HomeMy WebLinkAbout _ 9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2024C IT Y OF
REMDINO�"
AN CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: March 18, 2025
FROM: Greg Robinett, Director of
ITEM NO. 9.10(a)
Finance/City Treasurer
***APPROVED
BY***
, 1E
y src9�`?(?„
pn�, cIt
grobineW&Ryofredding.org
btippin@cityofredding.org
SUBJECT: 9.10(a)--Consider acceptance of the City of Redding Annual Comprehensive
Financial Report for the year ended June 30, 2024.
Recommendation
Accept the City of Redding Annual Comprehensive Financial Report for the fiscal year ended
June 30, 2024.
Fiscal Impact
There is no fiscal impact for accepting the Annual Comprehensive Financial Report (ACRF)
Alternative Action
The City Council could reject the ACRF for the fiscal year ended June 30, 2024, and provide
alternate direction to staff.
Background/Analysis
The audit of the City of Redding (City) for the fiscal year that ended June 30, 2024, has been
completed. The City received an unmodified opinion from the auditor, CLA (Clifton Larson
Allen LLP), a firm of Certified Public Accountants, on the report as presented. The ACFR is
available for review in the City Clerk's Office.
It should also be noted that the Government Finance Officers Association of the United States
and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Financial. Reporting
to the City for its ACFR for the fiscal year ended June 30, 2023. This was the 40th consecutive
year that the City has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized annual
comprehensive financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
Report to Redding City Council March 12, 2025
Re: 9.10(a)--Annual Comprehensive Financial Report year ended June 30, 2024 Page 2
A Certificate of Achievement is valid for a period of one year only. Staff believes the current
ACFR continues to meet the Certificate of Achievement Program requirements, and the ACFR
will again be submitted for consideration for GFOA's award program.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further
action is required.
Council Priority/City Manager Goals
• This is a routine operational item occurring on an annual basis.
Attachments
Annual Comprehensive Financial Report for FYE June 30, 2024
CITY OF REDDING
REDDING, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
Prepared by:
191 NEVIN 0 11 Of '.,: O
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IMA
City of Redding
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
INTRODUCTORY SECTION
Page
Tableof Contents............................................................................................................................................................v
TransmittalLetter...........................................................................................................................................................ix
Certificate of Achievement for Excellence in Financial Reporting — GFOA...............................................................xvi
OrganizationChart ..................................................................................................................................................... xvii
Directoryof City Officials........................................................................................................................................ xviii.
Independent Auditors' Report on Financial 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 Net Position..............................................................................
41
Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................................
42
Reconciliation of the Governmental Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Government -Wide
Statement of Activities and Changes in Net Position.............................................................................
43
Proprietary Fund Financial Statements:
Statementof Net Position..........................................................................................................................
46
Statement of Revenues, Expenses, and Changes in Net Position..............................................................
50
Statementof Cash Flows...........................................................................................................................
52
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position..........................................................................................................
58
Statement of Changes in Fiduciary Net Position.......................................................................................
59
Notes to the Basic Financial Statements............................................................................................................. 61
Index to Notes to the Basic Financial Statements............................................................................................ 63
Required Supplementary Information (Unaudited):
BudgetaryPrinciples.............................................................................................................................................147
Schedule of Revenues, Expenditures, 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 (CAPERS).........................................................150
LIi]
City of Redding
Annual Comprehensive Financial Report
For the Year Ended June 30,3034
Table of Contents (Continued)
FINANCIAL SECTION (Continued):
Required Supplementary Information (Unaudited):
Schedules o[Plan Contributions -Public Employees Retirement System
Miscellaneous Plan (CuD'ERS}.................................................................................................................... l52
Schedules of Changes bnNet Pension Liability and Related Ratios -
Public Employees Retirement System Safety Plan (CuI9f}K8) ..----..'''''''''''''''''''''---.154
Schedules ofPlan Contributions - Public Employees Retirement System
SafetyPlan (CuLP£88)................................................................................................................................. l5h
Schedules ofChanges iuNet Pension Liability and
Related Ratios - Public Agency Retirement Services Enhancement Plan (P/\RB)...................................... l58
Schedules of Public Agency Retirement Services Retirement Enhancement Plan
Contributions All Tiers (P/\D5) ................................................................................................................... |6O
Schedules of ChangesiuNet [)PBBLiability and Related Ratios ..................................................................... l62
Supplementary Information:
Non -Major Governmental Funds:
CombiningBalance Sheet ............................................................................................................................
|7O
Combining Statement ofRevenues, Expenditures,und Changes inFund Balances ....................................
|72
Statement otRevenues, Expenditures,and Changes inFoodUukzncem— Budget and Actual:
ParkingSpecial Revenue Fund ..............................................................................................................
174
Street Maintenance Special Revenue Fund ............................................................................................
l75
Community Development Special Revenue Fund .................................................................................
l76
Housing Special Revenue Fund .............................................................................................................
l77
Continuum ofCare Special Revenue Fund ............................................................................................
l78
General Special Revenue Fund ..............................................................................................................
179
LibrarySpecial Revenue Fund ..............................................................................................................
l00
Non -Major Enterprise Funds:
Combining Statement ofFund Net Position ................................................................................................. (84
Statement ofRevenues, Expenses,aud Changes inFund Net Position ....................................................... l87
Combining Statement ofCash Flows ........................................................................................................... l88
Internal Service Funds:
Combining Statement ofNet Position .......................................................................................................... (92
Combining Statement ofActivities and Changes inNet Position ................................................................ i95
Fiduciary Funds:
Other Supplementary Information:
Supplementary Information Regarding 9aoacnguc Facility Charges ----------------------2O5
Schedule of Passenger Facility Charges Collected and Expended and Interest Collected
For the quarters ended September 30`2023,December 3i,2023,
wm
City of Redding
Annual Comprehensive Financial Report
For the Year Ended June 30,3034
Table of Contents (Continued)
STATISTICAL SECTION
Index.......................................................................................................................................................................... 2\|
Financial Trends:
Net Position 6v Component — Last Ten Fiscal Years ......................................................................................... 212
Changes inNet Position — Last Ten Fiscal Years ............................................................................................... 214
Fund Balances of Governmental Funds — Last Ten Fiscal Years ....................................................................... 2l9
Changes boFund Balance of Governmental Fund — Last Ten Fiscal Years ....................................................... 22U
Revenue
General Governmental Tax Revenues bvSource — Last Ten Fiscal Years ........................................................ 223
Revenue Base — Own Source Revenue — Last Ten Fiscal Years ........................................................................ 224
Electric Utility Rates — Last Ten Fiscal Years .................................................................................................... 22h
Debt Capacity:
Ratios of Outstanding Debt hvType — Last Ten Fiscal Years ............................................................................ 230
Computation ofDirect and Overlapping Debt .................................................................................................... 233
Legal Debt Margin Information — Last Ten Fiscal Years ................................................................................... 234
Wastewater Revenue Bond Coverage — Last Ten Fiscal Years .......................................................................... 236
Water Revenue Bond Coverage — Last Ten Fiscal Years ................................................................................... 238
Demographic and Economic Information:
Demographic Statistics — Last Ten Fiscal Years ................................................................................................ 24\
Principal Employers iuthe Greater Redding Metropolitan Area — Last Ten Fiscal Years ................................. 242
Full -Time City Budgeted Employees by Function/Program — Last Ten Fiscal Years ........................................ 243
Operating /ufhnnatknz:
Capital Assets Statistics by — Last Ten Fiscal Years ............................................................ 245
Supplemental Historical Information:
Statement of Physical Condition of Airport Assets ............................................................................................ 25|
History and Statement of Physical Condition ofElectric Utility System Assets ................................................ 253
History and Statement of Physical Condition ofStorm Drainage \]dliiv System &waci -----------..256
History and Statement of Physical Condition ofWastewater Utility System Assets -------------..258
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12%111
CITE OF REDDING
777 Cypress nue, Redding, CA 96001
PO BOX 496071, Redding, CA 96049-6071
March 11, 2025
Honorable Mayor, Members of
City Council, and City Manager
City of Redding, California 96001
Honorable Members:
In accordance with State and local statutes, the City of Redding (City) hereby submits the Annual Comprehensive
Financial Report for the year ended June 30, 2024. Responsibility for both the accuracy of the presented data and
the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe that
the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set
forth the financial position and result of operations of the City in accordance with generally accepted accounting
principles; and that all disclosures necessary to enable the reader to gain maximum understanding of the City's
financial affairs have been made.
