to or exceeding ten years have been accrued in the accompanying government-wide financial statements and the accompanying proprietary fund financiai statements. 75 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 1 —Summary of Significant Accounting Policies(Continued) L. Uneavned Revenue In the government-wide financial stateinents and fund financial statements, unearned revenue is recorded for transactions for which revenues have not been earned. 1Vf. 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,business- type activities, or proprietary fund type statement of net position. Lease and subscription liabilities with a present value of mare 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. Boncl issuance costs, whether or not withheld from the actuai 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-wicle reporting as well as in proprietary funds, fund equitq 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 attrib�uted 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. Unrestr�icted net position is the net amount of assets, deferred outflows or resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories. O. Fund Balances In the fund�nancial statements, governmental funds aggregate amounts for five classi�cations of fund balances based on the constraints imposed on the use of these resources. The non-spendable fund balance classi�cation 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. 76 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 1 —Summary of Significant Accounting Policies(Continued) O. Fund Balances Restr�icted 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 speci�c 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 forinal policy of assignment of fund balance. So it is presumed that the order of spending is first committed fund balance,then assigned fund balance, and last of all,unassigned fund balance. 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 �nancial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. R. 1Vew Governmental Accounting Standards Implemented for the Year�Ended June 30, 2023 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, 2023. The financial statements included herein apply the requirements and provisions of these statements,including necessary retroactive adjust�nents 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: 77 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 1 –Summary of Significant Accounting Policies(Continued) R. New Governmental Accounting Standards Implemented for the Year Ended June 30,2023(Continued) GASB Statement No. 91 - In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations (GASB Statement No. 91), to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and(3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional coinmitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. Application of this statement did not have a significant effect of the City's financial statements for fiscal year ending June 30, 2023. GASB Statement No. 94 - In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to publio-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government(tl�e transferor) contracts with an operator (a governmental or nongovernlnental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset(the underlying PPP asset), far a period of time in an exchange or exchange-like transaction. Application of this did not have a significant effect of the City's financial statements for fiscal year ending June 30,2023. GASB Statement No. 96 - In May 2020, GASB issued Stateinent No. 96, Subscription-Based Information Technolvgy Arrangein�nts. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements(SBITAs)for government end users(governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability;(3)provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Application of this did not have a significant effect of the City's financial statements for fiscal year ending June 30,2023. GASB Statement No. 99 - Tn Apri12022, GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. Application of this did not have a significant effect of the City's financial statements for fiscal year ending June 30, 2023. S. Upcoming Governmental Accounting Standards Implementation GASB Statement No. 100 - In June 2022, GASB issued Statement No. 100, Accounting Changes and E��or Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Application of this statement is effective for the City's fiscal year ending June 30,2024. 78 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 1 —Summary of Significant Accounting Policies(Continued) S. Upcoming Governmental Accounting Standards Implementation (Continued) GASB Statement No.101-In June 2022,GASB issued Statement Na 101,Compensated Absences.The obj ective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Application of this statement is effective for the City's fiscal year ending June 30, 2025. Note 2—Cash and Investments At June 30,2023, cash and investments are reported in the accompanying basic financial statements as follows: Governinent-Wide Statement ofNet Position Fiduciary Funds Governmental Business-Type Statement of Activities Activities Total NetPosition Total Cash and investments $ 75,728,479 $ 188,855,923 $ 2Ei4,584,402 $ 10,097,894 $ 274,682,296 Restricted cash and investments $ 1,154,876 $ 12,835,696 $ 13,990,572 $ 6,387,726 $ 20,378,298 At June 30, 2023, cash and investments,incl�uding 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 ineasurements of the investments recognized in the accom�panying 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, 2023: Fair Ualue Measurement Unrestricted Restricted Total Input Deposits $ 59,855,558 $ 231,765 $ 60,087,323 N/A MediumTennCorporateNotes 24,019,600 - 24,019,600 I,evei2 Federai Agency Bonds 125,487,968 - 125,487,968 L,evei 2 Mutual Funds* 51,273,�41 14,615,�91 65,889,532 L,evel l Local Agency Invesiment Fund 14,045,429 5,530,742 19,5'76,171 Uneategorized Totalinvest7r�ents 214,826,738 20,146,533 234,973,271 Total cash and investments $ 274,682,296 $ 20,378,298 $ 295,060,594 *Includes CAMP Investments Securities classified in level 1 are valued using prices quoted in active markets for those seeurities. Seeurities classified in level 2 are valued using significant other observable inputs such as institutional bond pricing techniques and evaluated pricing applications and models. 79 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 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 ancl Investments." A. Demand Deposits At June 30, 2023, the carrying amount of the City's deposits was $60,087,323 of which $231,765 was restricted and $59,855,558 was unrestricted. The bank balance was $63,914,441. Of the bank balance, $1,948,703 was covered by Federal depository insurance, and$61,965,738 was covered by collateral held in the pledging bank's trust department. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City`s name. The market value of pledged securities must equal at least 110% of the City`s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes l�aving a value of]50% 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 Ciry 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 pay- through 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 maxiinum of five years with a minimum rating catego�ry 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 Inveshnent 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(LAIP) 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 30,2023 included a portion of pool funcls invested in Structure Notes and Asset-Backed Securities: Stpuctured 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 Secur^ities,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 receivabies. 80 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 2—Cash and Investments (Continued) C. Investments in Local Agency Investment Fund(LAIF) (Continued) As of June 30,2023,the City had$19,576,171 invested in LAIF,which had invested 2.78%of the pool invest�nent funds in Structured Notes (1.46%) and Asset-Back Securities (1.32%). 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 30,2023,by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was cletermined 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, 2023. D. Investments in California Asset Management ProgYam (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, 2023, the City has $65,000,000 invested in CAMP, which had invested the pool investment funds in a fully liquid, stable net asset value investments. E. Risk Disclosures DisclosuNes Relatin�to Interest Rate Ri.rk Tnterest rate risk is the risk that changes in market interest rates wi11 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 agreelnents 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 fonnal policy regarding interest rate risk. 81 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 2—Cash and Investments (Continued) E. Risk Disclosures(Continued) As of June 30,2023,the City had the following investments and maturities: UnrestriCted: Investments Maturities (in Years) Fair L.es s Investment Type Value Than 1 1-2 3-4 5 Medium Term Corporate Notes $ 24,019,600 $ 7,406,000 $ 4,856,800 $11,756,800 $ - Federal Agency Bonds 125,487,96$ 21,634,204 33,494,368 39,403,186 30,956,210 Investment in State Treasurer's Investrr�nt Pool 14,045,429 14,045,429 - - - Mutual Funds 51,273,741 51,273,741 - - - Total $ 214,826,�38 $ 94,359,374 $38,351,168 �S1,159,986 $30,956,210 ReStriCted: Investments Maturities (in Years) Fair Less More Investinent Type Value Than 1 1-5 Than 5 Investment in State Treasurer's Investment Pooi $ 5,530,742 $ 5,530,742 $ - $ - Mutual Funds 14,615,791 14,615,791 - - Total $ 20,146,533 $ 20,146,533 $ - $ - DisclosuNes 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, 2023, the City's investments in Federal Agency Bonds were rated AA and AAA by S&P. The City's investments in Mediuln Term Corporate Notes were rated A,AA, and AAA by S&P. Tnvestments 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, 2023, the City's investments in CAMP were rated AAAm, AA+, AA-, A+, A-1+ by S&P and exempt. 82 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 2—Cash and Investments (Continued) E. Risk Disclosures(Continued) Disclosures Relating to Concent�^ation of CreditRisk 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 $ 23,956,430 Federal National Mortgage Association Federal Agency Securities $ 26,841,]60 Federal Home L,oan Mortgage Corporation Federal Agency Securities $ 30,157,475 Federal Home Loan Bank Federal Agency Securities $ 44,539,879 Disclosu�es Relatin�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.,broker- dealer)to a transaction,a govemment 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 Ciry'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 30,2023, Note 3-Governmental Notes Receivable Notes receivable represent loan agreements entered into between the City or Successor Housing Agency(the former RDA) and unrelated nongovernmental entities as part of the City's redevelopment activities,including single-family home buyer assistance, and real estate development and construction loans. At June 30, 2023, approximately$63.94 miliion of notes receivable, net of$0.20 miilion allowance for doubtful accounts, were reported in the Community Development major fund. At June 30, 2023, approximately $15.24 million of notes receivable were reported in the Housing non-major special revenue fund. Business-type note receivable is $0.09 million. 83 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 3-Governmental Notes Receivable(Continued) Balance Balance Juiy 1,2022 Additions Deletions June 30,2023 General governmental activities: Community development fund loans Community Development Block Grant(CDBU� $ 2,823,897 $ 131,334 $ (81,02� $ 2,874,205 HOMEInvestmentProgram(HOM� 21,886,472 2,629,704 (739,043) 23,777,133 CalHome Program 1,758,167 87,000 (106,747) 1,738,420 Other California Programs (AHSC,IIG) 14,527,108 15,757,981 - 30,285,089 City Affordable Housing Loan Fund(AHL,F) 2,041,597 3,224,975 - 5,266,572 Total community development fund loans 43,037,241 21,830,994 (926,�1� 63,941,419 Allowance forbad debt (19'7,410) - 5,081 (192,329) Community development fund notes receivable,net 42,839,831 21,830,994 (921,735) 63,749,090 Housing fund loans I.ow Mod Income Housing Asset Fund 15,290,900 205,418 (260,201} 15,236,ll'7 Total housing fund loans 15,290,900 205,418 (260,201) 15,236,117 Aliowance forbad debt - - - - Housing fund loans receivable,net 15,290,900 205,418 (260,201) 15,236,117 Total governmental note reeeivable 58,130,731 22,036,412 (1,181,936) 78,985,207 Business-type activities: Electric utility loans Redding Rodeo note ll2,321 - (21,633) 90,688 Totalbusiness-type note receivable ll2,321 - (21,633) 90,688 Total note receivable $ 58,243,052 $ 22,036,412 $(1,203,569) $ �9,075,895 Note 4—Lease Receivable Summary of changes in governmental activities leases receivable for the year ended June 30,2023 is as follows: Balance Balance Due within Due in more July l,2022 Additions Deletions June 30,2023 One Year than One Year Lease receivable Governmental-type activities $ 2,056,745 $ 677,237 $ (300,660) $ 2,433,322 $ 354,147 $ 2,079,175 Business-type activities 7,613,375 2,787,408 (1,297,045) 9,103,738 794,272 8,309,466 Total lease receivable $ 9,670,120 $ 3,464,645 $ (1,597,705) $ 11,537,060 $ 1,148,419 $ 10,388,641 84 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 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 govermnental funds. The City municipal airport holds the majority of the leases recognized,with a balance at June 30, 2023 of$7,444,222. Governmental-type activities Lease recei�able Year Fa►ding June 30, Principal Interest Total DeferredInflows 2024 � 354,147 $ 90,506 � 354,03'7 � 354,147 2025 311,291 82,457 411,464 311,291 2026 183,298 72,581 359,804 183,298 2027 180,899 64,568 221,157 180,899 2028 171,494 56,821 200,884 171,494 2029-2033 '703,481 1'71,804 687,383 '703,481 2034-2038 197,695 84,552 136,533 197,695 2039-2043 190,622 46,066 42,120 190,622 2044-2048 140,395 9,187 1,250 140,395 Total $ 2,433,322 $ 678,542 $ 2,414,632 $ 2,433,322 Business-type activities Lease receivable Year Fxiding June 30, Principal Interest Total Deferred Inflows 2024 $ '794,272 $ 441,993 $ 1,O10,051 $ 794,2'72 2025 742,657 409,184 1,085,881 742,657 2026 673,985 379,500 1,009,309 673,985 2027 579,367 351,927 901,709 579,367 202� 589,923 325,709 �09,117 5�9,923 2029-2033 1,950,092 1,325,984 2,944,846 1,950,092 2034-2038 1,199,397 945,120 1,788,281 1,199,397 2039-2043 524,444 741,660 217,423 524,444 2044-2048 845,080 532,186 217,423 845,080 2048-2053 1,204,521 201,781 217,423 1,204,521 Total $ 9,103,738 $ 5,655,044 $ 10,201,463 $ 9,103,738 85 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 5—Interfund Activities A. Due FNom and Due To Other Funds At June 30,2023,due to and due from other funds balances are as follows: Due From OtherFunds Due To Other Funds General Fund Totai Governmental funds: Nonmajor governr�ntal funds $ 82,385 $ 82,385 Enterprise funds: Nonmajor enterprise funds 5,733,215 5,733,215 Total $ 5,815,600 $5,815,600 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 30,2023, interfund receivable and payable balances axe as follows: InterFund Receivable Electric Water Wastewater Solid Waste Intemal C�neral Utility Utility Utility Utility Service Interfund Payable Fund Fund Fund Fund Fund Funds Totai Governmental Funds: Major Governmental Funds Community Development $ - $ 1,�62,014 $ 692,220 $ 471,968 $ 220,252 $ - $ 3,]46,454 Enterprise funds: Nonmajor enterprise funds - - - - - ll2,571 ll2,571 Internal service funds 25,000 - - - - - 25,000 Total $ 25,000 $ ],'762,014 $ 692,220 $ 471,968 $ 220,252 $ ]12,571 $ 3,284,025 Interfund receivables and payables represented the portion of Advances that are expected to be repaid within one year. 86 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 5—Interfund Activities(Continued) C. Advances To and FNom Other Funds At June 30, 2023, long-term advances consisted of the followings: Advances to Other Funcl� Internal General �ectric Service Advances from other funds �nd Utility Funds Total Governmental funds: General fund $ - $ 4,006,269 $ - $ 4,006,269 Nonmajor:govemmental funds - 233,782 186,912 420,694 Enterprise funds: Nonmajor:enterprise funds - - 3,008,537 3,008,537 Internal service funds 6,250 - - 6,250 Total $ 6,250 $ 4,240,051 $ 3,195,449 $ 7,441,750 a) The Electric Utility loaned the Parking Fund additional funds for another parking structure at the Downtown 1VIa11. The outstanding balance at year-end was $233,782; all of which is elassified 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 $527,938; 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 $8,917,054 to the Airport Fund to �nance improvements and operating expenses. The balance was transferred to the Risk Management Fund during the 2009-2010 fiscal year.The Airport Fund has repaid$'7,367,640 to date.At year-end the balance was$1,549,384. Of this amount $1,524,384 is classified as long-term. e) In recent years the General Fund has advanced $1,374,$47 to the Convention Center Fund to �nance i�nprovements and operating expenses. The balance was transferred to the Risk Management Fund during the 2009-2010 fiscal year. The balance at year-end was $786,716; of this amount $699,145 is ciassified as long- term. � 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 tl�e 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 aecrued interest at the City's average earnings on its pooled eash is $3,478,331; all of which is classified as long term. h) The General Fund advanced funds of$75,000 to Employer Services for software licensing. At year-end the balanee was $31,250; of whieh$6,250 is elassified as long-tenn. 87 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 5—Interfund Activities(Continued) D. Internal Balance Summary At June 30, 2023,the internal balance summary consisted of the followings: Governmental Funds Internal General Community Special Service Fund Development Revenue Funds Total As s ets Duefromotherfunds $ 5,815,600 $ - $ - $ - $ 5,815,600 Interfund receivable 25,000 - - 112,571 137,571 Advances to otherfunds 6,250 - - 3,195,449 3,201,699 5,846,850 - - 3,308,020 9,154,870 Liabilities Due to other funds - - 82,385 - 82,385 Interfundpayable - 3,146,454 - 25,000 3,171,454 Advances from other funds 4,006,270 - 420,694 6,250 4,433,214 4,006,270 3,146,454 503,079 31,250 7,687,053 Net difference 1,467,817 Business-type portion ofthe intemal service funds 13,840,733 Statement of net assets internal balance $ 15,308,550 Proprietary Funds flectric Wastewater Solid Nonmajor Utility Water Utility Utility Waste Fnterprise Total As s ets Due from other funds $ - $ - $ - $ - Interfund receivable 1,762,014 692,220 471,968 220,252 - 3,146,454 Advances to other funds 4,240,051 - - - - 4,240,051 6,002,065 692,220 471,968 220,252 - 7,386,505 Lial�ilities Due to other funds - - - - 5,733,214 5,733,214 Interfundpayable - - - - 112,571 112,571 Advances from other funds - - - - 3,008,537 3,00�,537 - - - - 8,854,322 8,854,322 Net clifference (1,467,817) Business-typeportion ofthe internal service funds (13,840,733) Statement of net assets internal balance $ (15,308,550) 88 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 5—Interfund Activities(Continued) E. Transfer In and Out The following operating transfers were made during the fiscal year-ended June 30,2023: Transfer^s In Nonmajor Nonmajor Internal Governmentai Flectric Fnterprise Service Transfers Out General Fund Funds Fund Water Funds Funds Total Governmental funds: Major funds: General fund $ - $ 965,276 $ 24,250 $ 6,500 1,880,310 $ - $ 2,876,336 C�neral capital projects fund 33,711 - - - - - 33,711 Nonmajor governmental funds 9,961,536 - - - - - 9,961,536 Fnterprise funds: Major enterprise funds: F�ectric 9,453,543 - - - - 17,607 9,471,150 Water - - - - 94,068 38,238 132,306 Wastewater - - - - 309,922 - 309,922 Nonmajor enterprise funds 245,000 - - - - - 245,000 Internal service funds - - - - 22,001 47,041 69,042 Total $ 19,693,790 $ 965,276 $ 24,250 $ 6,500 $ 2,306,301 $ ]02,886 $ 23,099,003 The reasons for these transfers are set forth below; a) The General Fund transferred a portion of the transient occupancy tax to the Convention Center per City policy. b) The General Fund transferred funds to the Library for operations. c) The Airports and Electric Enterprise Funds transfer funds to the General Fund in lieu of property tax. d) Within the Nonmajor Governmental Funds,gas taxes and other special revenues are transferred to the General Fund to pay for related expenditures such as street maintenance and public safety. In addition, funds were transferred to the capital project fund to cover portions of qualified projects. e) The Electric Utility transferred electric vehicles to Internal Service Fund Fleet and General Fund. � Funds transferred for used vehicles purchased internally per City policy between General Fund, Electric, and Tnternal Service Funds. 89 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 6—Capital Assets A. Governmental Actzvities Summary of changes in capital assets for the year ended Tune 30,2023 consisted of the following: Balance Balance 7uiy 1,2022 Additions Deletions Transfers June 30,2023 Total governmental activities: Capital assets,not bein�depreciated: Land $ 36,206,97$ $ 219,766 $ - $ - $ 36,426,744 Construction in process 43,134,453 2J�,652,324 - (416,830) 67,369,947 Total capital assets,not being depreciated �9,341,431 24,872,090 - (416,830) 103,796,691 Capital assets,being depreciated: Buildings 64,865,090 - - - 64,865,090 Improvements other than buiidings 106,668,669 - - 416,830 107,085,499 Infrastructure 345,473,565 4,939,008 - - 350,412,573 Automotive equipment 20,039,206 2,085,666 (1,869,808) 178,482 20,433,546 Furnishings and equipment 11,403,295 1,176,188 (130,580) 19,006 12,467,909 Assets under lease: Right-to-use improvements 86,028 27,649 - - ll3,677 Right-to-use automotive equipment 355,645 253,742 - - 609,38� Right-to-use subscription 100,070 248,664 - - 348,734 Total capital assets,being depreciated 548,991,568 8,730,917 (2,000,388) 614,318 556,336,415 Accumulated depreciation; Buildings (39,960,213) (2,023,784) - - (41,983,99'7) Improvements otherthanbuildings (�4,114,929) (3,'710,122) - - (77,825,051) Infrastructure (143,069,633) (9,490,$46) - - (152,560,479) Autorr�tive equipment (13,041,470) (1,246,914) 1,863,925 (144,638) (12,569,09� Furnishings and equipment (9,608,627) (575,398) 130,580 (6,437) (10,059,882) Assets under lease: Right-to-use improvements (34,981) (35,396) - - (70,37'7) Right-to-use automotive equipment (65,658) (116,788) - - (182,44� Right-to-use subscription - (84,233) - - (84,233) Total accumulated depreciation (279,895,511) (17,283,481) 1,994,505 (151,075) (295,335,562) Total capital assets, being depreciated,net 269,096,057 (8,552,564) (5,883) 463,243 261,000,853 Total governmental activities $ 348,437,488 $ 16,319,526 $ (5,883) $ 46,413 $ 364,797,544 Depreciation expense was charged to governmenta] activities as follows: Program Dep�reciation C�eneral government $ 1,521,403 Police 1,103,738 Fire 707,874 Public works 9,678,902 Recreation and culture 4,243,287 Community development 2�,277 Total $ 17,283,481 90 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 6—Capital Assets(Continued) B. Business-Type Activitzes Summary of changes in capital assets for the year ended Tune 30,2023 consisted of the following: Balance Balance 7uly l,2022 Additions Deletions Transfers June 30,2023 Business-type activities: Capital assets,not being depreciated: L.and $ 20,394,310 $ - $ - $ - $ 20,394,310 Constructioninprogress 34,487,991 24,178,715 (110,850) (3,355,880) 55,199,976 Totalcapitalassets,notbeingdepreciated 54,882,301 24,178,715 (110,850) (3,355,880) 75,594,286 Capital assets,being depreciated: Utility plants 896,360,(}45 13,572,258 (2,101,222) 3,355,880 911,186,961 Buiidings 78,452,567 - (245,095) - 78,207,472 Improvements other than buildings 5'7,475,256 - (748,337) - 56,726,919 Automotive equipment 49,739,026 2,358,715 (1,924,994) 665,595 50,838,342 Furnishings and equipment 33,915,792 1,527,961 (1,158,955) (867,797) 33,417,001 Assets under lease: Right-to-use equipment 124,056 140,546 - - 264,602 Right-to-use subscription 4,791,202 15,426 - - 4,806,628 Totalcapital assets,being depreciated 1,120,$57,9�44 17,614,906 (6,178,603) 3,153,67$ 1,135,447,925 I.ess accumulated depreciation for: Utility plants (501,872,519) (22,679,849) 1,687,199 - (522,865,169) Buildings (49,$29,096) (2,190,460) 245,098 - (51,774,458) Improvements otherthanbuildings (34,441,208) (1,882,102) 748,336 - (35,574,974) Automotive equipinent (29,174,449) (3,612,743) 1,410,008 6'7,264 (31,309,920) Furnishings and equipment (24,351,554) (2,422,809) 1,159,220 88,525 (25,526,618) Assets under lease: Right-to-use equipment (62,951) (71,730) - - (134,681) Right-to-use subscription - (1,043,432) - - (1,043,432) Total accumulated depreciation (639,731,'777) (33,903,125) 5,249,861 155,789 (668,229,252) Total capital assets, being depreciated,net 481,126,167 (16,288,219) (928,742) 3,309,467 467,218,673 Total business-type activities $ 536,008,468 $ 7,890,496 $ (1,039,592) $ (46,413) $ 542,812,959 Depreciation expense was charged to the business-type activities as follows: Program Depreciation Electric $ 15,206,586 W ater 4,102,�15 W as tewater 7,319,789 Storm drainage 1,111,913 Solid waste 2,889,534 Airport 1,804,115 RABA 1,392,724 Convention center 75,749 Total $ 33,903,125 91 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 7—Power Acquisition Costs The Redding Electric Utility (REU) entered into an agreeinent in 1986 with the Western Area Power Adininistration (WAPA} to build a second interconnection point between REU's internal electric 115kv transmission grid and the surrounding WAPA 230kv transmission grid. REU paid WAPA to bui]d the Airport Road Substation to affect this connection and convert the 230kv surrounding power to 115kv for use on REU's lines. After completion,REU gained title to the 115kv side of the substation, while WAPA retained ownership of the 230kv side. Since REU paid for the construction of the 230kv side and benefits from its presence, the cost of this has been set up as an asset and is being amortized over the 34 year useful life of the substation. Power acquisition cost $ 3,470,314 I,ess:arr�rtization (3,470,314) Power acquisition cost,�net $ - For the year ended June 30,2023, amortization expense was $35,284. Note 8—Storage Base Gas Redding Electric Utility(REU)entered into a natural gas lease agreement on August 28,2009 with Gill Ranch Storage, LLC(GRS)in which GRS (Lessee)would provide frm natural gas storage service to REU(Lessor). The frm storage service is provided at the GRS faeility 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, 2023, the lease agreement between Redding Electric Utility and Gill Ranch Storage, LLC continues to be in effect. Note 9—Unavailable Revenue On the fund financial statements,unavailable revenue consisted of the following as af June 30,2023: General Community Nonmajor General CapitalProjects Developrr�nt Governmental Fund Fund Fund Funds Total Unavailable revenues: Sales tax $ 58,968 $ - $ - $ - $ 5$,96$ Property taxes 839,298 - - - 839,298 Grant revenue 1,026,663 19,097,241 8,455,497 56,403 28,635,804 Shasta Area Safety Communications Agency 72,574 - - - 72,574 Assessments - - - 309,613 309,613 Housing loans-interest - - 2,835,593 2,588,124 5,423,717 HUD funds - - - 41,380 41,380 Total $ 1,997,503 $ 19,097,241 $ 11,291,090 $ 2,995,520 $ 35,381,354 92 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 10-Long-Term Debt Summary of changes in long-term debt for the year ended lune 30, 2023,is as follows: Balance Balance Due within Due in more July 1,2022 Additions Deletions June 30,2023 One Year than One Year Governmental activities: Long-term debt: SBTTAs $ 100,070 $ 248,664 $ (75,825} $ 272,909 $ 129,469 $ 143,440 L.eases 337,831 216,975 (128,352) 426,454 146,174 280,280 Revenue bonds 27,638,896 - (2,034,113) 25,604,783 1,639,782 23,965,001 I,oan - 648,138 (74,572) 573,566 118,193 455,373 I.ong-term debt before unamortized amounts 28,076,79'7 1,113,777 (2,312,862) 26,877,712 2,033,618 24,844,094 Bond premium 2,868,981 - (130,904) 2,738,077 130,904 2,607,173 Bond discount (38,141) - 3,644 (34,497) (2,184) (32,313) Total governmental activities long-termdebt 30,907,637 1,113,77'7 (2,440,122) 29,581,292 2,162,338 27,418,954 Business-type activiYies: Long-term debt: SBTTAs 4,791,202 15,426 (975,345) 3,831,283 958,803 2,872,480 Leases E�4,956 140,546 (74,685) 130,817 48,319 82,49� Revenue bonds 145,761,103 - (14,690,889) 131,070,214 13,540,215 117,529,999 State loans payable 1,128,439 - (793,902) 334,537 31,181 303,356 L.ong-termdebt before unamortized amounts 151,745,700 155,972 (16,534,821) 135,366,851 14,578,518 120,788,333 Bond premium 23,194,156 - (2,222,804) 20,971,352 2,222,804 18,748,548 Total business-type activities long-termdebt 174,939,856 155,972 (18,757,625} 156,338,203 16,801,322 139,536,881 Totallong-termdebt $ 205,847,493 $ 1,269,749 $ (21,197,747} $ 185,919,495 $ 18,963,660 $ 166,955,835 Current year amortization expense for bond premiums and discounts was$12'7,260 for the governmental activities and $2,222,804 for the business-type activities. The annual requirements to amortize all debt outstanding as of 7une 30, 2023, excluding obligations associated with bond premiums(discounts)are as follows: Year Ending Govemmental Activities Business-Type Activities Government-Wide June 30, Principal Interest Principal Interest Principal Interest 2024 $ 2,033,618 $ 1,292,�73 $ 14,5�8,518 $ 6,712,106 $ 16,612,136 $ 8,004,8�9 2025 1,875,987 1,198,431 15,179,186 5,968,414 17,055,173 7,166,845 2026 1,917,678 1,100,002 15,640,690 5,186,822 17,558,368 6,286,824 2027 1,283,361 994,664 16,392,526 4,388,081 17,675,887 5,382,745 2028 1,202,066 926,119 16,803,275 3,556,933 18,005,341 4,483,052 2029-2033 6,585,000 3,668,030 49,680,269 6,863,675 56,265,269 10,531,705 2034-2038 6,130,002 1,961,681 7,092,387 414,882 13,222,389 2,376,563 2039-2043 4,780,000 755,603 - - 4,780,000 �55,603 2044-2048 1,070,000 33,001 - - 1,070,000 33,001 Total $ 26,87�,�12 $ 11,930,304 $ 135,366,851 $ 33,090,913 $ 162,244,563 $45,021,21� 93 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 10-Long-Term Debt(Continued) Governmental activities 7ssue Balance Amount 06/30/2023 FY2023-24 FY2024-25 FY2025-26 FY2026-27 2013 Lease Revenue Bonds,Series B Principal Payna�nt $ 9,046,060 $ 6,149,783 $ 379,782 $ 235,000 $ 245,000 $ 255,000 Bond Discount (120,91� (34,49�) (2,184) (1,678) (1,678) (1,678) 2013 I.ease Revenue Bonds,Series C Principal Payment 2,135,000 1,375,000 105,000 110,000 120,000 125,000 2019 L,ease Revenue Bonds,Series A Principal Payment 24,085,000 18,040,000 1,155,000 1,210,000 1,275,000 695,000 Bond Premium 3,272,602 2,738,0�7 130,90A 130,904 ]30,904 130,904 2022 Parking Loan Principal Payment 644,138 573,566 ll8,193 126,257 134,870 144,071 L,eases Payable Principal Payment 646,602 426,454 146,174 117,111 76,987 64,290 SBTI`As Payable Principal Payment 348,734 272,909 129,469 77,619 65,821 - Total governmental activities $ 40,061,220 $ 29,581,292 $ 2,162,338 $ 2,005,213 $ 2,(kF6,9(kF $ 1,412,587 Business-type activities 2013 California Airport Loan-Benton Principal Payment $ 350,000 $ 191,266 $ 21,014 $ 21,782 $ 22,578 $ 23,404 2018 California Ai�rport L,oan-Benton. Principal Payrnent 190,000 143,2�1 10,16� 10,459 10,�60 11,069 2013 Lease Revenue Bonds,Series B Principal Payrrcent 693,940 80,215 80,215 - - - 2020 WastewaterRevenue Bonds Principal Payment 52,420,000 38,490,000 3,680,000 3,865,000 4,060,000 4,260,000 BondPremium 12,075,581 ]0,062,984 754,724 754,�24 754,�24 754,�24 2018 Electric Systems Revenue Bonds,Series A PrincipalPayment 39,510,000 24,429,999 3,000,000 3,155,000 3,305,000 3,475,000 Bond Premium 6,232,541 3,432,187 525,067 525,067 525,067 525,067 2017 Electric Systems Revenue Bonds,Series A Principal Payment 55,785,000 37,450,000 4,600,000 4,830,000 5,075,000 5,320,000 Bond Premium 9,436,880 4,854,091 733,246 733,246 733,246 733,246 2015 Electric Systems Revenue Bonds, Series A PrincipalPayment 3,755,000 30,620,000 2,180,000 2,285,000 2,405,OD0 2,530,000 Bond P�emium 4,195,346 2,622,090 209,767 209,�6� 209,�67 209,767 I.eases Payable Principal Payment 264,602 130,817 48,319 43,485 39,013 - SBTI`As Payable Principal Payment 4,806,628 3,831,283 958,803 968,460 723,339 '773,053 Total business-type activities $ 1�9,715,518 $ 156,338,203 $ 16,801,322 $ 17,401,990 $ 17,863,494 $ 1�,615,330 *Additional Tnformation on the Bond Issues follows this note. 94 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 10—Long-Term Debt(Continued) Final Interest F'Y2027-28 �'Y2029-33 E'Y2034-38 E'Y2039-43 F'Y2044-48 Thereafter Maturity Rate 2043 2-5% $ 265,000 $ 1,565,000 $ ],320,002 $ 1,530,000 $ 354,999 $ - (1,678) (8,390) (8,390) (8,390) (431) - 2032 3.75-6.5% 130,000 785,000 - - - - 2044 3.125-5% 735,000 4,235,000 4,�10,000 3,250,000 715,000 - 130,904 654,520 654,520 654,520 ]19,997 - 2027 6.62% 50,175 - - - - - 2027 3.89% 21,892 - - - - - 2026 7.13% $ 1,331,293 $ 7,231,130 $ 6,776,132 $ 5,426,130 $ 1,189,565 $ - $ 24,259 $ 78,229 $ - $ - $ - $ - 2031 3.655% 11,38$ 62,041 27,387 - - - 2035 2.87% - - - - - - 2032 2-5.5% 4,475,000 16,540,000 1,610,000 - - - 2036 5% 754,724 3,773,620 2,515,744 - - - 3,645,000 3,829,999 4,020,000 2030 4-5% 525,067 806,852 - - - - 5,590,000 12,035,000 - - - - 2030 3-5% 733,246 1,187,�61 - - - - 2,650,000 13,115,000 5,455,000 - - - 2035 2-5% 209,767 1,048,835 524,420 - - - - - - - - - 2023 3.89% 407,628 - - - - - 2023 7.13% $ 19,026,079 $ 52,477,437 $ 14,152,551 $ - $ - $ - 95 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 10—Long-Term Debt(Continued) 2013 Lease Revenue Bonds Series B and C The 2013 Lease Revenue Bonds, Series B and Series C were issued to finance the construction of the Redding police building and refinance the 2003 Aquatic Center, the Sports Complex, SHASCOM, Convention Center and the Municipal Airport, which was used to refinance the 1993 Lease Revenue Bonds for SHASCOM, Convention Center and the Municipal Airport. The Bonds are payable from the operating revenues of the Redding Aquatic Center, Sports Complex, SHASCOM, Convention Center, and Municipal Airport Funds. The security for the bonds is the title to the City's existing police facility, its SHASCOM communications facility, the Redding Aquatic Center and the land on which the to-be- constructed 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,200�4 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 Reclding. Payabie from revenues generated pursuant to the Facilities Lease between the Redding Joint Powers Financing Autbority(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 tit]e 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 lneter 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. 2015 California Airport Loan(Municipal) Tbe 2015 California Airport Loan (Municipal) was for the PV Solar Array ]ease purchase at the Redding Municipal Airport. 2018 California Airport Loan(Benton) The 2018 California Airport Loan (Benton) was for the construction of a new hangar roof and other exterior improvements at the Benton Airpark. 96 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 10—Long-Term Debt(Continued) 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. 