Clifton Larsen Allen, LLP, a firm of licensed certified public accountants has issued an unmodified opinion on the
City of Redding's financial statements for fiscal year ended June 30, 2024.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found
immediately following the report of the independent auditors.
PROFILE OF THE CITY
The City of Redding is a general law city, incorporated under the laws of the State of California in 1887. A
council of five members elected at large for alternating four-year terms governs the City. The Mayor, Vice -
Mayor, City Manager, and City Attorney are appointed by the City Council. The City Clerk and City Treasurer
are also elected officials and serve four-year terms.
Redding is the county seat for Shasta County and is located on the Sacramento River approximately 160 miles
north of Sacramento, the state capital, and 150 miles east of the Pacific Ocean at the northernmost end of the
Sacramento Valley. The City has an estimated population of 92,446 and encompasses approximately 60 square
miles within the corporate limits. Extracting timber and the processing of wood by-products; along with
agriculture, tourism, medical services, and government have historically been the pillars of the local economy.
Over the past few decades, there has been a general shift toward a service -based economy.
This report includes all of the funds of the City. Financial information for separate legal entities related to the
City of Redding includes the Redding Housing Authority, Redding Area Bus Authority, the Redding Joint Powers
Financing Authority and the Redding Capital Services Corporation. All are accounted for in the City's financial.
statements in accordance with Governmental Accounting and Financial Reporting Standards. Component unit
financial reports are on file with the City. Under California State law all redevelopment agencies were dissolved.
The Redding Redevelopment Agency was dissolved on January 31, 2012 and all excess assets were transferred to,
and continue to be accounted for, in a private purpose trust fund.
A
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 Authority and the six -member Housing Authority's board.
City staff provides accounting and administrative services to all four agencies. Additional detail is provided in
Note 1, Subparagraph A of the financial statements.
Redding is a full -service city. This includes public safety (police and fire), highways and streets, public
improvements, planning and zoning, recreation and parks, library, airports, convention and auditorium facility,
utilities (electric, water, wastewater, storm drainage, and solid waste collection and disposal), and general
administrative services.
LOCAL ECONOMY
The growth and health of an area's economy can be determined by monitoring a wide variety of indicators. Listed
below are some of these indicators in the Redding area.
Population Characteristics - The City was one of the fastest growing cities in California between 1970 and
1990, growing to 66,432 residents in 1990 from 16,659 in 1970. However, lately the City's population growth
has slowed. From 2000 to 2010 the City's population grew by an average of 1.1.1 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 increased 0.3
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 2024:
Year
1970
1980.
1990
2000
2010
2020
2021
2022
2023
2024
City of Redding
Annualized
Percent
Change
over
Population Interval
Shasta County
Annualized
Percent
Change
over
Population Interval
16,659
---
77,640
---
41,995
9.69%
119,449
4.40%
66,432
4.69%
147,036
2.10%
80,865
1.99%
163,256
1.05%
89,861
1.11%
177,223
0.85%
93,611
0.35%
182,155
0.23%
93,879
0.02%
182,020
-0.01%
93,058
-0.07%
180,651
-0.06%
92,164
-0.08%
179,122
-0.07%
92,446
0.03%
179,195
0.30%
Source: 1970-2020 data from U.S. Census; 2021-2024 estimates from the California State
Department of Finance as of'May 1 (January 1, 2024 report).
* Revised
The City's population, over the next 1.0 years, is projected to increase by approximately 241 an increase of
approximately .3%. The Redding area is expected to contribute approximately 48% of the total Shasta County
population because of a variety of factors that will support urban development, including utilities (wastewater,
storm drainage, water, electric, and solid waste), employment, regional shopping, transportation services, and
reduced commuting.
M
Housing Costs - Housing in the City is less costly than in many other urban areas in the State of California and
on the West Coast. The following table sets forth the median price of housing in other urban areas of California
as compared to Shasta County, in which Redding is the largest city, as of June 2024:
Region Median Home Price
Shasta County
$396,950
Sacramento
$560,000
Los Angeles
$889,180
Orange County
$1,450,000
San Francisco
$1,650,000
Source: California Association of Realtors
Industry and Employment - Extracting timber and the processing of wood by-products, together with
agriculture, tourism, medical services, and government, have historically been the major sectors of employment in
the City. However, the City's economic base has diversified to a regional service economy supported by retail and
wholesale trade plus educational, recreational, medical, and government services for an area covering several
counties.
The major non -local government employers in the City and the County include those in medical services, and
retail services. Major employers in the City of Redding, their products or services, and the approximate number
of their respective full-time employees as of June 2024 are listed in the following table:
Employer
Mercy Medical Center
Shasta County
City of Redding**
Shasta Regional Medical Center
CA Transportation Department
Shasta Union High School District
Shasta Community College*
Shasta Community Health
Win -River Casino
Redding Rancheria
Product/Services Employees
Medical Facilities/Services
1,980
County Services
1,773
City Services
918
Medical Facilities/Services
880
Highways, Freeways, etc.
573
Education
559
Education
512
Medical Services
507
Casino
351
Redding Rancheria
187
(*) Full —time equivalent positions. This includes employees who work outside of the City.
(**) Full-time budgeted positions
Source: Derived from the Employment Development Department's (EDD) listing of the top employers in Shasta County.