2018 Electric Svstem 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 Svstem Revenue Bonds The 2017 Electric System Revenue Bonds, Series A were issued to prepay and refund a portion of the City's outstanding 2008 A Electric Systems Certificates of Participation Bonds and pay cost of issuance of the 2017 bonds. The payments are payable from operating revenues of the Electric Utility Fund. The 2017 bonds are special obligation of the City payable solely from and secured by a pledge of and lien on net revenues of the electric system and all monies on deposit in the Electric Revenue Fund of the City. 2015 Electric Svstem 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. Leases The leases are contracts that convey control of the right to use another entity's nonfinancial 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) SBTTA'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. 97 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note ll —Piedged Revenue Year of Loan ar Year Repaytr�nts Original Borrowing and/or Interest Issue/I.oan Revenue Pledged Fund/Entity BondlL.oan Use ofFunds Payments Began A�unt Net Revenues Water Utiliry Bond Refund prior debt 2013 $ 6,165,000 issues. Net Revenues Wastewater Bond Refund prior debt 2020 52,420,000 Utility issues.(SRF Loan) Net Revenues Plus Electric Utility Bond Refund prior debt 2015 37,955,000 Reserves Net Revenues Plus Electric Utility Bond Refund prior debt 2017 55,785,000 Reserves Net Revenues Plus Electric Utility Bond Refund prior debt 2018 39,510,000 Reserves 98 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note ll —Piedged Revenue(Continued) Estimated%of Esnmated%of Pledged Piedged Revenue Plus C�irrent Year Payments Revenue Reserves Remaining C�rrent Year Pledged Amortized Required for Required for Principal& Principal& Revenue Reserve Thru Debt Service Debt Service Interest Interest Paid Available Balance 2023 8% 8% $ - $ 733,200 $ 9,474,644 $ - 2036 41% 41% 4$,$75,500 6,723,000 16,468,52$ - 2035 1 l% 3% 39,658,395 3,608,520 33,291,021 70,486,678 2030 19% 6% 45,304,500 6,471,500 33,291,021 70,486,67� 2030 13% 4% 29,553,500 4,224,500 33,291,021 70,486,678 99 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 12—Compensated Absences The compensated absences liability wi11 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 7une 30,2023 were as follows: Balance Balance Due within Due in More July 1,2022 Additions Deletions June 30,2023 One Year Than One Year C�vernmental activities $13,752,143 $ 7,433,134 $ (6,798,312) $ 14,386,965 $4,961,543 $ 9,425,422 Business-type activities 9,057,267 5,788,619 (4,483,753) 10,362,133 3,403,589 6,958,544 Total $22,809,410 $13,221,753 $ (11,282,065) $24,749,098 $8,365,132 $ 16,383,966 Note 13—Self-Insurance The City administers self-insurance programs for general liability and workers' compensation. These programs are accounted for in the Risk Management Fund. Liability for each claim is estimated on a case-by-case basis for all pending claims. There has been no significant reduction in any of the insurance coverages from the prior year. Costs in the City's Risk Management Fund have not exceeded charges to the various funds of the City and its component units. Settled claims resulting from these risks have not exeeeded co-insurance plan coverage or eonunercial insurance eoverage 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. Emplovee Health Insurance - The City is part of the California Publie Entity Public Insuranee 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 expencliture in the at risk fund. The estunated liability for pending and ineurred but not reported employee health insurance claiins relating to Ju1y 1,2022 and prior at June 30,2023,has been included as an accrued liability in the risk management internal service fund. Workers' Comnensation 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 30,2023,has been included in the Risk Management Fund's claims payable amount as of June 30, 2023. General Liabilitv InsuNance 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 detennined to be at risk are charged a percentage of the total estimated insuranee and claim expense. Percentages are based upon loss experience and salary. The interfund charges are reported as an expense or expenditure in the funds at risk. Incurred but not reported claims liability has been included in the claims payable amount as of June 30, 2023. l00 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 13—Self-Insurance(Continued) Propertv 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 Wildf'ire. Additionally, the City has acquired coverage for the Redding Power P1ant 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 30,2023. The following is a reconciliation of changes in claims liability amounts far fiscal years ended 7une 30,2023: Claims Claims For the Years Payable Claims Claims Payable Due within Due in More Ended June 30, July l, Incurred Payments June 30, One Year Than One Year Workers'Compensation 2021 13,556,290 2,024,198 (2,036,288) 13,544,200 3,325,620 10,218,580 2022 13,554,200 2,784,524 (3,053,554) ]3,285,170 4,567,826 8,'717,344 2023 13,285,170 2,918,791 (3,316,091) 12,887,870 4,614,008 8,273,862 General Liability 2021 2,413,960 ],298,173 ('750,213) 2,96],920 639,000 2,322,920 2022 296,920 2,479,008 (1,251,548) 4,189,380 2,400,823 1,788,557 2023 4,189,380 2,972,395 (1,645,155) 5,516,620 3,495,427 2,021,193 Health and Dental 2021 ll0,990 24,386,443 (24,398,343) 99,090 99,090 - 2022 99,090 25,573,792 (25,490,492) 182,390 ]82,390 - 2023 182,390 26,676,115 (26,745,755) 112,750 112,750 - Tota1 2021 16,081,240 27,708,814 (27,184,844) 16,605,210 4,063,710 12,541,500 2022 13,950,210 30,837,324 (29,795,594) 17,656,940 7,151,039 10,505,901 2023 17,656,940 32,567,301 (31,707,001) 18,517,240 8,222,185 10,295,055 Note 14—Individual Fund Disclosures The following fund reported a deficit fund balance as of June 30, 2023: Equipment Fund—The deficit of$2,357,239 in this fund resulted froin 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. Information Systems Fund—The deficit of$100,594 in this fund resulted from the City funding Internal Seroice 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$3,124,256 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. lol City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 14—Individual Fund Disclosures(Continued) Risk Mana�ement Fund—The deficit of$6,6'70,268 in this fund resulted from the City funding Internal Service Funds on a cash flow basis. Until the City funds the Other Post Employment Benefit (OPEB) and the pension. liability,this fund will continue to have a deficit balance. Municipal Utilities Support Fund—The deficit of$5,012,694 in this fund resulted from the City funding Intemal 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$114,353 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 15—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 forined to conduct research and exploration for energy sources to provide additional electric power for the electric distribution systems of its members. The Agency is governed by a Commission which consists of one member from each of the Power Agency's members. For action, the Commission must have a quorum (minimum of two members)present, and there must be a unanimous vote of all Commissioners present. The Treasurer of the Power Agency is designated by the Joint Powers Agreement to be the Treasurer/Controller of MID. The selection of other management positions is made by the Commission from the personnel of its members. These functions are performed without compensation to the members. The members' rights, property, income, and expense-sharing ratio in most all Power Agency activities prior to April 2018 are as follows: Modesto Irrigation District - 50%, City of Santa Clara - 35%, and City of Redding - 15%. The debt service through 2023, declining on-going administrative activities and other reinaining obligations and costs associated with the San Juan Power Plant(described below),will remain at the 50%- 35%- 15%ratio. The majority of activities are related to renewables (Big Horn Wind energy project described below}. Coordinating, regulatory, and compliance seroices costs will be shared as follows: Modesto Irrigation District— 40%,City of Santa Clara—40%,and City of Redding—20%. Renewable administrative services,electric product, delivery ancl environmental attribute rights, benefits and costs will be shared by contracted participation ratios as described below. 102 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 15–Joint Ventures (Continued) A. M-S-R Public Power Agency(Continued) 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 N�ew Mexico (the "San Juan"plant). The San Juan plant began commercial operation in 1982 and had been owned jointly by the Public Service Company ofNew 1Vlexico(38.5%),M-S-R(28.8%),and four other municipal power entities (32.7%). The owners of the San Juan Generation Station have approved an ownership restructuring of the San Juan Generation Station effective December 31, 2017 under which M-S-R's (and thereby the City's) interest in tl�e 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 deconunissioning 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 have 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 with PPM Energy, Inc.—now known as Avangrid Renewables,LLC(Avangrid—fonnerly 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 cormnercial operation in October of 2006. The facility is interconnected through an 11 mile transmission line witb the Bonneville Power Administration's Spring Creek Substation. Redding receives a 35% share of the 199.5 MW project,while Santa Clara and Modesto receive 52.5%and 12.5%respectively. In addition to the procurement of energy from the Big Horn Wind Energy facility, the Power Agency has also signecl an agreement with Iberdrola Renewables—now known as Avangrid—to procure shaping and firming services for the output of the Big Horn facility. Through this agreement, Avangrid receives 100% of the output from the Big Horn facility as generated, and delivers such energy to M-S-R at the California-Oregon Border pursuant to firm pre-established delivery schedules. Summary audited �nancial information of the M-S-R Public Power Agency as of and for the year ended December 31,2022 is as follows (in thousands): Totalrevenues $ 65,636 Totai assets and deferred outflows $ 63,727 Total eapenses (48,94'� Total liabilities and deferred inflows 24,456 Net income 16,689 Totai members'deficit 39,271 Members'deficit,January 1,2022 22,582 Total liabilities and members`deficit $ 63,727 Members'deficit,December 31,2022 $ 39,271 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. 103 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 15—Joint Ventures (Continued) A. M-S-R Public Power Agency(Continued) 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; $88,000,000 of the outstanding 200$L bonds with an average interest rate of 5.00%, and $30,595,000 and$14,685,000 of the outstanding variable interest rate 2008M and 2008N bonds,respectively. The net proceeds of the 201$R 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 equit}�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$5.9 million at December 31, 2022. Under the joint exercise of power agreeinent, 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 30,2023,the City inade no contributions to fund its share of prior operating de�cits. 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 benef.tt of any one or more of the Members. On September 10, 2009, the Authority entered into a series of thirty-year prepaid gas contracts with Citigroup Energy, Inc., which are financed by non-recourse revenue bonds. The M-S-R Energy Authority also entered into matching Natural Gas Supply Agreements ("Supply Agreements") whereby each. member is obligated to purchase the natural gas from the Authority at a discount from the Index Price. The Supply Agreements will continue in effect until September 30, 2039, unless terminated earlier due to certain defaults, as set forth therein, or the termination of the matching prepaid gas contract. If the M-S-R Energy Authority fails on any day to deliver the quantity of natural gas required to be delivered pursuant to a Supply Agreement,the member will have no obligation for any of the natural gas supply that was not delivered as a result of such delivery default. The equity of the M-S-R Energy Authority is split between the members based on tbe revenues and expenses applicable to each individual member's Supply Agreement. Redding's equity in the M-S-R Energy Authority's net losses exceeds its investment and, therefore, the equity method of accounting has been suspended. As of December 31, 2022, the City's unrecognized share of inember's deficit of the M-S-R Energy Authority was $118,408,933. The long-term debt of the M-S-R Energy Authority totaled $868,935,000 at December 31, 2022. The M-S-R Energy Authority did not make any principal payinents in 2022. Summarized financial infonnation of M-S-R Energy Authority as of and for the year ended December 31,2022,is as follows(in thousands): Total assets and deferred outflows $ 888,204 Total liabilities and deferred inflows $ 888,204 ToYal net position $ - Total liabilities and net position $ 888,204 Net increase(decrease)in net position $ - 104 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 15—Joint Ventures (Continued) C. Transmission Agency of NoNthern Califor^nia The Transmission Agency of Northern California (TANC) is a joint powers agency organized for the principal purpose to provide electric transmission or other facilities for the use of its members. The City has an 8.41% ownership interest in TANC equating to a $7,584,638 member's equity balance at June 30, 2023. 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 30,2023. The debt of the Transmission Agency of Northern California is comprised entirely of revenue bonds totaling $165,500,000. These bonds are secured by a pledge and assignment of the net electric revenues of the Agency and are supported by take-and-pay commitments of the participants. Investment in JPA _$_7 584 638. Summarized financial information of TANC as of and for the year ended June 30,2023,is as follows(in thousands): Total asse�s and deferred outflows $ 397,395 Total liabilities and deferred inflows 303,093 Totai net position 94,302 Total liabilities and net position $ 397,395 Net increase(decrease)in net position $ 15,230 D. Balancing Authority of NortheNn CalifoNnia The Balancing Authority of Northern California (BANC) �s 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) ancl 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 j ointly owned by several parties including WAPA and BANC members via the Transmission Agency of Northern California(TANC). los City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 15—Joint Ventures (Continued) D. Balancing AuthoNity of Northern California (Continued) BANC provides its members an ownership voice in all balancing authority decisions consistent with the principle of maximizing consumer value. It also provides members a unified voice and representation in topics pertaining to Balancing Area matters. The structure provides flexibility to expand potential cost-saving opportunities by sharing future facility costs and clarifies roles and responsibilities of the members regarding reliability standard compliance. The member's rights and expense-sharing is based on the �participation percentages in most BANC activities. BANC member's participation percentages are based on the member's retail sales and stands at 69.2%, 16.9%, '7."7%, 4.9%, and 1.3% for SMUD, MID, Roseville, REL7, 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, 2022, is as follows (in thousands): Total current assets $ 15,027,964 Totai current liabilities 15,027,964 Total net position - Totai liabilities and net position $ 15,02'7,964 Net increase(decrease)in netposition $ - Complete separate financial statements for each of the j oint ventures in which the City participates may be obtained from the City of Redding Finance Department, 777 Cypress Avenue,Redding, California 96001. 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 ancl the City in financing public capital improvements, working capital, liability, and other insurance needs, or projects whenever there are significant public benef ts, 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 ar 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, 20�0. 106 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 15—Joint Ventures (Continued) F. Contingent Liability Under the terms of the various joint venture agreements, the City is contingently liable for a portion of the long- term debt of the entities under take-or-pay agreements, letters of credit, guarantees or other similar agreements. Based on the most recent audited financial statements of the individual j oint 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) 165,500,000 8.3912% 13,887,436 TANC subtotal 165,500,000 13,887,436 Total $ 165,500,000 $ 13,887,436 (1)As of Deeember 31,2022 (2)As ofJune 30,2023 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. Note 16—Postclosure Care Costs State and federal laws and regulations required the City to place a final cover on Benton Landfill,which closed in 1990. The City has completed the final cover and other closure items required. The City is also required under state and federal laws and regulations to perform certain maintenance and monitoring functions at the landfill site for the next 15 years. The reinaining estimated liability for landfill postclosure eare cost was $2,764,837 as of June 30, 2023, 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, 2023. 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 7une 30,2023,were as follows: Balance Balance Due wi�hin Due in More 7uly 1,2022 Additions Deletions 7une 30,2023 One Year Than One Year Postclosure care liabili�y $ 2,583,960 $356,827 $175,950 $ 2,764,837 $ 183,640 $ 2,581,197 107 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 17 — Public Transportation Modernization Improvement and Service Enhancement Account (PTMISEA) Grant Information. In November 2006, California Voters passed bond measure 1B, enacting the Highway Safety, Traf�c Reduction, Air Quality,and Port Security Bond Act of 2006. Of the$19.925 billion of state general obligation bonds authorized,$3.6 billion was allocated to PTMISEA to be available to transit operators over a ten-year period. These funds may be used for transit rehabilitation, safety or modernization improvements, capital service enhancements or expansions, new capital projects, bus rapid transit improvements, or rolling stock (buses and rail cars} procurement, rehabilitation or replacement. In fiscal year 2022-23, RABA did not receive or accrue any additional PTMISEA funding. During the fiscal year RABA incurred$473,597 in qualifying expenditures and earned$16,773 in interest income. The June 30,2023 ending balance in unspent PTMISEA funding was $521,889 and is included in the Unearned Revenue balance. 108 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans A. Summary Ag�re�ate Net Pension Liabilitv Aggregate Net pension liability is reported in the accompanying Statements of Net Position as follows: Aggregate Net Pension Liabilitv Miscellaneous Safety PARS Plan Plan Plan Total Governmental Activities (minus Internal ServiceFunds) $ 48,961,460 $ 140,278,1'78 $ 6,685,111 $ 195,924,'749 Intemal Service Funds: Equipment 4,071,283 - 430,204 4,501,487 Information Systems 5,012,0$2 - 357,167 5,369,249 General Support Services 5,631,014 - 607,180 6,238,194 RiskManageinent 1,281,773 - 99,139 1,380,912 1VlunicipalUtilities Support 6,429,2'70 - l,116,949 '7,546,219 Total Internal Service Funds 22,425,422 - 2,610,639 25,036,061 Total Govemmental Activities 71,386,882 140,278,178 9,295,750 220,960,810 Enterprise funds: Electric Utility 71,342,326 - 8,486,306 79,828,632 Water Utiliry 7,113,454 - 1,383,226 8,496,680 WastewaterUtility 9,491,847 - 1,555,155 11,047,002 Solid Waste Utility ]6,107,138 - 2,041,838 18,148,976 Airport 1,910,136 - 1,197 1,9ll,333 Stonn Drainage Utility 1,174,730 - 176,774 1,351,504 Total Enterprise funds 107,139,631 - 13,644,496 120,784,127 Total $ 178,526,513 $ 140,278,178 $ 22,940,246 $ 341,744,937 109 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) A. Summa�y(Continued) Deferred Outflows of Resources Deferred outflows of resources are reported in the accompanying Statements of Net Position as follows: Pension Cont�ihutions Made after the Mea.ru�ement Date Miscellaneous Safety PARS Plan Plan Plan Total Governmental Activities (minus Intemal Service Funds) $ 5,054,140 $ 13,9$6,466 $ 2,862,756 $ 2],903,362 Intemal Service Funds: Equipment 420,266 - 184,226 604,492 Information Systems 517,382 - 152,949 670,331 C�neral Support Services 581,273 - 260,011 841,284 RiskManagerr�nt 132,314 - 42,454 174,768 MunicipalUtilities Support 663,674 - 478,309 1,141,983 Total Internal Service Funds 2,314,909 - 1,ll7,949 3,432,858 Total Governmental Activities 7,369,049 13,986,466 3,980,705 25,336,220 Enterprise funds: Ilectric Utility 7,364,449 - 3,634,079 10,998,528 W ater Utility 734,300 - 592,337 1,326,637 WastewaterUtility 979,814 - 665,962 1,645,776 Solid Waste Utility 1,662,691 - 874,373 2,537,064 Airport 197,177 - 513 197,690 StormDrainage Utility 121,264 - 75,700 196,964 TotalEnterprise funds 11,059,695 - 5,842,964 16,902,659 Total $ 18,428,744 $ 13,986,466 $ 9,823,669 $ 42,238,879 110 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18-Retirement Plans (Continued) A. Summa�y(Continued) Deferred Outflows of Resources(Continued) Difference hetween Projected and Actual Earnin�;s of Pension Plan Investment.s Miscellaneous Safety PARS Plan P1an P1an Total Govemmental Activities (minus Intemal Service Funds) $ 4,669,955 $ 11,578,925 $ 1,834,335 $ 18,083,215 Internal Service Funds: Equipment 388,320 - ll8,044 506,364 Information Systems 4�8,054 - 98,003 5�6,057 G�nerai Support Services 537,088 - 166,605 703,693 RiskManagetr�nt 122,256 - 27,203 149,459 MunicipalUtilities Support 613,225 - 306,481 919,706 Total Internal Service Funds 2,138,943 - 716,336 2,855,279 TotalGovemmentalActivities 6,808,898 1],578,925 2,550,671 20,93$,494 Enterprise funds: F�ectric Utility 6,804,648 - 2,328,566 9,133,214 WaterUtility 678,483 - 379,545 1,058,028 WastewaterUtility 905,335 - 426,720 1,332,055 Solid Waste Utility 1,536,302 - 560,262 2,096,564 Airport 142,189 - 324 182,517 StormDrainage Utility 112,046 - 48,505 160,551 TotalEnterprisefunds 10,219,003 - 3,743,926 13,962,929 Total $ 1�,027,901 $ 11,5�8,925 $ 6,294,59'7 $ 34,901,423 Changes of�Assumptions Miscellaneous Safety PARS Plan Plan Plan Tota]. Governmentai Activities (minus Intemal Serviee Funds) $ 2,921,933 $ 10,230,839 $ - $ 13,152,772 Internal Service Funds: Equipment 242,967 - - 242,967 Information Systeins 299,112 - - 299,112 General Support Services 336,049 - - 336,049 RiskManagement 76,494 - - 76,494 Municipal Utilities Support 383,687 - - 383,687 Total Internal Service Funds 1,338,309 - - ],338,309 Totai C�vernmental Activities 4,260,242 10,230,839 - 14,491,081 Enterprise funds: Eiectric Utility 4,257,582 - - 4,257,582 WaterUtility 424,518 - - 424,518 WastewaterUtility 566,456 - - 566,456 Solid Waste Utility 961,245 - - 961,245 Airport 113,993 - - 113,993 StormDrainageUtility 70,106 - - 70,106 Tota1 Enterprise funds 6,393,900 - - 6,393,900 Total $ 10,654,142 $ 10,230,839 $ - $ 20,884,981 111 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18-Retirement Plans (Continued) A. Summa�y(Continued) Deferred Outflows of Resources(Continued) Difference hetween Expected and Actual Experience Miscellaneous Safety PARS P1an Plan Plan Total Governmental Activities (minus Internal Service Funds) $ 930,997 $ 53,238 $ 404,545 $ 1,388,780 Internal Service Funds: Equipment 77,415 - 26,031 ]03,�146 Information Systems 95,304 - 21,614 ]16,918 General Support Services 107,073 - 36,746 143,819 RiskManagement 24,373 - 6,000 30,373 Municipal Utilities Support 122,252 - 67,593 189,845 Total Internal Service Funds 426,417 - 157,984 584,401 Total C�vernmental Activities 1,357,414 53,238 562,529 1,973,181 Enterprise funds: Electric Utility 1,356,567 - 513,542 1,870,109 WaterUtility 135,262 - 83,704 218,966 W as tewater Utility 180,486 - 94,110 274,596 Solid Waste Utility 306,276 - 123,559 429,835 Airport 36,321 - �3 36,394 StormDrainage U'tility 22,33� - 10,697 33,034 Total Enterprise funds 2,037,249 - 825,685 2,862,934 Total $ 3,394,663 $ 53,23$ $ 1,388,214 $ 4,836,115 Total Deferred Outflows Miscellaneous Safety PARS P1an Plan Plan Total Governmentai Activities (minus Intemal Service Funds) $ 13,577,025 $ 35,849,468 $ 5,101,636 $ 54,528,129 Internal Service Funds: Equipment 1,128,968 - 328,301 1,457,269 Infom�ation Systems 1,389,852 - 272,566 1,662,41$ General Support Services 1,561,483 - 463,362 2,024,845 RiskManageinent 355,437 - 75,657 431,094 Municipal Utilities Support 1,782,838 - 852,383 2,635,221 Total Internal Service Funds 6,218,578 - 1,992,269 8,210,847 Total C�overnmental Activities 19,795,603 35,849,468 7,093,905 62,738,976 Ea�terprise funds: Electric Utility 19,783,246 - 6,476,187 26,259,433 WaterUtility 1,972,563 - 1,055,586 3,028,149 WastewaterUtility 2,632,091 - 1,186,792 3,818,883 Solid Waste Utility 4,466,514 - 1,558,194 6,024,708 Airport 529,680 - 914 530,594 Storm Drainage Utility 325,753 - 134,902 460,655 TotalEnterprise funds 29,709,847 - 10,412,575 40,122,422 Total $ 49,505,450 $ 35,849,468 $ 17,506,480 $ 102,861,398 112 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) A. Summary(Continued) Deferred Inflows of Resources Deferred inflows of resources are reported in the accompanying Statements of Net Position as follows: Changes in Assumptions Miscellaneous Safety PARS P1an Plan Plan Totai Governmental Activities (minus Internal Service Funds) $ - $ - $ 264,251 $ 264,251 Internal Service Funds: F.quipment - - 17,005 17,005 Information Systems - - 14,118 14,118 General Support Services - - 24,001 24,001 RiskManagement - - 3,918 3,918 Municipal Utilities Support - - 44,151 44,151 Total Internal Service Funds - - 103,193 103,193 Totai C�vernmental Activities - - 367,444 367,444 Enterprise funds: Eiectric Utility - - 335,450 335,450 WaterUt�lity - - 54,6�8 54,6�8 W as tewater Utili�y - - 61,472 61,4�2 Solid Waste Utility - - 80,712 80,712 Airport - - 47 47 Storm Drainage Utility - - 6,988 6,988 Total Enterprise funds - - 539,347 539,347 Total $ - $ - $ 906,791 $ 906,791 113 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) A. Summary(Continued) Deferred Inflows of Resources Differences between Expected and Actual Experience Miscellaneous Safety PARS Plan Plan Plan Total Governinental Aetivities (minus Internal Service Funds) $ - $ 2,309,372 $ - $ 2,309,372 Intemal Service Funds: Equipment - - - - Information Systerr� - - - - C�nerai Support Services - - - - Risk Management - - - - Municipal Utilities Support - - - - Total Internal Service Funds - - - - Total Govemrr�ntal Activities - 2,309,372 - 2,309,372 Enterprise funds: Electric Utility - - - - W ater Utility - - - - W as tewater Utility - - - - Sofid Waste Utility - - - - Airport - - - - StormDrainage Utility - - - - TotalEnterprise funds - - - - Total $ - $ 2,309,372 $ - $ 2,309,372 Total Pension-related Deferr�d Inflows Miscellaneous Safety PARS Plan Pian P1an Total Governmental Activities (minus Intemal Service Funds) $ - $ 2,309,372 $ 264,251 $ 2,573,623 Internai Service Funds: Equipment - - 17,005 17,005 Information Systems - - 14,ll8 14,ll8 Creneral Support Services - - 24,001 24,001 Risk Management - - 3,918 3,918 Municipal Utilities Support - - 44,151 44,151 TotalInternal Service Funds - - 103,193 103,193 Total Governmental Activities - 2,309,372 367,444 2,676,$16 Enterprise fiznds: Electric Utility - - 335,450 335,450 WaterUtility - - 54,678 54,678 WastewaterUtility - - 61,472 61,472 Solid Waste Utility - - 80,712 80,712 Airport - - 47 47 StormDrainage U'tility - - 6,988 6,988 TotalF�terprise funds - - 539,347 539,347 Total $ - $ 2,309,372 $ 906,791 $ 3,216,163 114 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) A. Summary(Continued) Pension Expense The total pension expense related to all retirement plans is $39,919,944. This is comprised of three parts Ca1PERS Miscellaneous Plan,CalPERS Safety P1an,and the PARS plan.The CaLPERS 1Vliscellaneous Plan pension expense was$21,581,042,the CalPERS Safety Plan pension expense was$14,935,674,and the PARS plan was$3,403,228. Responsible Governmental Funds The governmental funds responsible for liquidating pension liabilities include; General Fund, Community Development and Parking. B. CaIPERS General Information about the Pension Plans Ail 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 (Ca1PERS), whieh 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. CaIPERS 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. General Information about the Pension Plans(continued) In addition to the de�ned benefit pension plan through CalPERS, the City offers a defined benefit Retirement Enhancement Plan(REP)to the Ca1PERS 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-d'uty disability benefits after 10 years of service. The death benefit is one of the following: the Basis Death Benefit, the 1957 Survivar Bene�t, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as speci�ed by the Public Employees' Retirement Law. 115 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) B. CaIPERS(Continued) The Plans'provisions and bene�ts in effect at June 30,2023, are suinmarized as follows: NTiscellaneous Prior to On ar after Hire date January l,2013 January l,2013 Benefit fonnula 2%@ 55 2%@ 62 Benefit vesting schedule 5 years service 5 years service Benefit Payments monthly for life tnonthly for life Retirement age 50-55 52-67 Monthly benefits,as a%of eligible compensation 1.426%to 2.0% 1.0%to 2.5% Required employee contribution rates 7.00% 7.25% Required employer contribution rates 9.96% 9.96% S afety September 8,2012 Prior to to December 31, On or after Hire date September 8,2012 2012 January 1,2013 Benefit formula 3%@ 50 3%@ 55 2.7%@ 57 Benefit vesting schedu'le 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 1Vlonthly benefits,as a%of eligible compensation 3.0% 2.4%to 3.0% 2.0%to 2.7% Required empioyee contn`bution rates 9.0% 9.0% 14.50% Required employer contribution rates 21.554% 21.554% 23.89% a. 1Vet Pension Liability Emplovees Covered bY Benefit Terms At June 30, 2021 (actuarial valuation date), the following employees were covered by the benefit terms for each Plan: Miscellaneous Safety Inactive employees orbeneficiaries curre�ntly receivin�benefits 89'7 315 Inactive employees entitled to but not yet receiving benefits 331 74 Active employees 628 193 Totai 1,856 582 116 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) B. CaIPERS(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 Ca1PERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to fmance the cost of benefits earned by employees d�uring 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 30,2022,using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procec3ures. A summary of principal assumptions and methods used to c3etermine the net pension liability is shown below. Actuarial Assumptions The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions: Mis cellaneous Safety Valuation Date June 30,2021 June 30,2021 Measurement Date June 30,2022 June 30,2022 Actuarial Cost Method Entry-Age Normal Cost Actuarial Assumptions: Discount Rate 6.90% 6.90% Inflation 2.50°/o 2.50% Payroll C�owth 2.75% 2.75% Projected Salary Increase Varies by F�try Age and Service Investinent Rate of Retum '7.00%Net of Pension Plan Investment Eapense, includes Inflation Mortality Rate Table i Derived using Ca1PERS'Membership Data for all Funds. Post Retirement Benefit Increase Contract COLA up to 2.50%untii Purchasing Power Protection Allowance Floor on Purchasing Power applies,2,50°/o thereafter i The mortality table used was developed based on Ca1PERS-specific data The probabilities of mortality are based on the 201'7 Ca1PERS Experience Study for the period from 199'7 to 2015.Preretirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90%of Scale MP-2016 published by the Society of Actuaries. For more details on this table,please refer to the Ca1PERS Eaperience Study and Review of Actuarial Assumptions report from December 201'7 that can be found on the Ca1PERS website. 117 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) B. CaIPERS(Continued) a. Net Pension Liability(Continued) All other actuarial assumptions used in the June 30, 2021 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 Ca1PERS' 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, Ca1PERS 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 Ca1PERS' 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, Ca1PERS staff took into account both short-term and long-term market return expectations as weli as the expected pension fund (Public Employees' Retirement Fund) cash flows. Sucl� 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-tenn (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 ret�urn that arrived at the same present value of benefits for cash flows as the one caiculated 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 inarket assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the Board effective on November 1'7,2021. 118 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) B. CaIPERS(Continued) a. Net Pension Liability(Continued) Ctiirrent Target AssetClassi Allocation RealReturni'� Global Equity-Cap-weighted 30.0% 4.54% Global Equity-Non-Cap-weighted 12.0% 3.84% Private Equity 13.0% 7.28% Treasury 5.0% 0.27% Mortgage-backed Securities 5.0°/o 0.50% Investment Ca�ade Corporates 10.0% 1.56% High Yeld 5.0% 2.27% Emerging Market Debt 5.0% 2.48% Private Debt 5.0°/o 3.57% RealAssets 15.0°/o 3.21% L,everage -5.0% -0.59% iAn expected inflation of 2.0%used for this period �Figures are based on the 2021 Asset Liability Management study. b. Changes in Net Pension Liability The changes in the Net Pension Liability for each P1an follow: Miscellaneous Plan: Increase (Decrease)Plan. Total Pension Fiduciary Net Net Pension Liability Pension Liability/(Asset) Balance at June 30,2021 (Measurement date) $ 490,081,208 $ 380,650,700 $ 109,430,508 Changes in the year: Service costs 8,538,b65 - 8,538,665 Interest on the totalpension liability 34,337,125 - 34,337,125 Changes ofbenefit terms - - - Differences between actua)and e�ected e�perience 3,3'79,'785 - 3,379,785 Change in assumptions 14,600,120 - 14,600,120 Plan to plan resource movement - - - Contributions -employer - 16,761,832 (16,761,832) Contribution-employee - 3,941,926 (3,941,926) Net investment income - (28,706,945) 28,706,945 Benefit payments,�nciuding refunds of employee contributions (29,381,884) (29,381,884) - Administrative elpense - (237,123) 237,123 Othermiscellaneous income/(eapense) - - - Net changes 31,473,811 (37,622,194) 69,096,005 Balance at June 30,2022(Measurerr�nt date) $ 52I,555,019 $ 343,028,506 $ 17$,526,513 119 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) B. CaIPERS(Continued) b. Changes in Net Pension Liability(Continued) Safety Plan: Increase (Decrease)Plan TotalPension Fiduciary Net Net Pension Liability Pension Liability/(Asset) Balance atJune 30,2021 (Measurement date) $ 347,776,44'7 $ 253,112,693 $ 94,663,754 Changes in the year: Service costs 6,602,064 - 6,602,064 Interest on the totalpension liability 24,351,275 - 24,351,275 Changes ofbenefit tenns - - - Differences between actual and ezpected eaperience (1,991,350) - (1,991,350) Change in assumptions 13,153,936 - 13,153,936 Plan to plan resource movement - - - Contn`butions -er�loyer - 12,961,'721 (12,961,721) Contnbution-employee - 2,979,070 (2,979,070) Net investt�nt incoine - (19,281,616} 19,281,616 Benefit payments,including refunds of employee contnbutions (18,646,091) (18,646,091) - Administrative e�ense - (157,674) 157,674 Other miscellaneous income/(e�ense) - - - Netchanges 23,469,834 (22,144,590) 45,614,424 Balance at June 30,2022(Measurement date) $ 371,246,281 $ 230,968,103 $ 140,278,178 Sensitivitv of the Net Pension Liabilitv 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 l 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 $ 243,070,557 $ 191,512,149 Current discount rate 6.90% 6.90% Net pension liability $ 178,526,513 � 140,278,178 1%Increase 7.90% 7.90% Net pension liability $ 124,773,387 $ 98,395,206 120 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) B. CaIPERS(Continued) b. Changes in Net Pension Liability(Continued) Pension Plan Fiduciarv Net Position The plan fid�uciary 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,Ca1PERS 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 30,2023,the City recognized pension expense of$36,5]6,716,which is comprised of $21,5$1,042 of pension e�pense related to the Ca1PERS Miscellaneous plan and $14,935,674 of pension expense related to the Ca1PERS Safety plan. At June 30,2023,the City reported cleferred outflows ofresources and deferred inflows of resources related to pensions from the following sources: �Yliscellaneous Plan: Deferred Outflows Deferred Inflows of ofResources Resources Pension contributions made aftermeasurement date � 18,428,744 $ - Changes ofAssumptions 10,654,142 - Difference between e�ected and actual e�erience 3,394,663 - Net diff.erence between projected and actual earnings on pension plan investments 17,027,901 - Total $ 49,505,450 $ - Safety Plan: Deferred Outflows Deferred Inflows of ofResources Resources Pension contributions made after measurement date $ 13,986,466 $ - Changes ofAssumptions 10,230,839 - Difference between e�ected and actual e�erience 53,238 (2,309,372) Net difference between projected and actual earnings on pension plan investments 11,578,925 - Total $ 35,849,468 $ (2,309,3�2) 121 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) B. CaIPERS(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 2021-22 measurement period expense. The expected average remaining service lifetime (`BARSL")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 2021-22 measurement is 3.7 and 4.5 years, which was obtained by dividing the total service years of 6,884 and 2,609 (the sum of remaining service lifetimes of the active employees) by 1,856 and 582(the total number of participants: active,inactive and retired),respectively. The$18,428,744 and$13,986,466 reported as deferred outflows of resources related to pension resulting from the City's contributions subsequent to the measurelnent date during the fiscal year ended June 30, 2023 will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflow and deferred inf7ows of resources related to pensions will be recognized in future pension expense as follows: Year Ea�ded June 30 Miscellaneous Plan Safety Plan 2023 $ 8,203,735 $ 4,035,956 2024 7,472,613 3,808,674 2025 4,478,636 3,142,649 2026 10,921,722 8,566,351 2027 - - Thereafter - - Totai $ 31,076,706 $ 19,553,630 cL Payable to the Pension Plan At June 30, 2023, The City reported a payable of$ -0- for the outstanding amount of contributions to the pension plan required for the year ended June 30,2023. 122 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) C. PARS a. Gene�al Information about the Pension Plans Effective January l, 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 fi]ed 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 Tndependent Elnployees' Organization(RTEO)represented employees, Tier III Redding Police Officers' Association (RPOA) - Miscellaneous Unit einployees, 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 Einployees of California represented employees. The Plan is now closed to new participants. Benefits Provided The REP plan provides seroice retirement and disabiliry benefits, annual cost of living adjustments and death bene�ts 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 VT 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 P1ans'provisions and benefits in effect at June 30, 2021, are summarized as follows: Tier I Tier II Tier III Tier IV Tier V Tier VI Hire date 1/1/2005 thru 11U2005 thru 1/1/2005 thru 1/U2005 thru 1/1/2005 thru 1/1/2005 thru 8/7/20ll 12/31/2012 1/5/2011 1/5/20ll 9121/20ll 9/21/2011 Benefit fonnula 2.7%@ 55 2.7%@ 55 2.5%@ 55 2.7%@ 55 2.7%@ 55 2.7%@ 55 Benefit vesting schedule 5 years service ]Oyears 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 far 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% 2.08% 2.08% 2.62% Required employer contribution rates 54,24% 45.38% 46.73% 41,64% 36.19% 46,58% 123 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) C. PARS(Continued) a. General Information about the Pension Plans(Contznued) Emplovees Covered At 7uly 1,2020,the following employees were covered by the benefit terms for each P1an: Tier I Tier II Tier IlI Tier IV Tier V Tier VI Total Inactive employees or beneficiaries currently receiving benefits ll0 222 10 103 50 14 509 Inactive employees entitled to but not yet receiving benefits 5 4 - 3 1 1 14 Active employees 38 79 2 48 22 8 197 Total 153 305 l2 154 73 23 720 b. Net Pension Liability The City's total pension liabi]ity was determined by an actuarial valuation as of the va]uation 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, 2022 actuarial valuation were determined using the following actuarial assumptions: Valuation Date June 30,2022 Measurement Date June 30,2022 Actuarial Cost Method F�try-Age Normal Actuarial Assumptions: Discount Rate 7.00% Inflation 2.30% Projected Salary Increase Graded rates based on years of services,3.4%after 22 years of service. Investment Rate of Return 7.00% Mortality Rate Table Pre-retirement/Post-retire�nt:Consistent with 1Von- Industrialrates used to value the Miscellaneous CaIPERS Pension Plans after June 30,2021 124 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) C. PARS(Continued) b. Net Pension Liability(Continued) Discount Rate The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per Milliman's investment consulting practice as of June 30, 2023. Long-Term Long-Term E�ected E�ected Arithmetic G�ometric Target Reai Rate of Real Rate of Asset Class Index Allocation Return Return US Cash BAML3-Mon Tbill 4.34% 0.51% 0.49% US Core FiYed Income Barclays Aggregate 38.36°/o 2.07% 1.93% US Equity Market Russe113000 46.23°/o 5.56% 3.90% Foreign Developed Equity MSCI EAFE NR 6.51% 6.89% 5.07% Emerging Markets Equity MSCI EM NR 2.28% 9.58% 6.18% US REITs FTSENAREIT Equity REIT 2.28% 6.96% 4.74% Assumed inflation-mean 2.32% 2.32% Assumed infiation-standard deviation 1.42% ].42% Portfolio real mean return 4,21% 3.62% Portfolio nominal mean return 6.53% 6.04% Portfolio standard deviation 10.40% Long-term eapected rate of return '7.00% 125 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) C. PARS(Continued) c. Changes in Net Pension Liability The changes in the Net Pension Liability for the Plan follow: PARS-REP Plan Increas e (Decrease)Plan Net Pension Total Pension Fiduciary Net Liabilityl Liability Pension (Asset) Balance at July 1,2021 (Measurement date) $ 90,597,758 $ 75,788,152 $ 14,809,606 Changes in the year: Service costs 960,178 - 960,178 Interest on the totalpension liabiiity 6,218,106 - 6,218,106 Changes ofbenefit terms - - - Effectofeconomicldemographic gains orlosses 2,650,226 - 2,650,226 Differences between actual and eapected eaperience - - - Change in assumptions (1,731,147) - (1,731,147) Contnbutions -employer - 9,061,771 (9,061,7'71) Contnbution-err�loyer(paid by member) - 393,779 (393,7�9) Net investinent income - (9,274,876) 9,274,876 Adininistrative e�enses - (213,951) 213,951 Benefit payments,including refunds of employee contn`butions (5,549,535) (5,549,535) - Netchanges 2,54'7,828 (5,582,812) 8,130,640 Balance at June 30,2022(Measurement date) $ 93,145,586 $ 70,205,340 $ 22,940,246 Sensitivitv Analvsis The following presents the net pension liability of the City of Redding Retirement Enhancement Plan, ealculated using the discount rate of 7.0%, as well as what the Plan's net pension iiability 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. Crrent 1%Decrease Discount Rate 1%Increase 6.0% �.0% 8.0% Totalpension liability $ 103,29],524 $ 93,145,586 $ 84,588,399 Fiduciary netposition 70,205,340 70,205,340 70,205,340 Netpensionliability 33,086,184 22,940,246 14,383,059 126 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) C. PARS(Continued) c. Changes in Net Pension Liability(Continued) Pension Plan Fiduciarv Net Position The plan fid�uciary 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,Ca1PERS 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 DefeNred Outflows/Inflows of ResouNces Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of$3,403,22$. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of of Resources Resources Pension oontnbutions made aftermeasurement date $ 9,823,669 $ - Changes ofAssumptions - (906,791) Difference between e�ected and actual e�erience 1,388,214 - Net difference between projected and actual earnings on pension plan investments 6,294,597 - Total $ 17,506,480 $ (906,791} The amounts above are net of outflow and inflows recognized in the 2021-22 measurement period expense. The expected average remaining service lifetime (`BARSL")is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the PARS plan for the 2021-22 measurement is 2.1 years,which was obtained by dividing the total service years of 1,523 (tl�e sum of remaining service lifetimes of the active einployees)by'720 (the total number of participants: active, inactive and retired). 127 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 18—Retirement Plans (Continued) C. PARS(Continued) d. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions(Continued) The $9,823,669 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 30,2023 will be recognized as a reduction of the net pension liability in the year ended June 30,2024. Other amounts reported as deferred outflow ancl deferred inflows of resources related to pensions will be recognized in future pension expense as follows. Year Ended June 30 Amount 2023 $ 1,701,317 2024 1,251,556 2025 881,732 2026 2,941,415 Thereafter - Total $ 6,776,020 e. Payable to the Pension Plan At June 30, 2023, The City reported a payable of$ -0- for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2023. 128 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 19—Other Postemployment Healthcare Benefits The following is a summary of Net other postemployment benefits ("OPEB") liabilities and related deferred outflows and inflows of resources as of June 30,2023: A��re�ate Net OPEB Liabilitv Aggregate Net OPEB Liability is reported in the accompanying Statements of Net Position as follows: OPEB �vemmentai Activities (ininus Internal Service Funds) $ 25,813,919 Internal Service Funds: Equipment 878,354 Inforn�ation Systems 987,509 C�neral Support Services 1,248,062 Risk Management 321,476 MunicipalUtilities Support 1,304,184 Totai Internal Service Funds 4,739,585 Totai Governmental Activities 30,553,504 Enterprise funds: Electric Utility 13,459,484 W ater Utility 1,481,070 W astewater Utility 2,034,295 Solid Waste Utility 3,331,097 Airport 487,665 StormDrainage Utility 217,777 Totai F�terprise funds 21,011,388 Total $ 51,564,892 129 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 19—Other Postemployment Healthcare Benefits (Continued) Deferred Outflows of Resources Deferred outflows of resources are reported in the accompanying Statements of Net Position as follows: OPEB Cont�ibutions made after the Measurement Date OPEB C�vemmental Activities (ininus Internal Service Funds) $ 1,512,664 Internal Service Funds: Equipment 51,470 Information Systems 57,867 C�neral Support Services 73,136 Risk Management 18,839 MunicipalUtilities Support 76,423 Total Internal Service Funds 277,735 Total Govemmental Activities 1,790,399 Enterprise funds: Electric Utility '788,709 W ater Utility 86,789 W astewater Utility 119,206 Solid Waste Utility 195,198 Airport 28,576 Storm Drainage Utility 12,760 Total Falterprise funds 1,231,238 Total $ 3,021,637 Difference between Projected and Actual EaNnings on Pension Plan Investments OPEB Governmental Activities (minus Intemal Service Funds) $ 1,458 Internal Service Funds: Equipinent 49 Information Systems 56 C�neral Support Services 70 Risk Management 18 Municipal Utilities Support 74 Total Internal Service Funds 267 Totai C�vernmental Activities 1,725 Fnterprise funds: Electric Utility 760 W ater Utility 84 W astewater Utility 115 Solid Waste Utility 188 Airport 28 Storm Drainage Utility 12 Total Enterprise funds 1,18'7 Total $ 2,912 130 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 19—Other Postemployment Healthcare Benefits (Continued) Deferred Outflows of Resources(Continued) Changes of Assumptions OPEB Governmental Activities (minus Internal Service Funds) $ 3,385,793 Internal Service Funds: Equipment 115,206 Information Systems 129,523 �neral Support Services 163,698 Risk Management 42,165 Municipal Utilities Support 171,059 Total Internal Service Funds 621,651 Totai Crovernmental Activities 4,007,44� Enterprise funds: Electric Utility 1,765,366 W ater Utility 194,259 W astewater Utility 266,821 Solid Waste Utility 436,912 Airport 63,963 Storm Drainage LTtility 28,564 Totai Fa�terprise funds 2,755,885 Total $ 6,763,329 131 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 19—Other Postemployment Healthcare Benefits (Continued) Deferred Outflows of Resources(Continued) Differences between Expected and Actual Experience OPEB Governmental Activities (minus Internal Service Funds) $ 5,646,434 Internal Service Funds: Equipment 192,127 Information Systems 216,004 �neral Support Services 272,995 Risk Management 70,318 Municipal Utilities Support 285,272 Total Internal Service Funds 1,036,716 Totai Crovernmental Activities 6,683,150 Enterprise funds: Electric Utility 2,944,074 W ater Utility 323,963 W astewater Utility 444,974 Solid Waste Utility '728,631 Airport 106,670 Storm Drainage LTtility 47,636 Totai Fa�terprise funds 4,595,948 Total $ 11,279,098 Total Deferred Outflows OPEB Governmental Activities (ininus Internal Service Funds) $ 10,546,350 Internal Service Funds: Equipment 358,852 Inforn�ation Systems 403,450 C�neral Support Services 509,898 Risk Management 131,340 Municipal Utilities Support 532,$28 Tota)Internal Service Funds 1,936,368 Total C�vernmental Activities 12,4$2,718 Enterprise funds: Ilectric Utility 5,498,909 W ater Utility 605,095 W astewater Utility 831,116 Solid Waste Utility 1,360,929 Airport 199,237 StormDrainage Utility 88,972 Total Enterprise funds 8,584,258 Total $ 21,066,976 132 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 19—Other Postemployment Healthcare Benefits (Continued) Deferred Inflows of Resources Deferred Inflows of resources are reported in the accompanying Statements of Net Position as follows: Changes in Assumptions OPEB Crovernrr�ntai Activities (minus Internal Service Funds) $ 2,294,1 l5 Internal Service Funds: Equipment 78,060 Information Systems �7,761 C�neral Support Services 110,916 Risk Management 28,570 Municipal Utilities Support 115,904 Total Internal Service Funds 421,211 Total C�vernmental Activities 2,'715,326 Fnterprise funds: Electric Utility 1,196,159 W ater Utility 131,624 W astewater U�ility 180,790 Solid Waste Utility 296,038 Airport 43,338 Storm Drainage Utility 19,354 Totai Fa�terprise funds 1,867,303 Total $ 4,582,629 Total Defer^red Inflows OPEB �vemmentai Activities (minus Intemal Service Funds) $ 2,294,ll5 Internal Service Funds: Equipment 78,060 Information Systems 87,761 C�neral Support Services 110,916 Risk Management 28,570 Municipal Utilities Support 115,904 Totai Internal Service Funds 421,2ll Total C�vernmental Activities 2,'715,326 Enterprise funds: Electric Utiliry 1,196,159 W ater Utility 131,624 W astewater Utility 180,790 Solid Waste Utility 296,038 Airport 43,338 StonnDrainage Utility 19,354 TotalEnterprise funds 1,867,303 Total $ 4,582,629 133 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 19—Other Postemployment Healthcare Benefits (Continued) Responsible Governmental Funds The governinental funds responsible for liquidating OPEB liabilities include;General Fund,Community Development, and Parking. General Information about the OPEB Plan Plan DescYiption The City of Redding PARS Post-Retirement Health Care Plan (the "Plan") is a single-employer defined bene�t healthcare plan administered by Phase II Systems,dba Public Agency Retirement Services(PARS). The Plan provides medical and dental insurance benefits to eligible retirees and their spouses. The Ciry Council has the authority to establisb and amend benefit provisions to the plan. Funding Policy The contribution requirements of plan members are established and may be amended by the City Council. The required contribution is based on projected pay-as-you-go financing requirements,with an additional amount to prefund benefits as determined annually by the City Council. Employees Covered by Benefit TeYm Tnactive er�loyees or beneficiaries currenfly receiving benefits 340 Inactive employees entitled to but not yet receiving benefits - Active employees 832 Total 1,172 134 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 19—Other Postemployment Healthcare Benefits (Continued) Net OPEB Liabilitv The City's net OPEB liability was measured as of June 30, 2022, and the actuarial valuation used to calculate the net OPEB liability was as of June 30, 2021. Actuapial Assumptions The total OPEB liability in the June 30,2021 actuarial valuation was determined using the following actuarial assumption s. Valuation Date June 30,2021 iVleasurement Date June 30,2022 Actuarial Assumptions: Discount Rate 3.54%at June 30,2022 Bond Buyer 20-bond Index 2.16%at June 30,2021 Bond Buyer 20-bond Index General Inflation 2.50% E�ected Net I,ong-Term Rate 3.50%at June 30,2022 of Return on Investments: 3.50%at June 30,2021 1Vlortality Rate Table Ca1PERS 2000-2019 Experience Study Mortality Improvement Mortality projected fu11y generational with Sca1e MP- 2021 Salary Increases 2.75% Medical Trend Non-Medicare-6.50°/o for 2023,decreasing to an ultimate rate of 3.75%in 20'76 Medicare-5.65%for 2023,decreas ing to an ulti�te rate of 3.75%in 2076 Medicalparticipation Medicare-100%actives and retirees assumed to be eligible and will participate in Medicare Healthcare participation for future retirees Single coverage:60%pre-65,20%post-65 2-Party and family coverage-75%pre-65,50°/o post-65 Healthcare participation for 30%for single and 70%far 2 party/fainily after age 65 current retirees for retirees currently under 65 100%for other retirees 135 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 19—Other Postemployment Healthcare Benefits (Continued) Net OPEB Liabilitv(Continued) Changes in Net OPEB Liability Total OPEB Fiduciary Net Net OPEB Liability Position Liability BalanceatJune30,2021 (MeasurementDate) $ 54,992,737 � 52,569 $ 54,940,168 Changes in the year: Service costs 3,366,492 - 3,366,492 Interest on the total pension liability 1,210,868 - 1,210,868 Chan�es ofbenefitterms - - - Effect of economicldemographic gains or losses - - - Differences between actual and e�pected eaperience - - - Change in assumptions (3,351,682) - (3,351,682) Contributions -eiriployer - 4,601,018 (4,601,018) Contributions -employer(paid by employer) - - - Net investment income - 67 (67) Administrative e�enses - (131) 131 Benefit payments,including refunds of employee contnbutions (4,601,018) (4,601,018) - Net changes (3,375,340) (64) (3,375,276) Balance at June 30,2022 (Measu�rement date} $ 51,617,397 $ 52,505 $ 51,564,892 Sensitivitv of the Net OPEB Liability to Chan�es in the Discount Rate The following presents the net OPEB liability of the plan as of the measurement date,calculated using the discount rate of 3.54%, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower(2.54%)or 1 percentage point higher(4.54%)than the current rate: 1%Decrease Current Rate 1%Increase (2.54%) (3.54%) (4.54%) Net OPEB Liability $ 54,059,515 $ 51,564,892 $ 48,890,641 Sensitivitv of the Net OPEB Liabilitv to Chan�es in the Healthcare cost Trend Rates The following presents the net OPEB liability of the plan as of the measurement date, calculated using healthcare cost trend rates, as well as what the net OPEB liability would be if it were ealculate using a trend that are one percentage point lower or one percentage higher than the current healthcare cost trend rates: 1%Decrease C�irrent Trend 1°/o Inerease Net OPEB Liability $ 47,145,260 $ 51,564,892 $ 56,381,604 136 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 19—Other Postemployment Healthcare Benefits (Continued) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of$8,307,560. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of ofResources Resources OPEB contnl�utions made after measurement date $ 3,021,63'7 $ - Changes of assumptions 6,763,329 4,582,629 Difference between e�ected and actual eaperience ]1,279,098 - Net difference between projected and actual earnings on OPEB plan investments 2,912 - Total $ 21,066,976 $ 4,582,629 The$3,021,637 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 30,2023 will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2024. Other amounts reported as deferred outflow and deferred inflow of resources related to OPEB will be recognized in future OPEB expense as follows: Year Ended June 30 Amount 2024 $ 3,731,985 2025 3,247,198 2026 2,954,122 2027 1,634,504 2028 1,270,349 Thereafter 624,552 Total $ 13,462,710 137 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 20-Fund Balances Fund balance as of June 30, 2023, consists of the following: General Major Capital Community Other Fund Project Fund Development Funds Total Fund balances: Nonspendable fundbalance: Prepaids and inventory $ 2,375,297 $ - $ 50$ $ 77,069 $ 2,452,874 Contractually nonspendabie 908,133 - - - 908,133 Total nonspendable 3,283,430 - 508 77,069 3,361,007 Restricted fund balance: Fiscalagentreserves 1,018 - - - 1,018 Debt service 72,574 1,495,651 - 304,665 1,872,890 Opioid Settlement 530,866 - - - 530,866 Special Revenue Community developinent - - 57,297,849 - 57,297,849 Housing - - - 16,580,'750 16,580,750 Landscape maintenance - - - 866,233 866,233 Library - - - 1,106,609 1,106,609 Local transportation - - - 10,981,690 10,9�1,690 Police asset seizure - - - 13,824 13,824 Total restricted 604,458 1,495,651 57,297,849 29,853,771 89,251,729 As s igned fund balance: Operations and maintenance Fire 189,908 - - - 189,908 Public works �83,640 - - - 783,640 Other l,'771,800 - - - 1,��1,800 Capital Projects Public works 661,098 - - - 661,098 Other 574,594 - - - 574,594 Vehicies and equipment Fire 49,568 - - - 49,568 Public works 222,169 - - - 222,169 Other 263,098 - - - 263,098 Rolling stock 1,243,179 - - - 1,243,179 Future e�enditures 1,288,000 - - - 1,288,000 Future capitalprojects 876,836 - - - 8'76,836 Total assigned 7,923,890 - - - 7,923,890 Unassigned: General fund 14,750,184 - - (191,422) 14,558,762 Total unassigned 14,750,184 - - (191,422) 14,558,762 Total fund balances $ 26,561,962 $ 1,495,651 $ 57,298,357 $ 29,739,418 $ 115,095,388 138 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 21 —Net Investment in Capital Assets Net Investment in Capital Assets as of June 30,2023, consisted of the following: CAvernmentai Business-Type Activities Activities Netinvestmentin capital assets Capitalassets,nondepreciable $ 103,796,691 $ 75,594,286 Capital assets,depreciable 261,000,853 467,218,673 Current portion of long-term debt: Governmental (2,162,338) - Electric Utility - (12,11],610) W ater Utility - (24,511) W astewater Utility - (4,4�0,255) Solid Waste Utility - (43,934) Airport - (80,26� StormDrainage Utility - (11,131) Convention Center - (31,130) Redding Area Bus Authority - (28,485) Long-term debt,e�luding current portion: Governmental (27,418,954) - Electric Utility - (94,995,093) W ater Utility - (1,839) W as tewater Utility - (44,121,019) Solid Waste Uti]ity - (�2,498) Airport - (303,355) StormDrainage Utility - (920) Redding Area Bus Authority - (32,]5� Deferred gain/loss on refunding Governmental 172,591 - Electric Utility - 5,596,324 W as tewater Utility - 767,723 Debt not used for capital assets Crovernmental 82,364 - Electric Utility - 11,985 W ater Utility - 13,560 Airport - 2 Convention Center - 1 Netinvestment in captal assets $ 335,471,207 $ 392,864,351 139 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 22—Commitments and Contingencies A. Constr°uctzon Commitments A number of construction contracts existed at June 30,2023, The unexpended authorized amount of$69,995,810 represents a commitment by the City. B. Redding Electr�ic Fltility(REU) i) REU is contractually obligated to purchase 7,500 Dth/day of GTN natural gas pipeline capacity which will expire October 31, 2023. REU has sold its delivery rights to the GTN through the remainder of the contract period ending October 31, 2023. The City realizes a small net revenue from this asset due to the GTN rate reductions implemented annual and the sale of GTN capacity rights. Beginning November 1,2023,REU will pennanently release its rights and will no longer have any ownership, fees, or revenue related to the GTN pipeline. ii) REU is contractually committed to purchase natural gas through fiscal year 2025.The following table provides on a fiscal year basis the approximate purchase dollar amount and the percentage these purchases cover of the minimum fuel requirements for the expected operating levei of the Redding Power facility. 2024 2025 2026 2027 2028 Purchase Cost$(million) $ ll.5 $ 11.8 $ 6.0 $ 2.'7 $ - °/o Natural Gas Hedge** 73% 55% 34°/o 15°/o 0°/o **This is the%of gas acquired to meet power retail sales after considering all other power resources and before wholesale power and gas transactions. iii) In 2010, REU entered into a 28 year term contract with Gill Ranch Storage. Under the Agreement REU has leased 2,250,000 Dth of cushion gas initially valued at $13,5�0,000 to Gill Ranch. Gill Ranch provides REU with monthly lease payments along with approximately 600,000 Dth of natural gas storage. At tbe end of the contract term in 2038,the cushion gas will be returned to REU unless the lessee executes the option to purchase the gas. If the option is executed the purchase price shall be equal to the original cost of the gas escalated at a rate of 1.08%per annum. iv) REU has contractually committed to purchase power from M-S-R Public Power Agency on an as-delivered basis from a Pacific N�orthwest wind project. Deliveries began October 1, 2006. REU's share of the output from the wind project is approximately 170,000 MWh per year. The twenty-year contract with an option to extend five years has an$]1,850,000 annual expected expense. The wind-based energy from this contract is a major source of eligible renewable energy with the associated environmental attributes available to meet REU's renewable resource portfolio requirements. M-S-R has completed an amendment to the Pacific Northwest Wind Contract which addresses financial responsibility for the Bonneville Power Administration's Wind Integration Charge(WIC). Currently,the WIC is approximately$1.01 per kw-ino and is included in the annual expected expense mentioned above. 140 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 22—Commitments and Contingencies (Continued) B. Redding Electric Utility(REU) (Continued) v) The City of Redding, in conjunction with the Northern California Power Agency and Cities of Roseville and Santa Clara (collectively the "Plaintiffs"), filed a complaint in September 2014 in the U.S. Court of Claims seeking recovery of more than $45 million in overcharges imposed by the Bureau of Reclamation for the Central Valley Project Improvement Act(CVPIA). The CVPIA, established in 1992, obligates Reclamation to collect roughly $30 million per year (in 1992 dollars) from water and power customers who benefit from the Central Valley Project (CVP), in proportion to the users' project repayment obligation over a 10-year rolling average. Through the end of 2019, Reclamation estimates CVP capital costs to the power users over the previous 10 years is 34.07%; however, the CVPIA collections had averaged 45% over the same time period. Redding and the other plaintiffs in this claim, believe that Reclamation has overcharged the CVP power customers and are seeking repayment. In July of 2018, the U.S. Court of Federal Claims denied the Plaintiffs' complaint. Due to the large amount of overcharges,the Plaintiffs�led notices of appeal of the case to the Federal Circuit in September of 2018. On November 6, 2019, the Federal Circuit issued an opinion where they reversed Court of Federal Claims judgement and remanded for future proceedings consistent with the opinion. In June 2023,tl�e City of Redding was awarded$15,8$4,102 in damages from the litigation. C. West Central LandfilZ In 1990 the City entered into an agreement with Shasta County to operate West Central Land�ll (the landf'ill). Under the agreement, the City is obligated to operate the landfill at least until there are no bonds or contracts outstanding. The 1997 refunding bonds expired July 1, 2010, and the bonds were paid off. The City records the activity and net position of the operations portion of the landfill in its Solid Waste enterprise fund. Net position associated with the landfill, recorded on the City's books at June 30, 2023, was $'7,150,273. The net position includes Net investment in capital assets of$4,808,303 and Unrestricted of$2,341,970. D. Grants Amounts received or receivable from granting agencies are subject to audit and adjustments by grantor agencies. While no matters of non-compliance were disclosed by the audit of the financial statements or single audit of the Federal programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of manageinent, future disallowances of current or prior grant expenditures, if any,would not have material adverse effect on the financial position of the City. E. Litigation Various claims and suits have been filed against the City in the normal course of business. Although the outcome of these matters is not presently determinable in the opinion of 1ega1 counsel,the city believes that the resolutions of these matters will not have a material adverse effect on the financial condition of the City. 141 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 23—Successor Agency Trust for Assets of the Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the Bill") that provides for the dissolution of a11 redevelopment agencies in the State of California. In accordance with the timeline set forth in the Bil1 (as modi�ed by the California Supreme Court on Deceinber 29, 2011) all redevelopment agencies in the State of California were dissoived and ceased to operate as a legal entity as of February 1, 2012. The assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City. The Biil provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the"successor agency"to hold the assets until they are distributed to other units of state and local government. On January 12, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-001. Following the disbursement of unencumbered funds, the Department of Finance of the State of California granted a "Finding of Completion"on June 20, 2013, to the City of Redding Successor Agency. The Successor Agency is now allowed to piace loan agreements between the former redevelopment agency and sponsoring entity on the Recognized Obligation Payment Schedule and utilize remaining bond proceeds. Successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until ali enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1,201]. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designatecl as the successor agency by the Bi11. The State Controller completed the review of a11 assets transferred and issued a report dated October 13, 2014. The review found that the Agency transferred $69,027,149 in assets after January 2, 2011, including unallowable transfers to the City totaling$876,800. The City turned over the$876,$00 to the Agency that was subsequently remitted to the Shasta County Auditor-Controller for distribution to the taxing entities. 142 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 23—Successor Agency Trust for Assets of the Former Redevelopment Agency(Continued) Long-term debt consisted of the following as of June 30,2023: Market Street TaxAllocation Bonds,Series 2003: Interest from2.0%to 5.679%payable March 1 and Septeinber 1;maturities are payable September 1 in annualredemptions from$170,000 to$400,000;finalpayment September l,2023. Original issue: $5,185,000. Proceeds frointhe Series 2003 Bonds are used to fmance various eapital improvements within the Market Street Redevelopment Area. $ 400,000 Canby-Hilltop-C�press TaxAllocation Bonds,Series A 2003: Interest from 2.0% to 5.0%payable March l and September 1;maturities are payable September 1 in annual redemptions from $1,040,000 to $2,055,000; final payment Septeinber 1, 2023. Original issue: $28,935,000. Proceeds from the Series A 2003 Bonds are used to finance various capital improvements within the Canby-Hilltop- C�press Redevelopment Area. 1,795,000 SHASTEC TaxAlloeation Bonds,Series 2006: Interest from 4.0% to 5.0%payable March 1 and September 1;maturities are payable September 1 in annual redei�tions from $2A5,000 to $5,585,000; final payinent September 1,2036. Original issue: $15,000,000. Proceeds from the Series 2006 Bonds are used to finance various capital irnprovements within the SHASTEC Redevelopment Area. 9,535,000 Totalbonds outstanding ll,730,000 Diseount on Market Street TaxAllocation Bonds,Series 2003 (406) Premiumon Canby-Hilltop-Cypress TaxAllocation Bonds,Series A 2003 598 Discount on SHASTEC TaxAllocation Bonds,Series 2006 (28,988) Total dis count/premium (28,79� Totallong-termbonded debt $ 11,701,204 Annual requirements to amortize long-term bonds outstanding as of June 30,2023, are set forth below: FiscalYear Principal Interest Total 2023 $ 2,685,000 $ 511,125 $ 3,196,125 2024 510,000 432,750 942,750 2025 535,000 409,238 944,238 2026 560,000 384,600 944,600 2027 585,000 357,375 942,375 2028-2032 3,430,000 1,302,000 4,732,000 2033-2037 3,425,000 352,875 3,7'77,875 2038-2042 - - - Total $ 11,'730,000 $ 3,'749,963 $ 15,479,963 143 City of Redding Notes to the Basic Financial Statements For the Year Ended June 30, 2023 Note 24—Subsequent Events A. Successor Agency to the Redding Redevelopment Agency On September 7, 2023, the City of Redding Successor Agency to the Redevelopment Agency SHASTEC Redevelopment Project issued$7,545,000 of refunding bonds (Successor Agency to the Redding Redevelopment Agency SHASTEC Redevelopment Project Area Tax Allocation Refunding Bonds, Series 2023) to refund the Redding Redevelopment Agency 2006 SHASTEC Redevelopment Project Tax Allocation Bonds. The 2006 Bonds will be called on or about December 1,2023,in anticipation of favorable market interest rates. This was a straight refunding and no new monies were obtain. The refunding was approved by the Department of Finance on July 17, 2023. Date of Issuance Series Name Pur ose of Issuance Successor Agency to the Redding To Refund the Redding Redevelopment Redevelopment Agency SHASTEC Agency SHASTEC Redevelopment Project 9/7/2023 Redevelopment Project Area Tax Tax Allocation Bonds Series 2006 in order to Aliocation Refunding Bonds, Series obtain interest savings 2023 B. Zogg Fire Settlement The City of Redding was notified of the financial contribution related to Shasta County's District Attorney's Office Zogg Fire civil settleinent with PG&E.PG&E was found responsible for the ignition of the Zogg Fire on September 27, 2020. The City of Rec3ding was awarded in total $4,050,000, with $500,000 for Redding Police Department and$3,550,000 far Redding Fire Department. The allocation of use of the funding was approved by Reclding City Council on July l 8, 2023. 