E191
According to the State Employment Development Department, the unemployment rate of the City's metropolitan
area was 5.4 percent on June 30, 2024. 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 2015 through
June 2024:
Fiscal Year
Ending
June 30
Labor
Force
Unemployment
Number
Rate
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
3,31.3
4.5%
2023
73,449
3,730
5.1%
2024
74,200
4,000
5.4%
Source: State Department of Employment
All numbers revised annually to source.
Construction Activity - For the calendar year ending December 2023, 3,883 building permits were issued, with a
total permit valuation of $116,809,532. This represents a 19% 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 hail 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 permits
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:
2020 2021 2022 2023
Single Family Units
204
151
234
94
Value Single Family***
$59,295,326
$42,510,729
$76,110,674
$36,660,286
Multi -Family Units
4
244
52
0
Multi -Family Permits**
1
3
4
0
Value Multi -dwellings
$518,276
$38,036,402
$9,031,632
$0
Number of Permits
37
33
23
23
Value Business
$35,738,443
$46,433,721
$44,679,660
$36,936,113
Total Permits***
6,756
5,310
4,675
3,883
Value Total all Permits*** $165,613,379 $164,855,548 $192,655,276 $116,809,532
* Value of new construction only.
** Includes hotel and apartment units - "R" occupancies.
*** Numbers Revised
Source: City of Redding Development Services Department
►AM
Commerce - The City is a regional center of commerce for several Northern California counties. This is
evidenced by its many shopping centers and malls. Support for retail sales is derived from a retail trade area
population of approximately 127,800 in the primary trade area and approximately 259,400 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 2023, a .71% decrease over the
same period for 2021.
Taxable Taxable Transactions
Transactions Percentage
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: California Department of Tax and Fee Administration
Transportation - The City enjoys a strategic location on U.S. Interstate Highway 5, the principal transportation
artery running north -south from Mexico to Canada. The City is also bisected by State Highway 299 and State
Route 44, key east -west transportation arteries in Northern California.
The City is served by the Union. Pacific Railroad and Amtrak for rail transportation. Greyhound serves the City
with bus service. United Express Airlines provides air service from Redding Municipal Airport to San Francisco
and Los Angeles, California. Alaska Airlines provides air service from Redding Municipal Airport to Seattle,
Washington. Avelo Airlines provides air service from Redding Municipal Airport to Burbank, California.
Redding Area Bus Authority (RABA) is the City's multi -bus transportation system and offers fifteen different
fixed routes, rural service and demand response (curb -to -curb) services. RABA had a total ridership of 501,689
over the fiscal year which is an average total monthly ridership of approximately 41,807. Ridership over the past
three fiscal years has declined following the onset of the Coronavirus pandemic.
Utilities - Electricity, solid waste collection and disposal, water, storm drainage, and wastewater services are
provided by enterprise operations owned and operated by the City. Natural gas is provided by Pacific Gas and
Electric Company (PG&E); basic telephone service by AT&T.
0111
Community Services - Youth in the area attend school at one of 45 elementary schools and middle/junior high
schools, 15 charter schools, 1 regional occupation programs and 16 high schools. There are several higher
educational institutions in the immediate area offering bachelor and master's degrees: Chico State University
Center for Regional and Continuing Education (located in the Health Science & University Center, downtown
Redding), National University, Simpson University, and Shasta Bible College & Graduate School. Shasta
Community College, a two-year institution, offers both day and evening courses to over 9,469 students. In
addition, there are several Vocational & Technical schools offering a diverse range of programs.
The City's parks system includes 59 developed parks and facilities, encompassing over 482 developed acres. This
system includes nearly 180 acres of natural area parks, 40 plus miles of City -owned trails, and 17 special purpose
facilities and almost 1,000 acres of natural open space. Among these special purpose facilities are the Redding
Civic Auditorium, which hosts cultural/performing arts events, the Redding Aquatic Center; the Redding Big
Sports Park; the California Soccer Park; the Senior Citizens Center; the Redding Rodeo Grounds, the Martin
Luther King Jr. Community Center; three boat ramps along the Sacramento River. New for 2024, is the City's .31.
-acre Whistle Stop Park, a premier downtown plaza featuring a stage, cooling fog system and much more.
The City serves as the primary medical center for Northern California. The City's two general care hospitals
serve approximately 330,000 people in. Shasta, Tehama, Trinity, Siskiyou, and Lassen counties. The two largest
hospitals have a total of 492 beds and employ approximately 2,860 full-time staff members. In addition, the City
also has several specialized hospitals.
LONG-TERM FINANCIAL PLANNING
The City has long-range financial plans (typically ten years) for all of its major funds. On August 4, 2020 Council
Policy 412 was revised to change the minimum cash reserve balance from 5% to 10%. It is the policy of the City
Council that all major funds except the Electric Utility maintain a minimum of 10% of expenditures in cash
reserves in all years of their financial plans. Due to the dynamic industry, it is Council policy that the Electric
Utility maintains a minimum of 1.80x Debt Service Coverage (DSC) without reserves and maintains unrestricted
cash reserves of 150 days of cash on hand. All of the City's long- range financial plans meet these criteria.
ACCOUNTING SYSTEM AND BUDGETARY CONTROL
The City's accounting records are maintained on the modified accrual basis for governmental fund types and on
the accrual basis for proprietary fund types. In developing the City's accounting system, consideration is given to
the adequacy of internal accounting controls which are designed to provide reasonable, but not absolute,
assurance regarding:
1. The safeguarding of assets against losses from unauthorized use or disposition.
2. The reliability of financial records for preparing financial statements and maintaining
accountability of assets.
The concept of reasonable assurance recognized that the cost of a control procedure should not exceed the
benefits likely to be derived and that the evaluation of costs and benefits require estimates and judgments of
management.
All internal control evaluations occur within the above framework. We believe the City's internal accounting
controls adequately safeguard assets and provide reasonable assurance of proper recording of financial
transactions.
Budgetary control is maintained at the department and fund level. The City Manager may transfer appropriations
between divisions within a department within a fund; however, any revision that increases total fund expenditures
without providing additional revenue to cover the total expenditure must be approved by City Council.
The City utilizes the encumbrance system as a management control technique to assist in controlling
expenditures.
► EM
FEDERAL GRANTS SINGLE AUDIT APPROACH
The City of Redding is required to undergo a single audit in conformity with the provisions of the Single Audit
Act of 1984,.U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local
Governments and Non -Profit Organizations, and the OMB's Uniform Guidance. This report has been prepared
under the "single audit" concept. Under this approach, one agency is recognized as the cognizant agency or
oversight agency of the Office of Management and Budget. In the case of the City of Redding, the State of
California acts as the single audit oversight agency. The financial report will be reviewed by the oversight agency
for compliance with all Federal grant requirements, and notification of the results will be provided to other
Federal agencies. A separate schedule of Federal financial assistance is available upon request.