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J at {„ �: i r,,, t. .t t,s,«„�,.ti/,t. ,.r3 �, ,-�_ � t 3 ,..� { �,� � ,i,,,,:t r,� 4 �, t, c. �}4 ,tI � � r �t<, � t�5 � } k„ �l � rr ts � � ,t f, i,',., r r t� .�#r't t � t�, }, � rt}t s�, ,�.}. �ur,, <tt Z,t„:�� .(, s.}< 14«ts, i � t�u „k t .i.� t,�,,,,� }� I ,.I ..i(t t st. �s , 4r�,�:, { } .,t.,,. r,l . ,li S t4.,�s ,�,ew: ,3 : .rirr„5 ,..�,i,r : ..r� 7�. t.t ,�, �i,{rc,r �t ,�}� tt � ,tk� r r},, ..;�r�r,,,z..i. : s,r�=�, r s � t�,sr ,>t.,,, 1 � ras .,,� .,tn rr ��,t•;i,,f. ,+��,intt{��ff,��nt�#i,ft,<,r3„r{�<<{t�i`,t�,r,s,{�iJ��t.r7z{{t?tt�,,S�{�t,»f i.sr�' s#r,r�(tiac,7�i{�,,.trrnx,+t�l�i}r},,,.,g,,tt�<<(�,tr,v��11,f$�S �la�£s22f,thr }P,�i��t�t��,{�17�ttf4t� F(E�ttii��itty,.s„ rr , 2, # . ..,f$l� n l�i . t . ;f <�rU � i t „{, ��47� k��j��+{�k�� '�. �r��`� �� '�� t}}�ti�� 'x,. ��,�� {��fi�� ;��s�� r�h�u��z�,�� This page intentzonally lef't blank 146 City of Redding Required Suppiementary Tnformation Budgetary Information (Unaudited) For the Year Ended J�une 30, 2023 Note 1—Budgetary Principles Bud�et Dafa The operating budget of the City is adopted by the City Council prior to July 1 each year primarily on a cash basis. The City Manager is authorized to transfer budget amounts between divisions of a department within any fund; however, any revisions that alter the total expenditures of any fund require City Council resolution. Budget information is adopted and presented for the general, special revenue(except for the Landscape Maintenance Districts and Asset Seizure Fund), capital project and the debt service funds. The presentations represent original appropriations adjusted for supplemental appropriations,if any,made during the year. The City does not formally adopt a budget for the debt service fund. The bond documents are the controlling factor. Summarv of Differences between Bud�etarv Basis and Generallv Accepted Accountin�Principles(GAAP) The following are the differences beriveen the City's budgetary basis and GAAP: A. The City does not budget for the fair inarket value adjustment required under GASB 31. B. The City does not budget for accounts payable or intergovernmental payables. C. The City does not budget for benefit accruals. D. The City budgets for certain receivables and payables on a cash basis. E. The City budgets for land to be held for resale as expenditure. F. Encumbrances are not included in the Statement of Revenue, Expenditures and Changes in Fund Balance Bud�etarv Basis Reconciliation Budgets are not adopted for the Landscape Maintenance Districts Fund and the Asset Seizure Fund. 147 City of Redding Schedule of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual (Unaudited) General Fund For the Year Ended June 30, 2023 Actual Variance Wit1i Amounts Final Bud�et Budgeted Amounts Bud�etary Positive Ori�inal Final Basis (Ne�ative) REVENUES: Properiy taxes $ 25,263,510 $ 25,263,510 $ 26,249,843 $ 986,333 Sales and use taxes 29,225,810 33,206,810 30,257,827 (2,948,983) Other taxes 10,003,410 11,91'7,410 11,734,803 (182,607) Liccnsesandpermits 2,216,500 2,270,740 2,386,162 ll5,422 Intergovernmentalrevenues 1,287,060 3,490,770 3,132,968 (357,802) Charges far services 3,445,870 4,162,870 4,815,368 652,498 Fines,forfeitures,andpenalties 608,130 1,059,940 1,497,164 43�,224 Use of moncy and property 8,728,230 8,728,560 8,648,508 (80,052) Net inveshnent earnings(loss) ll 8,010 118,010 451,22] 333,211 Other revenue 383,850 738,650 1,371,149 632,499 Total revenues 81,280,380 90,957,2'70 90,545,013 (412,257) EXPENDTTURES: Current: General�overnment: City Attorney 961,400 984,330 953,243 31,08� City C1erk 321,290 463,990 458,072 5,91$ City Manager 8,465,090 9,754,970 �,402,560 2,352,410 City Treasurer 704,810 712,630 659,728 52,902 Finance 1,589,'770 1,'7�8,540 1,858,646 (80,106) Personnel 557,910 675,100 672,076 3,024 Purchasing 619,970 639,810 616,�76 23,034 Public safety: Police 43,420,350 52,�33,6'70 45,�83,914 6,949,756 Fire safery 24,336,630 29,101,300 27,310,634 1,790,666 Public works 20,371,510 23,370,350 17,329,7'79 6,040,571 Planning 11,077,500 8,803,450 8,029,993 773,457 Recreation and culture 12,122,400 10,481,590 8,243,884 2,237,706 Debt service: Principal payments 1,�49,ll0 1,917,930 1,870,603 4'7,32� Tnterest and fiscal charges 872,020 901,'7�0 898,27'7 3,493 Total expenditures 127,169,760 142,319,430 122,088,185 20,231,245 REVENUES OVER((TNDER)EXPENDITURES (45,889,380) (51,362,160) (31,543,172) 19,818,988 OTHER RINANCING SOURCES(USES): Sale of capital assets 75,000 75,000 Transfers in 14,503,360 20,757,760 20,1 ll,442 (646,318} Transfers c�ut (3,034,280) (4,219,490) (4,659,766) (440,276) Total other financing sources(uses) 11,469,0$0 16,538,270 15,526,676 (1,011,594) CHANGE IN FUND BALANCE (34,420,300) (34,823,890) (16,016,496) 18,80'7,394 BUDGETARY FUND BALANCES: Bcginnin�ofycar 28,725,182 28,725,182 28,725,182 - End of year $ (5,695,118) $ (6,098,70$) $ 12,708,686 $ 18,807,394 (Continued) 148 City of Redding Schedule of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual (Unaudited) General Fund (Continued) For the I'ear Ended June 30, 2023 Explanation of differences from the Statement of Revenues,Expenditures and Changes in Fund Balances to Actual Amounts Budgefary Basis: Fund balance from the Statement of Revenues,Expenditures and Changes in Fund Balances $ 26,561,962 1. The City budgets for taxes on a cash basis. 262,191 2. The City budgets far grants on a cash basis. (3,556,946) 3. Timing difference due to GASB#33. (66,461) 4. The City does not budget for accounts payable adjustments. (1,9'78,398) 5. The Ciry does not bud�et for benefit accruals. (33,317) 6. Financial statement only adjustment far GASB#3L (238,551) 7. The City does not bud�et for interest,sale of property or rental income related to the rolling stock fund. The City budgets only for the transfers in and out of the rolling stock fund. 1'78,903 8. The City does not bud�et for special assessments. (10,ll 0) 9. The City does not budget far interest on the long-term advances. (1,'797,233) 10. Encumbrances are not included in the Statement of Revenues,Expenditures and Chan�es in Fund Balance. 6'7,�35 ll.The Ciry did not bud�ct for prepaid rent for the Aousing Authority and the Agency (6,669,561) 12. The City does not budget for developer's fees that are prepaid. 162,635 13. The City budgeted for prepaid expenditures. (19,620) 14. The City does not budget for interest on deposits held in trust. (10,199) 15.The Ciry does not budget interest accrued at year-end (91,459) 16. The City does not budget for CalFire lease of Cypress property that make loan payment (1'75,258) 76. The City does not bud�et for interest expended on loan for CalPers UAL prepayment 106,295 18. The City budgets far Shascom payroll revenue on a cash basis 16,0'78 Bud�etary fund balance $ 12,708,686 (Concluded) 149 City of Redding Required Supplementary Information ([Jnaudited) Schedules of Changes in Net Pension Liability and Related Ratios F'or the Year Ended June 30, 2023 California Public Employees`Retirement System("CaIPERS")-Miscellaneous Plan Measurement Period 2022 2021 2020 TOTAL PENSION LIABILITY: Service Costs $ 8,538,655 $ '7,299,034 $ �,095,018 Interest 34,337,125 33,378,172 32,355,397 Difference Between Expected and Actual Experience 3,379,785 1,706,144 1,379,900 Chan�es of Assumptions 14,600,120 - - Benefit Payments,Including Refunds of Bmployee Contributions (29,381,884) (2'7,548,141) (26,359,866) Net Change in Total Pension Liability 31,473,801 14,835,209 14,470,449 Total Pension Liability-Beginning 490,081,208 475,245,999 460,775,550 Total Pension Liability-Ending(a) $ 521,555,009 $ 490,081,208 $ 475,245,999 PLAN FIDUCTARY NET POSITION: Contributions-Employer $ 16,761,832 $ 15,066,353 $ 13,743,592 Contribufions-Employee 3,941,926 3,711,059 3,533,531 Net Investment Income (28,706,945) 71,581,234 15,455,298 Benefit Payments,Including Refunds of Bmployee Contributions (29,381,884) (2'7,548,141) (26,359,866) Plan to Plan Resourcc Movement - - - Adininistrative Expense (23'7,123) (317,820) (440,162) Other Miscellaneous Income/(Expense)i _ _ _ Net Change in Fiduciary Net Position (37,622,194) 62,492,685 5,932,393 Plan Fiduciary Net Position-Beginnin�;� 380,650,700 318,158,015 312,225,622 Plan Fiduciary Net Position-Ending(b) $ 343,028,506 $ 380,650,700 $ 318,158,015 Plan Net Pension Liabilityl(Asset)-Ending(a)-(b) $ 178,526,503 � 109,430,508 $ 157,087,984 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 65.7?% 77.67% 66.95% Covered Payroll $ 48,405,131 $ 44,861,920 $ 42,974,064 Plan Net Pension Liability/(Asset)as a Percentage of Covered Payroll 368.82% 243.93% 365.54% Notes to Schedules of Changes in Net Pension Liability and Related Ratios: �During Fiscal Year 2017-]8,as a result of Governmental Accounting Standard Board Statement(GASB No.75,Accounting and Financial Reporting far Postemployment Beneflt Plans Other than Pensions(GASB 75),Ca1PERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan.Accordingly,Ca1PERS recorded a one-time expenses as a result of the adoption of GASB 75. Additionally,Ca1PERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18,CaIPERS recorded a correetion to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No.68,Accounting and Financial Reporting for Pensions(GASB 68). `Includes any beginnin�of year adjustment. The Required Supplementary Information for Schedules of Changes in Net Pcnsion Liability and Related Ratios is intended to show information for ten years;as additional years'information becomes available it will be displayed accordin�ly. 150 City of Redding Required Supplementary Information (Unaudited) Schedules of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2023 California Public Employees'Retirement System("CaIPERS")-Miscellaneous Plan 2019 2018 2017 2016 2015 2014 1,258,688 $ �,333,94'7 $ �,260,646 $ �,191,855 $ 6,259,646 $ 6,164,984 $ 6,465,244 31,319,926 30,024,355 29,157,632 28,527,904 27,466,002 26,335,482 4,475,575 414,506 (3,221,954) (705,952) (551,120) - - (2,598,628) 23,416,908 - (6,578,864) - (24,504,515) (22,850,231) (21,305,301) (19,821,373} (18,361,188) (16,894,132} 18,624,933 12,250,648 78,596,709 14,260,225 8,139,814 15,906,594 442,150,617 429,899,969 394,660,829 380,400,604 372,260,790 356,354,196 $ 460,775,550 $ 442,150,617 $ 473,257,538 $ 394,660,829 $ 380,400,604 $ 372,260,790 $ 12,199,094 $ 10,902,871 $ 10,045,335 $ 8,742,083 $ 7,771,417 $ 7,140,089 3,132,551 3,149,996 3,177,532 2,849,237 2,892,519 2,924,099 19,732,888 24,307,041 29,710,153 1,432,535 6,167,183 41,359,309 (24,504,515) (22,850,231} (2],305,301) (19,821,373} (18,361,188) (16,894,132) - ��02� �ias� �i,2s6� 2o,22i - (215,428) (448,2'71) (393,376) (166,624) (307,951) - 702 (851,273) - - - - 10,345,292 14,209,431 21,234,198 (6,965,398) (1,817,799) 34,529,365 301,880,330 287,670,899 266,436,701 273,402,099 275,219,898 240,690,533 $ 312,225,622 $ 301,880,330 $ 287,670,899 $ 296,204,582 $ 303,236,'784 $ 310,058,548 $ 148,549,928 � 140,270,287 $ 185,586,639 � 98,456,247 $ 77,163,820 � 62,202,242 67.76% 68.28% 6692% 67.51% 71.87% 73.93% $ 43,942,160 $ 43,633,688 $ 42,409,809 $ 41,323,256 $ 40,294,018 $ 40,286,914 338.06°/a 321.47% 335.37°/a 310.30% 265.54°/a 240.87% 151 City of Redding Required Supplementary Information (Unaudited) Schedule of Plan Contributions For the Year Ended June 30,2023 California Public Employees'Retirement System("Ca1PERS")-Miscellaneous Plan 2023 2022 2021 Actuarially Detern7ined Contribution� $ 18,428,744 $ 16,765,328 $ 15,066,353 Contributions in Relations to the Actuarially Determined Contribution� (18,428,744) (16,765,328) (15,066,353) Contribution Deficiency(Excess) $ - $ - $ - CoveredPayro113 $ 56,506,209 $ 50,582,394 $ 46,184,875 Contributions as a Percentage of Covered-Employee Payro113 32.61% 33.14% 32.62% �As prescribed in GASB 68,paragraph 46,the infonnation presented in the Schedule of Plan Contributions should also be determined as of the employer's most recent fiscal year-end. The employer is responsible far determining this information as prescribed by the standard as this data is not available to Ca1PERS. �Employers are assumed to make contriburions equal to the actuarially determined contributions. However,some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Tncludes one year's payroll growtb using 2.75 percent payroll assumption for fiscal year ended June 30,2018;3.00 percent payroll assumption for fiscal years ended June 30,2014-1'7. Notes to Schedule of Plan Contributions: The Requireci Supplementary Inforn7ation for Sehedule of Plan Contributions is intended to show information for ten years;as additional years'infonnation becomes available it will be displayed accardingly. 152 City of Redding Required Supplementary Information (Unaudited) Schedule of Plan Contributions For the Year Ended June 30,2023 California Public Employees'Retirement System("CaIPERS")-Misceilaneous Pian 2020 2019 2018 2017 2016 2015 2014 $ 13,743,592 $ 12,199,094 $ 10,902,871 $ 10,045,335 $ 8,742,083 $ 7,771,417 $ 7,140,089 (13,743,592) (12,199,094) (10,902,871) (10,045,335) (8,742,083) (7,771,417) (7,140,089) $ - $ - $ - $ - $ - $ - $ - $ 42,974,064 $ 43,942,160 $ 43,633,688 $ 42,409,809 $ 41,323,256 $ 40,294,018 $ 40,286,914 31.98% 27.76% 24.99% 23.69% 2L16% 19.29% 17.72% 153 City of Redding Required Supplementary Information (IJnaudited) Schedules of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2023 California Public Employees'Retirement System("CaIPERS")-Safety Plan Measurement Period 2022 2021 2020 TOTAL PENSION LIABILITY: Service Costs $ 6,602,064 $ 5,835,290 $ 5,609,745 Interest 24,351,275 23,600,338 22,885,014 Difference Between Expected and Actual Experience (1,991,350) (1,394,330) 198,438 Chan�es of Assumptions 13,153,936 - - Benefit Payments,Including Refunds of Bmployee Contributions (18,646,091) (1'7,632,371) (16,785,010) Net Change in Totai Pension Liability 23,469,834 10,408,927 11,908,187 Total Pension Liability-Beginning 347,776,447 33'7,367,520 325,459,333 Total Pension Liability-Ending(a) $ 371,246,281 $ 347,776,447 $ 337,367,520 PLAN FIDUCIARY NET POSITION: Contributions-Employer $ 12,961,721 $ 12,015,895 $ 10,962,279 Contributions-Employee 2,979,070 2,413,060 2,206,742 Net Investment Income (19,281,616) 47,488,980 10,081,863 Benefit Payments,Including Refunds of Bmployee Contributions (18,646,091) (1'7,632,371) (16,785,010) Plan to Plan Resource Movcment - - - Adininistrative Expense (15�,6'74) (208,814) (285,977) Uther Miscellaneous lncomel(�:xpense)` _ _ _ Net Change in Fidueiary Net Position (22,144,590) 44,076,750 6,179,89'7 Plan Fiduciary Net Position-Beginning� 253,ll2,693 209,035,943 202,856,046 Plan Fiduciary Net Position-Ending(b) $ 230,968,103 $ 253,112,693 $ 209,035,943 Plan Net Pension Liabilityl(Asset)-Ending(a)-(b) $ 140,278,178 � 94,663,754 $ 128,331,577 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 62.21% 72.78% 61.96% Covered Payroll $ 19,695,894 $ 19,213,993 $ 18,386,5'7'7 Plan Net Pension Liabilityl(Asset)as a Percentage of Covered Payroll '712.22% 492.68% 697.96% Notes to Schedales of Changes in Net Pension Liability and Related Ratios: �Durin�Fiscal Year 2017-18,as a result of Governmental Accounting Standard Board Statement(GASB No.75,Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions(GASB 75),CaIPERS reported its proportionate share of activiry related to postemployment benefits for participation in the State of California's agent OPEB plan.Accordingly,Ca1PERS recorded a one-time expenses as a result of the adoption of GASB 75. Additionally,Ca1PERS einployees participate in various State of California agent pension plans and durin�;Fiscal Year 2017-18,CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No.68,Accounting and Financial Reporting for Pensions(GASB 68). `Includes any beginning of year adjustment. The Required Supplementary Information far Schedules of Changes in Net Pension Liability and Related Ratios is intended to show information for ten years;as additional years'information becomes available it will be displayed accardingly. 154 City of Redding Required Supplementary Information (IJnaudited) Schedules of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2023 California Public Employees'Retirement System("Ca1PERS")-Safety Plan 2019 2018 2017 2016 2015 2014 $ 5,654,63'7 $ 5,621,256 $ 5,567,053 $ 1,258,688 $ 4,"702,492 $ 4,982,595 22,052,183 21,033,750 20,189,512 19,492,841 18,712,421 18,027,294 2,573,209 1,28'7,937 (1,169,833) (610,852) (1,889,558) - - (1,265,088) 17,369,797 - (4,730,135) - (15,684,64'7) (14,31'7,530) (13,680,425) (13,015,636} (12,355,104) (11,659,39'7} 14,595,382 12,360,325 28,276,104 7,125,041 4,440,116 11,350,492 310,863,951 298,503,626 270,22'7,522 259,492,92'7 255,052,811 243,'702,319 $ 325,459,333 $ 310,863,951 $ 78,596,709 $ 266,617,968 $ 259,492,927 $ 255,052,811 $ 9,775,655 $ 9,016,294 $ 8,645,061 $ 7,839,435 $ 7,466,754 $ 6,761,771 1,983,768 2,086,601 1,955,068 1,620,695 1,570,703 1,517,�35 12,784,582 15,509,897 18,500,188 828,855 3,715,343 25,448,647 (]5,684,647) (14,31'7,530) (]3,680,425) (13,015,63� (12,355,104) (11,659,39'7) - (452) - 1,256 193,399 - (138,539) (284,643) (24�,291) (103,802) (191,504) - 452 (540,541) - - - - 8,721,271 ll,469,626 15,172,601 (2,829,197) 399,591 22,068,756 194,134,775 182,665,149 167,492,548 170,321,745 169,922,154 147,853,398 $ 202,856,046 $ 194,134,775 $ 182,665,149 $ 16�,492,548 $ 170,321,'745 $ 169,922,154 $ 122,603,287 � 116,729,176 $ (104,068,440) � 99,125,420 $ 89,171,182 $ 85,130,657 62.33% 62.45% 61.19% 61.98% 65.64% 6b.62% $ 18,244,296 $ 18,109,134 $ 17,705,784 $ 29,'767,881 $ 29,834,685 $ 34,838,650 672.01% 644.59% 654.24% 593.38% 537.11% 506.71% 155 City of Redding Required Supplementary Information (Unaudited) Schedule of Plan Contributions For the Year Ended June 30, 2023 California Public Employees'Retirement System("CaiPERS")-Safety Plan 2023 2022 2021 Actuarially Determined Contriburion� $ 13,986,466 $ 12,958,225 $ 12,015,895 Contributions in Relations to the Actuarially Determined Contribution� (13,986,466) (12,958,225) (12,015,895) Contribution Deficiency(Excess) $ - $ - $ - CoveredPayroll3 $ 23,977,908 $ 2],536,663 $ 19,383,450 Contributions as a Percentage of Covered Payro113 5833% b0.17% b1.99% i As prescribed in GASB 68,paragraph 46,the information presented in the Schedule of Plan Contributions should also be determined as c�f the employer's most recent fiscal year-end The employer is responsible for determining this informarion as prescribed by the standard as this data is not available to Ca1PERS. �Employers are assumed to make contributions equal to the actuarially determined contributions. However,some employers may choose to make additional contributions towards their unfunded liability. Employer contributions far such plans exceed the actuarially determined contributions. 3 Includes one year's payroll growth using 2.75 percent payroll assumption for fiscal year ended June 30,2018;3.00 percent payroll assuinption for fiscal years ended Ju.ne 30,2014-17. Notes to Schedule of Plan Contributions: The Required Supplementary Information for Schedule of Plan Contributions is intended to show infonnation for ten years;as additional years' information becomes available it wiIl be displayed accardingly. 156 City of Redding Required Supplementary Information (Unaudited) Schedule of Plan Contributions For the Year Ended June 30, 2023 California Public Employees'Retirement System("CaIPERS")-Safety Plan 2020 2019 2018 2017 2016 2015 2014 $ 10,962,279 $ 9,'775,655 $ 9,016,294 $ 8,645,061 $ 7,839,435 $ 7,466,754 $ 6,'761,771 (10,962,279) (9,775,655) (9,016,294) (8,645,061) (7,839,435) (7,466,754) (6,761,771) $ - $ - $ - $ - $ - $ - $ - $ 18,386,577 $ 18,244,296 $ 18,109,134 $ 17,705,784 $ 17,313,615 $ 16,601,913 $ 16,800,737 59.62% 53.58% 49.79% 48.83% 45.28% 44.98% 40.25% 157 City of Redding Required Supplementary Information (IJnaudited) Schedules of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2023 Public Agency Retirement System-Miscelianeous Plan(PARS)1 Measnrement Period 2022 2021 2020 TOTAL PENSION LIABILITY: Service Costs $ 960,178 $ 934,480 $ 909,470 Interest 6,218,106 6,099,199 5,933,422 Effect of economicidemo�raphic�ains or losscs 2,650,226 - 535,027 Changes of Assumptions (l,'73 l,14'7) - - Benefit Payments,Including Refunds of Employee Contributions (5,549,535) (5,178,122) (4,896,050) Net Change in Total Pension Liability $ 2,547,828 $ 1,855,557 $ 2,481,869 Total Pension Liability-Beginning 90,597,758 88,742,201 86,260,332 Total Pension Liability-Ending(a) $ 93,145,586 $ 90,597,758 $ 88,742,201 PLAN FIDUCIARY NET POSITION: Contributions-Employer $ 9,061,771 $ 6,575,412 $ 6,8$8,868 Contributions-Employee 393,779 353,687 224,631 Net Investment Income� (9,274,876} 14,530,931 2,318,864 Benefit Payments,Including Refunds of Employee Contributions (5,549,535) (5,178,122) (4,896,050) Administrative Expenses (213,951) (191,545) (324,596) Net Change in Fiduciary Net Position (5,582,812) 16,090,363 4,211,717 Plan Fiduciary Net Position-Be�inning 75,788,152 59,697,789 55,486,072 Plan Fiduciary Net Position-Endin�(b) $ 70,205,340 $ 75,788,152 $ 59,697,789 Plan Net Pension Liability/(Asset)-Ending(a)-(b) $ 22,940,246 $ 14,809,606 $ 29,044,412 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 75.37% 83.65% 67.27% CoveredPayroll $ 19,143,035 $ 20,161,261 $ 21,474,39'7 Plan Net Pension Liabilityl(Asset)as a Percentage of Covered Payroll 119.84% 73.46% 135.25% `Historical information is presented only for measurement periods for which GASB 68 is applicable. �Net of administrative expenses. Notes to Schedules of Changes in Net Pension Liability and Related Ratios: Beneflt Changes: The fgures above do not include any liability impact that may have resulted from plan changes which occurred after June 30,2014. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit(a.k.a.Golden Handshakes). Changes of Assmnptions: There were no changes in assumptions. The Required Supplementary Information for Schedules of Changes in Net Pension Liability and Related Ralios is intended to show infonnation for ten years;as additional years'information becoines available it will be displayed accordin�ly. 158 City of Redding Required Supplementary Information (Unaudited) Schedules of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30,2023 Public Agency Retirement System-Miscellaneous Plan(PARS) 2019 2018 2017 2016 2015 2014 $ 1,122,061 $ 1,441,162 $ 1,258,688 $ 1,170,873 $ 1,478,671 $ 1,432,128 5,794,604 5,468,051 5,38'7,397 5,162,353 4,941,220 4,689,105 - 2,071,932 - 92,895 - - - 456,118 3,255,582 - - - (4,551,652) (4,138,653) (3,689,765) (3,343,227) (2,990,408) (2,628,633) $ 2,365,013 $ 5,298,610 $ 6,211,902 $ 3,082,894 $ 3,429,483 $ 3,492,600 83,895,319 78,596,709 72,384,807 69,301,913 65,872,430 62,379,830 $ 86,260,332 $ 83,895,319 $ 78,596,709 $ 72,384,807 $ 69,301,913 $ 65,872,430 $ 5,944,074 $ 6,648,630 $ 4,816,795 $ 5,020,997 $ 5,760,375 $ 6,042,892 122,545 92,709 - - - - 3,330,635 3,208,975 4,418,967 643,326 998,681 4,209,807 (4,551,652) (4,138,653) (3,689,765) (3,343,227) (2,990,408) (2,628,633) (366,455) (338,499) (301,577) (269,745) (258,434) (219,880) 4,479,147 5,473,162 5,244,420 2,051,351 3,510,214 7,404,186 51,006,925 45,533,763 40,289,343 38,237,992 34,727,778 27,323,592 $ 55,486,072 $ 51,006,925 $ 45,533,763 $ 40,289,343 $ 3$,237,992 $ 34,727,778 $ 30,774,260 $ 32,888,394 $ 33,062,946 $ 32,095,464 $ 31,063,921 $ 31,144,652 64.32% 60.80% 57.93% 55.66% 55.18% 52J2% $ 23,687,133 $ 27,974,321 $ 29,767,881 $ 29,834,685 $ 34,838,650 $ 33,451,518 12992% 117.57% ll1.07% 107.58% 8917% 93.10% 159 City of Redding Required Supplementary Information (Unaudited) Schedules of Public Agency Retirement Services Retirement Enhancement Plan Contributions All Tiers For the Year Ended June 30, 2023 Public Agency Retirement System-Misceilaneous Plan(PARS)All Tiers i 2023 2022 2021 Actuarially Detennined Contribution� $ 9,823,669 $ 9,589,481 $ 7,158,333 Contribution� (9,823,669) (9,589,481) (7,158,333) Contribution Deficiency(Excess) $ - $ - $ - Covered Payroll3 $ 19,482,915 $ 19,255,663 $ 21,054,825 Contributions as a Percentage of Covered Payro113 50.42% 49.80% 34.00% i Historical information is presented only for measurement periods far which GASB 68 is applicable. �Employers are assumed to make contributions equal to the actuarially determined contributions. However,some employers may choose to make additional contributions towards their unfunded liability, Employer contributions for such plans exceed the actuarially determined contribuCions. 3 Covered Payroll represented above is based on pensionable earnings provided by the employer. However,GASB 68 defines covered payroll as the total payroll of employees that are provided pensions througb the pension p1an. Accordingly,if pensionable earnings are different than total earnings for the covered-employees,the employer should display in the disclosure footnotes the payroll passed on total earnings far the covered group and recalculate the required payroll-related ratios. Notes to Schedules: The following actuarial methods and assumptions were used in the July],2017 funding valuation. Please see the valuation report dated Apri125,2017 for further details. Valuation Timing Actuarially deterinined contribution rates are calculated as of June 30,two years prior to the end of the fiscal year in which the contributions are reported. Actuarial Cost Method Entry Age Normal Ainortization MethodlPeriod Level dollar,closed,ainortization period at 1/1/2014 was 11 years Asset Valuation Method None Inflation 3.00% Salary Increases Varies by Years of Service Payroll Growth 3.25% Investment Rate of Return 7.01%Graded Net of Pension Plan Inves�inent and Administrative Expenses Cost of Living Adjushnents 2.00% Consistent with Non-Industrial rates used to value the Miscellaneous Withdrawal Ca1PBRS Pension Plan. Mortaliry Pre-RerirementlPost-Retirement:Ca1PERS 199'7-2011 HealYliy Retiree Tables (sex distinct)projected using Scale AA and base year of 2008. Disability None assumed. The Required Supplementary Information far Schedules of Public Agency Retirement Services Retirement Enhancement P1an Contributions All Tiers is intended to show information for ten years;as additional years'information becomes available it will be displayed accordingly. ]60 City of Redding Required Supplementary Information (Unaudited) Schedules of Public Agency Retirement Services Retirement Enhancement Plan Contributions All Tiers For the Year Ended June 30, 2023 Public Agency Retirement System-Miscellaneous Plan(PARS)All Tiers 2020 2019 2018 2017 2016 2015 2014 $ 6,925,920 $ 5,917,528 $ 6,988,001 $ 4,816,795 $ 5,020,997 $ 5,760,375 $ 6,042,892 (6,888,868) (5,917,528) (6,988,001) 1,258,688 (5,020,99'7) (5,760,375) (6,042,892) $ 37,052 $ - $ - $ 6,075,483 $ - $ - $ - $ 21,474,397 $ 23,687,133 $ 27,974,321 $ 29,767,881 $ 29,834,685 $34,838,650 $ 33,451,518 32.25% 24.98% 24.98% 16.18% 16.83% 16.53% 18.06% ]61 City of Redding Required Supplementary Information ([Jnaudited) Schedules of Changes in Net OPEB Liability and Related Ratios For the I'ear Ended June 30, 2023 Other Postemployment Benefits(OPEB) Measurement Period 2022 2021 2020 TOTAL OPEB LIABILITY: Service Costs $ 3,366,492 $ 2,473,321 $ 2,266,201 Interest 1,210,868 913,626 1,532,174 Difference Between Expected and Act�ual Experience - 12,995,166 - Chan�es of Assumptions (3,351,682) 1,566,528 (2,741,226) Benefit Payments,Including Refunds of Employee Contributions (4,601,018) (3,646,314) (3,753,880) Net Change in Total OPEB Liability $ (3,375,340) $ 14,302,327 � (2,696,731) Total OPEB Liability-Beginning 54,992,'73'7 40,690,410 43,387,141 Total OPEB Liability-Ending(a) $ 51,617,397 $ 54,992,737 � 40,690,410 PLAN FIDUCIARY NET POSITION: Contributions-Employer $ 4,601,018 $ 3,646,314 $ 3,753,880 Net Investment Tncome 6'7 10 634 Benefit Payments,Including Refunds of Employee Contributions (4,601,018) (3,646,314) (3,753,880) Administrative Expenses (131) (132) (131) Net Change in Fiduciary Net Position (64) (122) 503 Plan Fiduciary Net Position-Beginning 52,569 52,691 52,188 Plan Fiduciary Net Position-Ending(b) $ 52,505 $ 52,569 $ 52,691 Plan Net OPEB Liabilityl(Asset)-Ending(a)-(b) $ 51,564,892 $ 54,940,168 $ 40,637,719 Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 0.10% 010% 0.13% Covered-Employee Payroll $ 69,040,537 $ 63,075,673 $ 58,084,647 Plan Net OPEB Liabilityl(Asset)as a Percentage of Covered-Employee Payroll ?4.69% 8'7.10% 69.96% i Fiistorical information is required only for measurement periods for which GASB 75 is appricable. Notes to Schedules of Changes in Net OPEB Liability and Related Ratios: Changes of Asswnptions: There were no changes in assumptions. The Required Supplementary Information for Schedules of Changes in Net OPEB Liability and Related Ratios is intended to show information for ten years;as additional years'information becomes available it will be displayed accordingly. 162 City of Redding Required Supplementary Information ([Jnaudited) Schedules of Changes in Net OPEB Liability and Related Ratios For the I'ear Ended June 30, 2023 Other Postemployment Benefits(OPEB) Measurement Period 2019 2018 2017 TOTAL OPEB LIABILITY: Service Costs $ (13,080) $ (185,355) $ (744,002) Interest 1,185,185 1,124,094 852,000 Difference Between Expected and Actual Experience 3,574,842 - - Chan�es of Assumptions 9,724,504 1,582,262 4,331,000 Benefit Payments,Including Refunds of Employee Contributions (3,444,608) (3,490,701) (3,480,000) Net Change in Total OPEB Liability $ 11,026,843 $ (969,700) � 958,998 Total OPEB Liability-Beginning 32,360,298 33,329,998 32,3'71,000 Total OPEB Liability-Ending(a) $ 43,387,141 $ 32,360,298 � 33,329,998 PLAN FIDUCIARY NET POSITION: Contributions-Employer $ 3,444,608 $ 3,490,701 $ 3,480,000 Net Tnvestment Income 1,068 376 - Benefit Payments,Including Refunds of Employee Contributions (3,444,608) (3,490,701) (3,480,000) Administrative Expenses (129) (127) - Net C6ange in Fiduciary Net Position 939 249 - Plan Fiduciary Net Position-Beginning 51,249 51,000 51,000 Plan Fiduciary Net Position-Ending(b) $ 52,188 $ 51,249 $ 51,000 Plan Net OPEB Liabilityl(Asset)-Ending(a)-(b) $ 43,334,953 $ 32,309,049 $ 33,278,998 Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 0.12% 0.16% 0.15% Covered-EmployeePayroll $ 57,452,344 $ 58,314,156 $ 58,084,647 Plan Net OPEB Liability!(Asset)as a Percentage of Covered-Employee Payroll 75.43% 55.41% 57.29% 163 City of Redding Required Supplementary Information (Unaudited) Schedule of Contributions-OPEB For the Year Ended June 30, 2023 Other Postemployment Benefits(OPEB) 2023 2022 2021 Actuarially Determined Contribution� $ 3,021,637 $ 4,601,018 $ 3,646,314 Contribution� (3,021,63'7) (4,601,018) (3,646,314) Contribution Deficiency(Excess) $ - $ - $ - Covered-employee Payroll $77,182,339 $69,040,537 $63,073,360 Contributions as a Percentage of Covered-employee Payroll 3.91% 6.66% 5.78°/o i GASB 75 requires this information for plans fundin�with OPEB trusts be reported in the employer`s Required Supplementary Information for 10 years ar as many years as are available upon implementation. �The June 30,2017 actuarial valuation provided the Actuarially Determined Contribulions for fiscal years 6130/17,6130118 and 6I30I19. Notes to Schedules: The Required Supplementary Information for Schedules of Public Agency Retirement Services Retiremcnt Enhancement Plan Contributions All Tiers is intended to show information for ten years;as additional years'infonnation becomes available it will be displayed accordingly. 164 City of Redding Required Supplementary Information (Unaudited) Schedule of Contributions-OPEB For the Year Ended June 30, 2023 Other Postemployment Benefits(OPEB) 2020 2019 2018 201'7 Actuarially Determined Contribution $ 3,753,880 $ 3,444,608 $ 3,490,701 $ 3,480,000 Contribution (3,753,880) (3,444,608) (3,490,'701} (3,480,000) Contribution Deficiency(Excess) $ - $ - $ - $ - Covered-employee Payroll $ 60,225,532 $57,452,344 $58,314,156 $58,084,647 Contributions as a Percentage of Covered-employee Payroll 6.23% 6.00°/o 5.99% 5.99°/o 165 This page intentionally left blank 166 t {r��i��33��"'tiFi Z��z��'`�n�� St��r��}�3��7��1� : �t�1��{��4'�ftt i �� s�yf2lzS�t4�� 1�zL�}��z�t�ij��jt��it '�,it{1� �5(�#�',�tz�� t�� r��,�� r� �F �� }��r��,t�'s��a �'� ��`�` ,��tf ,rf�z«� t7��Tt�7 ,�� t t�� t ��",� z� �}.. i�# t � t } t t�i �t i �7 r}l � ��: 1 Y?Js��rc��`;s�# t i E£�{i�f � ,��d� 1„!;` � ,: � c t}(}� �Y �f ' �a �� , n � y Y��'�;�'��'�#� � � {s��r}�;$yrs�t�� s{�'�r�{l k j{�>i� �1 �331`sg m �y t f� {j}}��t�'�� t��t��f�, s£��',�4��(��r�t ��i�{{z�}��t,��t�?��lstt��,# �'�t�r��}�f��i��#{?�?��{�}i�s��~��tft �}4s�it�t f,+t�l 3s3t}�� lt�y�f�'�'?�ir��l�i��}#��£ ��4'��Ze�f�S`s)�tiL��f�tit ��Et`�z��f�7�'i��t�1`�2�#S�t�,t'�`s{a ;Ci��ifrf��t3��tt�`i�fr .: .,,:} i��,-a�7 .}�'.: .rtt iv . tf�t�"t fs.4- 4 '.zrxrr7 �t �ttr.ty,fit' t'.t.e z �. -�.. �j�� . � lrv��{�t{s'}.� 3�z'i�;,s 3, .3r 4 t 1 { i s. i S.r t 7 .f. 1.ti.rl ctr.1�i.t �.A�,rr ,i�t<,.�#�it�,�..<t. ,�a„7, t }7#t'2 .tt .Y �41 4.:�� { t I.t„ at i,'r�S7, ,�tfi ls � ,tr .(,i„131.,, t �t�� z.1# } J tc t .s� ti�, r<,n,.., rz. ,st� .ts«r�:zi zt}5 .��r3t.»>� �,�..3..�tSS ttt,:f,,,�tt�.,rr�,vf s,.�t'E,tts ,� . �n, } ) tl i �t iscrrr..f,3`t,r.�{f�i }ti tt s. t$t} � .l }, , t �t f ff t 3 }. }, {.{„ ,,�„ .�.., �}�i ,t�r, l.at.�s� c+5. t,��t ,.,I,.,, .<t,�, . i� � i .,1Ic,.3ik1s. �i, U.., <f ...0 ....��, 4i� �.c �.>., r,<scs�f,.l�4. . �,s �s,d t �„r,� Is } tt:�t . t ss . 11Ft„ i,� t t.,.,�$# j (�r � t,�,n ,t rrf,+,...,.�,� ,r t l �4.�„, �� .t sy �,1� �t ;t{..z ..Y rr.1}.,r{ti it}! .r � 3,� ��{.r �! s>£.,},t, 1.i.� tr �c ��,.i.�s � �.1,�:,, :„Pi� ,Yt�s,it �„ 4, ,i �f �.fsk. �� .t,l�ti.7 t.t .h „��ty�,,�t€r� �.S.Jt ��.r ,i�..:t .s�,�„ r;,,,� 1r. ,.,ic�e„ �.t< ,£Is ti,,,s��t,,,., �,t£ ,3��t,< .,}�,,tii., . ,�� t�} 5 i, .r,} s s£, s,r � �, �.t J.�tik, r} ,.f�t i}}t < l, .�t�„� , „Js t �s�, r i..7..itik r t ,,.}„ a 1, ...1v �.,tr.c,s t,,. ft.r,,,�'�,,,., , t< �,,,1�,,,,�7s Si,�,��.�_ .F<,r ,��u,.t , c�t „I t!z s. .,�, r7.i, rf i.1,t2 ,��1�as,�s�,,, t .5 s,,,t4.f,� �, < <:,� ,.�.s, r f �, r.i t .�r�,,7 t�. rls. , k,r>)!t. 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T'his page intentionally left blank 168 NONMAJOR GOVE�:NMENTAL FUNDS SPECIAL REVENUE FUNDS: Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Parking Fund This fund was established to account for the receipts of parking-related revenues and expenditures. Street Maintenance Fund This fund was established to account for the construction and maintenance of the street system of the City. Financing is provided by the State and is restricted to street expenditures. Housing Fund This fund was established to account for subsidies received on behalf of 1ow to moderate income families. Financing is provided by Federal Department of Housing and Urban Development. This fund also accounts for Successor Housing Agency activities funded by program income from Redding Redevelopment Loans. General Special Revenue This fund was established to account for receipts and disbursements of special revenues required to be segregated from the General Fund revenues. Landscape Maintenance Districts This fund was established to account for the activities of landscape maintenance assessment districts. The landscape districts collect assessments to pay for landscape maintenance in the assessment at-ea. Library Fund This fund was established to account for the activities of the public library. Asset Seizure Fund This fund was established to account for the activities involved with asset seizures. DEBT SERVICE FUND The debt service fund is used to account for the payment of interest and principal on general debt of the City. 1915 Act Assessment District Bonds Established to accumulate monies for payment of 1915 Act Special Assessment bonds when the government is obligated in some manner. 