As a recipient of Federal, State, and County financial assistance, the City of Redding is responsible for
implementing an adequate internal control structure to ensure compliance with applicable laws and regulations
related to those programs. The results of the City of Redding's single audit for the fiscal year ended June 30,
2024, provided no instances of material weaknesses in the internal control structure or significant violation of
applicable laws and regulations.
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Redding for its Annual Comprehensive
Financial Report (ACFR) for the fiscal year ended June 30, 2023. This was the 40th consecutive year that the
government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report.
This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current Annual
Comprehensive Financial Report continues to meet the Certificate of Achievement Program requirements, and we
are submitting it to the GFOA to determine its eligibility for another certificate.
ACKNOWLEDGMENTS
I would like to take this opportunity to thank the members of the Audit Committee and the City Council for their
cooperation and support in conducting the financial operations of the City in a responsible and progressive
manner. Appreciation is also expressed to all. City departments who contributed information provided in this
financial report and the Finance Department's staff who made this presentation possible. It is the combined effort
of all participants that resulted in the issuance of this document.
Gregory Robinett
Director of Finance/City Treasurer
►iv
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Redding
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
xvi
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MUNICIPAL OFFICIALS
City Council
Mayor......................................................................................Tenessa Audette
ViceMayor.................................................................................... Julie Winter
Mayor Pro Tempore....................................................................... Jack Munns
Council Member........................................................................ Mark Mezzano
Council Member -Appointee .................................................... Joshua Johnson
Administrative Personnel
City Manager................................................................................ Barry Tippin
Assistant City Manager...................................................................
Steve Bade
City Attorney............................................................................Christian
Curtis
City Clerk.................................................................................Sharlene
Tipton
City Treasurer.............................................................................
Greg Robinett
Director of Community Services .................................................
Travis Menne
Director of Development Services ..............................................
Jeremy Pagan
Director of Electric..........................................................................
Nick Zettel
Director of Financial Services ....................................................
Greg Robinett
Director of Information Technology
..................................... Tony Van Boekel
Director of Personnel.......................................................................
Kari Kibler
Director of Public Works..........................................................
Michael Webb
Fire Chief.......................................................................Jerrod
Vanlandingham
Police Chief..................................................................................
Brian Barner
►419ni
Is
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Clifton LarsonAllen LL
CLAconnect.corn
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members
of the City Council of the City of Redding
Redding, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of Redding, California (the
"City") as of and for the year ended June 30, 2024, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business -type activities, each major fund, and the aggregate
remaining fund information of the City, as of June 30, 2024, 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
(GARS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Our responsibilities under those standards are further described in
the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to
be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from )material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
n CiAplobal.co dd#sdair�er.
To the Honorable Mayor and Members
of the City Council of the City of Redding
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a
material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control related matters that we
identified during the audit.
N
To the Honorable Mayor and Members
of the City Council of the City of Redding
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, Budgetary Principles, Schedule of Revenues, Expenditures, and Changes in Fund
Balance -Budget and Actual - General Fund, Schedules of Changes in Net Pension Liability and Related Ratios,
Schedules of Plan Contributions (CalPERS and PARS), Schedule of Changes in Net OPEB Liability and Related
Ratios, and Schedule of Contributions-OPEB, as listed in the accompanying table of contents, be presented to
supplement the basic financial statements. Such information is the responsibility of management and, although
not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with GAAS, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during
our audit of the basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The Combining and Individual Non -major Fund Financial
Statements and Budgetary Comparison Schedules are presented for purposes of additional analysis and are not a
required part of the basic financial statements. The Schedule of Passenger Facility Charges Collected and
Expended and Interest Collected is presented for purposes of additional analysis as specified in the Passenger
Facility Charge Guide for Public Agencies, issued by the Federal Aviation Administration, and is not a required
part of the basic financial statements. Such information is the responsibility of management and was derived from.
and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly to
the underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Combining
and Individual Non -major Fund Financial Statements, Budgetary Comparison Schedules, and Schedule of
Passenger Facility Charges Collected and Expended and Interest Collected are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the Introductory and Statistical Sections and the Supplemental Historical Information but does not
include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are required
to describe it in our report.
To the Honorable Mayor and Members
of the City Council of the City of Redding
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 11, 2025, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering City of Redding's internal control over financial
reporting and compliance.
CliftonLarsonAllen LLP
Roseville, California
March l l , 2025
0
City of Redding
Management's Discussion and Analysis
For the Year Ended June 30, 2024
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, 2024. The
management's discussion and analysis is designed to (a) assist the reader in focusing on significant financial
issues, (b) provide an overview of the City's financial activity, (c) identify changes in the City's financial position
(its ability to address future challenges), (d) identify any material deviations from the financial plan (approved
budget), and (e) identify individual fund issues or concerns.
We encourage readers to consider the information presented here in conjunction with additional information that
we have furnished in our letter of transmittal (beginning on page ix) and the financial statements (beginning on
page 27).
USING THIS FINANCIAL REPORT/OVERVIEW OF REPORT
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The
basic financial statements consist of three components: 1) government -wide financial statements, 2) fund financial
statements, and 3) notes to the financial statements. This report also contains other supplementary information in
addition to the basic financial statements to provide the reader further understanding of the City.
Government -Wide Financial Statements
The government -wide financial statements are designed to provide the readers with a broad overview of the City's
finances, in a manner similar to a private -sector business. The government -wide financial statements consist of
the following parts:
Statement of Net Position: This statement presents information on all of the City's assets and deferred outflows
of resources and liabilities and deferred inflows of resources with the difference reported as net position.
Net Position = (Assets + Deferred Outflows of Resources) — (Liabilities + Deferred Inflows of Resources)
Over time, the change in net position may serve as a useful indicator of whether the financial position of the City
is improving or deteriorating.
Statement of Activities: This statement presents information showing how the government's net position
changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will result in cash flow in future fiscal periods (e.g.,
uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City that are principally supported
by taxes and intergovernmental revenues (governmental activities), from other functions that are intended to
recover all or a significant portion of their costs through user fees and charges (business -type activities). The
governmental activities of the City include general government, police, fire, public works, planning, recreation
and culture, and community development. The business -type activities of the City include electric, water,
wastewater, transportation (airport and bus), storm drainage, solid waste, and convention center. Also included in
the government -wide financial statements are the Redding Housing Authority, Redding Area Bus Authority
(RABA), and the Redding Joint Power Financing Authority. While these agencies are legally separate agencies,
their governing boards consist entirely of City Council members or in the case of RABA, the majority of the
board members are members of the City Council. They function for all practical purposes as departments of the
City, and therefore have been included as an integral part of the primary government.
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
The government -wide financial statements can be found on pages 29-33 of this report.
Fund Financial Statements
A fund is a group of related accounts that are used to maintain control over resources that have been segregated
for specific activities or objectives. The City, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be
divided into three categories as follows:
Governmental Funds: These funds are used to account for essentially the same functions reported as
government activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on near -term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near -term financing decisions. Both the governmental fund balance
sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains twelve individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in governmental fund statement of revenues, expenditures, and changes in
fund balances for the General Fund, General Capital Project Fund, and Community Development Fund, which are
considered to be major funds. Data from the other nine governmental funds is combined into a single, aggregated
presentation. Individual fund data for each of these non -major governmental funds is provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been
provided for the General Fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 37-43 of this report.
Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise funds are used to
report the same functions presented as business -type activities in the government -wide financial statements. The
City uses enterprise funds to account for its Electric Utility, Water Utility, Wastewater Utility, Solid Waste
Utility, Airport Fund, Storm Drainage Utility, Redding Area Bus Authority, and the Convention Center Fund.
Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's
various functions. The City uses internal service funds to account for centralized activities and services
performed by certain departments for other departments of the City. The City has five internal service funds: the
Equipment Fund to account for all maintenance of the motorized fleet and communication system; the
Information Systems Fund to account for the data processing activities of the City; the Risk Management Fund to
account for the self-insurance activities of the City; the Communications and the General Support Services Fund
which accounts for mail, printing, records management, public relations and building maintenance activities; and
the Municipal Utilities Support Fund, which accounts for the administrative management function of the
municipal utilities and some public works. Because these services predominantly benefit governmental rather
than business -type functions, they have been included within government activities in the government -wide
financial statements.
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
Proprietary funds provide the same type of information as the government -wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the Electric Utility, Water
Utility, Wastewater Utility and Solid Waste Utility, which are considered to be major funds of the City. Data from
the other enterprise funds is combined into a single aggregated presentation. The internal service funds are also
combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data
for the non -major enterprise funds and internal service funds is provided in the form of combining statements
elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 45-55 of this report.
Fiduciary Funds: The City maintains custodial funds and a Private -purpose Trust Fund (Successor Agency to the
Redding Redevelopment Agency). These funds are used to account for resources held for other parties outside
the government. These funds are not reflected in the government -wide financial statement because the resources
of those funds are not available to support the City's own programs.
The basic fiduciary fund financial statements can be found on pages 57-59 of this report.
Notes to the Financial Statements: The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes to the
financial statements can be found on pages 61-143 of this report.
Other Information: In addition to the basic financial statements and accompanying notes, this report also
presents required supplementary information, supplementary information, statistical information and certain other
supplemental historical information that may be useful to the users of the City's financial statements. This
information can be found in the last four sections of this report.
9
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
FINANCIAL HIGHLIGHTS
Government -Wide Financial Highlights
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources
at the close of the most recent fiscal year by $848 million (See Analysis of Statement of Activities and Changes in
Net Position on page 1.2).
• $774 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.
• $134 million is available for the City's ongoing obligations related to programs with external restrictions.
• ($60.7) 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 $14.6 million (net of bond premiums and discount and excluding
deferred charges) during the year ending June 30, 2024. The City made $1.7.2 million in regular scheduled
debt payments. The City added $2.6 million in lease, subscription and loan debt.
• The City's total net position increased by $31 million over the prior year.
• The $45.5 million increase in net investment in capital assets represents the capital assets less accumulated
depreciation/amortization, outstanding principal of capital debt, original issue premiums on outstanding
capital debt, related deferred inflows, plus original issue discounts on outstanding capital debt, related
deferred outflows.
• The $1.8 million increase in restricted net position represents the change in resources that are subject to
external restrictions on their use.
The ($15.9) million increase in unrestricted net position is the change in resources available to fund City
programs to citizens and debt obligations to creditors.
Governmental Funds Financial Highlights
The City's governmental funds' combined ending fund balance of $132.8 million was an increase of $17.7
million from the prior year ending fund balance of $115.1 million. Amounts available for spending include
Restricted, Assigned and Unassigned Fund Balances; these totaled $130.6 million, or 98.3 percent of fund
balance. Of this amount:
• $110.1 million is restricted bylaw or externally imposed requirements.
• $13.5 million is assigned or constrained by the City Council's `intent" to be used for specific purposes, but
are neither restricted nor committed.
• $7.0 million is unassigned fund balance.
E
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Summary of Net Position
in thousands
Governmental Business -Type
Activities Activities Total Total
Dollar Percent
2024 2023 2024 2023 2024 2023 Change Change
Assets:
Current and other assets
$229,030
$226,005
$262,137
$262,286
$491,167
$488,291
$ 2,876
0.6%
Capital assets, net
378,133
364,798
561,771
542,813
939,904
907,611
32,293
3.6%
Total assets
607,163
590,803
823,908
805,099
1,431,071
1,395,902
35,169
2.5%
Deferred outflowof resources
96,762
75,394
66,284
55,070
163,046
130,464
32,582
25.0%
Liabilities:
Current liabilities
52,922
55,023
58,914
48,709
111,836
103,732
8,104
7.8%
Long-term liabilities
333,838
296,980
283,410
290,089
617,248
587,069
30,179
5.1%
Total liabilities
386,760
352,003
342,324
338,798
729,084
690,801
38,283
5.5%
Deferred inflow of resources
5,918
7,826
11,507
11,510
17,425
19,336
1,911)
-9.9%
Net position:
Net investment in capital assets
348,503
335,471
425,350
392,864
773,853
728,335
45,518 6.2%
Restricted
131,862
123,734
2,576
8,922
134,438
132,656
1,782 1.3%
Unrestricted
_(169,118)
152,837)
108,435
108,075
(60,683)
(44,762)
(15,921) 35.6%
Total net position
$311,247
$306,368
$536,361
$509,861
$847,608
$816,229
$ 31,379 3.8%
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 $847.6 million at the close of the current fiscal year.
Analysis of Summary of Net Position
The City's total net position increased by 3.8% from a year ago, increasing from $816.2 million to $847.6 million.
Net position from governmental activities increased by $4.9 million or 1.6% and net position from business
activities increased by $26.5 million or 5.2%. The $4.9 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, 2024 is primarily the result of the City's unfunded pension and OPEB obligations.
The $26.5 million increase in net position from business -type activities is primarily due to increases in capital
assets and funds being accumulated for current and future capital projects, especially in the Electric Utility Fund
and Wastewater Utility Fund.