169 City of Redding Combining Balance Sheet Non-Major Governmental Funds June 30, 2023 Special Revenue General Street Special Parkin� Maintenance Housin� Revenue ASSETS Cash and investments $ 247,219 $ 8,629,860 $ 3,189,518 $ - Interestreceivable,unrestricted 1,190 59,060 2,539,202 - Accounts receivable,net 25 - 44,120 - Intergovernmental receivable - 2,292,770 108,109 - Other receivable 12,800 - 2,651 - Restricted cash and investments - - 231,765 - Prepaid items 77,069 - - - Special assessments receivable - - - - Notes receivable - - 15,236,117 - Total assets $ 338,303 $ 10,981,690 $21,351,482 $ - LIABILITIES Accounts payable $ 26,285 $ - $ 41,558 $ - Accrued liabilities 5,6�7 - 35,876 - Inter�overnmental payable - - 10,000 - Due to other funds - - 82,385 - Accounts payable from restricted assets - - 24,830 - Unearned revenue - - 1,713,$13 - Deposits - - 232,765 - Advances from other funds 420,694 - - - Totalliabilities 452,656 - 2,141,227 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue - - 2,629,505 - Total deferred inflows of resources: - - 2,629,505 - FUND BALANCES Nonspendable 77,069 - - - Restricted - 10,981,690 16,580,750 - Unassigned(deficit) (191,422) - - - Total fund balances (114,353) 10,981,690 16,580,'750 - Total liabilities,deferred inflows of resources and fund balances $ 338,303 $ 10,981,690 $21,351,482 $ - (Continued) 170 City of Redding Combining Balance Sheet(Continued) Non-Major Governmental Funds June 30, 2023 Special Revenue Debt Service 1915 Act Total Landscape Assessinent Non-Major Maintenance Asset District Governmental Districts Library Seizure Bonds Funds ASSETS Cash and investments $ 898,706 $ 2,811,971 $ 13,740 $ 302,989 $ 16,094,003 Interest receivable,unrestricted 5,081 10,492 84 1,676 2,616,'785 Accounts receivable,net - - - - 44,145 Intergovernmental receivable - 56,403 - - 2,457,282 Other receivable - - - - 15,451 Restricted cash and investments - - - - 231,765 Prepaid items - - - - 77,069 Special assessments receivable 18,958 - - 299,77'7 318,735 Notes receivable - - - - 15,236,117 Total assets $ 922,745 $ 2,878,866 $ 13,824 $ 604,442 $ 37,091,352 LIABILITIES Accounts payable $ 42,068 $ 12,260 $ - $ - $ 122,171 Accrued liabilities 3,880 1,767 - - 47,200 Inter�overnmental payable 729 - - - 10,729 Due to other funds - - - - 82,385 Accounts payable from restricted assets - - - - 24,830 Unearned revenue - 1,701,827 - - 3,415,640 Deposits - - - - 232,765 Advances from other funds - - - - 420,694 Totalliabilities 46,6�'7 1,715,854 - - 4,356,414 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 9,835 56,403 - 299,7�'7 2,995,520 Total deferred inflows of resources: 9,835 56,403 - 299,7'7'7 2,995,520 FUND BALANCES Nonspendable - - - - 77,069 Restricted 866,233 1,106,609 13,824 304,665 29,853,771 Unassigned(deficit) - - - - (191,422) Total fund balances 866,233 1,106,609 13,824 304,665 29,'739,418 Total liabilities,deferred inflows of resources and fund balances $ 922,745 $ 2,8'78,866 $ 13,824 $ 604,442 $ 3'7,091,352 (Concludec�) 171 City of Redding Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds For the Year Ended June 30, 2023 Special Revenue General Street Special Parking Maintenance Housing Revenue REVENUES: Sales tax revenue $ - $ - $ - $ 2'72,517 Special assessments - - - - Licenses,fees and permits 106,571 - - - Intergovernmental revenues - 11,841,365 13,596,373 - Charges far services - - - - Fines,forfeitures and penalties 43,240 - - - Net investment earnings(loss) 19,�86 61,234 167,384 - Otherrevenues - - 40,669 - Totalrevenues 169,597 11,902,599 13,804,426 272,517 EXPENDITURES: Current: Community development - - 13,981,�98 - Public safety - - - - Public works 461,256 - - - Recreation and culture - - - - Capital outlay 582,712 - 99,503 - Debt service: Principal retirement 110,36'7 - - - Interest and fiscal charges 2,424 - - - Total expenditures 1,156,759 - 14,081,301 - REVENUE OVER (LTNDER)EXPENDITURE (987,162) 11,902,599 (276,875) 2'72,517 OTHER FINANCING SOURCES(USES): Lon�-term debtissued 675,787 - - - Transfers in - - - - Transfers out - (9,689,019) - (272,517} Total other financing sources(uses) 675,78'7 (9,689,019) - (2'72,517) Net change in fund balances (3ll,375) 2,213,580 (276,875) - FUND BALANCES: Beginning of year 197,022 8,"768,110 16,857,625 - End of year $ (114,353) $ 10,981,690 $ 16,580,750 $ - (Continued) 172 City of Redding Combined Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds For the Year Ended June 30, 2023 Special Revenue Debt Service 1915 Act Landscape Assessment Non-Major Maintenance Asset District Govern�nental Districts Library Seizure Bonds Funds REVENUES: Sales tax revenue $ - $ - $ - $ - $ 272,517 Special assessments 983,939 - - - 983,939 Licenses,fees andpermits - - - - 106,5'71 Inter�overnmentalrevenues - 209,765 - - 25,647,503 Charges far services - 1,561,266 - - 1,561,266 Fines,forfeitures and penalties 1,048 48,742 - - 93,030 Net investment earnings(loss) (6,025) (43,347) 1,049 3,241 203,322 Otherrevenues 69,719 15,743 44,635 - 170,766 Total revenues 1,048,681 1,792,169 45,684 3,241 29,038,914 EXPENDITURES: Current: Community development - - - - 13,981,�98 Public safcty - - 53,450 - 53,450 Public warks 724,856 - - - 1,186,112 Recreation and culture - 2,629,301 - - 2,629,301 Capital outlay - 31,095 - - '713,310 Debt service: Principal retirement - - - - 110,367 Interest and fiscal char�es - - - - 2,424 Total expenditures 724,856 2,660,396 53,450 - 18,676,762 REVENUE OVER (UNDER)EXPENDITU�RE 323,825 (868,227) (�,766) 3,241 10,362,152 OTHER FINANCING SOURCES(USES): Long-term dcbt issued - - - - 675,787 Transfersin - 965,276 - - 965,276 Transfers out - - - - (9,961,536) Total other financing sources(uses) - 965,276 - - (8,320,4�3) Net change in fund balanees 323,825 9'7,049 ('7,766) 3,241 2,041,679 FUND BALANCES: Beginning of year 542,408 1,009,560 21,590 301,424 2'7,697,�39 End of year $ 866,233 $ 1,106,609 $ 13,824 $ 304,665 $ 29,739,418 (Concluded) 173 City of Redding Schedule of Revenues, Expenditures, and Changes in Fund Balances—Budget and Actual Parl�ing Special Revenue Fund For the Year Ended June 30, 2023 Actual Variance with Amounts Fina]Budget Budgeted Amounts Budgetary Positive Original Fina] Basis (Negative) REVENUES: Licenses and permits $ 36,000 $ 36,000 $ 106,571 $ �0,571 Fines,forfeitures and penalties 30,000 43,130 43,13'7 7 Interest revenue 3,000 3,000 7,735 4,"735 Totairevenues 69,000 82,130 157,443 75,313 EXPENDITURES: Current: Public works 701,660 719,340 611,218 108,122 Total elrpenditures 701,660 719,340 611,218 108,122 EXCESS(DEFICIENCY)OF REVENUES OVER (UNDER)EXPENDITURES (632,660) (63'7,210) (453,"775) (183,435) Net change in fund balance (632,660) (637,210) (453,775) (183,435) FUND BALANCE: Bcginnin�of ycar 197,022 197,022 197,022 - End of year $ (435,638) $ (440,188) $ (256,'153) $ (183,435) E�planation of differences froln the Statement of Revenues,Eapenditures and Chan�es in Fund Balances to Actual Amounts Budgetary Basis: Fund balance froin the Statement of Revenues,Expenditures and Changes in Fund Balances $ (114,353) 1. Financial statement only adjustment per GASB#3 L (12,577) 2. The City does not bud�et for accounts payable adjustments. (13,361) 3.The City bud�ets for interest on a cash basis 527 4.Encumbrances are not included in the Statement of Revenues,E�enditures and Changes (40,157) in Fund Balance. 5.The Ciry bud�ets for lease payment,but not at the inception of the lease 675,787 6.The Ciry does not bud�et the required other financing lease or SBITA revenue at the (675,787) inception of the lease 7.The City does not budget for benefits accrual (32) 8.The City does not budget for prepaid items financed by long term debt (�6,800) Budgetary fund balance $ (256,�53) 174 City of Redding Schedule of Revenues, Expenditures, and Changes in Fund Balances—Budget and Actual Street Maintenance Special Revenue Fund For the Year Ended June 30, 2023 Actual Variance with Ainounts Final Bud�et Bud�eted Amounts Bud�etary Positive Ori�inal Final Basis (Negative) REVENUES: Intergovernmentalrevenue $ 7,349,540 $ 10,004,540 $ 11,243,162 $ 1,238,622 Tnterestrevenues 25,000 25,000 153,633 128,633 Total revenues 7,374,540 10,029,540 ll,396,795 1,367,255 EXCESS(DEFICIENCY)OF REVENUES OVER (UNDER)EXPENDITURES 7,374,540 10,029,540 11,396,795 1,367,255 OTHER FiNANCING SOURCES(USES): Transfers out (�,661,760) (10,316,'760) (9,689,019) 62�,"741. Totai other financing sources(uses) (7,661,760) (10,316,760) (9,689,019) 627,741 Net change in fund balance (287,220) (287,220) 1,707,776 1,994,996 FUND BALANCE: Bc�innin�of ycar 8,768,110 8,768,110 8,768,110 - End of year $ 8,480,890 $ 8,480,890 $ 10,475,886 $ 1,994,996 Explanation of differences from the Statcment of Revenues,Expenditures and Chan�es in Fund Balances to Actual Amounts Bud�etary Basis: Fund balance froin the Statement of Revenues,Expenditures and Changes in Fund Balances $ 10,981,690 1. Financial statement only adjustment per GASB#31. 126,320 2. The City bud�ets for grants and taxes on a cash basis (632,124) Budgetary fundbalance $ 10,4'75,886 175 City of Redding Schedule of Revenues, Expenditures, and Changes in Fund Balances—Budget and Actual Community Development Special Revenue Fund For the Year Ended June 30, 2023 Actual Variance with Amou.nts Final Budget Budgeted Amounts Budgetary Positive Original Final Basis (Negative) REVENUES: Tntergovernmental $ 2,012,320 $ 48,784,450 $ 20,904,'790 $ (2'7,8"79,660) Interest revenue 78,150 238,270 276,461 38,191 Use of money and property 325,530 923,850 923,846 (4) Otherrevenues 125,000 4,272,720 4,325,062 52,342 Total revenues 2,541,000 54,219,290 26,430,159 (27,789,131) EXPENDITURES: Current: Community development 3,491,520 59,312,340 25,331,122 33,981,218 Total expenditures 3,491,520 59,312,340 25,331,122 33,981,218 Net change in fund balance (950,520) (5,093,050) 1,099,037 6,192,087 FUND BALANCE: Be�innin�of year 44,477,019 44,477,019 44,477,019 - End of year $ 43,526,499 $ 39,383,969 $ 45,576,056 $ 6,192,087 Explanation of differences from the Statement of Revenues,Expenditures and Changes in Fund Balances to Actual Amounts Budgetary Basis: Fund balance from the Statement of Revenues,Expenditures and Changes in Fund Balances $ 5'7,298,357 1. Financial statement only adjustment per GASB#31. 213,181 2. The City does not budget for accounts payable and accrued liability adjustments. 7,554,543 3. The City budgets for and records loans made in the expenditure accounts,but adjusts the actual disbursement to loans receivable. (21,831,030) 4. The City budgets for and records loan payinents received in the revenue accounts,but adjusts the actual payment to loans receivable. 923,846 5. The City budgets for grants on a cash basis. (89,905) 6. The City budgets for interest income on notes receivable,trust fund assets,and rolling stock on a cash basis 16,955 7. The City does not budget for benefit accrual on a cash basis. 97 8. End of ycar encumbrances are included in actual expenditures budgetary basis,but are not included in the Statement of Revenues,Expenditures,and Fund Balance. (492,]16) 9. The Ciry does not budget for allowance for uncollectable loans (5,081) 10. The City doe not budget for interest aceruals. (20,248) 1 L The City does not budget for unearned revenue. 58 12.The City budgets for grants on a cash basis.-McConnell 2,00"7,399 Budgetary fund balance $ 45,576,056 176 City of Redding Schedule of Revenues, Expenditures, and Changes in Fund Balances—Budget and Actual Housing Special Revenue Fund For the Year Ended June 30, 2023 Actual Variance with Amou.nts Final Budget Budgeted Amounts Budgetary Positive Original Final Basis (Negative) REVENUES: Tntergovernmental revenue $ 10,46'7,200 $ 15,841,910 $ 13,814,233 $ (2,027,67'7) Use of money and property ll4,500 177,000 260,183 83,183 Interest 32,2'70 90,220 167,144 76,924 Otherrevenues 26,000 26,000 40,669 14,669 Totalrevenues 10,639,970 16,135,130 14,282,229 (1,852,901) EXPENDITURES: Current: Community development ll,078,190 16,860,992 14,247,299 2,613,693 Capital outlay - 16,618 16,618 - Totalexpenditures 11,078,190 16,877,610 14,263,917 2,613,693 Net change in fund balance (438,220) (742,480) 18,312 760,�92 FUND BALANCE: Bc�innin�of ycar 16,857,625 16,857,625 16,857,625 - Endofyear $ 16,419,405 $ 16,ll5,145 $ 16,875,937 $ 760,792 Explanation of differences from the Statement of Revenues,Expenditures and Changes in Fund Balances to Actual Amounts Budgetary Basis: Fund balance froin ihe Statement of Revenues,Expenditures and Changes in Fund Balances $ 16,580,750 1. Fir�ancial statement only adjustment per GASB#31. 1,916 2. The City docs not budget for accounts payable or intergovernmental payable adjustments. 64,864 3.The City budgets for and records loans made in the expenditure accounts,but adjusts the actual disbursement to loans receivable. (205,418) 4. The City budgets far and records loans payments received in the revenue accounts, but adjusts thc actual payinent to loans receivablc. 260,183 5. The City budgets for grants on a cash basis. 19,996 6. End of year encwnbrances are included in actual expenditures bud�;etary basis,but are not included in the Statement of Revenues,EXpenditures,and Fund Balance. (41,503) 7. The City budgets for interest income on notcs receivable on a cash basis. 18 8. The City does not budget for interest accruals. (2,173) 9.The City does not budget for unearned revenue. 197,863 10.The City does not budget far refund receivables far Section 8 (559) Bud�etary fund balance $ 16,875,937 177 City of Redding Schedule of Revenues, Expenditures, and Changes in Fund Balances—Budget and Actual General Special Revenue Fund For the Year Ended June 30, 2023 Actual Variance with Amounts Final Bud�et Bud�eted Amounts Bud�etary Positive Ori�inal Final Basis (Negative) REVENUES: Sales tax $ 272,520 $ 272,520 $ 272,517 $ (3) Total revenues 2'72,520 2'72,520 2'72,517 (3) EXCESS(DEFICIENCY}OF REVENUES OVER (UNDER)EXPENDITURES 272,520 272,520 272,517 (3) OTHER FINANCTNG SOURCES(USES): Transfers out (2'72,520) (2'72,520) (2'72,517) 3 Total other financing sources(uses) (2'72,520) (2'72,520) (2'72,517) 3 Net change in fund balance - - - - FUND BALANCE: Beginning of year - - - - End of year $ - $ - $ - $ - 178 City of Redding Schedule of Revenues, Expenditures, and Changes in Fund Balances—Budget and Actual Library Special Revenue Fund For the Year Ended June 30, 2023 Actual Variance with Amounts Final Bud�et Bud�eted Amounts Bud�etary Positive Ori�inal Final Basis (Negative) REVENUES: Intergovernmental $ - $ 2,666,040 $ 1,760,695 $ (905,345) Charges for services 1,740,430 1,561,270 1,561,266 (4) Fines,forfeitures and penalties 63,000 56,500 48,'742 (�,'758} Interestrevenue 3,500 3,000 16,117 13,117 Other revenue - 8,980 15,'743 6,'763 Total revenues 1,806,930 4,295,'790 3,402,563 (893,227) EXPENDITURES: Current: Recreation and culture 2,676,540 5,418,180 2,777,036 2,641,144 Total expenditures 2,676,540 5,418,180 2,7�'7,036 2,641,144 EXCESS(DEFICIENCY}OF REVENUES OVER (UNDER)EXPENDITURES (869,610) (1,122,390) 625,527 (1,'747,91'7) OTHER FINANCING SOURCES(USES): Transfers in - 962,460 965,276 2,816 Transfers out - (50,000) (50,000) - Total other financing sources(uses) - 912,460 915,2�6 2,816 Net change in fund balance (869,610) (209,930) 1,540,803 1,750,733 FUND BALANCE: Beginnin�of year 1,009,560 1,009,560 1,009,560 - End of year $ 139,950 $ 799,630 $ 2,550,363 $ 1,750,733 Explanation of differences from the Statcment of Revenues,Expenditures and Chan�es in Fund Balances to Actual Amounts Bud�etary Basis: Fund Balance from the Statement of Revenues,Expenditures and Changes in Fund Balances $ 1,106,609 1. Financial sfatement only adjustment per GASB#31. 78,'782 2. The City does not bud�et for accounts payable adjustuients. (82,419) 3. The City budgets for grants on a cash basis. 1,550,930 4. The City does not bud�et for interest income,sale of property or rental income related to the equipment replaccment fund. The City bud�ets only for the transfers in and out of the equipment replacement fund. (60,443) 5. The Ciry budgets for interest on a cash basis. (8,875) 6. End of year encumbrances are included in actual eapenditures budgetary basis,but are not included in the Statement of Revenues,Expenditures,and Fund Balance. (34,221) Budgetary fundbalance $ 2,550,363 179 City of Redding Schedule of Revenues, Expenditures, and Changes in Fund Balances—Budget and Actual General Capital Projects Fund -Major Fund For the Year Ended June 30, 2023 Actual Variance with Amounts Final Bud�et Budgeted Amounts Budgetary Positive Ori�inal Final Basis (Negative) REVENUES: Intergovcrnmental revenue $ - $ 15,640,860 $ 11,474,744 $ (4,166,116) Investmentrevenue - - 95,094 95,094 Other 1,653,180 3,920,530 6,573,636 2,653,106 Totai revenues 1,653,180 19,561,390 18,143,474 (1,417,916) EXPENDITURES: Current: General�overnment 393,690 393,690 77,632 316,058 Public warks 58,688,320 65,085,920 24,839,'7'76 40,246,144 Recreation and culture 8,838,390 21,605,930 6,753,766 14,852,164 Debt service: Principal retirement 285,000 285,000 285,000 - Interest and fiscal charges 454,290 454,290 454,288 2 Total expenditures 68,659,690 87,824,830 32,410,462 55,414,368 EXCESS(DEFICIENCY}OF REVENUES OVER (UNDER)EXPENDITURES (67,006,510) (68,263,440) (14,266,988) 53,996,452 OTAER FINANCING SOURCES(USES): firansfers in 150,000 150,000 150,000 - Transfers out (227,280) (227,280) (183,711) 43,569 Total other financing sources(uses) (77,280) (77,280) (33,711) 43,569 Net change in fund balance (67,083,790) (68,340,720) (14,300,699) 54,040,021 FUND BALANCE: Be�innin�of year 1,712,086 1,712,08b 1,712,086 - End of year $ (65,371,704) $ (66,628,634) $ (12,588,613) $ 54,040,021 Explanation of differences from the Statcment of Revcnues,Expenditures and Chan�;es in Fund Balances to Actual Amounts Budgetary Basis: Fund Balance from the Statement of Revenues,Expenditures and Changes in Fund Balances $ 1,495,651 1. Financial statement only adjustment per GASB#31. 209,882 2. The City does not budget for accounts payable adjustments. 455,2'73 3. End of ycar encumbrances are included in actual expenditures budgetary basis,but are not included in the Statement of Revenues,Expenditures,and Changes in Fnnd Balance. (14,696,454) 4. The City budgets for�rants on a cash basis. 198,415 5. The City budgets for interest on a cash basis. (21,627) 6. The City did not budget for revenue from the Agency Fund. (229,'753) Budgetary fund balance $ (12,588,613) 180 NON-MAJOR ENTERPRISE FUNDS Enterprise funds account for operations that are financed and operated in a manner similar to a private business enterprise. The intent of the governing body is that the cost of providing goods or services be financed primarily through user charges. An enterprise fund is also used when the governing body has decided that periodic determination of revenues earned and expenses incurred and/or net income is appropriate for capital maintenance,public policy,management control, accountability or other purposes. Airport This fund was established to account for the operations of the City's airports. Storm Drainage This fund was established to account for the operations of the City's storm drainage utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses. Redding Area Bus Authority This fund was established to account for the operations of the Redding Area Bus Authority. Convention Center This fund was established to account for the operations of the Convention Center. 181 City of Redding Combining Statement of Net Position Nonmajor Enterprise Funds June 30, 2023 Storm Redding Drainage Area Bus Convention Airport Utility Authority Center Totai ASSETS Current assets: Cash and investments $ - $ 4,271,983 $ 2,202,554 $ 953,589 $ '7,428,126 Accounts rcceivablc,net 34,627 67,290 18 - 101,935 Leasereceivable 425,574 - 22,85'7 236,752 685,183 Interest receivable 155 40,610 8,930 13 49,708 Intergovernmental receivable 6,606,405 257 553,767 - 'I,160,429 Prepaid items - 920 239,7ll 1,495 242,126 Inventories - 58,533 105,724 - 164,257 Total current assets 7,066,761 4,439,593 3,133,561 1,191,849 15,831,�64 Non-current assets: Restricted assets: Cash and investments 2 3,125,815 - 1 3,]25,818 Total restricted assets 2 3,125,815 - 1 3,125,818 Capital assets: Land 6,242,894 909,184 2,622,238 188,430 9,962,746 Constructioninprogress 6,951,'718 1,713,892 1,271,043 - 9,936,653 Depreciable capital assets,net 26,897,920 15,543,175 7,075,463 699,455 50,216,013 Total capital assets 40,092,532 18,166,251 10,968,�44 88�,885 70,ll5,412 Other assets: Lease receivable,net curren� 7,018,648 - 80,150 842,304 '7,941,102 Total other assets 7,018,648 - 80,150 842,304 7,941,102 Totalnon-currentassets 47,111,182 21,292,066 ll,048,894 1,730,190 81,182,332 Total assets 54,177,943 25,731,659 14,182,455 2,922,039 9�,014,096 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to other post employment benefits 199,237 88,972 - - 288,209 Defemed outflows related to pensions 530,594 460,655 - - 991,249 Total deferred outflows of resources 729,831 549,627 - - 1,279,458 (Continued) 182 City of Redding Combining Statement of Net Position (Continued) Nonmajor Enterprise Funds June 30, 2023 Storm Redding Drainage Area Bus Convention Airport Utility Authority Center Total LIABILITIES Current liabilities: Accountspayable 261,884 452,291 880,519 83,663 1,6'78,357 Accrued liabilities 24,504 22,742 9,183 - 56,429 Accrued interest payable 2,472 - - 320 2,792 Intergovernmental payables - - 124,577 - 124,577 Due to other funds 5,492,888 - 240,326 - 5,733,214 Interfund payables 25,000 - - 87,571 112,571 Unearned revenue 28,33'7 1,333,170 670,866 - 2,032,373 Deposits payable 84,139 - 3,000 - 87,139 Compensated absences,due within one year 3],04'7 3$,225 - - 69,272 Long-term dcbt,due within one year 49,085 ll,131 28,485 31,130 119,831 State loan,due within one year 31,181 - - - 31,181 A�gegate net OPEB liability 28,577 12,761 - - 41,338 Total current liabilities 6,059,114 1,870,320 1,956,956 202,684 10,089,074 Lon�-term liabilities: Compensated absences,due in more than one year 54,013 '70,251 - - 124,264 Advances from other funds 1,524,384 - - 1,484,153 3,008,537 Long-term debt,due in more than one year - 920 32,157 - 33,077 State loan,due in more than one year 303,355 - - - 303,355 Aggregate net OPEB liability 459,088 205,016 - - 664,104 A�gregatc net pcnsion liabiliry 1,9ll,333 1,351,504 - - 3,262,837 Total lon�-term liabilities 4,252,173 1,627,691 32,157 1,484,153 7,396,174 Totalliabilities 10,311,287 3,498,011 1,989,113 1,686,837 17,485,248 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to other post employmentbenefits 43,338 19,354 - - 62,692 Deferred inflows related to pensions 47 6,988 - - 7,035 Deferred inflows related to leases 7,444,222 - 103,00� 1,079,056 8,626,285 Total deferred inflows of resources 7,48�,607 26,342 103,00� 1,079,056 8,696,012 NET POSITION Net investment in capital assets 39,'708,913 18,154,200 10,908,102 856,756 69,627,971. Rcstricted for capital projects - 3,319,632 - - 3,319,632 Unrestricted(deficit) (2,600,033) 1,283,101 1,182,233 (700,610) (835,309) Total netposition $37,108,880 $22,�56,933 $ 12,090,335 $ 156,146 $ 72,112,294 (Concluc�ed) 183 This page intentionally left blank 184 City of Redding Statement of Revenues, Expenses, and Changes in Net Position Nonmajor Enterprise Funds For the Year Ended June 30, 2023 Storm Redding Drainage Area Bus Convention Airport Utility Authority Center Total OPERATING REVENUES: User fees and char�es $ 158,492 $ 2,234,627 $ 1,551,510 $ - $ 3,944,629 Rental fees ],607,544 - - 211,"767 1,819,311 Other operating revenue 986,421 17 - - 986,438 Total operating revenues 2,'752,45'7 2,234,644 1,551,510 211,'767 6,'750,378 OPERATING EXPENSES: Cost of power,water,and transportation - - 4,308,340 - 4,308,340 Maintenance,operations,and administra�ion 3,'7�5,540 1,561,0'73 2,456,540 1,2]5,520 9,008,673 Depreciation and amortization 1,804,115 1,111,913 1,392,724 75,749 4,384,501 Total operating expenses 5,579,655 2,672,986 8,157,604 1,291,269 17,701,514 Operating gain(Ioss) (2,827,198) (438,342) (6,606,094) (1,079,502) (10,951,136) NONOPERATING REVENUE(EXPENSES): Net investment earnings(loss) 6,645 128,607 4,275 - 139,527 Interest expense (35,190) - - (6,92�) (42,117) Intergovernmental revenues 1,860,084 663,832 5,343,539 (1,579) 7,865,876 Gain(loss)on disposal of assets - - '7,481 - '7,481. Other non-operating revenucs(e�rpenses) 359,268 3,564 57,249 - 420,081 Total nonoperating revenues(elrpenses) 2,190,807 796,003 5,412,544 (8,506) 8,390,848 Gain(loss)before operating transfers and capital contributions (636,391) 357,661 (1,193,550} (1,088,00$} (2,560,28$} Capital contributions 4,097,398 969,489 524,978 - 5,591,865 Transfers in 522,001 403,990 - 1,380,310 2,306,301 Transfers out (245,000} - - - (245,000) Change in net position 3,738,008 1,731,140 (668,572) 292,302 5,092,878 NET POSITION: Beginning ofyear 33,370,872 21,025,793 12,758,907 (136,156) 67,019,416 Endofyear $ 37,108,880 $ 22,756,933 $ 12,090,335 $ 156,146 $ 72,112,294 185 City of Redding Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended June 30, 2023 Storm Redding Drainage Area Bus Convention Airport Utiliry Authority Center Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 2,776,225 $ 2,221,709 $ 1,558,317 $ 2ll,767 $ 6,768,018 Cash paid to suppliers (3,207,260) (520,286) (7,122,601) (1,184,430) (12,034,577) Cashpaidtoempioyees (1,159,666) (722,712) - (33,158) (1,915,536) Other operating revenue 32,609 17 - - 32,626 Net cash provided by(used in)operating activities (1,558,092) 978,728 (5,564,284) (1,005,821) (7,149,469) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Intergovernmental revenue received 2,468,440 663,832 5,177,331 - 8,309,603 Advances from other funds 5,492,888 - 240,326 - 5,733,214 Repayment of advances from other funds (1,485,017) - (266,490) (63,530) (1,815,037) Transfers in 481,998 403,990 - 1,380,310 2,266,298 Transfers out (245,000) - - - (245,000) Net cash provided by non-capital�inancing activities 6,713,309 1,067,822 5,151,167 1,316,780 14,249,078 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Capital grants received (59,485) (653,169) 369,630 - (343,024) Purchases of capital assets (4,540,280) (2,579,214) (672,615) - (7,792,109) Rents received - - 57,249 - 57,249 Interestpaid (48,293) - - (1,$'72) (50,165) Principai paid on long-term debY (840,341) (10,658) (32,327) (29,450) (912,776) Cash collected for future capital ouflay 326,659 3,564 - - 330,223 Net cash provided by(used in) capital and related financing activities (5,161,'740) (3,239,477) (2'78,063) (31,322) (8,710,602) CASH FLOWS FROM INVESTING ACTIVITIES: Net investment earnings(loss) 6,525 106,680 (375) (6,934) 105,896 Net cash provided by(used in)investing activities 6,525 106,680 (375) (6,934) 105,896 Net increase(decrease)in cash and cash equivalents 2 (1,086,247) (691,555) 272,�03 (1,505,097) CA�H AND CASH EQUIVALENTS: Beginning of year - 8,484,045 2,894,109 680,887 12,059,041 End of year $ 2 $ 7,397,798 $ 2,202,554 $ 953,590 $ 10,553,944 Reconciliation to statement of net position: Cash and cash equivalents $ - $ 4,271,983 $ 2,202,554 $ 953,589 $ 7,428,126 Restricted cash and cash equivalents 2 3,125,815 - 1 3,125,818 $ 2 $ 7,397,798 $ 2,202,554 $ 953,590 $ 10,553,944 (Continued) 186 City of Redding Combining Statement of Cash Flows (Continued) Nonmajor Enterprise Funds For the Year Ended June 30, 2023 Stonn Redding Drainage Area Bus Convention Airport Utility Authority Center Total RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED BY(USED IN)OPERATING ACTIVITIES: Operating incoine(loss)to net cash provided by(used in) $ (2,827,198) $ (438,342) $ (6,606,094) $ (1,079,502) $(10,951,136) Adjustments to reconcile operating(loss)to net cash provided(used)by operating activities: Other non-operating revenue and expense 32,609 - - - 32,609 Depreciation and amortization 1,804,ll5 i,1ll,913 1,392,724 75,749 4,384,501 (Inerease)decrease in accounts receivable 24,668 (12,918) 6,807 - 18,557 (Increase)decreasein inventories - (36,604) (13,253) - (49,857) (Increase)decrease in prepaid items - - - (1) (1) (Inerease)decrease in aeeounts payable (736,396) 348,649 335,724 - (52,023) Inerease(deerease)in acerued liabilities 5,520 11,202 2,995 (2,067) 17,650 Inerease(decrease)in deposits liability (900) - - - (900) Inerease(deerease)in intergovernmental payable (2,583) - (683,187) - (685,770) Inerease(deerease)in unearned revenue 13,747 - - - 13,747 Inerease(deerease)in acerued compensated absences 16,744 17,845 - - 34,589 Other post employment benefits relaed items 90,786 23,105 - - ll 3,891 Pension related items 20,796 (46,122) - - (25,326) Total adjustments 1,269,106 1,417,070 1,041,810 73,681 3,801,667 Net cash provided by(used)operatin�activities $ (1,558,092) $ 978,728 $ (5,564,284) $ (1,005,821) $ (7,149,469) SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCiNG ACTIVITIES: Plant contributed from developers $ - $ 969,489 $ - $ - $ 969,489 Transfer of capital assets - 403,990 - - 403,990 Total non-cash capital and related financing activities $ - $ 1,373,479 $ - $ - $ 1,373,479 (Concluded) 187 This page intentionally left blank 188 INTEI�:NAL SERVICE FITNDS Internal service funds are used to finance and account for special activities and services performed by a designated departlnent to other departments within the same governmental unit on a cost reimbursement basis. Equipment Fund This fund was established to account for all motorized and communications equipment utilization by City departments. Information Systems Fund This fund was established to account for the data processing activities utilized by all City departments. General Support Services Fund This fund was established to account for general support services utilized by a11 City departments. Risk Management Fund This fund was established to account for the self-insurance activities of the City. Municipal Utiiities Support Fund This fund was established to provicle management and electrical technician support to the Utilities and Street Maintenance. 