Most of the City's net position is invested in capital assets (i.e., land, buildings, utility plants, machinery, and
equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital
assets to provide services to citizens; consequently, these assets are not available for future spending. Although
the City's investment in its capital assets is reported net of related debt, it should be noted that resources needed to
repay this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities. The restricted net position of $134.4 million represents resources that are subject to
external restrictions as to how they may be used. The remaining unrestricted net position deficit of ($60.7) million
experienced a negative change of $15.9 million, or 35.6%, 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, 2024
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
2024
2023
2024
2023
2024
2023
Change
Change
Revenues
Program revenues
Charges for services
$ 23,680
$ 21,599
$ 268,468
$290,901
$292,148
$312,500
$ (20,352)
-6.5%
Operating grants and contributions
53,006
62,613
8,587
8,021
61,593
70,634
(9,041)
-12.8%
Capital grants and contributions
14,380
23,464
7,911
1.3,998
22,291
37,462
(15,171)
-40.5%
Total program revenue
91,066
107,676
284,966
312,920
376,032
420,596
(44,564)
-10.6%
General revenue
Sales tax
31,068
30,469
-
-
31,068
30,469
599
2.0%
Property tax
28,525
26,375
-
-
28,525
26,375
2,150
8.2%
Investment earnings
2,845
1,113
9,525
2,410
12,370
3,523
8,847
251.1%
Other
1.2,1.39
12,067
663
16
12,802
12,083
71.9
6.0%
Total general revenues
74,577
70,024
10,188
2,426
84,765
72,450
12,315
17.0%
Total revenue
165,643
177,700
295,154
315,346
460,797
493,046
32,249
-6.5%
Expenses:
General government
8,221
11,843
-
-
8,221
11,843
(3,622)
-30.6%
Police
54,474
46,860
-
-
54,474
46,860
7,614
16.2%
Fire
35,008
27,823
-
-
35,008
27,823
7,185
25.8%
Public works
22,360
1.7,061
-
-
22,360
17,061
5,299
31.1%
Planning
8,047
6,856
-
-
8,047
6,856
1,191
17.4%
Recreation and culture
14,565
14,168
-
-
14,565
14,168
397
2.8%
Community development
21,600
24,470
-
-
21,600
24,470
(2,870)
-11.7%
Interest on long-termdebt
1,662
1,451
-
-
1,662
1,451
211
14.5%
Electric
-
-
159,039
187,015
159,039
187,015
(27,976)
-15.0%
Water
-
-
22,977
21,305
22,977
21,305
1,672
7.8%
Wastewater
-
-
28,480
27,966
28,480
27,966
514
1.8%
Stone drain
-
-
3,218
2,653
3,218
2,653
565
21.3%
Solid Waste
-
-
33,854
29,546
33,854
29,546
4,308
14.6%
Transportation
-
-
14,723
13,701
14,723
13,701
1,022
7.5%
Convention center
-
-
1,191
1,300
1,191
1,300
(109)
-8.4%
Total expenses
165,937
150,532
263,482
283,486
429,419
434,018
4,599
-1.1%
Increase in net position before
transfers andspecial item
(294)
27,168
31,672
31,860
31,378
59,028
(27,650)
-46.8%
Transfers
5,172
7,834
5,172
7,834
-
-
-
0.0%
Change in net position
4,878
35,002
26,500
24,026
31,378
59,028
27,650)
-46.8%
Net position -beginning, as restated
306,369
271,367
509,861
485,835
816,230
757,202
59,028
7.8%
Net position - ending
$311,247
$306,369
$ 536,361
$509,861
$847,608
$816,230
$ 31,378
3.8%
12
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
Governmental Activities
Revenue Highlights
Total revenues for the governmental activities were $165.6 million. The largest component of total revenue is
taxes at $71.2 million, making up 43% of total revenue in the governmental funds. This is consistent with the
nature and purpose of governmental funds, particularly in the General Fund, where programs are largely
supported by general tax revenues. The largest tax revenues received by the General Fund include sales, property,
and transient occupancy.
Some of the key changes in revenues are:
Sales tax increases by 2.0% from the prior year. The increase of $0.6 million is in part due to a significant
decrease in fiscal year 2022-23. The decrease in 2022-23 was $1.4 million or 4.3% from the prior year. As a result
of this increase the City is still below the fiscal year 2021-22 level of sales tax by $0.8 million. In fiscal year
2023-24 there was a modest recovery from a significant decrease in the prior fiscal year. The decreases in fiscal
year 2022-23 and the modest recovery in fiscal year 2023-24 is due to a dynamic economy weathering the
impacts of high inflationary pressure. During fiscal year 2023-24 the average inflation was 3.3% which was
lowered from 6.3% in fiscal year 2022-23. The response to the inflation has been increasing interest rates, which
causes a tighter monetary environment with less major taxable purchases occurring.
Property taxes increased by 8.2% from the prior year. The $2.2 million increase is reflective of the rise in
property values and the related re -assessment when properties are sold.
Transient occupancy taxes decreased by 2.2% from the prior year. The $0.16 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 decreased by $9.6 million primarily due to a decrease in operating grant
revenue for Community Development housing development programs of $1.0 million.
Charges for services increased by $2.1 million primarily due to an increase in Fire due to Zogg fire settlement.
Capital grants and contributions decreased by $9.1 million primarily due to a change in capital grants for Public
Works.
Expense Highlights
Functional expenses for the year totaled approximately $165.9 million, an increase of $19.4 million from the prior
year. The increase is a result of an increase in Police of $7.6 million and Fire of $7.2 million primary related to
personnel related costs, vehicle maintenance and vehicle purchases. And an increase in Public works of $5.2,
which included an increase in street maintenance projects also contributed to the increase.
The largest component of total expenses was for public safety (police and fire), representing $89.5 million or
53.9% of the total. A large portion of public safety costs are funded from general revenues, primarily taxes. In
contrast, Public Works expenses, which total $22.4 million, are funded largely from restricted revenues, including
gas tax and federal and state grants. These resources pay for street maintenance and improvements, street,
sweeping, transportation planning and other related costs.
13
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
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
General Gove"tn c nt ... 4s ,—Interest on T.t 13eitt
.tl° li} Ii
Police
_V1 M4, Aly kkk
Recreation and Culture
Revenues by Source - Governmental Activities
Capital Grants and
Operating Grants and Contributions
Contributions 8.7%
32.0%
Charges by 1
14.3%
Other
0.3%
Investment Earnings
1.7%
Sales Tax
18.8%
Property Tax
17.2%
Other Taxes
7.0%
14
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
Business -Type Activities
Business -type activities increased the City's net position by $26.5 million. Key elements of this increase are as
follows:
• Revenues exceed expenses for electric, water, wastewater, and storm drain as funds are being
accumulated for current and future capital projects.
• Expenses exceed revenues for the convention center as the operating transfer from the general fund is
not shown as revenue.
The following schedule shows business -type activities revenues and expenses:
Revenues, Transfers and Expenditures - Business -Type Activities
(in thousands)
Changes in
Revenue
Expense
Net Position
2024
2023
2024
2023
2024
2023
Electric
$ 172,650
$ 201,023
$ 159,039
$ 187,015
$ 13,611
$ 14,008
Water
29,627
27,907
22,977
21,305
6,650
6,602
Wastewater
36,717
36,194
28,480
27,966
8,237
8,228
Storm drainage
3,078
3,872
3,218
2,653
(140)
1,219
Solid waste
29,587
27,167
33,854
29,546
(4,267)
(2,379)
Transportation
13,126
16,546
14,724
13,701
(1,598)
2,845
Convention center
182
212
1,191
1,300
(1,009)
(1,088)
Investment earnings
9,525
2,409
-
-
9,525
2,409
Transfers
(5,172)
(7,834)
-
-
(5,1.72)
(7,834)
Other
663
16
-
-
663
16
Total
$ 289,983
$ 307,512
$ 263,483
$ 283,486
$ 26,500
$ 24,026
Revenues by Source - Business -Type Activities
Charges for
Services
91.2%
Operating Grants
& Contributions
2.9%
Capital Grants &
Contributions
2.7%
Investment
Earnings
3.2%
Typically, business -type activities charge customers for the services provided and the related necessary capital
costs. As can be seen from the above graph, charges for services make up the vast majority (91.2%) of the
revenues of the business -type activities.
15
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
Analysis of the Governmental Fund Balances
Gove rnme ntal Fund B alance s
(in thousands)
Nonspendable Restricted Assigned
Unassigned
Total
General fund
$ 2,128 $ 432 $ 13,529
$ 7,458
$ 23,547
Major funds
Capital projects
- 9,097 -
-
9,097
Community Development
32 69,910 -
-
69,942
Other governmental funds
66 30,622 -
(470)
30,218
$ 2,226 $ 110,061 $ 13,529
$ 6,988
$ 132,804
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, 2024, the City's governmental funds reported total fund balance of $1.32.8 million, an increase of
$17.7 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 19 — Fund Balances):
• Non -spendable Fund Balance, $2.2 million are amounts that are not spendable in form, or are legally or
contractually required to be maintained intact, and are made up of (1) prepaid expenses,
(2) inventories, and (3) endowments. $2 million for prepaid the July 2024 health insurance due in June.
• Restricted Fund Balance, $110.1 million consists of amounts with constraints put on their use by creditors,
grantors, contributors, laws, regulations or enabling legislation. Examples of restrictions on funds are those
for (1) purpose of fund, (2) reserves associated with issued bonds, and (3) grants for capital outlay.
• Assigned Fund Balance, $13.5 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, $7.0 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, 2024
General Fund
The General Fund is the chief operating fund of the City. At June 30, 2024, unassigned fund balance was $7.5
million. As a measure of the General. Fund's liquidity, it may be useful to compare both unassigned fund balance
and total fund balance to total fund expenditures. Unassigned fund balance represents 6% of the total General
Fund expenditures, while total fund balance represents 19.1% of total General Fund expenditures.
The fund balance of the City's General Fund decreased by $3.0 million during the year ended June 30, 2024.
General Fund revenues increased $9.5 million, and expenditures increased by $9.4 million from fiscal year-end
2023 to 2024. The increase in revenue was primarily due to increases in property tax revenue of $2.2 million
(4%). Tax rates were not changed during the year. Also, intergovernmental revenues increased $2.2 million and
other revenues increased $3.6 million due to a Zogg Fire Settlement.
The $9.4 million increase in expenditures is primarily due to an increase in expenditures for Public Safety of $8.8
million. The expenditures contributing to the increase are primarily due to increases in employee costs and
increasing in vehicle maintenance, communications, and information technology.
Other financing sources decreased by $1.0 million. This is primarily due to a decrease in net transfers of $1.3
million and increase in gains on sale of assets of $0.2 million.
Governmental Funds
Summary of Revenues, Expenditures, and Changes in Fund Balances
(in thousands)
Total revenue
General Fund
Dollar Percent
2024 2023 Change Change
$ 103,839 $ 94,350 $ 9,489
Total expenditures 123,113 113,759 9,354
Excess (deficiency) of revenues (19,274) (19,409) 135
Other financing sources (uses)
Net change in fund balance
Fund balance
Beginning of year
End of year
10.1%
8.2%
-0.7%
16,259 17,246 (987) -5.7%
(3,015) (2,163) (852) 39.4%
26,562 28,725 (2,163)
$ 23,547 $ 26,562 $ (3,015)
-7.5%
-11.4%
17
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
Capital Project Fund
The Capital Project Fund accounts for the financing and construction activities of the City. On June 30, 2024, the
restricted fund balance was $9.1 million. Restricted fund balance represents 66.8% of the total Capital Project
Funds expenditures.
The fund balance of the City's Capital Project Fund increased $7.6 million during the year ended June 30, 2024
primarily due to a decrease in capital outlay. The balance is due to an increase in intergovernmental revenues.
Capital Project Fund revenues increased $3.2 million and expenditures decreased $4.5 million. The increase in
revenue was primarily due to an increase in state grant revenue and the decrease in expenditures was the result of
increased capital outlay for construction project activity.
Governmental Funds
Summary of Revenues, Expenditures, and Changes in Fund Balances
(in thousands)
Capital Projects Fund
Dollar Percent
2024 2023 Change Change
Total revenue
$ 21,226 $
17,989 $
3,237
18.00/0
Total expenditures
13,624
18,172
(4,548)
-25.0%
Excess (deficiency) of revenues
7,602
(183)
7,785
-4254.1%
Other financing sources (uses)
-
(33)
33
-1.00.0%
Net change in fund balance
7,602
(216)
7,818
-3619.4%
Fund balance
Beginning of year
1,496
1,712
(216)
-12.6%
End of year
$ 9,098 $
1,496 $
7,602
508.2%
18
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
Community Development Fund
The Community Development Fund accounts for the financing and rehabilitation of homes and public facilities,
financing of multifamily housing, and homeless services of the City. On June 30, 2024, the restricted fund
balance was $69.9 million. Restricted fund balance represents 650% of the total Community Development Fund
expenditures.
The fund balance of the City's Community Development fund increased $12.6 million during the year ended June
30, 2024 primarily due to the increase in notes receivable.
Community Development Fund revenues increased $0.03 million and expenditures increased $0.2 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 of Revenues, Expenditures, and Changes in Fund Balances
(in thousands)
Total revenue
Total expenditures
Excess (deficiency) of revenues
Other financing sources (uses)
Net change in fund balance
Fund balance
Beginning of year
End of year
Community Development
Dollar Percent
2024 2023 Change Change
$ 23,404
$ 23,379 $
25
0.1%
10,761
10,558
203
1.9%
12,643
12,821
(178)
-1.4%
12,643 12,821
0.0%
(178) -1.4%
57,298 44,477 12,821
$ 69,941 $ 57,298 $ 12,643
28.8%
22.1%
19
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
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 following schedule shows the changes in net position of the
major proprietary funds and restricted and unrestricted portions of net position of the major proprietary funds of
the City.