189 City of Redding Combining Statement of Net Position All Internal Service Funds June 30,2023 Information General Support Equipment Systems Services ASSETS Current assets: Cash and investments $ 685,421 $ 3,059,434 $ 1,849,237 Interest receivable 2,106 15,817 9,075 Accounts receivable,net 92 - 1,739 Prepaid iYems ],554 2,045,151 132,303 Intergovernmental receivable 2'77 - - Inventaries A76,96$ - - Interfund receivable - - - Totalcurrentassets 1,166,418 5,120,402 1,992,354 Non-current assets: Capital asseCs: Land - - 110,810 Construction in progress - - 508,145 Depreciable capital assets,net 506,368 272,723 319,706 Capital assets,net 506,368 272,723 938,661 Other assets: Advances to other funds - - - Total oYher assets - - - Total non-current assets 506,368 272,723 938,661 Total assets 1,672,786 5,393,125 2,931,015 DEFERRED OUTFLOWS OF RESOURCES Defcrrcd outflows related to other post employment benefiYs 358,852 403,450 509,898 Deferred outflows related to pensions 1,457,269 1,662,418 2,024,845 Total deferred outflows of resources 1,816,121 2,065,868 2,534,'743 LIABILITIES Current liabilities: Accounts payable 16,321 586,918 9],069 Intergovernmental payable - - 43,814 Acerued liabilities 57,665 49,680 111,507 Claims and judgements payable - - - Interfund payable - - 25,000 Unearned revenue - - - Compensated absences-current 92,008 106,732 173,810 Long-term debt,due within one yeas - 45,107 47,923 Aggregate net OPEB liability 51,471 57,867 73,134 Total current liabilities 217,465 846,304 566,257 Long-term liabilities: Advances from other funds - - 6,250 Compensated absences 205,246 265,387 382,417 Claims and judgements - - - Long-term debC,due in morc than one yeax - 47,126 87,051 Aggregate net OPEB liability 826,883 929,642 1,174,928 Aggregate net pension liability 4,501,487 5,369,249 6,238,19�4 Total long-Cerm liabilities 5,533,616 6,611,404 7,888,840 Totalliabilities 5,751,081 7,457,708 8,455,097 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to other post employment benefits 78,060 87,761 110,916 Deferred inflows related to pensions 17,005 14,118 24,001 Total deferred inflows of resources 95,065 101,8'79 134,917 NET POSITION Investment in capital assets 506,368 180,490 803,687 Unrestricted(defieit) (2,863,607) (281,084) (3,927,943) Total net position $ (2,357,2391 $ (100,594) $ (3,124,2561 (Continued) 190 City of Redding Combining Statement of Net Position (Continued) All Internal Service Funds June 30,2023 Risk Municipal Utilities Management Support Total ASSETS Current assets: Cash and investments $ 11,301,431 $ 1,265,703 $ 18,161,226 Interest receivable 65,180 6,407 98,585 Accounts receivable,net 151,831 - 153,662 Prepaid iYems 1,006 - 2,180,014 Intergovernmental receivable - - 2'77 Inventaries - - 476,968 Interfund receivable 112,571 - 112,571 Total current assets 11,632,019 1,272,ll0 21,183,303 Non-current assets: Capital asseCs: Land - - 110,810 Construction in progress - - 508,145 Other capital assets,net - 356,049 1,454,846 Capital assets,net - 356,049 2,073,801 Other assets: Advances to other funds 3,195,449 - 3,195,449 Total oYher assets 3,195,449 - 3,195,4�49 Total non-current assets 3,195,449 356,049 5,269,250 Total assets 14,827,468 1,628,159 26,452,553 DEFERRED OUTFLOWS OF RESOURCES Defcrrcd outflows related to other post employment benefiYs 131,340 532,828 1,936,368 Deferred outflows related to pensions 431,094 2,635,221 8,210,84? Total deferred outflows of resources 562,434 3,168,049 10,14'7,215 LIABILITIES Current liabilities: Accounts payable 393,440 17,580 1,105,328 Intergovernmental payable 1,096,980 - 1,140,794 Acerued liabilities 33,070 87,064 338,986 Claiins and judgements payable 8,222,185 - 8,222,185 Interfund payable - - 25,000 Unearned revenue 189,740 - 189,740 Compensated absences-current 28,019 256,655 657,224 Long-term debt,due within one yeas - - 93,030 Aggregate net OPEB liability 18,838 76,424 277,734 Total current liabilities 9,982,272 437,723 12,050,021 Long-term liabilities: Advances from other funds 6,250 Compensated absences 66,805 437,145 1,357,000 Claiins and judgements 10,295,055 - 10,295,055 Long-term debC,due in morc than one yeax - - 134,177 Aggregate net OPEB liability 302,638 1,227,760 4,461,851 Aggregate net pension liability 1,380,912 7,5�46,219 25,036,061 Total long-Cerm liabilities 12,045,410 9,211,12�4 41,290,394 Totalliabilities 22,027,682 9,648,847 53,340,415 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to other post employment benefits 28,570 115,904 421,2ll Deferred inflows related to pensions 3,918 A4,151 103,193 Total deferred inflows of resources 32,488 160,055 524,404 NET POSITION Investment in capital assets 356,049 1,846,594 Unrestricted(defieit) (6,670,268) (5,368,743) (19,111,645) Total net position $ (6,670,2681 $ (5,012,6941 $ (17,265,051) (Concluded) 191 This page intentionally left blank 192 City of Redding Combining Statement of Activities and Changes in Net Position All Internal Service Funds For the I'ear Ended June 30, 2023 General Municipal Information Support Risk Utilities Equipment Systems Services Management Support Total OPERATING REVENUES: User fees and charges $ 5,929,583 $ 6,869,911 $ �,524,413 $ 55,583,468 $ 5,239,190 $ 81,146,565 Other operating revenue 2,975 185 1,501 54,534 - 59,195 Total operating revennes 5,932,558 6,870,096 7,525,914 55,638,002 5,239,190 81,205,760 OPERATING EXPENSES: Maintenance,operations, 6,036,'753 4,302,215 �,759,134 58,582,133 4,927,654 81,607,889 and administration Depreciation and amortization 143,148 112,624 �6,965 - 62,164 394,901 Total operating elrpenses 6,179,901 4,414,839 7,836,099 58,582,133 4,989,818 82,002,790 OPERATING INCOME(LOSS) (247,343) 2,455,257 (310,185) (2,944,131) 249,372 (797,030) NONOPERATING REVENUE (EXPENSES): Net investment earnin�s(loss) (3,801) (20,076) 42,759 143,007 15,283 177,172 Interest expense (2,363} (2,970) (3,142) - (3,787) (12,262) Intergovernmental revenues 6,795 - - 8,023 - 14,818 Gain(loss)on disposal of capital assets - - - - 35,473 35,473 Other non-operating revenue(expense) (6,473,899) - - 2'73 - (6,4'73,626) Total nonoperating expenses (6,473,268) (23,046) 39,617 151,303 46,969 (6,258,425) Tneome(loss)before transfers and contributions (6,720,611) 2,432,2ll (270,568) (2,792,828) 296,3A1 (7,055,455) Capital contributions - - - - - Transfers in 17,607 - 85,279 - - 102,886 Transfers out (69,042) - - - - (69,042) Changes in net position (6,772,046) 2,432,2ll (185,289) (2,792,828) 296,341 (7,021,611) NET POSITION: Beginning ofyear 4,414,807 (2,532,805) (2,938,967) (3,8'77,440) (5,309,035) (10,243,440) Endofyear $ (2,357,239) $ (100,594) $ (3,124,256) $ (6,670,268) $ (5,012,694) $ (17,265,051) 193 City of Redding Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2023 General Municipal Information Support Risk Utilities Equipment Systems Services Management Suppart Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from other funds $ 5,934,532 $ 6,870,096 $ 7,525,907 $ 55,551,175 $5,239,190 $ 81,120,900 Cash paid to suppliers (3,388,371) (1,ll3,849) (4,825,512) (56,159,313) (1,079,774) (66,566,819) Cashpaidtoemployees (2,392,001) (2,459,453) (2,833,511) (750,547) (4,181,186) (12,616,698) Net cash provided by operating activities 154,160 3,296,794 (133,ll6) (1,358,685) (21,770) 1,937,383 CASH FLOWS FROlVI NONCAPITAL FINANCING ACTIVITIES: Repayment of advances from other funds - (80,210) (25,000) - - (105,210) Repayment of advances to other funds - - - 117,250 - ll7,250 Advances to other funds - - - (28,720) - (28,720) Intergovernmental revenue received - - - 8,023 - 8,023 Other - - - 273 - 273 Net cash provided by(used in) noncapital�nancing activities - (80,210) (25,000) 96,826 - (8,384) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from sale of assets - - - - 35,964 35,964 Purchase of capital assets - (2,ll3,498) (540,827) - (101,159) (2,755,484) Interestpaid (2,363) (2,970) (3,142) - (3,787) (12,262) Proceeds from lon�-term debt - 94,402 - - - 94,402 Principal paid on long-term debt - (27,604) - - - (27,604) Net cash(used in) capital and related�nancing activities (2,363) (2,049,670) (543,969) - (68,982) (2,664,984) CASH FLOWS FROM INVESTING ACTIVITIES: Investmentrevenuereceived (4,462) (30,810) 39,348 106,437 12,123 122,636 Net cash(used in) investing activities (4,462) (30,810) 39,348 106,437 12,123 122,636 Net inerease(decrease)in cash and cash equivalents 147,335 1,136,104 (662,737) (1,155,422) (78,629) (613,349} CASH AND CASH EQUIVALENTS: Beginning of year 538,086 1,923,330 2,S11,974 12,456,853 1,344,332 18,774,5'75 End of year $ 685,421 $ 3,059,434 $ 1,849,237 $ ll,301,431 $1,265,703 $ 18,161,226 (Continued) 194 City of Redding Combining Statement of Cash Flows (Continued) Internal Service Funds For the Year Ended June 30, 2023 General Municipal Information Support Risk Utilities Equipmen� Systems Services Management Suppart Total RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED BY(USED IN)OPERATING ACTIVITIES: Operatin�income(loss)to net cash provided by (used in) $ (2�7,343) $ 2,455,257 $ (310,185) $ (2,944,131) $ 249,372 $ (797,030} Adjustments to reconcile operating income(loss)to net cash provided (uscd)by operatin�activities: Depreciation and amortization 143,148 112,624 76,965 - 62,164 394,901 (Increase)decrease in 1,974 - (7) (78,804) - (76,837) accounts receivable (Tncrease)decrease in inventories (85,524) - - - - (85,524) (Increase)decrease in prepaid items - (9$6) (37,801} 5,305 - (33,482) Increase(decrease)in 38,150 57'7,526 (155,636) 248,380 (3$0) �08,040 accounts payable Increase(decrease)in 25,158 14,491 45,827 11,501 (44,784) 52,193 accrued liabilities Incrcase(decrease)in claims and judgements payable " ' - 860,300 - 860,300 Increase(decrease)in _ _ 23,197 458,875 - 482,072 intergovernmental payable Increase(decrease)in unearned revenue " ' - (8,023) - (8,023) Increase(decrease)in aeerued �4,369 50,029 104,994 25,813 52,364 307,569 compensated absences Other post employment benifi�s 166,039 109,435 189,395 58,985 �7,905 601,"759 related items Pension related itcros 38,189 (21,582) (69,865) 3,114 (418,411) (468,555) Total adjustments 401,503 841,537 177,069 1,585,446 (271,142) 2,734,413 Net cash provided by operating activities $ 154,160 $ 3,296,'794 $ (133,116) $ (1,358,685) $ (21,770) $ 1,937,383 Schedule of noncash capital activities: Transfer in of capital assets $ (51,435) $ - $ - $ - $ - $ (51,435) Total non-cash capital and related financing activities $ (51,435) $ - $ - $ - $ - $ (51,435) (Concluded) 195 This page intentionally left blank 196 FIDUCIARY FUNDS - CITSTODIAL FUNDS The Custodial Funds are used to account for assets held by a government unit as an agent for individuals, governmental entities (other than the City) and non-public arganizations. Special Deposits This fund was established to account for deposits and collect monies for various coinmunity events, which are remitted to the organizers. IPSS Fund This fund collects and disburses payments for a joint powers authority (JPA) between the Cities of Redding, Anderson, and Shasta County. The JPA is responsible for integrating public safety records between the entities. Enterprise Anderson Groundwater Fund This fund collects and disburses payments for an MOU between the City of Redding, Shasta County, the City of Anderson, ACID, CCCSD, and BVWD. The purposes of the MOU are to comply with the Sustainable Groundwater Management Act of 2014, ensure the continued sustainability of the Anderson and Enterprise Subbasins, and to develop, adopt, i�nplement and manage a groundwater sustainability plan for the sustainable management of groundwater within. the Enterprise and Anderson Subbasins of the Redding Area Groundwater Basin while keeping the complexity and costs as 1ow as practicable. 197 City of Redding Combining Statement of Fiduciary Net Position Fiduciary Funds - Custodial Funds June 30,2023 Enterprise Special Anderson Deposits IPSS Groundwater Fund Fund Fund Tota1 ASSETS Cash and cash equivalents $ 7,264,390 $ 694,606 $ 5,102 $ 7,964,098 Accounts receivable 5,679 92,392 33,052 131,123 Intergovernmentalreceivable - - - - Interest receivable 22,831 3,534 - 26,365 Capital assets Constructioninprogress - 2,380,ll9 - 2,380,ll9 Depreciable capital assets,net - 78,870 - 78,870 Total assets 7,292,900 3,249,521 38,154 10,580,575 LIABILITIES Deposits 7,251,915 - - 7,251,915 Accounts payable - 2,60'7 - 2,60'7 Accrued payroll - 15,27� - 15,277 Intergovernmentalpayable - - 33,1�8 33,1�8 Totalliabilities 7,251,915 17,884 33,178 7,302,977 NET POSTTION lndividuals,organizations,and other governments 40,985 3,231,637 4,976 3,277,598 Total net position $ 40,985 $ 3,231,637 $ 4,976 $ 3,277,598 198 City of Redding Combining Statement Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds For the Year Ended June 30, 2023 Enterprise Special Anderson Deposits IPSS Groundwater Fund Fund Fund Tota1 ADDITIONS Intergovernmental -fees $ - $ l,ll 1,025 $ 8,192 $ 1,ll9,217 InYergovernmental-grants - - 348,024 348,024 Userfees - 144,937 - 144,937 Investment income(loss) 11,666 26,327 (224) 37,769 Total additions 11,666 1,282,289 355,992 1,649,947 DEDUCTIONS Administrarion - 1,OO1,ll5 35,777 1,036,892 Software maintenance and support - 52,578 - 52,578 Project payments - 553,353 315,239 868,592 Depreciatic�n - 39,018 - 39,018 Totaldeductions - 1,646,064 351,016 1,997,080 Changes in net position 11,666 (363,775) 4,976 (347,133) NET POSITION Beginning of year 29,319 3,595,412 - 3,624,731 End of year $ 40,985 $ 3,231,637 $ 4,976 $ 3,277,598 199 This page intentionally left blank 200 �j�, , t��. ��ty'��f �15�c��s4i��}t 3 i�t�I��f��J�t�j��i3 . �t ,txr�s{s;t��t i�r��zy�t�l�L�ftirt�a)��{ .. ��f��„i��it�Vi��t�i��€3�e,��ti tct�'iC�11)lt`��^Cz�jttrr t��}}��t��{tt�f��S'li��i�'a ��;}��1�4t}� ��r s �'.° �#��r��`t�3�ff�t � � �T��{7 i , �t�(�� 'Y �� `ttj { �" �'�:!4 �}7�1�R��t �i t'rjs' s}tttn r �,�� pF�s , „� ; } �� ` � �� , r �- °' I � �,,�.., tt t};rfh}�� f��j�� k o,�4��t�! 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Passenger Facility Charge is a fee charged on commercial airline tickets for ever-y enplaned passenger. Commercial airports use these fees to fund FAA-approved projects that enhance safety, security, or capacity; reduce noise; or increase air carrier competition. Below is the current approved application of projects funded by Passenger Facility Charges: Application 11-04-C-Ol-RDD 001-Stora�e Building for FAR Part 139 Equipment 002-Update Airport Layout Plan(ALP) 003-Prepare Airport Electrical Master Plan 004-Acquire Aircraft Reseue Fire Fighting(A.RFF)Equipment 005-Rehabilitate Airfield Guidancc Si�ns 006-Rehabilitate Runway 13134-Design Oniy 007-Rehabilitate Parallel and Connectin�Taxiways-Desi�;n Only 008-Rehabilitate Terminal Building 009-Conduct Wildlifc Hazard Asscssmcnt 010-Terminal Building Expansion -Design Only 011-PFC Adininistration 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 Manageinent System Study 005-T-Hangar Taxilane Reconstruction 006-West Tie Down Apron Reconsiruction 00�-Airecraft Rescue and Fire Fighting Station Modifications 009-Enviromnental Assessment Para11e1 Runway 013-PFC ApplicationlAdministration Costs Application 23-06-C-00-RDD 001-PFC Audit 002-Guidance Sign Installation&Misc NAVAID 003-Terminal Loop Design 004-AAAE-IET Trainin�Prograin 005-Update Airport Master Plan Study 006-Master Draina�e Study 203 City of Redding Redding Municipal Airport Schedule of Passenger Facility Charges Collected and Expended and Interest Collected For the Quarters Ended September 30, 2022,December 31,2022,March 31, 2023, and June 30,2023 For the Quarter Ended Cumulative Total September 30, Dcccmber 31, June 30,2022 2022 2022 Unexpended(over expended)passenger faeility $ 126,445 $ 235,050 $ 306,082 charges and interest,beginning of period Amount Revenues: Approved Passenger faeility charges collected 4,544,295 69,485 102,828 Interest earned 19,779 1,547 1,626 Total passenger facility charge rcvenue $4,912,043 4,564,074 71,032 104,454 Expenses• Amount Proiect Number/Proiect Name Approved Completed and Closed Applieations $2,766,535 2,766,535 - - Open Projects Application 11-04-C-OI,RDD 001-Storage Building far FAR Part 139 Equipment 14,791 14,791 - - 002-Update Airport Layout Pian(ALP) ],500 1,500 - - 003-Prepare Airport Electrical Master Plan 1,500 1,500 - - 004-Acquire Aireraft Rescue Firc Fighting(ARFF)Equipment 1,992 1,992 - - 005-Rehabilitate Air6eld Guidance Signs 16,588 16,588 - - 006-Rcbabilitate Runway 13/34-Design Only 3,250 3,250 - - 007-Rehabilitate Parallel and Connecting fiaxiways-Design Only 2,302 2,302 - - 008-Rehabilitate Terminal Building 60,346 60,346 - - 009-Conduct Wildlife Hazard Assessment 4,510 4,510 - - O10-Terminal Building Expansion -Dcsign Only 12,498 12,498 - - Ol 1-PFC Administration Costs 35,000 35,000 - - 017-Rehabilitatc and Expand Terminal Building 519,6A5 519,645 - - Application 1'7-05-C-00-RDD 001-AircrafC Rescue and Fire Fighting Vehicle Acquisition 68,676 68,676 - - 002-Airport Master Plan Update 44,832 44,800 - - 003-ADA Passenger Loading Ramp A,984 A,984 - - 004-Airport Pavement Management System Study 4,735 4,735 - - 005-T-Hangar Taxilane Reeonstnzetion 458,672 394,850 - - 006-West Tie Dowi1 Apron Reconstruction 323,278 313,730 - - 007-Airecraft Reseue and Fire Fighting Station Modifications 1,735 1,735 - - 009-Environmental Assessment Parallel Runway 32,690 187 - - 013-PFC Application/Administration CosYs ]50,000 54,870 - - Application 23-06-G00-RDD 001-PFC Audit 61,141 - - - 002-Guidance Sign Installation&Misc NAVAID 30,811 - - - 003-Terminal Loop Design 53,633 - - - 004-AAAE-IBT Training Program 42,000 - - - 005-Update Airport Master Plan Study 103,927 - - - 006-Master Drainage Study 52,001 - - - Total passenger facility charge revenue expenditures 4,329,02�4 - - Unexpended(over expended)passenger facility charges and interest,end of period $ 235,050 $ 306,082 $ 410,536 (Continued) 204 City of Redding Redding Municipal Airport Schedule of Passenger Facility Charges Collected and Expended and Interest Collected(Continued) For the Quarters Ended September 30, 2022,December 31,2022,March 31, 2023, and June 30,2023 For the Year For the Quarter Ended Ended March 31, June 30, June 30, Cumulative Total 2023 2023 2023 June 30,2023 Unexpended(over expended)passenger faeility $ 410,536 $ 247,576 $ 235,050 $ - charges and interest,beginning of period Revenues• Passenger faeility charges collected 73,530 80,815 326,658 �,870,953 Interest earned 1,166 1,668 6,007 25,786 Totat passenger facility charge revenue 74,696 82,483 332,665 4,896,739 Expenses• Proiect Number/Proiect Name Completed and Closed Applieations - - - 2,766,535 Open Projects Application 11-04-C-OI,RDD 001-Storage Building far FAR Part 139 Equipment - - - 14,791 002-Update Airport Layout Plan(ALP) - - - 1,500 003-Prepare Airport Electrical Master Plan - - - 1,500 004-Acquire Aircraft Rescue Firc Fighting(ARFF)Equipment - - - 1,992 005-Rehabilitate Air6eld Guidance Signs - - - 16,588 006-Rchabilitate Runway 13134-Design Only - - - 3,250 007-Rehabilitate Parallel and Connecting Taxiways-Design Only - - - 2,302 008-Rehabilitate Terminal Building - - - 60,346 009-Conduct Wildlife Hazard Assessment - - - 4,510 O10-Terminal Building Expansion -Design Only - - - 12,498 O11-PFC Administration Costs - - - 35,000 017-Rehabilitatc and Expand Terminal Building - - - 519,645 Application 1'7-05-C-00-RDD 001-AircrafC Rescue and Fire Fighting Vebicle Acquisition - - - 68,676 002-Airport Master Plan Update - - - 44,800 003-ADA Passenger Loading Ramp - - - A,984 004-Airport Pavement Management System Study - - - 4,735 005-T-Hangar Taxilane Reeonstruction - - - 394,850 006-West Tie Dowi1 Apron Reconstruction - - - 313,730 007-Aireeraft Reseue and Fire Fighting Station Modifications - - - 1,735 009-Environmental Assessment Parallel Runway - - - 187 013-PFC Application/Administration CosYs - - - 54,870 Application 23-06-G00-RDD 001-PFC Audit 67,141 - 67,141 61,141 002-Guidance Sign Installation&Misc NAVAID 30,811 - 30,811 30,811 003-Tcrminal Loop Design 67,660 - 67,660 67,660 004-AAAE-IBT Training Program 27,750 - 27,750 27,750 005-Update Airport Master Plan Study 29,525 3,ll 5 32,640 32,640 006-Master Drainage Study 20,769 389 21,158 21,158 Total passenger facility charge revenue expenditures 237,656 3,504 241,160 4,570,184 Unexpended(over expended)passenger faciliry charges and interest,end of period $ 247,576 $ 326,555 $ 326,555 $ 326,555 (Concluded) 205 This page intentionally left blank 206 r;i', � k 4�s�j�,s it��1k �r��'��,}3�s } 5�t;£ti�?�t '�iQ�lj�{iU��}i{;��}�#�rr� .. j��t��;1`�i��J��M1t�i'j��;��r� t {��r��rl��'�1��'��,r ri��3��tl,��?��e�Zkt� � I� {�s� �t �� f�'f }#trr�,��li�t�l}�5��`�7ft��,; �t,}�s��Yft�,�7+( �"��i'�� z,�{, , !�'��' r 4 t 1�,z�:�. 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ZrS tt�.,t i.li }z,tti .} { ,i j :t t, ri, i ,r+�,. c, t . 4, t� t, ,t. { �t� z. t }, t, k' ��,, t � s �s. } ,�. �,rr. aS� ..� }1� 1:, �.��.. � ��+'�" .�i, S i,,rS t .��,�. ,.{, „�t,,i, t�.� t,. s� t a�f { ±r.sS, � � i>Y ,t rrn�� t Fn. ,s 1f , f�. f,f i { �, � �i�,. �,t.s> S., t 7, ,i� � .� t?t„� ,� i � tta�.ri} � ..iu, .,.}} ,I+x f.� t4 rr, >,s.t t s i. �t„ � � ,.f$. }i„ r..0 4rr � .1 J l} .�!, }, 1.7 i. Y, t � tit�� r, rs i,,,�ti .� ,�,x�, Fi,t„l.. �� .r s srr „ s�.t s, ,, k t ,rc. ,# Sr1i, ;,.�6riz7� �;4.3'�fifi{,Jft.��.}r .�;t#��,r4S�s,�t,>��,yi,�:r{i)11{l;.€ti�rE}��}It�,}t,1si�,<S.,l�,trc�i',;a�;,'r�.ltli,�&�t;Ft'r,"„tCltrai3;�#�5�1.i��vrrlt�;{�t��r7��;�`�n�;�}}.ti�{��.(?1tS�t,ty.�lT�rt2�7,.,�lds�ii4{s��r�f,7ji�,�,,��Fs„s. Fj��l��s"ft��4��f�1 ��}��t�s�7�``� ��4`�� 7 t#}��`�� f�� t��'��#��t��, � �� >��,��t��j�l,: This page intentionally left blank 208 City of Redding Statistical Section Overview This part of the City of Redding's annual comprehensive financial report presents detailecl information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. INDEX Page Financial Trends Z10 These schedules contain trend information to help the reader understand how the City's fnancial performance and well-being have changed over time. Revenue Capacity 221. These schedules contain information to help the reader assess the City's most significant local revenues sources. Debt Capacity 228 These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additiona] debt in the future. Demographic and Economic Information 239 These schedules offer demographic and economic indicators to help the reader understand the enviromnent within which the City's financial activities take place. Operating Information 243 These schedules contain service and infrastructure data to help the reader understand how the information in the City's �nancial report relates to the services the City provides and the activities it performs. 209 City of Redding Net Position by Component Last Ten Fiscai Years Ended June 30, 2023 (accrual basis of accounting) Fiscal Year 2013-14 2014-15 2015-16 2016-17 201?-18 Governmental activities Net inveslanent in capital assets $ 299,220,582 $ 303,789,845 $ 304,441,380 $ 299,478,797 $ 298,515,126 Restricted 44,242,198 44,242,198 43,495,762 42,760,454 41,076,8'74 Unrestricted 12,404,054 (150,344,065) (146,838,910) (157,129,728) (135,453,029) Total governmental activities net position $ 355,866,834 $ 197,68�,978 $ 201,098,232 $ 185,109,523 $ 204,138,971 Business-type activities Net investment in capital assets $ 276,768,127 $ 286,401,920 $ 284,346,442 $ 293,920,914 $ 314,064,'I55 Rcstricted 18,564,126 18,326,176 15,155,154 14,068,393 12,204,596 Unrestricted 103,748,'759 32,692,6'74 54,363,934 66,198,888 99,325,093 Total business-type activities netposition $ 399,081,012 $ 337,420,770 $ 353,865,530 $ 374,188,195 $ 425,594,444 Primary government Net inves�inent in capital assets $ 575,988,709 $ 590,191,765 $ 588,787,822 $ 593,399,711 $ 612,579,881 Restrieted 62,806,324 62,568,3'74 58,650,916 56,828,84� 53,281,4'70 Unrestricted 116,152,813 (117,651,391) (92,474,976) (90,930,840) (36,127,936) Total primary government net position $ �54,947,846 $ 535,108,748 $ 554,963,762 $ 559,297,718 $ 629,733,415 Source:City of Redding Annual Corraprehensive Financial Report 210 City of Redding Net Position by Component(Continued) Last Ten Fiscal Years Ended June 30, 2023 (accrual basis of accounting) Fiscal Year 2018-19 2019-20 2020-21 2021-22 2022-23 Governmental activities Net inves1anent in capital assets $ 296,238,160 $ 293,561,715 $ 307,597,872 $ 317,742,758 $ 335,471,207 Restricted 6'7,544,524 6'7,415,'758 99,523,339 99,799,590 123,'734,81'7 Unrestricted (157,348,852) (152,188,061) (157,650,758) (146,175,614) (152,837,374) Total governmental activities net position $ 206,433,832 $ 208,�89,412 $ 249,4�0,453 $ 2'71,366,734 $ 306,368,650 Business-type activities Net investment in capital assets $ 320,934,46'7 $ 32�,301,815 $ 358,579,485 $ 368,"787,712 $ 392,864,351 Rcstricted 10,072,298 8,589,905 9,433,039 6,782,510 8,921,648 Unrestricted 112,968,216 12'7,947,134 105,661,660 110,264,669 108,075,34'7 Total business-type activities net position $ 443,974,981 $ 463,838,854 $ 473,674,184 $ 485,834,891 $ 509,861,346 Primary government Net inves�inent in capital assets $ 617,172,627 $ 620,863,530 $ 666,177,357 $ 686,530,470 $ 728,335,558 Restrieted 7'7,616,822 '76,005,663 108,956,378 106,582,100 132,656,465 Unrestricted (44,380,636) (24,240,927) (51,989,098) (35,910,945) (44,762,027) Total primary government net position $ 650,408,813 $ 672,628,266 $ 723,144,637 $ 75�,201,625 $ 816,229,996 Source:City of Redding Annual Comprehensive Financial Report 211 City of Redding Change in Net Position Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2013-14 2014-15 2015-16 2016-17 2017-18 Expenses Govern�nental activities General�overnment $ 6,917,771 $ 7,112,939 $ 8,077,255 $ 7,576,731 $ 7,678,431 Police 28,893,564 34,476,947 30,751,887 32,114,904 32,742,710 Fire 20,255,472 20,558,967 20,467,167 22,299,466 23,264,792 Public works 12,421,262 7,261,903 14,954,615 16,2ll,855 15,039,604 Planning 3,871,712 3,933,284 4,013,885 4,290,932 3,918,206 Recreation and culture 11,558,733 9,366,789 ]0,'791,830 ]1,219,7'74 ]1,13'7,41� Community development 10,�12,285 9,503,654 9,991,686 10,241,866 9,377,682 Interest on long-term debt 2,458,815 1,840,755 l,'720,036 1,623,654 1,5'75,210 Total�overnmental activities expenses 97,089,614 94,055,238 100,768,361 105,579,182 104,734,052 Business-type activities Electric 150,171,628 152,786,522 144,525,611 144,826,944 139,069,185 W ater 17,185,065 16,921,142 17,023,112 17,810,'721 18,7]4,649 Wastewater 20,289,784 22,541,6'72 23,872,035 23,748,358 23,807,419 Storm drainage 2,102,618 1,919,740 2,094,900 2,037,068 2,032,999 Solid waste 22,870,947 20,410,950 20,209,534 22,430,632 22,835,505 Transportation 9,874,891 9,569,808 9,948,552 10,114,207 10,256,990 Convention center 1,275,954 1,229,354 1,187,415 1,349,400 1,316,803 Totalbusiness-type activities expenses 223,770,88� 225,3'79,188 218,861,159 222,31'7,330 218,033,550 Total primary government expenses $ 320,860,501 $ 319,434,426 $ 319,629,520 $ 327,896,512 $ 322,767,602 Program revenues Governmental activities Char�es for services; General government $ 5,967,284 $ 6,516,578 $ 6,213,317 $ 6,395,898 $ 6,522,621 Public works 577,312 682,515 650,616 669,769 785,973 Planning 1,748,627 1,673,717 1,286,338 1,986,579 1,822,316 Other activitics 3,988,580 4,167,614 4,743,501 4,804,529 4,921,877 Operating grants and contributions 22,330,062 18,014,648 18,663,414 16,491,007 15,293,829 Capital grants and contributions 6,942,319 5,505,363 18,960,524 6,040,83'7 11,061,01'7 Total�overnmental activities pro�ram revenues 41,554,184 36,560,435 50,517,710 36,388,619 40,407,633 Program revenues Business-type activities Charges far services: Electric 162,920,950 163,301,368 158,275,732 165,157,048 158,286,134 Water 18,667,02'7 17,871,349 17,995,434 19,591,568 22,]58,506 Wastewater 22,731,807 24,577,645 26,776,762 26,939,000 27,592,665 Solid waste 19,681,867 20,505,1'76 2],200,419 22,16'1,885 22,703,424 Transportation 3,772,347 3,790,418 3,717,047 3,814,776 5,463,971 Other aetivities 1,513,033 ],622,114 1,'744,369 1,687,10'7 1,419,953 Operating grants and contributions 4,159,414 4,405,158 4,300,769 4,441,415 6,219,525 Capital grants and contributions '7,4'76,968 6,0'79,058 3,343,536 2,624,987 8,173,146 Total business-type activities pro�ram revenues 240,923,413 242,152,286 237,354,068 246,423,786 252,017,324 Total primary government program revenues $ 282,4'7'7,59'7 $ 278,712,'721 $ 287,8'71,'7�8 $ 282,812,405 $ 292,424,957 Net(expense)revenue Governmental activities $ (55,535,430) $ (57,494,803) $ (50,250,651) $ (69,190,563) $ (64,326,419) Business-type activities 17,152,526 16,773,098 18,492,909 24,106,456 33,983,774 Total primaty government $ (38,382,904) $ (40,�21,705) $ (31,�5'7,742) $ (45,084,10'7) $ (30,342,645) SoU Source:City of Redding Annual Com�rehensive Financial Report 212 City of Redding Change in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2018-19 2019-20 2020-21 2021-22 2022-23 Expenses Govern�nental activities General�overnment $ 7,503,465 $ 9,842,219 $ 7,305,048 $ 7,444,640 $ ll,842,912 Police 34,001,886 36,954,392 38,537,805 36,227,155 46,859,911 Fire 23,685,713 24,997,889 27,416,745 24,061,217 27,823,146 Public works 16,096,332 16,133,278 12,781,403 17,139,094 17,061,623 Planning 3,879,239 5,049,433 4,261,253 5,529,441 6,855,776 Recreation and culture 11,360,417 12,101,698 11,436,3'75 12,086,281 14,16'7,809 Community development 9,724,970 10,825,020 10,788,241 11,'712,568 24,470,351 Interest on long-term debt 1,495,440 1,832,339 1,501,0�9 1,448,241 1,450,653 Total�overnmental activities expenses 107,747,462 ll7,736,268 ll4,027,949 ll5,648,637 150,532,181 Business-type activities Electric 148,4�0,304 154,180,658 158,6�5,983 158,14],420 18�,014,653 Water 18,403,516 18,747,880 20,163,278 20,378,'700 21,304,950 Wastewater 24,553,202 25,734,531 25,097,221 24,957,471 2'7,965,652 Storm drainage 2,155,137 2,313,546 2,529,827 2,024,016 2,653,578 Solid waste 25,668,200 26,604,891 2'7,348,763 24,546,239 29,546,236 Transportation 10,837,593 ll,140,459 ll,187,003 13,906,912 13,700,891 Convention center 1,408,622 1,785,044 873,731 1,221,786 1,299,789 To�al business-type activities expenses 231,496,574 240,507,009 245,8�5,806 245,1�6,544 283,485,749 Total primary government expenses $ 339,244,036 $ 358,243,277 $ 359,903,755 $ 360,825,181 $ 434,017,930 Program revenues Governmental activities Char�es for services; General government $ 6,332,966 $ 7,030,150 $ 5,427,109 $ 6,483,335 $ 8,075,361 Public works 1,375,532 770,387 822,537 1,055,233 1,196,177 Planning 3,031,727 4,201,516 4,917,418 5,502,403 5,392,509 Other activities 4,555,208 5,182,252 8,134,737 5,910,441 6,934,857 Operating grants and contributions 22,924,591 22,540,523 34,693,970 26,364,886 62,612,981 Capital grants and contributions 8,618,248 13,690,648 2'7,665,920 18,621,461 23,463,'752 Total�overnmental activities program revenues 46,838,272 53,415,476 81,661,691 63,937,759 107,675,637 Program revenues Business-type activities Charges far services: Electric 155,200,165 151,851,828 158,263,003 159,904,815 199,349,597 Water 22,486,899 23,665,086 26,43],076 25,183,388 26,106,650 Wastewater 29,145,722 29,287,911 30,841,837 32,707,404 33,662,337 Solidwaste 23,639,052 24,1'74,557 26,017,505 26,844,590 2'7,086,157 Transportation 2,006,964 3,578,926 3,379,397 4,016,624 2,246,283 Other activities 1,495,369 1,944,149 1,950,6'74 2,400,5�2 2,449,9'74 Operating grants and contributions 5,803,463 7,396,940 7,387,085 ll,230,562 8,021,675 Capital grants and contributions 7,413,845 16,790,'748 7,134,ll5 5,308,211 13,997,809 Total business-type activities pro�ram revenues 247,191,479 258,690,145 261,404,692 267,596,166 312,920,482 Total primary government program revenues $ 294,029,751 $ 312,105,621 $ 343,066,383 $ 331,533,925 $ 420,596,119 Net(expense)revenue Governmental activities $ (60,909,190) $ (64,320,�92) $ (32,366,258) $ (51,'710,878) $ (42,856,544) Business-type activities 15,694,905 18,183,136 15,528,886 22,419,622 29,434,733 Total primary government $ (45,214,285) $ (46,13�,656) $ (16,83�,372) $ (29,291,256) $ (13,421,811) Source:City of Redding Annual Comprehensive Financial Repopt 213 City of Redding Change in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2013-14 2014-15 2015-16 2016-17 2017-18 General revenue and other changes in net position Governmental activities Taxes Sales taxes $ 21,662,406 $ 22,053,840 $ 22,586,08'7 $ 23,199,460 $ 23,507,550 Propertytaxes 15,847,198 16,292,632 17,357,917 17,924,ll9 19,156,295 Transient and occupancy taxes 4,0'74,333 4,458,110 4,616,654 4,'7�8,285 5,168,47'7 Motor vehicle in-lieu taxes 37,663 (141) 36,761 40,422 47,71$ Franchise taxes 915,623 9'72,438 1,005,928 1,088,088 1,13],066 Other taxes 1,068,561 1,112,392 1,103,021 1,189,035 1,134,113 Investment earnings(loss) 8'78,447 582,552 780,348 3'74,394 525,4�7 Gain on sale ofproperty 43,617 48,699 1,401,277 166,278 1,464,193 Miscellaneous 144,036 142,599 203,979 152,135 166,647 Transfers 4,666,988 5,020,485 4,568,933 4,289,638 5,440,006 Special item - - - - (2,485,800) Extraordinary gain - - - - - Total governmental activities 49,338,872 50,683,606 53,660,905 53,201,854 55,255,742 Business-rype activities Investment earnings(loss) 2,314,998 1,833,914 2,515,901 505,847 980,902 Transfers (4,666,988) (5,013,200) (4,568,933) (4,289,638) (5,440,006) Other items 3,377 2,361 4,883 - - Totalbusiness activities (2,348,613) (3,1�6,925) (2,048,149) (3,783,791) (4,459,104) Total primary government 46,990,259 47,506,681 51,612,756 49,418,063 50,796,638 Change in net position Governmental activities (6,196,558) (6,811,197) 3,410,254 (15,988,709) (9,070,677) Adjustments - (151,36'7,658) - - 28,100,125 Total governmental activities (6,196,558) (158,178,855) 3,410,254 (15,988,709) 19,029,448 Business-type activities 14,803,913 13,596,173 16,444,760 20,322,665 29,524,670 Adjustments-business activities - (75,256,413) - - 21,881,5'79 Total business activities 14,803,913 (61,660,240) 16,444,760 20,322,665 51,406,249 Total chan�es in net position-primary governmcnt $ 8,607,355 $ (219,839,095) $ 19,855,014 $ 4,333,956 $ 70,435,697 Source:City of Redding Annual Comprehensive Financial Report 214 City of Redding Change in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2018-19 2019-20 2020-21 2021-22 2022-23 General revenue and other changes in net position Governmental activities Taxes Sales taxes $ 26,879,606 $ 26,695,889 $ 31,159,466 $ 31,845,575 $ 30,469,277 Property taxes 20,075,405 21,519,652 22,777,902 24,231,038 26,375,135 Transient and occupancy taxes 6,916,257 5,206,330 6,222,9'74 8,266,136 7,293,033 Motor vehicle in-lieu taxes 43,852 73,478 67,288 105,953 96,183 Franchise taxes 1,138,0'77 1,188,938 1,190,'714 1,23'7,911 1,325,'736 Other taxes 1,317,172 2,034,827 3,931,465 3,646,978 2,912,615 Investmentearnings 1,868,151 1,660,407 340,588 (2,241,966) 1,112,841 Gain on sale ofproperty 7,303 2,859,435 1,050,911 2,154,810 239,ll7 Nliscellaneous 190,920 1,171,866 147,175 226,659 200,627 Transfers 4,767,308 4,265,550 6,158,816 4,134,065 7,833,896 Special item - - - - Extraordinary gain - - - - - Total governmental activities 63,204,051 66,6�6,372 73,04�,299 73,60�,159 7'7,858,460 Business-rype activities Investment earnings(loss) 7,452,940 5,946,287 457,322 (6,124,850) 2,409,343 Transfers (4,76�,308) (4,265,550) '7,938 (4,134,065) (7,833,896) Otheritems - - (6,158,816) - 16,275 Total business activities 2,685,632 1,680,737 (5,693,556) (10,258,915) (5,408,2�8) Total primary government 65,889,683 68,357,109 6'7,353,'743 63,348,244 72,450,182 Change in net position Governmental activities 2,294,861 2,355,580 40,681,041 21,896,281 35,001,916 Adjust�nents - - - - - Total governmental activities 2,294,861 2,355,580 40,681,041 21,896,281 35,001,916 Business-type activities 18,380,537 19,863,873 9,835,330 12,160,707 24,026,455 Adjustments-business aetivities - - - Total business activities 18,380,537 19,863,873 9,835,330 12,160,707 24,026,455 Total chan�es in net position-primary government $ 20,675,398 $ 22,219,453 $ 50,516,371 $ 34,056,988 $ 59,028,371 Source:City of Redding Annual Comprehensive Financial Report 215 This page intentionally left blank 216 City of Redding Fund Balances of Governmentai Funds Last Ten Fiscal Years (modified accruai basis of accounting) Fiscal Year 2013-14 201415 2015-16 2016-17 2017-18 General fund Nonspendable $ 2,884,'768 $ 1,726,623 $ 1,8�5,032 $ 1,833,006 $ 2,748,604 Restricted 853,717 648,655 756,897 757,254 762,753 Assigned 2,010,851 ('720,495) 678,089 5,509,567 5,489,161 Unassi�ned 15,586,649 20,565,578 18,534,694 12,381,575 9,682,620 Total general fund $ 21,335,985 $ 22,220,361 $ 21,844,712 $ 20,481,402 $ 18,683,138 Ail other governmental funds Nonspendable $ 24,306 $ 18,045 $ 20,521 $ 18,429 $ 20,291 Restricted 57,938,036 47,850,398 53,237,478 50,903,778 44,380,448 Unassigned (253,960) (275,436) (30'7,291) (344,254) (344,640) Total all other governmental funds $ 57,708,382 $ 47,593,007 $ 52,950,708 $ 50,577,953 $ 44,056,099 Fiscal Year 2018-19 2019-20 2020-21 2021-22 2022-23 General fund Nonspendable $ 1,841,971 $ 1,9ll,241 $ 6,771,284 $ 3,224,350 $ 3,283,430 Restricted - 273,610 209,316 141,236 604,458 Assigned 3,533,413 3,195,034 10,524,976 10,117,549 7,923,890 Unassigned 16,686,434 16,964,'783 13,001,211 15,242,04'7 14,'750,184 Total general fund $ 22,061,818 $ 22,344,668 $ 30,506,78'7 $ 28,725,182 $ 26,561,962 All other governmental funds Nonspendable $ 24,616 $ 24,078 $ 19,107 $ 777 $ 77,577 Restricted 6'7,207,281 6'7,142,148 '78,074,986 '73,886,067 88,64'7,271 Unassi�ned (342,425) - - - (191,422) Total all other governmental funds $ 66,889,472 $ 6'7,166,226 $ 78,094,093 $ 73,886,844 $ 88,533,426 Source:City of Redding Annual Comprehensive Financial Report 217 City of Redding Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2013-14 2014-15 2015-16 2016-17 2017-18 Revenues: Taxes $ 43,678,499 $ 45,125,212 $ 47,889,908 $ 48,385,407 $ 50,114,315 Licenses and pennits 1,020,396 1,142,654 1,321,422 1,319,041 1,304,712 Intergovcrnmental revenues 23,367,310 21,555,631 33,039,876 19,301,043 17,561,603 Charges for services 3,423,766 3,543,025 3,135,89'7 3,763,928 3,968,265 Fines 1,050,533 968,591 1,434,429 1,598,215 1,445,372 Use of money and property 6,822,715 6,979,312 7,'774,752 7,905,927 7,903,045 Interest revenue 642,330 408,382 559,933 351,277 505,398 Special assessments 562,559 480,861 311,291 480,855 612,627 Miscellaneous 2,786,993 2,917,802 6,151,375 3,321,608 4,141,927 Total revenues 83,355,101 83,12],470 101,618,883 86,42�,301 87,55'7,264 Expenditures: Genera]government 5,339,521 5,335,175 5,53],550 6,]70,131 6,06],390 Community development 10,594,203 9,391,315 9,833,058 9,988,629 9,208,634 Public safety 44,050,5'76 44,658,160 47,66'7,150 49,561,988 51,305,095 Public works 5,143,666 5,333,076 7,736,374 8,089,769 6,280,036 Planning 3,593,044 3,643,893 4,005,836 4,054,107 3,75],95'7 Recreation and culture 7,036,366 6,923,444 7,090,091 '7,477,025 7,895,240 Capital outlay 9,'792,385 16,601,544 16,012,801 6,902,183 11,354,44'7 Debt service: Principalretirement 3,512,856 3,721,1�1 2,785,484 2,532,'744 2,657,496 Interest and fiscal char�es 1,924,737 1,812,496 1,658,488 1,557,407 1,510,512 Bond issuance costs 266,462 450 - - - Total expenditures 91,253,816 97,420,724 102,320,832 96,333,983 100,024,807 Excess of revenues over(under)expenditures ('7,898,715) (14,299,254) (701,949) (9,906,682) (12,467,543) Other�naneing sources(uses) Sale of capital asset 41,909 55,055 1,401,276 166,279 1,275,193 Financing proceeds 565,048 - - - - Lon�-term debt issued 11,181,060 - - - - Bond discount (80,666) - - - - Premium on bonds issued - - - - - Payment to refunding bond escrow agent (5,925,272) - - - - Transfers in 13,001,893 14,082,943 12,233,284 13,756,026 12,677,169 Transfers out (8,192,253) (9,069,'743) (7,950,559) (7,751,688) (7,307,089) Total other financing sources(uses) 10,591,719 5,068,255 5,684,001 6,170,617 6,645,273 Special item - - - - (2,485,800) Net change in fund balances $ 2,693,004 $ (9,230,999) $ 4,982,052 $ (3,736,065) $ (8,308,070) Fund balances(deficit),beginning of year,as originally stated $ 76,351,363 $ 79,044,367 $ 69,813,368 $ 74,795,420 $ 71,059,355 Priar period adjustment - - - - (12,048) Fund balances(deficit),beginning of year,as restated �6,351,363 79,044,367 69,813,368 74,'795,420 �1,04'7,30� Fund balances(deficit),end of year $ �9,044,36� $ 69,813,368 $ �4,�95,420 $ 71,059,355 $ 62,�39,23� Debt service as a percentage of noncapital expenditures 7% '7% 5% 5% 5% Source;City of Redding Annual Comprehensive Financial Report 218 City of Redding Changes in Fund Baiances of Governmental Funds (Continued) Last Ten Fiscai Years (modified accrual basis of accounting) Fiscal Year 2018-19 2019-20 2020-21 2021-22 2022-23 Revenues: Taxes $ 56,183,337 $ 56,585,655 $ 65,233,262 $ 69,214,157 $ 68,252,800 Licenses and pennits 1,777,332 2,588,480 2,449,876 2,495,389 2,496,60'7 Intergovcrnmentalrevenues 31,593,447 24,712,718 31,838,001 33,322,809 62,217,825 Charges for services 4,011,783 5,199,913 6,393,638 '7,357,575 6,403,256 Fines 2,005,413 1,173,384 1,346,858 1,368,471 1,630,544 Use of money and property 7,965,078 7,874,941 6,'761,893 8,349,455 8,823,765 Interest revenue 1,333,966 1,233,375 348,081 (1,616,423) 1,005,404 Special assessments 5'75,104 697,098 '70�,108 928,72'7 994,049 Miscellaneous 4,251,526 7,095,919 18,101,754 6,127,608 12,932,340 Total revenues 109,696,986 10'7,161,483 133,180,4'71 12'7,547,768 164,756,590 Expenditures: Genera]government 6,1'75,86'7 '7,402,934 6,999,481 8,781,231 10,803,116 Community development 9,479,314 10,622,163 11,129,141 12,106,454 24,473,014 Public safety 52,470,544 53,'761,183 58,09'7,550 64,6'75,885 69,156,652 Public works 7,785,619 7,596,809 6,328,452 10,716,202 8,651,241 Planning 3,'718,793 4,543,'768 5,122,72'7 5,843,580 6,582,099 Recreation and culture 7,668,664 8,146,931 7,893,793 8,692,187 9,838,579 Capital outlay 6,897,619 1'7,919,482 21,604,121 26,023,167 27,843,932 Debt service: Principal retirement 20,291,342 1,964,210 1,853,96'7 2,046,549 2,265,970 Interest and fiscal char�es 1,629,677 1,543,376 1,587,580 1,513,691 1,550,338 Bond issuance costs 223,905 (466) Total expenditures 116,341,344 ll3,500,390 120,616,812 140,398,946 161,164,941 Excess of revenues over(under)expenditures (6,644,358) (6,338,907) 12,563,659 (12,851,178) 3,591,649 Other�nancing sources(uses) Sale of capital asset 196,303 2,859,435 1,050,9ll 2,154,810 239,117 Financing proceeds - - - - - Lon�-term debtissued 23,996,354 - - 151,196 865,113 Bond discount - - - - - Premium on bonds issued 3,272,602 - - - - Payment to refunding bond escrow agent - - - - - Transfers in 13,665,199 14,516,043 12,$32,566 15,311,345 20,659,066 Transfers out (8,2'74,04'7) (10,476,967) (7,357,150) (10,'755,027) (12,871,583) Total other financing sources(uses) 32,856,411 6,898,5ll 6,526,327 6,862,324 8,891,713 Special item - - - - - Net change in fund balances $ 26,212,053 $ 559,604 $ 19,089,986 $ (5,988,854) $ 12,483,362 Fund balances(deficit),beginning of year,as originally stated $ 62,739,237 $ 88,951,290 $ 89,510,894 $ 108,600,880 $ 102,612,026 Priar period adjustment - - - - Fund balances(deficit),beginnin�; ofyear,as restated 62,�39,23� 88,95],290 89,510,894 108,600,880 102,612,026 Fund balances(deficit),end of year $ 88,951,290 $ 89,510,894 $ 108,600,880 $ 102,6]2,026 $ ll 5,095,388 Debt service as a percentage of noncapital expenditures 5% 20% 4% 3% 3% Source;City of Redding Annual Comprehensive Financial Report 219 This page intentionally left blank 220 City of Redding General Governmental Tax Revenues By Source Last Ten Fiscal Years (in thousands) Transient Property Occupancy Sales Other Fiscal Year Tax Tax Tax Taxes Total 2013-2014 15,942 4,074 21,678 1,984 43,678 2014-2015 16,253 4,459 22,330 2,083 45,125 2015-2016 17,247 4,616 23,918 2,ll0 47,891 2016-2017 18,131 4,779 23,199 2,276 48,385 2017-2018 19,173 5,168 23,507 2,266 SO,ll4 2018-2019 19,934 6,916 26,8'78 2,455 56,183 2019-2020 21,460 5,206 26,695 3,224 56,585 2020-2021 22,809 6,224 31,0'79 S,121 65,233 2021-2022 24,196 8,262 31,867 4,889 69,214 2022-2023 26,250 '7,248 30,4'72 4,283 68,253 Source:City of'Redding Annual Comppehensive Financial Repopt 221 City of Redding Revenue Base - Own Source Revenue Metered Customers and MWHs Sold Last Ten Fiscai Years Fiscal Year ended June 30, 2014 2015 Base Rate Electricity Sold Base Rate Electricity Sold Type of Customer Custoiners (MWHs) Customers (MWHs) Residential 37,387 361,106 37,561 356,071 Commercial S,OlI 336,50'7 5,034 338,292 Industrial 330 12,303 322 12,366 Other 934 45,923 915 43,087 Total 43,662 '755,839 43,832 749,816 Fiscal Year ended June 30, 2019 2020 Base Rate Electricity Sold Base Rate Electricity Sold Type of Customer Custoiners (MWHs) Customers (MWHs) Rcsidential 38,05$ 356,741 38,320 358,510 Commercial 4,942 312,484 4,972 298,242 Industrial 334 12,372 338 12,349 Other 930 39,765 936 41,639 Total 44,264 '721,362 44,566 710,'740 222 City of Redding Revenue Base - Own Source Revenue (Continued) Metered Customers and MWHs Sold Last Ten Fiscal Years Fiscal Year ended June 30, 2016 201? 2018 Base Rate Electricity Sold Base Rate Electricity Sold Base Rate Electricity Sold Type of Customer Customers (MWHs) Custoiners (MWHs) Customers (MWHs) Residential 37,751 361,427 38,015 366,354 38,088 368,829 Commercial 5,025 332,232 4,949 324,202 4,955 323,'799 Industrial 335 13,394 336 13,226 326 12,626 Other 928 42,358 933 41,825 935 41,4�1 Total 44,039 749,411 44,233 '745,60� 44,304 746,�25 Fiscal Year ended June 30, 2021 2022 2023 Base Rate Electricity Sold Base Rate Electricity Sold Base Rate Electricity Sold Type of Customer Customers (MWHs) Custoiners (MWHs) Customers (MWHs) Residential 38,587 393,404 38,572 375,818 38,706 394,986 Commercial 4,975 302,067 5,088 300,59'7 5,092 308,606 Industrial 353 ll,552 351 12,155 336 12,152 Other 966 50,105 970 49,924 9'74 46,678 Total 44,881 75'7,128 44,981 '738,494 45,]08 762,422 223 City of Redding Electric Utility Rates Last Ten Fiscal Years Residential Commercial Monthly Base Rate Ener�y Charge Small Large Commercial Commercial Small Lar�e Per kwh in Monthly Base Energy Charge (<15,000 (>15,000 Commercial Commercial cxcess of Fiscal Year Rate per kwh kwh) kwh) All kwh All kwh 15,000 2014 13.00 0.1528 20.00 33.00 0.1679 0.1679 0.0809 2015 13.00 01528 20.00 33.00 016'79 016�9 0.0809 2016 15.00 0.1528 25.00 140.00 0.1679 0.1679 0.0809 201'7 15.00 0.1528 25.00 140.00 0.16'79 0.1679 0.0809 2018 15.00 0,1528 25.00 140.00 0,1679 0,0980 0,0980 2019 15.00 01528 25.00 140.00 016'79 0.0980 0.0980 2020 15.00 0.1528 25.00 140.00 0.1679 0.0980 0.0980 2021 15.00 0.1528 25.00 140.00 0.1679 0.0980 0.0980 2022 20.00 0,1508 30.00 145.00 0,1679 0,1011 0,1011 2023 25.00 01488 40.00 145.00 01645 01044 01044 Source: City of Redding i7tzlity Rate Schedules 224 City of Redding Eiectric Utility Rates (Continued) Last Ten Fiscal Years Industrial On Peak Energy Char�e Off Peak Ener�y Char�e If Off-Peak If Off-Peak Per kWh in Demand Demand is Monthly Base Excess of Excecds On- Less Than On- Fiscal Year Rate A11 kwh 15,000 Peak Demand Peak Demand 2014 66.00 01766 0.0820 0.0692 0.0820 2015 66.00 0.1766 0.0820 0.0692 0.0820 2016 230.00 0.1766 0.0820 0.0692 0.0820 2017 230.00 01'766 0.0820 0.0692 0.0820 2018 140,00 0.0980 0.0980 0.0980 0.0980 2019 140.00 0.0980 0.0980 0.0980 0.0980 2020 140.00 0.0980 0.0980 0.0980 0.0980 2021 140.00 0.0980 0.0980 0.0980 0.0980 2022 145,00 O.1011 O.1011 O.1011 O.1011 2023 145.00 01044 0.1044 0.1044 01044 Source: City nf'Redding Utility Rate Schedules 225 This page intentionally left blank 226 City of Redding Principal Electric Utility Payers Fiscal Years 2022-23 and 2013-14 June 30,2023 Fiscal Year June 30,2014 Fiscal Year Percentage of Percentage of City Total City Total Utiliry Payer Utilities Paid Rank Utilities Paid Utilities Paid Rank Utilities Paid Customer#1 $5,263,751 1 4,03% $5,437,688 1 4,51% Customer#2 1,773,104 2 136% 1,897,814 2 1.57% Customer#3 1,937,478 3 1.48% Customer#4 1,401,323 4 1.0'7% 1,339,300 4 1.11% Customer#5 1,405,500 5 1,07% 1,658,178 3 1,38% Customer#6 1,183,642 6 091% Customer#7 1,056,754 7 0.81% 961,548 5 0.80% Customer#8 801,843 8 0.61% 866,862 � 0.72% Customer#9 634,970 9 0,49% 627,056 10 0,52% Customer#10 554,424 10 0.42% 682,237 9 0.57% Customer#11 918,266 6 0.76% Customer#12 Customer#13 710,266 8 0.59% Customer#14 Total $16,012,789 12.25% $15,099,215 12.53% Source:Ciry of Redding Electvic Utility 227 City of Redding Ratios of Outstanding Debt by Type Last Ten Fiscal Years (amounts expressed in thousands, except per capita amount) Governmental Activities Special Fiscal Year Assessment Ending Revenue Bonds Loans Bonds SBITAS Leases 2014 39,772 616 510 - 692 2015 36,632 320 123 - 574 2016 34,318 - 92 - 405 2017 31,915 - 63 - 292 2018 29,418 - - - 177 2019 36,562 - - - 60 2020 34,531 - - - - 2021 32,551 - - - - 2022 30,470 - - - 338 2023 28,308 5'74 - 2'73 426 �i�Tax Allocation Bonds were associated with the Redevclopment Agency(RDA). The RDA's debt was removcd from the City of Redding's totals as thc RDA was dissolved by the State of California in 2012. 228 City of Redding Ratios of Outstanding Debt by Type (Continued) Last Ten Fiscal Years (amounts expressed in thousands, except per capita amount) Business-Type Activities Percentage of Fiscal Year Revenue Certificates of Total Primary Personal Per Capita Endin� Bonds Participation Loans SBITAS Leases Govern�nent Incoine�i> �i> 2014 14,/-446 166,777 84,258 - 2,156 309,226 9.1/-4% 3,400 2015 12,081 160,556 84,429 - 1,774 296,489 8.27% 3,284 2016 /-16,761 126,082 84,164 - 1,356 293,178 7,67% 3,245 2017 98,629 65,905 80,784 - - 27�,589 6.98% 3,043 2018 134,994 18,249 75,716 - - 258,553 6.32% 2,830 2019 126,304 16,781 70,323 - - 250,029 5.85% 2,725 2020 ll8,796 15,312 6/-4,800 - - 233,439 5.25% 2,544 2021 169,902 13,844 1,212 - - 21'7,509 4.59% 2,372 2022 168,955 - 1,128 - 65 200,956 3.93% 2,162 2023 152,042 - 335 3,831 131 185,919 3.72% 2,01]. �i�See the Schedule of Demographics for population information by year and personal income. 229 This page intentionally left blank 230 City of Redding Computation of Direct and Overlapping Debt As of June 30, 2023 Percentage Amount Net Debt Applicable to Applicable to Jurisdiction Outstanding City of Redding(3) City of Redding Direct: Ciry of Reddin�:(1) Revenue bonds $ 28,308,363 100.000% $ 28,308,363 Loans 573,566 100.000% 573,566 SBITAS 272,909 100.000% 272,909 Leases 426,454 100.000% 426,454 Total direct debt 29,581,292 29,581,292 Overlapping: Counry of Shasta:(2) Bonds 18,486,233 51.376% 9,497,487 Notes 13,306,593 51.376% 6,836,395 SBITAS 451,374 51.376% 231,898 Leases 14,650,808 51.376% 7,526,999 Shasta County Schools(2) Enterprise School District 38,335,019 98.998% 37,950,902 Shasta Union High School District 58,800,042 39.675% 23,328,917 Gateway School 27,281,996 40.679% ll,09$,043 Redding School District 25,4'70,000 99.327% 25,298,587 Columbia School District 7,834,994 73.540% 5,761,855 Shasta College 144,485,000 51.520% '74,438,672 Cascade School 20,109,568 2,069% 416,067 Pacheco School 9,783,254 58.842% 5,756,662 GrantSchool 1,175,000 52.940% 622,045 Andersion Union Iligh School District 10,595,073 1.101% 1,938,OS1. Junction School 3,170,000 12.603% 399,515 Total overlapping debt 393,934,954 211,102,095 Total direct and overlapping debt $ 423,516,246 $ 240,6$3,387 Source: (1) City of Redding (2) Shasta County Auditop-Controller's Office (3) Percentages fo�Computation of Direct and Overlapping Debt are calculated by using the Shasta County valuations by taxing district for fiscal year 2021-22. 231 City of Redding Legal Debt Margin Information Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year 2013-14 2014-15 2015-16 2016-17 2017-18 Debt lnnit $ 267,472 $ 275,782 $ 289,290 $ 301,892 $ 318,039 Total net debt applicable to limit 510 123 92 63 - Le�al debt mar�in $ 266,962 $ 275,659 $ 289,198 $ 301,829 $ 318,039 Total net debt applicable to the limit as a percentage of debt limit 0.19% 0.04% 0.03% 0.02% 0.00% 232 City of Redding Legal Debt Margin Information (Continued) Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year 2018-19 2019-20 2020-21 2021-22 2022-23 Debtlnnit $ 334,352 $ 351,ll6 $ 370,670 $ 390,353 $ 420,217 Total net debt applicable to limit - - - - - Le�a1 debt mar�in $ 334,352 $ 351,ll6 $ 370,670 $ 390,353 $ 420,217 Total net debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% Legal debt margin calculation for fiscal year 2022-23 Assessed value(1) $ ll,205,786 Debt limit-3.75%of total assessed value $ 420,217 Amou.nt of debt applicable to the limit - Le�;al dcbt mar�in $ 420,217 Note: Debt limit of 15%is based on assessed valuation bein�equivalent to 25%of full inarket valualion. In 1981-1982,assessed valuation became equal to full market valuation. As a result, 1981-1982 and subsequent years'debt limit is coinputed at ll4 of 15%or 3.75%of fu11 market valuation. (1) Assessed valuation includes supplemental tax ro11s. 233 City of Redding Wastewater Revenue Bond Coverage Last Ten Fiscal Years Fiscal Year Ending 2013-14 2014-15 2015-16 2016-17 2017-18 Operating revenue $ 22,720,092 $ 24,563,888 $ 25,451,684 $ 25,815,214 $ 27,575,888 Otherrevenue** (86,499) 13,756 15,453 16,261 16,778 Interestrevenue 582,3'76 468,529 609,119 80,155 199,081. Adjustedrevenue 23,215,969 25,046,173 26,076,256 25,9ll,630 27,791,747 25%of adjusted revenue 5,803,992 6,261,543 6,519,064 6,477,908 6,947,937 Actual connection fees 956,137 842,'72l 1,309,625 1,162,532 8'74,321. Allowable connection fees 956,137 842,721 1,309,625 1,162,532 874,321 Totalrevenue 24,]72,106 25,888,894 27,385,881 27,074,162 28,666,068 Operatin�;expense (18,451,474) (20,045,882) (21,561,048) (21,645,196) (21,888,127) Add back depreciationlamortization 5,924,400 6,886,048 7,026,394 7,018,740 7,289,864 Net operating e�ense (12,527,074) (13,159,834) (14,534,654) (14,626,456) (14,598,263) Net wastewater revenues* $ 11,645,032 $ 12,729,060 $ 12,851,227 $ 12,447,706 $ 14,067,805 Total debt service*** $ 8,117,463 $ 8,13],564 $ 8,129,964 $ 8,569,619 $ 8,5�3,419 Debt coverage ratio 1.43 1.5'7 1.58 1.45 1.64 * Excludes interest expense and gain/loss on disposal of assets. *=�Exciudes capital grants. *** Excludes 2014 defeased debt of$9,126,250 234 City of Redding Wastewater Revenue Bond Coverage (Continued) Last Ten Fiscal Years Fiscal Year Ending 2018-19 2019-20 2020-21 2021-22 2022-23 Operating revenue $ 29,125,869 $ 29,544,0'78 $ 30,815,3'73 $ 32,689,735 $ 33,644,745 Otherrevenue** 19,854 40,019 26,463 17,669 17,592 Interestrevenue 1,434,691 1,056,758 81,245 (1,248,594) 515,892 Adjustedrevenue 30,580,414 30,640,855 30,923,081 31,458,810 34,178,229 25%of adjusted revenue 7,645,104 7,660,214 7,730,770 7,864,703 8,544,557 Actual connection fees 65'7,024 990,667 1,167,190 1,053,70'7 1,673,885 Allowable connection fees 657,024 990,667 1,167,190 1,053,707 1,673,885 Total revenue 31,23'7,438 31,631,522 32,090,2'71 32,512,517 35,852,114 Operatin�expense (22,864,621) (23,847,874) (23,748,891) (23,382,959) (26,709,582) Add back depreciationlamortization 7,345,254 '7,627,592 '7,810,350 '7,530,265 '7,319,789 Net operating e�ense (15,519,367) (16,220,282) (15,938,541) (15,852,694) (19,389,793) Net wastewater revenues* $ 15,7]8,0'71 $ 15,411,240 $ 16,151,730 $ 16,659,823 $ 16,462,321 Total debt service*** $ 8,5�4,819 $ 6,9�3,569 $ 6,826,083 $ 6,720,500 $ 2,153,000 Debt coverage ratio 1.83 2.21 2.3'7 2.48 '7.65 235 City of Redding Water Revenue Bond Coverage Last Ten Fiscal Years Fiscal Year Ending 2013-14 2014-15 2015-16 2016-17 2017-18 Operating revenue $ 18,423,339 $ 17,646,4'76 $ 16,860,160 $ 18,549,702 $ 22,017,718 Otherrevenue** 172,996 224,874 149,471 137,769 141,212 Interestrevenue 411,'799 330,137 439,975 7'7,29� 122,970 Adjustedrevenue 19,008,134 18,201,487 17,449,606 18,764,768 22,281,900 25%of adjusted revenue 4,752,034 4,550,372 4,362,402 4,691,192 5,570,475 Actual connection fees 753,633 662,463 985,803 961,572 7'75,'752 Allowable connection fees 753,633 662,463 985,803 961,572 775,752 Total revenue 19,761,767 18,863,950 18,435,409 19,726,340 23,05'7,652 Operating e�pcnsc (16,703,721) (16,588,595) (16,224,ll 8) (17,486,280) (18,285,529) Add back depreciationlamortization 3,457,'758 3,342,71'7 3,425,653 3,421,610 3,449,869 Net operating cxpense (13,245,963) (13,245,878) (12,798,465) (14,064,670) (14,835,660) Net water revenues* $ 6,515,804 $ 5,618,072 $ 5,636,944 $ 5,661,670 $ 8,221,992 Total debt service $ ],091,335 $ '764,100 $ '768,100 $ '7'70,500 $ '711,900 Debt coverage ratio 5.9'7 '7.35 '7.34 '7.35 11.55 * Excludes interest expense and gain/loss on disposal of assets. *=�Exciudes capital grants. *** Excludes 2014 defeased debt of$7,547,500 236 City of Redding Water Revenue Bond Coverage (Continued) Last Ten Fiscal Years Fiscal Year Ending 2018-19 2019-20 2020-21 2021-22 2022-23 Operating revenue $ 22,346,030 $ 23,787,534 $ 26,296,180 $ 25,279,631 $ 24,381,200 Otherrevenue** 145,516 151,785 156,454 174,432 722,459 Interestrevenue 1,364,769 1,238,316 113,638 (1,605,195) (579,629) Adjustedrevenue 23,$56,315 25,177,635 26,566,272 23,848,868 24,524,030 25%of adjusted revenue 5,964,079 6,294,409 6,641,568 5,962,217 6,131,007 Actual connection fees 543,546 819,035 1,062,722 913,210 1,542,99'7 Allowable connection fees 543,546 819,035 1,062,722 913,210 1,542,997 Total revenue 24,399,861 25,996,6'70 27,628,994 24,762,0'78 26,067,027 Operating e�pcnsc (18,381,575) (18,456,013) (19,819,040) (20,142,960) (21,849,404) Add back depreciationlamortization 3,504,22'7 3,523,021 3,6�0,489 3,928,806 4,102,'715 Net operating cxpense (14,$77,348) (14,932,992) (16,148,551) (16,214,154) (17,746,689) Net water revenues* $ 9,522,513 $ 11,063,6'78 $ 11,480,443 $ 8,547,924 $ 8,320,338 Total debt service $ 704,'700 $ '731,200 $ '731,200 $ '730,200 $ '733,200 Debt coverage ratio 13.51 15.13 15.70 11.71 11.35 237 City of Redding Eiectric Revenue Bond Coverage Last Ten Fiscal Years Funds Debt Available Available for Service Fiscal Year Revenue Expense Reserves Debt Service Debt Service Coverage 2013-2014 162,898,133 125,129,935 45,'760,302 83,528,500 13,858,275 6.03 2014-2015 163,267,269 129,689,792 47,747,852 81,325,329 13,857,050 6.07 2015-2016 158,250,632 122,455,892 63,410,359 99,205,099 14,941,042 6.85 2016-2017 165,123,848 120,122,216 81,313,278 126,314,910 14,852,439 8.50 2017-2018 158,389,'789 11�,6�0,195 89,028,316 129,'747,910 14,11�,844 9.19 2018-2019 155,311,8ll 121,974,239 96,916,465 130,254,037 12,781,170 10.19 2019-2020 151,940,928 130,536,87'7 102,018,489 123,422,540 12,7'78,070 9.66 2020-2021 158,320,116 131,172,825 87,201,242 ll4,348,533 12,780,320 8.95 2021-2022 159,'786,038 144,524,041 71,9'70,574 8'7,232,571 12,785,570 6.82 2022-2023 199,366,526 166,075,505 70,486,678 103,777,699 14,304,520 7.25 Source: Electric Zltility Bond Disclosure Reports 238 City of Redding Demographic Statistics Last Ten Fiscal Years Personal Income Per Capita Unemployment Fiscal Year Square Miles(1) Population(2) (thousands of dollars) Persona]Income(3) Rates (4) 2013-2014 60.68 90,901 3,281,072 36,095 9.60 2014-2015 60.68 91,052 3,489,022 38,319 7.80 2015-2016 60.68 90,630 3,686,285 40,674 7.00 2016-2017 60.68 90,765 3,789,439 41,750 5,90 201'7-2018 60.68 90,995 3,9ll,420 42,985 5.10 2018-2019 60.68 91,621 4,040,486 44,100 4.80 2019-2020 60.68 91,503 4,219,478 46,113 9.90 2020-2021 60.88 93,879 4,836,083 51,514 '7,10 2021-2022 61.94 92,963 5,110,362 54,972 4.00 2022-2023 61.94 92,465 5,004,206 24,120 5.10 Note: Per capita personal income is based on the cal�ndar year information ending during that fiscal year. Source: (1) City of'Redding-Development See^vices (2) State of California Department of Finanee (3) Bureau of Economic Analysis, I7.S.Department of'Commerce (4) State of California Employment Development Department All numbers revised annually to source. 239 City of Redding Principal Employers in the Greater Redding Metropolitan Area Current Year and Nine Years Ago 2023 2014 Percentage Percentage of Total Area of Total Area Employer Employees Rank Employment Employecs Rank Employment Mercy Medical Center 2,555 1 3.67% 1,727 2 2.37% Shasta County 1,863 2 2.67% 1,905 1 2.61% City of Redding ** 9l3 3 1.31% l,l l'7 3 1.53% Shasta Regional Medical Center 860 4 1.23% 829 4 1,14% Redding Rancheria 665 5 95.00% 462 5 0.63% California Department of Transportation 585 6 84.00% 459 6 0.63% Shasta Union High School District 567 '7 81.00% 397 8 0.54% Shasta Communiry Hcalth 499 8 72.00% Shasta Commu.nity College 470 9 6'7.00% 308 10 0.42% Wa1 Mart 413 10 59.00% 450 7 0.62% Total 9,390 7,654 * Fu11-time equivalent budgeted positions. This includes employees who work outside of the City. ** Full-time bud�eted positions In 2022-23 there were 899 full-time and 266 part-timeltemporary positions filled. Source: Derived roughly from the Employrnent Development Department's(EDD)listing of the top 25 employers in Shasta County. 240 City of Redding Full-Time City Budgeted Employees by Function/Program Last Ten Fiscal Years Budgeted Full-time Employees at June 30, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function/Program General govemment 88 88 91 92 91 91 95 95 85 86 Police 131 131 135 135 136 136 143 142 1'70 170 Fire 85 85 85 85 76 '76 79 '79 98 99 Public warks 66 66 66 66 70 �0 70 '71 93 94 Planning 29 29 29 29 30 30 30 30 29 29 Recreation and culture 21 2l 21 21 22 22 24 25 46 48 Coinmunity development 12 8 10 10 12 12 13 13 14 18 Electric 179 180 180 180 181 181 180 180 193 193 Water 27 27 28 28 29 29 30 31 30 30 Wastewater 34 34 36 36 36 36 3'7 37 39 40 Storm drainage 5 5 5 5 5 5 6 6 6 6 Solid waste 79 �9 79 �9 82 82 85 85 88 88 Transportation 6 � 7 � 7 7 6 6 10 12 Convention center - - - - - - - - - - 762 �60 772 �73 77� �77 798 800 901 9l3 Source:City of Redding Fersonnel Division 241 This page intentionally left�ilank 242 City of Redding Capital Asset Statistics by Function/Program Last Ten Fiscal Years Fiscal Year Ended June 30, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function/Pro�ram Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 38 41 45 45 46 46 45 45 45 45 Fire statzons 8 8 8 8 8 8 8 8 8 8 Public wor^ks Streets(milcs) 465.0 468.0 468.7 469.1 442.3 455.8 459.5 445.7 446.1 449.0 Streetlighfs 8,025 8,051 8,086 8,204 8,376 8,446 8,8'76 8,603 8,'724 8,874 Recreation anrl cultupe Maintained trails(miles) 66 6'7 68 39 39 39 39 40 41 41 Parks acrea�e(improved) 635 636 636 620 598 598 598 598 598 598 Parks acreage(unimproved) 48'7 48'7 48'7 460 443 443 45'7 45'7 45'7 45'7 Electric Transmission and Distribution systcm(mIles) 798 798 812 812 815 818 822 824 824 831 Water Length of water mains 556 557 558 559 557 558 565 566 564 559 Wastewater Sewer lines(miles) 431.4 431.5 433.2 433.5 432.6 434 436 439 440 442 Solid waste Collection trucks 32 36 38 37 38 39 39 39 40 41 Storm drainage Len�th of system(miles)* 399 397 397 397 393 393 391 391 391 393 Catchbasins* 7,068 6,594 6,590 6,594 6,593 6,646 6,'748 6,'748 6,'745 6,'799 Transportation Buses 18 18 20 20 18 18 18 18 18 35 * Prior to 2014 the storm drain data included bo�h public and private segments and facilities(the data for only the public portion for years priar to 2014 is not available). Starting in 2014 the storm drain data only includes public segments and facilities. Source:City of Redding 243 City of Redding Operating Indicators by Function/Program Last Ten Fiscal Years Fiscal Year Ended June 30, 2014 2015 2016 2017 2018 Function/Program Police Calls for service 91,917 95,237 96,436 95,233 100,562 Felony arrests 2,658 2,237 2,259 2,245 2,526 Misdemeanar arrests 4,010 5,668 6,039 7,860 7,674 Total arrests 6,668 7,905 8,298 10,105 10,200 Fire Firc,explosion 527 466 476 418 485 * Rescue,emergency medical call 8,277 8,334 8,131 8,502 8,907 * Fire safety inspections 3,452 3,511 3,661 3,500 2,796 * Public works Miles of roadway resurfaced 1.8 1.4 7.0 4.0 5.0 Miles of roadway slurry sealed 0.7 261 18 0 - Planning Number of building permits issued 3,167 3,575 3,813 4,107 4,223 Reereation and eulture Reereariondivisionprograms 2,800 2,800 2,650 **1,073 929 Program participants 13,717 13,854 13,793 **12,887 12,917 Redding Aquatic Center attendees - - - 22,626 22,193 ** Special events programs - - - 94 71 ** Special events attendance - - - 24,962 20,998 ** Community development Number of households assisted(rental assistance) 1,485 1,447 1,556 1,542 1,514 Owner occupied loans made for rehabilitationlpurchase 16 20 17 17 12 Rental loans/grants far rehabilitationlpurchase 3 3 1 1 5 Electric Electric customers billed monthly 43,662 43,832 4�,039 4�,233 4�,304 Average sustained outages per customer per year 0.26 0.49 038 0.53 0.�2 System average retail rates 15.7 16.6 16.7 16.8 16.7 Water Water produeed(acre ft.) 29,307 21,514 20,4ll 21,674 25,656 Wastewater Totals houschold equivalents served 41,988 42,641 42,209 46,079 43,526 Clear Creek dry flow 7.6 5.7 5.7 5.9 5.9 Stillwater dry flow 2.0 1.9 19 2.1 23 Storm drainage Percentage of inlets cleanedlmaintained(annually) 4.0% 4.0% 4.0% 4.0% 4.0% Solid I waste Total waste collected(tons) 75,527 75,929 82,985 86,826 86,942 Reeyclables sales(tons) 7,385 6,846 7,860 8,897 10,282 Transportation Airport passenger movementslenplanements 24,951 27,148 35,844 48,048 42,723 RABA bus passengers 827,924 742,712 664,367 679,527 659,562 *Calendar year figures,as Fiscal Year ainounts are not available **Figures were unavailable prior to the iinpleinentation of the recreation management software in 2016-17. Source:City of Redding 244 City of Redding Operating Indicators by Function/Program (Continued) Last Ten Fiscal Years Fiscal Year Ended June 30, 2019 2020 2021 2022 2023 Function/Program Police Calls for service 87,389 85,638 87,959 83,504 90,361 Felony arrests 2,209 2,108 2,325 2,234 2,152 Misdemeanar arrests 5,958 6,897 8,519 7,045 6,337 Total arrests 8,167 9,005 10,844 9,279 8,�89 Fire Firc,explosion 495 451 641 534 402 * Rescue,emergency medical call 8,569 8,504 9,116 8,999 9,353 * Fire safety inspections 2,756 2,087 1,900 982 1,238 * Public works Miles of roadway resurfaced 1.4 2.5 2.8 1.8 5.2 Miles of roadway slurry sealed 13.5 21.5 11 0 12.5 Planning Number of building permits issued 4,123 6,301 5,844 4,688 4,285 Reereation and eulture Reereation division programs 841 636 652 703 731 Program participants 12,586 11,576 9,438 7,683 9,449 RAC Attendees 12,899 18,505 300 8,019 17,517 ** Special events programs 118 25 11 6 32 ** Special events attendance 21,384 12,830 3,756 2,306 7,576 ** Community development Number of households assisted(rental assistance) 1,513 1,531 1,502 1,511 1,798 Owner occupied loans made for rehabilitationlpurchase 6 10 2 - - Rental loans/grants far rehabilitationJpurchase 9 9 8 8 - Electric Electric customers billed monthly 44,264 4�,566 4�,881 4�,981 45,108 Average sustaincd outages per custoiner per year 0.86 0.87 0.49 0.47 0.�5 System average retail rates 16.5 14.9 16.3 16.A 169 Water Water produeed(acre ft.) 24,053 25,337 26,897 23,846 20,875 Wastewater Totals houschold equivalents served 43,550 43,114 43,955 40,210 43,190 Clear Creek dry flow 53 63 61 5.9 4.8 Stillwater dry flow 21 2.5 2.4 2.2 2.2 Storm drainage Percentage of inlets cleanedlmaintained(annually) 4.0% 4.0% 4.0% 4.0% 4.0% Solid I waste Total waste collected(tons) 87,849 93,339 98,433 96,883 93,003 Reeyclables sales(tons) 9,538 9,799 9,415 9,053 8,333 Transportation Airportpassengermovementslenplanements 47,833 42,136 46,138 48,209 92,848 RABA bus passengers 575,978 513,618 330,690 360,044 406,268 *Calendar year figures,as Fiscal Year amounts are not available **Figures were unavailable prior to the iinpleinentation of the recreation management software in 2016-17. 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At,�t t a f,r �!} it r r.t ,.y�,7b , , 27 t i ,�-<r, iY,,, .S.s. r �r.,,�1,, ir�. ,��i,.l: !.�«,�ac <s ir ,sr tt JS,f�arr).s�.��.��,l:,l}��i�,l�$.�,}��s7�J,�n,:1�;,,,f{�z,gr��fi,�ti�,,.ft�',y�itt;��t;��tfr .rti&:�Jn4�{�„i4,sl��i+1�,S4�4{Ii:,t,��t�iltl,.�7rk'�,a;t��;�t�. �flt�>r�,tiY$}�.t,{� ri,r{��.r��.3�z,t.k4�l��f}�{j�i�5}J77°t�{irx7t �ictir�t=>, } {� �`;SS�J�� , ��j��j�{Ft��sk) ��;{�� z�� t�� .. r�`r�tfl�, t �Str�.R�t>tt a3�� e This page intentionally left blank 248 STATEIVIENT OF PHYSICAL CONDITION OF AIRPORT ASSETS Redding Regional Airport serves the regional area of Northern California consisting of approximately 25,000 square miles covering some eight California counties. The population served is over 282,000 in the primary market(50-mile radius). Commercial, freight, and passenger services are provided by United Express / SkyWest Airlines, Alaska Airlines, Avelo Airlines, Federal Express, & UPS. United Express provides direct flights between Redding and San Francisco, CA (SFO) and Redding & Los Angeles, CA (LAX). Alaska Airlines provides non-stop service to Seattle,WA(SEA) and Avelo Airlines offers service to Burbank, CA(BUR) and Las Vegas, NV (LAS), with LAS having a temporary suspension for 2023. Fixed-based operators (FBOs) provide a wide range of services including general aircraft frame and engine maintenance, as well as avionics, charter services, sales of aircraft, flight instruction, and sales of fuels, lubricants, ancl accessories. Medical helicopter services and helicopter charters, repairs, and sales, are also available. Currently, four car rental agencies are available to serve the traveling public,three are on-site in the passenger terminal building. There are 36 permanently assigned tie-downs, Seventy-Five (75) aircraft and eight (8) helicopter tie-downs for transients, 113 T-hangars, and 15 large commercial /corporate hangars that are maintained and leased out by the City of Redding—Airports Division. The T-hangars are 100% occupied, with no vacancies. In 2019, there were 66,962 takeoffs and landings recorded by the Air Traffic Control Tower during its hours of operation, 6:30 am to 9:30 pm, and the number of passengers moved totaled 106,959. In 2020 and 2021, the Covid-19 Pandemic had an effect on the recorded operations with 60,752 and 39,568 and the total passengers moved at 40,074 and 119,315 respectively. In 2022,there were 63,313 takeoffs and landings recorded by the Air Traffic Control Tower during its hours of operation, 6.30 am to 9:30 pm, and the number of passengers moved totaled 202,264. The Airport features a 32,000 square foot terminal building to serve the traveling public that was expanded and remodeled in 2014. It also features a full-service restaurant and lounge, as we11 as full services for a11 business tenants. There is a 333-space public automobile parking lot, as well as 77 spaces for rental cars, adjacent to the terminal buiiding. The passenger terminal aircraft parking ramp is capable of receiving six medium-size jet aircraft at one time. The airport property includes a total of 1,503 acres. The primary runway(16/34)is'7,003 feet in length and 150 feet wide with lighted distance-remaining markers. Tt also has a medium-intensity approach lighting system with runway alignment indicator lights (MALSR), a Category I instrument landing system(ILS) on Runway 34, runway-end identifier lights on Runway 16,precision approach path indicator lights (PAPIs), a back course instrument landing system on R�unway 16, a global position system (GPS/RNAV) approach, and a VHF omni-directional range (VOR) with distance-measuring equipment (DME) for Runway 34. The crosswind runway (12/30) is 5,067 feet long and 150 feet wide and is equipped with. PAPIs for Runway 30. Benton Field(085) Benton Field is located within the city liinits of Redding, only a few blocks from the downtown area. It features a runway that is 2,420 feet in length, 75 feet in width, and is lighted for night operations. The runway has two precision approach path indicator light (PAPIs) on both ends of the runway. Currently, there is not a fixed-base operator(FBO), which normally would provide a full range of aircraft services, as well as a cafe. The California Highway Patrol bases two helicopters and two fixed-wing aircraft at Benton. A1so, there are 60 T-Hangars, 30 sun /shade covered aircraft parking spaces and 64 transient tie-downs. Additionally, Benton has two designated helicopter pads and two privately built T-Hangars buildings with ten T-Hangars in one group and eleven T- Hangars to the second group. Benton Field experiences an estimated 37,000 annual aircraft operations. Collectively, there are over 100 aircraft based on the airfield. Benton Fie1d has over 301 acres of land, and an Automated Weather Observation System(AWOS). 249 HISTORY AND STATEMENT OF PHYSICAL CONDITION OF ELECTRIC UTILITY SYSTEM ASSETS F[istory Electric service in Redding was started before 1900 by a private utility, the Redding Electric Light and Power Company,which obtained electric power from a small hydroelectric plant on the Sacramento River near Redding. On November 28, 1901, the Keswick Electric Power Company began supplying the utility with electric power from its new Volta Hydro Plant, which had just started operation. Shortly thereafter, the Keswick Company acquired the capital stock of the Redding Electric Light and Power Company. Subsequently, on March 13, ]902, the Northern California Power Company was incorporated, and proceedings were initiated to acquire control of all properties of the Keswick Company through an exchange of stock. This was succeeded in 1908 by the Northern California Power Company Consolidated,which continued operation until October 3, ]9l 9, when it was acquired by Pacific Gas and Electric Company (PG&E) under a merger authorized by the California Railroad Commission. Before the merger, a group of Redding citizens started a movement to acquire the municipal street-lighting system because of dissatisfaction with the existing system and its operation. As a result, in 1916, a municipal street- lighting system was established. Soon after the municipal street-lighting system began operation, a movement was started for the City of Redding to purchase the electric distribution system from the Northern California Power Company Consolidated, and preliminary negotiations were initiated. During the negotiations between the City and the Northern California Power Company Consolidated, PG&E acquired the Northern California Power Company Consolidated. The City made a Final payment to PG&E on December 21, 1921. The property and its operations were turned over to the City on that date. Under City ownership and operation, Redding's Electric Utility (REU) has consistently provided superior service at a competitive price,with rates well below those in the surrounding service territory where PG&E provides service. Distribution Service The City's Electric Utility currently provides service to its customers in an area of approximately 61 square miles, with '72 miles of 115-kV lines and'759 miles of overhead and underground 12-kV distribution lines. The City is proud of its record over the past five years of 99.9912 percent electric service availability to its customers. Redding is interconnected with the Northern California 230-kV power grid at two points - Western Area Power Administration's (Western) Keswick Switchyard and the Western/Redding Airport 230/115-kV Substation. Delivery of all power from sources outside of the City is made to Redding at the Keswick Switchyard and Airport Substation. The City owns and operates the 115-kV lines that interconnect the City's 115/12-kV distribution substations to these delivery points. This system is designed as a highly reliable looped system (at least two sources for every distribution substation)with state-of-the-art 115-kV circuit breakers and relay systems, ensuring that an outage or failure of any 115-kV line wi11 not interrupt power to any City customer. Design and right-of-way acquisition for the Stillwater Business Park distribution service was completed in FY 2008. The Stillwater 115-kV line termination work was completed on August 15, 2008. The Stillwater ll 5-kV transmission project began construction in April 2012 and was completed on April 20, 2017. The City's current distribution system consists of eleven 115/12-kV distribution substations where power is transformed from 115- kV to 12-kV distribution voltage and connected to the service distribution transformers via the 12-kV distribution lines. The 12-kV distribution system is a very reliable radial-type system designed to serve all customers from another feeder if the normal source is experiencing a problem. 250 Power Supply The City's retail power supply comes from a diverse portfolio. Redcling typically receives about 30% of its power supply from Western in an average hydro year.FY 2022-23 was below average,with Western providing 11.4%of the City's system 1oad. Western's power is generated at Shasta Dam and 11 other facilities, which are a part of the Central Va11ey Project (CVP). Redding also relies on the City's existing generation resources and other power- purchase and exchange contracts, as well as short-term firm purchases, to provide low-cost service to all of the City's customers. To accommodate anticipated growth,the City developed several projects to increase power generation. The City's Whiskeytown Hydroelectric Project became operational on September 3, 1986. In August 1991, the City purchased a 28-MW steam turbine generation project located within Redding city limits, now known as the Redding Power Plant. On June 1, 1994, the City began scheduling and dispatching the power produced by these various resources. The scheduling and dispatching operations allow Redding to take advantage of relatively inexpensive energy, which becomes available from time to time in the short-term wholesale power market. Three combustion turbine generators totaling 70-MW were added in 1996. In June 2002, the Ciry commissioned Unit 5, a 43-MW highly efficient combined-cycle gas turbine with a heat recovery steam generator to be operated with the 28-MW steam turbine, bringing the total on-site generation to 141-MW. Construction began in September 2008 on Unit 6,which is a 47-MW combined cycle gas turbine nearly identical to the existing Unit 5. Unit 6 went into service in August 2011,which increased the overall Redding Power Plant capacity to 1$3-MW. In addition to its own generation, the City has acquired several other sources of electric power through long-term, purchase-power contracts. Through its membership in a joint powers agency consisting of Modesto Irrigation District, City of Santa Clara, and City of Redding (M-S-R), the City entered into a long-term power purchase agreement for 70-MW of wind-generated power through the Big Horn Wind I Project (Big Horn). Deliveries for Big Horn began on October 1,2006. The City is a member of various organizations and agencies: Balancing Authority of Northern California (BANC), Northern California Power Agency (NCPA), M-S-R, Transmission Agency of Northern California (TANC), and Western Systems Power Pool (WSPP). The City contracted for and developed various power generation and transmission resources through these affiliations, including partial ownership of the San Juan coal- fired generating station, the Desert Southwest Transmission Project, and the California-Oregon Transmission Project. The City and M-S-R divested themselves of their ownership of the San Juan generating station in December 2017 and the Southwest Transmission Project in May 2016, while debt service remains through 2023. In response to changes in the bilateral power markets, the City officially joined the Energy Imbalance Market (EIM) through BANC, and became an active participant on April 1, 202L The EIM, administered by the California lndependent System Operator (CAISO), is a 5-minute, real-time bulk power trading market that optunizes the lowest-cost energy to serve real-tune customer demand across a wide geographical region. To operate cost-effectively, the City developed several load-management and energy-conservation programs, including public awareness campaigns,technical conservation assistance,rebates on energy-efficient products and technologies, renewable technologies, and energy-efficient streetlights. In FY 2022, the City developed the Demand-Side Integrated Resource P1an (DSM-IRP) and determined that decarbonization programs (i.e. electrification) were more cost-effeetive than energy-efficiency programs due to their inherent ability to produce downward rate pressure from the increased retail ioad. The electrification rebate programs, which help reduce carbon emissions by including incentives for switching appliances from natural gas to electric technologies, were launched at the beginning of FY 2023. Additionally, the City has provided opportunities for load management through applicable rate design. 251 Customer Base The table below shows a five-year history of the growth in electric system customer accounts. Number of Customer Accounts �'iscal Year Ending June 30, Residential Non-Residential Total 2019 38,058 6,206 44,264 2020 38,320 6,246 44,566 2021 38,58'7 6,294 44,881 2022 38,572 6,409 44,981 2023 3 8,706 6,402 45,l 08 Source: Utility Billing System Marketing Report of Quarterly NAICS Usage. The total number of electric system customer accounts increased 1.8 percent during the last five years. 252 HISTORY AND STATEMENT OF PHYSCAL CONDITION OF STORM DRAINAGE UTILITY SYSTEM ASSETS FIistory The City Council established the Storm Drainage Utility on September 21, 1993. The utility is part of the Public Works Department. Responsibilities include monitoring, maintaining, and cleaning the storm drainage networks of the City. Service Area and Customers The service area encompasses storm drainage facilities within the City limits. The overall conveyance system is comprised of both public and private segments. The Storm Drain Utility responds to the needs of the public component of the overall conveyance system. The following table provides an overview of the storm drainage system as of June 30, 2023: Workload and Performance Measures ' 2018-19 2p19-�� 2020-21 2021-22 202�-23 Miles of Storm Drain Pipe l 86 191 ]91 191 198 Miles of Channels/Ditches 200 200 200 200 200 Miles of Maintained Channeis/Ditches 1'7 1'7 l� 17 17 Number of Inlets 6,648 6,747 6,784 6,745 6750 Number of Outfalls 1,332 1,341 1,337 1,337 1360 The Stor�n Drainage Utility charges are based on impervious area. An impervious area is one that prohibits the natural drainage of rainwater into the ground (i.e., building, parking lot, etc.). Effective February 4, 2014, the City directed the Shasta County Auditar-Controller to collect the Storm Drain service charges. Storm Drain service fees have been frozen since 1993. The annual fees are as follows: Coinmercial $19.07 per impervious acre x 12 Multi-family/Mobile Home $9.96 per unit Residential $15.84 per household Condition of System The City of Redding maintains a well-trained and we11-equipped work force with very limited funding. The Storm Drain Utility's primary function is to operate the Storm Drainage system to prevent floading, make systematic inspections as part of the preventive maintenance program, and plan and construct replacements. The City of Redding completed a Citywide 1Vlaster Storm Drain Study in October 1993. A new Operations and Maintenance Plan was prepared in 2003, along with a project update of the 1993 Master Plan, which included a survey of the storm drain system. In 2015, City Council gave direction to proceed with an update to the Citywide Master Stonn Drain Study. 253 The Statewide NPDES Phase II Small MS� (municipal separate storm sewer system) permit became effective J'uly 1, 2013, with a five-year implementation schedule of increased activities. A trash provision amendment to the statewide permit was approved in April 2015. While the prevention of trash entering the waterways has multiple benefits, the realities of capturing all trash as smal] as Smm in high priority areas (high density residential, industrial, commercial, mixed urban and public transportation stations) will prove to be challenging. The City has a consultant providing recommendations for compliance with the Trash Amendment. 254 HISTORl'AND STATEIVIENT OF PHYSICAL CONDITION OF' WASTEWATER UTILITY SI'STEM History The City began construction of the Wastewater System soon after its incorporation in 1887. The Wastewater System developed slowly until the early l 950s, at which time approximately 20 percent of the City's approximate 5,200 acres were served. Recognizing the need for a systematic expansion of the Wastewater System, in 1956, the City commissioned the development of a master plan for the City to follow in making necessary im�provements. As a result of this plan, which was updated in 1964, the City added approximately 27 miles of sewer lines, primarily as a result of a series of sewer assessment districts, and in 1966 relocated its wastewater treatment plant from a location near the Cypress Avenue Bridge, to the present Clear Creek site, approximately 5.5 miles to the south. Over the succeeding ten years, various districts including the Buckeye Community Water District, the Cascade Community Services District, and the Enterprise Public Utilities District, were annexed to the City. This resulted in the elimination of the existing treatment plants of these districts and consolidated the wastewater treatment and disposal at the City's Clear Creek Regional Wastewater Treatment Plant (described below). To maintain compliance with the Clean Water Act, the Clear Creek Plant was expanded and upgraded to an advanced secondary wastewater treatment plant in 1979. Throughout the years, the plant has undergone process upgrades and expansions with the most recent starting in 2006. In 1983, the City, Shasta County, and Shasta Dam Area Public Utility District (the "Shasta Dam PUD") commissioned Ott Water Engineers to prepare a regional sewage study of the Central Shasta County area. It was determined that the Clear Creek Wastewater Treatment Plant was operating at two-thirds of its capacity and the Shasta Dam PUD was operating essentially at its capacity. Additionally, significant growth for this area was projected. As a result of this study and analysis of various alternatives, it was determined that an additional. wastewater treatment plant on the east side of the City near Stillwater Creek and the Sacramento River would be constructed and that the Clear Creek Wastewater Treatment Plant would continue operation on the west side of the City. The advanced secondary Stillwater Regional Wastewater Treatment Plant was constructed near the confluence of Clover Creek and the Sacramento River and began operation in 1990. Existing Facilities The Wastewater System consists of the collection, treatment, and disposal facilities for domes�ic and industrial sewage serving the City. The system inventory includes over 440 miles of interceptor and trunk sewers, 18 sewage lift stations, and two tertiary treatment plants. The 2022 Master Plan, completed by MCC Engineering has been completed including many capacity and maintenance-driven iinprovements. One such recommendation is to adopt a city wide ordinance to reguire inspection and repair of private lateral sewers in an effort to further reduce Inflow and Infiltration(I&I). Clear Creek Wastewater Treatment Plant The Clear Creek Wastewater Treatment Plant is located at the confluence of C1ear Creek and the Sacramento River. The plant has a dry weather daily flow capacity of 9.4 million gallons per day(MGD) and a peak day flow capacity of 40 MGD. The unit processes utilized at the plant include, among other things, the Clear Creek Lift Station, with an estiinated effective pump capacity of 40 MGD, primary and secondary clarification, gravity filtration, chlorination for clisinfection and sulfonation for dechlorination prior to discharge into the Sacramento River outfall via a new diffuser system. In addition, a series of eight flow equalization ponds provide raw sewage and/or primary effluent temporary flow storage should the influent flow exceed the capacity of the secondary treatment and filtration processes. Solids handling process include primary and secondary waste sludge streams being mixed, thickened and anaerobically digested. Additional solids treatment can take place in facultative 255 sludge lagoons. A new Biosolids Handling Facility recently completed construction and is now in operation. This facility was designed for future centralization of biosolids for both Wastewater Treatment Plants. In 2005, the City Council had authorized modifications to the Clear Creek Plant at an estimated cost exceeding $$0 million. The upgrades were constructed in the following seven Bid Packages: •� Bid Package I began construction in the fall of 2006 •� Bid Package II began construction in the fall of 2007 � Bid Package III began construction in the spring of 2008 •� Bid Package IV began construction in the fall of 2008 � Bid Package V began construction in the summer of 2011 •� Bid Package VI began construction in the winter of 2010 � Bid Package VII began construction in the fall of 2012 and was completed in the spring of 2014 The plant expansion and upgrades were funded by a combination of low interest loans from the State of California Revolving Loan Fund and ARRA Stimulus grant funds,with repayment through a combination of new connection fee revenue and monthly service charges. The 2022 Facility Plan, completed by Jacobs Engineering has been completed with various improvements recommended, including influent pump station screening and the potential for a PFAS removal treatment. Recently, gaseous chlorine and sulfur dioxide have become volatile markets and have tl�e potential to be in short supply. In response, plant staff is making provisions for a redundant dechlorination process utilizing liquid sodium bisulfite, which will in turn replace the gaseous sulfur dioxide dichlorination system. Soon to follow will be the redundant chlorination process utilizing sodium hypochlorite, replacing the gaseous chlorine dosing system. A biosolids biodrying and pyrolysis system will be online in 2023 to eliminate landfill disposal of biosolids. Stillwater Regional Wastewater Treatment Plant The Stillwater Regional Wastewater Treatment Plant is locatecl on an approximately 300-acre site along Airport Road at the Sacramento River. The plant is designed for an average dry weather flow of 3.4 MGD and a peak wet weather flow of 14.4 MGD. A facilities plan was prepared in 2008 for expansion of the plant in stages to treat an average dry weather flow capacity to 8 MGD and a peak wet weather flow capacity to 24 MGD. The first plant expansion project(Phase 1 A/B)began construction in the spring of 2012, and was completed in the spring of 2014. This piant expansion was funded by Wastewater Utility funds, and a loan from the State of California Revolving Loan Fund, with repayment through a combination of new connection fee revenue and monthly service charges. The 2022 Facility Plan, coinpleted by Waterworks Engineering has been completed with various improvements recommended, including the installation of Facultative Sludge Lagoons and drying beds. Recently, gaseous chlorine and sulfur dioxide have become volatile markets and have the potential to be in short supply.In response, plant staff is making provisions for a redundant dechlorination process utilizing liquid sodium bisulfite, which will in turn replace the gaseous sulfur dioxide dichlorination system. Soon to follow will be the redundant chlorination process utilizing sodium hypochlorite,replacing the gaseous chlorine dosing system. Environmental Compliance The discharge requirements for the wastewater system are established by the State of California Water Resources Control Board, Central Valley Region (the "Regional Board") which administers and enforces all Federal and State of California discharge requirements. The Regional Board administers regulations promulgated under the National Pollutant Discharge Elimination System (NPDES) by the United States Environmental Protection 256 Agency (the `BPA"). The Clear Creek Wastewater System's present discharge permit was adopted in 2022. The Stillwater Wastewater system permit was adopted in 2018 and is in the process of renewal for 2023. The City is responsible for satisfying these Federal and State-mandated discharge requirements. The requirements include provisions requiring the City to comply with all pretreatment requirements contained in the Federal Water Pollution Control Act. The City has an approved pretreatment program that includes local limits for priority pollutants along with inspection and permitting of industrial discharges. In general, plant performance has consistently met discharge requirements, and any instances of noncompliance have been isolated incidents that have not reoccurred. Service Area The service area of the wastewater system is pri�narily the City, but includes slnall-unincorporated areas in the county. The service area lies entirely within the City's sphere of influence. Historicai Operations The following table shows the historical number of residential customer household equivalents and the combined commercial and industrial customer household equivalents for the �ve fiscal years ending June 30, 2023. One household equivalent (HE) is the quantity of wastewater produced in the City of Redding by an average single- family residential household, which is 240 gallons per day (GPD). Since customer fees and charges are based on the HE for each customer,the revenue amounts are proportional to these HE counts. Historical Residential and Commercial/Industrial Household Equivalents 2018-19 2019-20 2i�2i1-21 2�21-22 2022-23 Residential HEs 32,410 32,526 32,904 33,078 33,140 Commercial/Industrial HEs 11,140 10,588 10,894 11,132 10,171 Total S stem HEs 43,550 43,114 43,798 44,210 43,674 Annual S stem Growth >1.0% (1%) 1.6% 1.0% 1.0% *Incorrect number provided by Vertex Strikeout represents correctiou in previously reported data. The wastewater system currently has an average dry weather daily design flow capacity of 12.8 MGD. The actual average dry weather daily flow (months of July, August, and September) of the wastewater system for the five fiscal years ending June 30,2023,is shown below. Average Dry Weather Daily Flows--Fiscal Years Ended June 30,2023 2018-19 2019-20 2�24-21 2021-�2 2022-23 ' Clear Creek Plant 5.9 6.3 61 5.9 6.1 Stillwater Plant 2.3 2.5 2.4 2.2 2.16 Total Wastewater System 8.2 8.8 8.5 8.1 8.26 Sirikeout represents correctiou in previously reported data. 257 HISTORl'AND STATEIVIENT OF PHYSICAL CONDITION OF' WATER UTILITY SI'STEIVI History The Redding water supply and treatment facilities date back to the early 1900s. The raw water supply pump station on the Sacramento River was built in stages beginning in 1939. The City's rights to water from the Sacramento River stem from the 1941 acquisition of the local facilities of the California Water Service Company, together with its water rights, which date from 1886 and from a license to appropriate 5 cfs, issuecl in 1944. Since 1939, when the City of Redding assumed control and operation of the water system, the City's population has grown from approximately '7,500 to 90,600. This growth includes two large increases in 1976 and 1977, when Redding annexed the Cascacle Community Services District(serving approximately 4,450 residents) and the Enterprise Public Utility District (serving approximately 13,500 residents). Additionally, in 1967, the City assumed operation of the Buckeye County Water District serving about 1,500 residents outside the City limits. A 1966 contract with the United States Bureau of Reclamation(IJSBR or Bureau) was renegotiated in June 2005, with the USBR extending the contract for an additional 40 years through March 31, 2045. It details Redding's principal rights to the Sacramento River. Tlze "Redding Contract" permits renegotiation at any time for more or less water subject to need and availability of water in the river. Water to be diverted consists of °base" and "project water" supplies. The Base Supply is 85 percent of the total, with Project Water being the remaining 15 percent of the total river water supply. The total entitlement is 21,000 acre-feet. Due to Pre-1914 water rights, our Base Water has no charge. Water charges in 2022/23 per acre-foot for Project Water under this contract total $57.21 ($34.60 water cost, $22.46 restoration c}�arge and$0.15 Trinity PUD fee). These entitlements were subject to renegotiation by mutual agreement in 1985, as they were in 1975 when no change occurred, and the annual entitlement is subject to reduction in "Critical Water Years." In 1992, 2007, 2014, 2015, 2020, and 2021 the Bureau decreased the Redding contract supply entitlement by 25 percent. In 2022, a critical water year in the drought,the water allotment was reduced to an unprecedented 18 percent. In 1967, the City of Redding took over Buckeye County Water District facilities and the rights to a 1964 USBR contract. In February 1971, the City executed a new USBR contract to serve the Buckeye service area. In Noveinber 1994, the City amended this contract with the Bureau to add the Spring Creek Conduit as a point of diversion for the new Buckeye Water Treatment Plant. The `Buckeye Contract" annual entitlement is also subject to reduction in "Critical Water Years." In 1992, 2008, 2009, 2012, 2020 and 2021 the Bureau decreased the Buekeye Contract supply entitlement by 25 percent and in 2014, the contract entitlement was decreased by 50 percent. In 2015, the contract entitlement was decreased by 75 percent. In the 2022 critical water year, the Buckeye Contract entitlement was decreased to zero. This contract with the Bureau of Reclamation, which runs through February 28, 2045, provides Redding with 6,110 acre-feet of water per year. Prior to 2022, the contract amount was 6,140 acre-feet, but 30 acre-feet was relegated to the City of Shasta Lake to serve customers in the "Summit City"pressure zone. Water charges under the 2022/23 contract total approximately $112.23 per acre- foot ($29.14 average water cost, $22.46 restoration, $015 Trinity PUD fee and a $60.48 foregone power charge per acre-foot). Despite the cutbacks in previous years,the City's water supply was sufficient to meet its needs. The Foothill Water Treatment Plant was constructed in 1981. The plant has a rated capacity of 28 million gallons per day (MGD). Facilities provide for online filtration following the existing sedimentation basin and a 6 million gallon(MG) covered storage reservoir. Both these additions were needed to meet the requirements of the State of California, Departinent of Public Health, Division of Drinking Water, and Environmental Management. 258 Performance Measures and Workload Indicators The Water Utiliry Staff has met the established goals, with the majority of the workload objectives being accomplished: ACTIVITY ' 2018-1� 2019-20 242�-21 2021-22 �022-23 '; Number of customers/services 29,751 29,905 30,250 30,427 30,649 Number of new meter sets 106 136 188 104 223 Quantity of water produced 24,053 25,337 26,897 23,846 20,875 (acre feet) Percentage of days water quality met 100% 100% 100% 100% 100% standards Number of service calls 4,633 4,225 4,143 3,063 3,799 (Includes water quality) Miles of water mains 559 560 566 564 560 Number of main and water service 90 62 229 219 263 failures/disruptions per year Miles of substandard mains 42 42 42 42 42 Customers/service connections per 1,026 1,031 1,031 1,049 1,022 em lo ee Current System Buckeye Zone The Buckeye Water District water system was acquired by the City of Redding in 1967 following dissolution of that District. Water supply for that District was extremely limited. Upon assuming the operation of the Buckeye system,the City of Redding provided the additional supply by pumping from the northern end of its water system. Pump House No. 3, located at the foot of North Market Street hill, and Pump House No. 4, off Benton Drive northeast of the Diestlehorst Bridge, serve the Buckeye Zone. Storage for the Buckeye Zone is located off Lake Boulevard, outside the City limits, near Walker Mine Road. Two steel reservoirs exist at this site--one 200,000- gallon tank and one 2 1VIG tank with an overflow elevation of 955 feet above mean sea level (msl). In 2002, an additional 4 MG reservoir was constructed '/a mile east of the Buckeye Water Treatment Plant with an overflow elevation of 1,034 feet msl. The Buckeye Water Treatment Plant(BWTP), completed in January 1995, serves the Buckeye Zone. The BWTP is located in unincorporated Shasta County, off Benson Drive, north of Rock Creek Road. The water plant has an interconnection to the USBR Spring Creek Conduit. Treated water is conveyed from the treatment plant through five miles of transmission main to the Buckeye area. The initial treatment capacity was 7 MGD with the ability to expand to 28 MGD capacity. In 2007, construction was completed on an expansion of the treatment plant to 14 MGD capacity. Along with the treatment plant expansion, 8,000 feet of 30-inch water transmission main was installed to provide treated water to the Buckeye Pressure Zone. This treatment plant meets all the existing United States Environmental Protection Agency (IJSEPA) regulations, including the 1986 & 1996 Safe Water Drinking Act amendments. The treatment plant also meets all the requirements of the California State Water Resources Control Board, Division of Drinking Water, and Enviromnental Management. (State regulatory 259 authority was transferred from the California Department of Public Health to the California State Water Resources Control Board during the summer 2014.) Foothill and Hill 900 Zones Construction of Redding's Foothill Water Treatment Plant (FWTP) was completed in September 1981. The treatment plant consists of pre-chlorination and chemical treatment followed by filtration and post-chlorination. River water from P�uinp House No. 1, located on the south side of the Sacramento River, west of the Diestlehorst Bridge, enters the treatment plant through a 36-inch main. In 2006, Pump Station No. 1 Fish Screen Retrofit Project was completed to meet the requirements of the CAL-FED Anadromous Fish Screen Program. In 2010, an additiona130-inch main from Pump House No. 1 was installed to the FWTP. At the FWTP, chlorine is added for disinfection and odor control. Water then flows through dual media filtration and is post-chlorinated prior to entering a 6 MG covered storage reservoir. Finished water storage for water produced at FWTP is provided as follows: 1. One 6 MG covered storage reservoir at the treatment plant, and one 4 1VIG steel reservoir at Foothill Blvd, each with an overflow elevation of 743 feet msl. 2. One 2 MG pre-stressed concrete reservoir and one 2 MG steel reservoir having an overflow elevation of 925 feet msl near the FWTP at the top of Hi11900. The Foothill Zone is served by gravity flow from the Foothill reservoirs. The Hill 900 Zone is served by Pump House No. 2, which is located at the treatment plant and is taking suction from the 48-inch main served by the 6 MG reservoir. An additional booster pump was added to the El Reno booster pump station in 1995. This supply is an additional 1.4 MGD to the southern end of the Hi11900 Zone from the Cascade Zone, if necessary. Enterprise Zone In 1976, the Enterprise Public Utility District and the City of Redding voted to annex the Ente�rise District to the City of Redding. Shortly after this, responsibility for the Enterprise water system was assumed by the City of Redding. The system was served originally by�ive wells located over the Enterprise Sub-basin of the Redding Groundwater Basin. However, in 1978, the Cross Town Main, a large pipeline, was constructed which enabled the City to serve the Enterprise and Cascade areas with water from the FWTP. In 1985, approximately five miles of 12, 16, and 24-inch transmission mains were constructed from the Enterprise well fields on Goodwater Avenue to serve the U.S. Forest Service and Municipal Airport off Airport Road. In 1986, three 2 MGD capacity wells were added to the Enterprise Zone. In 1988, a 24-inch transmission lnain was constructed from Goodwater Avenue along Rancho Road westerly via South Bonnyview Road to the Cascade Zone. In 2002, 2,5 miles of 24-inch transmission main was constructed from Rancho Road north along Airport Road in the Enterprise Zone to maximize the production of the groundwater wells. In 1991, another 2 MGD capacity well was added to the Enterprise Zone. Two additional 2 MGD capacity we11s were added during 2003. In 200'7, another 2 MGD capacity well was added to the Enterprise Zone and in 2008, an additional2 MGD capacity well was added. Groundwater is treated with orthopolyphosphate for iron and manganese annoyances and chlorine is used for disinfection. The main storage reservoirs are located above the Quail Ridge Subdivision off Canby Road. Two steel storage tanks are located at the same site, with a capacity of 3.5 and 6.0 MG and an overflow elevation of'706 feet msl. During periods of peak demand, these tanks and the well field, at the southwestern boundary of the zone, and treated water from the FWTP through the Cross-Town water main, supply the entire system from three directions. 260 Hilltop-Dana Zone The Hilltop-Dana pressure zone is located north of Highway 44 and east of Interstate 5 and is supplied from the Enterprise Zone by Pump Station No. 5, and the Buckeye Zone by gravity. Cascade Zone The supply source for this zone comprises five wells, located over the Anderson Sub-basin, with a maximum capacity of 0.75 MGD. This supply is augmented by connection to the south end of Redding's central system, and in 1978, the Cross-Town water main was completed. This supply can furnish up to 3.2 MGD to the Cascade area. Additional supply is obtained by a large transmission main connecting the Cascade Zone to the Enterprise Zone via South Bonnyview Road. Originaily, this supply furnished 2 MGD. In the summer 1995, a booster pump station was installed on the South Bonnyview transmission main to increase the supply to the Cascade Zone to 43 MGD. In 1985, the City took over the operation of the Pinal Water Company serving the Westwood Manor Subdivision. located off State Route 273 south. The subdivision is currently being supplied water from the FWTP through two 8-inch interconnections. Storage to the Cascade Zone is provided by a 1 MG tank located off Kenyon Drive and a 2 MG tank in the Redding Ranchettes area. Both tanks have an overflow elevation of 696 feet msl. Condition of System The City of Redding maintains a well-trained and well-equipped work force. Its primary function is to operate the system, make systematic inspections as part of the preventive maintenance program, and plan and construct replacements. Undersized and old lines are being replaced when maintenance costs indicate that they should be replaced or additional capacities are needed. The City of Redding maintains a Water Master Plan, most recently updated in 2023; revisions to the system are programmed, designed, and installed in accordance with this plan. The systeln is well-maintained in all regards, including raw water supply, pumping structures, equipment, transmission lines, and water treatment facilities. However, continual renewed investment in capital facilities such as distribution pipelines, reservoirs, and we11s will be necessary to maintain the current 1eve1 of service, due to the deinands of population growth and aging infrastructure. 261. \\\ .:,a.w \©\/ � / ( (/\\( ! %' 9 7 + «- » \ ri { .. . . / \ ado nt is -V \\\ 0 A.nnua.1 Compreh.... 1 F.i ,Oft ww" om% &AM& ~ AF I bccl 3U oolk mo%' F*l I YeClar Jug--t 2U23 A A YA, 2u 3anudi'L 161 �2 ouncil F financial Rena 11 allocates Kevenues to create Expenditure pla Modified through Council Action rear ena nnanciai statements Follows GAAP & GASB reporting requiremer Provides accountability & reoortina consiste DmE)ren nsive rinancial Kenc Su ma ry of Aud it & ACFR - "Unmodified Opinionjfrom Clifton LarsonAllen, CLA Government Finance Officers Association awarded the City of Redding it's 39th consecutive Certificate of Achievement for Excellence in Financial Reporting for the Annual Comprehensive Financial Report for year ending June 30, 2022. iiciirio na duditor's �o material �o significa �o un i accounting pr-H Vo disanreeme sings aiscavere efficiencies or r sues �in(es consistei nos or de Drmaric nose cnargea wii:n governance Material weaknesses in internal fitly applied Ea.1 ores GASB Requirem nt4, &&Of& GASB 9:6 Subscript*ion Based Information Technolonv Z1.11 Arrangements (SBITA) Hit:e men W d mow S f- N t,P uove-rntatement o: e os tion 202.3 Business - Governmental Type :> Total Assets ...,..,590.8 M S 805.1 M sws Deferred Outflows 67 of Resources: 75.4 5511 ini. ppy Z;4 57283" Total Liabilities 352.0 338,8 11,61 HIM A iig "'M Deferred inflows of ll M . . ....... Resources.* 7.8 11.5 "M M Ed IN R "MA M `24 x. JI M KIM Net Position:saeI-Mn 01 AN I'M s '#h Siso zz, MM Net Investment in Capital Assets 33M 392.9 q 19 3 MR, Restricted 123.7 8.9 Unrestricted f152.81 108.0 I-S, (24, D 10. 0 Total AsSeT15 d 0, Itt I c,� 5 Totc7l Net Posltlon n-1019- w2-1020 2.0221 W20,2.2 2 02. 3' A GUV r I I it ,e n &nt A A I IL N vv i e S a t t-emen t o AC 1VI"" ies f t t Business - Governmental Type . . . ...... Total - - ---------- ........ .... . ...... .,--Activities---. --Activities ---2023, . ..... ..... Expenses $ (150.5) M $(283.5) M (434.0) M $(360.8) M Program Revenues Charges for Services 21.6 290.9 312.5 270,0 Operating Grants and Contributions 62.6 8.0 70.6 37.6 Capital Grants and Contributions 23.5 14.0 ......... . I . ...... . ........ 37.5 23.9 Total Program Revenues 107.7 312.9 420..6 331-5 General Revenues Transfers Change in net P "tioli osi 7.8s_�N� ,..._ r_.. �,.�, .._. _ 35.0 M 24.0 M 59.0 m 5 34.1. M 0 21PLIY2 10 210- 2 -Chang:-. in --E Pos, 6- D.. 0 40.0 All 1 5 -4 IN 5 NS Fu IN t'i c f e ncvia sR f pc t e d R es -3 u rc a s 20" 19 2Q, 2 -9 21 0 2 1, 0" 2 20 4".r A�I�-' -1 -O' �-q w r t- A .' F _ r I � . 94It ,1"r L '3 A C, LL ei E xp �An d i tu r e 5 T? 'a tip r 5 Pror-A-edt fro:n, -h0,tqlp---Term D -h ol 11 .......... 7. NOW wmmm &a OW& KAIftL U Ar AOWA%L RAW& U A*V% S F IML 'AF Rf, r S& Expt�f dit-Ur 4 1 4 'I " 2 0 2-03 'Gr Grzn ra, v A- r nn r=, t iet -1f�T�.tir 024 2075 2:0 20 C� `.e 21a22 P j I f Rec-I-eation -and OXtjre- OT SC n r-, a U, 0 ?ir-r Ta xes i. .fie �-4�i+xl Ce, es Ta x 1 Da Ttted lines represent budgeted information K.ey F-inancial Trend &In icato,rs F��DDING C A L ! r a ft N I ::Gene.ral Fund Unassirined Ij Fund B.a:lanc 2023 2022 2021 2020 201 Unassigned Fund Balance $14.8 M $15.2 M $13.0 M $17.0 M $16.3 M Annual Expenditures 113.8 M - 106.8 M 87.4 M 82.9 M 94.5 M Ratio 12.97% 14.27% 14.88% 20.47% 1730% 2023 2022 2021 2020 2019 Net Cost of Services 42.9 51.8 32.4 64.3 60.9 Tax Revenues 68.5 69.3 65.4 56.7 56.4 74.58% 49.53% 113.40% 108.05% lama.. & 0. th r P nsion Liab. i.litl s os emp O.y nt Bennfit (OPEB ga 11, N g a MI'M % 7111- �op Ca[PERS Safety PARS OPES a 2019 x 20,20 �2021 2022 2023 t �e P iability B d et City of Redding G*neral Fund Ton Year Plan fin thourmand,4 ExpenAiture`6 Fiscal Year Endina 2024 9-2025 F'Lwal Year U.ndt-d A Lit Opt e- d A (h) pt ed 3 ;.1�4 Z.4 -a-ifvvu CAL Pi--v v -m , -n I A Ii 1.-, 41 P0 fir r 4, 1 3 F five -S Sit h t a f al I-W S1 I h (vo rt-i I t 7j il .T ;f Pit rA,-s %, kvc n! fj rit-i n pit,-10 iz:JG. I Sit hicirol DCLIOM121114.-Ilf SU b t 4rj r a I -I ti" 4., 4 9 i,*') Grneral 4"T'ove m ment Jk- Other dr.Y pvT ZI ,'I n'; J, 4 7, 'TJ Ca Ora 14 �Iztra-, ;,,rVeit jk!I0,t, .4 4.4 .3 "L 6..t .6 54i, f a°s 1 1j, Add City of Redding General Fund Ten Year Plan (in thousands) Expenditures Firical Year Endina 2024 & 2025 - VI -%ca I 'A',va r 1'. n dt-d -12 :43 t P.3 A :44 3" $'A t `A Pa r. i t, n I of f I NN lice nv'; 14 4 f < 4.4 AV` 4 i. 4 14 ir r.a C `I tmt :,-I ut I :)-v Pr�. j Sith ttim I A Pa k cc rr is r iirt it f 4 4 i t Stsh (fir"I 4. A De t p v lf-j pm e r i I S v ry ir e-w. F�,, T-xrf) n�v :2 R Suh if) rai t I^, 1'ritt-rol Go viv, mi ivicri t Jk 0 t he r i%.- r -., �,x. n," 1 v. p;l T- a t i n:.^ 8,i .1Z i A Z 15 Suh f(Alat t �t, .4 j 6 t4wl k4i I 1,tl Sa:v i (I 2! :z- i I T C I I xz S I i'd i I ii r 1 2t sai.'1,t y t walt aafety Plan 3.w/o Decrease mm 33.1 467v7 Cuswrent Discount Rate (7%) - --- - i 22.9 ........... 14.4