Changes in Net Position - Major Proprietary Funds
(in thousands)
Net Position Changes in
Net Position
June 30, 2023 Net Position
June 30, 2024
Electric Utility
$ 135,61.2 $ 1.0,1.99
$
1.45,811
Water Utility
125,716 9,260
134,976
Wastewater Utility
169,629 9,027
178,656
Solid Waste Collection/Disposal
20,631 (3,108)
17,523
Net Position - Restricted and Unrestricted
Major Proprietary Funds as of June 30, 2024
(in thousands)
Net
investment in Restricted Net Unrestricted
Total Net
Capital Assets Position Net Position
Position
Electric Utility
$ 110,171 $ - $
35,640
$ 145,811
Water Utility
83,587 2,576
48,813
134,976
Wastewater Utility
142,322 -
36,334
178,656
Solid Waste Collection/Disposal 19,577 -
(2,054)
1.7,523
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, 2024
General Fund Budgetary Highlights
The City adopts two one-year budgets every other year. The fiscal year ending June 30, 2024, was the first year
of the two-year budget process. Differences between the original General Fund budget and the amended General
Fund budget expenditures are shown below:
General Fund Original and Amended Budget
(in thousands)
Increase
Original Amended (Decrease)
General government $ 13,620 $ 13,674 $ 54
Public safety:
Police
Fire
Public works
Planning
Recreation and culture
Principal payments
Interest payments and bond costs
Total expenditures
49,946
52,508
2,562
28,523
33,789
5,266
22,272
23,194
922
8,958
9,083
125
9,926
1.0,720
794
1,245
1,711
466
784
873
89
$ 135,274
$ 1.45,552 $
1.0,278
As shown in the previous table, the General Fund's original budget was amended to include increase of $1.0.3
million or approximately 8.0%. The reasons for this increase are as follows:
The Police budget increased by $2.6 million primarily due to grants and grant type agreements approved
and received after the budget was originally adopted of $0.5. It is the City policy not to include grant
expenditures in the original adopted budget if grant approval has not been finalized. These grants were for
traffic enforcement, police officers and school resource officers along with other Police related activities.
Additionally, Zogg fire settlement funds of $0.5 million, red light camera program increase of $0.3 million,
and staff costs increase of $0.1 million
• The Recreation and Culture budget increased by $0.8 million primarily due to $0.1 million for Redding
Sports Park personnel, $0.3 million for operating grant funding.
• The Fire budget increased by $5.3 million primarily due to $2.6 million for operating grant funding, $2.3
million for personnel due to contractual increases, $0.4 million related to Zogg fire settlement funds.
• The Public works budget increased by $0.9 million primarily due increased personnel.
• The City does not include rolling stock appropriations in its original budget. It is a Council policy to
maintain a rolling stock fund and equipment replacement fund separate from the General Fund from which
departments, with the City Manager approval, can transfer funds to the General Fund and amend the
adopted budget for the transfers. During the year departments' budgets were increased by $1.1 million due
to rolling stock transfers and $0.4 million due to equipment replacement transfers.
21
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
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, 2024,
totaled $939.9 million (net of accumulated depreciation). This investment in capital assets includes land,
buildings, utility plants, collections, generation, distributions and transmissions systems, improvements,
machinery and equipment, park facilities, roads, bridges and right -to -use leases and subscriptions. The City's
total investment in capital assets for the current year increased by $32.3 million. Investment in capital assets for
governmental activities increased $13.3 million or 3.7% and business -type activities increased $18.8 million or
3.5%.
Major capital asset events during the current fiscal year included the following:
• Developers added an estimated $4.5 million of water, wastewater, electric, storm drainage improvements,
parks, streets, sidewalks and traffic signals.
• The City added $5.2 million on. Block 7 project, $3.5 million on. Old Alturas Bridge project, $2.5 million on.
Bechelli ATP project, $1.6 million on Citywide ERP system and $1.4 million on Eastside Road Bridge
project.
• Electric Utility added $7.5 million on system improvements, $2.8 million on Overhead and Underground
Infrastructure, $1.1 million on SSP Lifecycle project, and $1.0 million on vehicles.
• Water Utility added $6.8 million on Lake Boulevard Water Line project, $2.7 million on. PH Replacement,
1.4 on EW 12 Wellhead Treatment, $1.2 million on Athens Area Water Main project, $0.1 million in meters
and $0.1 million on vehicles.
• Wastewater Utility added $61 million on Biosolid Pyrolysis, $2.2 million on Trinity Street Sewer project,
and $0.1 million on vehicles.
• Storm Drainage Utility added $0.5 million on system improvements and $0.2 million on Eastside Road
Storm Drain project.
• Solid Waste added $2.9 million on vehicles and heavy equipment and $0.6 million on Lift Station
Improvements.
• Airport added $0.8 million on Runway Rehabilitation and Enhancements.
• Fire added $2.2 million in vehicles and fire engines and trucks. Police added $1.4 million in vehicles.
• Parks added $2.9 million on Shastina Park and 1.1 million on Downtown Urban Park.
• The City deleted assets, net depreciation, of $0.5 million in plant assets, and $0.2 million in vehicles.
22
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
Changes in Capital. Assets, net Depreciation
(in thousands)
Governmental activities:
Capital assets, not being depreciated
Land
Construction in progress
Capital assets, being depreciated
Buildings
Improvements other than buildings
Infrastructure
Automotive equipment
Furnishings and equipment
Assets under lease:
Improvements
Automotive equipment
Subscriptions
Governmental activities capital assets, net
Business -type activities:
Capital assets, not being depreciated
Land
Construction in progress
Capital assets, being depreciated
Utility plants
Buildings
Improvements other than buildings
Automotive equipment
Furnishings and equipment
Assets under lease:
Equipment
Subscriptions
Business -type activities capital assets, net
Total entity -wide capital assets
Balance
Balance
Dollar
Percent
June 30, 2024
June 30, 2023
Change
Change
$ 39,930
$ 36,427
$ 3,503
9.6%
74,521
67,370
7,151
10.6%
21,032
22,881
(1,849)
-8.1%
26,464
29,261
(2,797)
-9.6%
199,715
197,852
1,863
0.9%
10,095
7,864
2,231
28.4%
1,900
2,408
(508)
-21.1%
13
43
(30)
-69.8%
612
427
185
43.3%
3,851
265
3,586
1353.2%
$ 378,133
$ 364,798
$ 13,335
3.7%
$ 20,394
$ 20,394
$ -
0.00/0
80,484
55,200
25,284
45.8%
386,219
388,322
(2,103)
-0.5%
24,254
26,433
(2,179)
-8.2%
19,786
21,152
(1,366)
-6.5%
20,233
19,529
704
3.6%
6,352
7,890
(1,538)
-19.5%
81
130
(49)
-37.7%
3,968
3,763
205
5.4%
$ 561,771
$ 542,813
$ 18,753
3.5%
$ 939,904
$ 907,611
$ 32,293
3.6%
See Note 6 to the Financial Statementsfor additional information regarding capital assets
23
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
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, 2023
Transfers
Reductions
June 30, 2024
Governmental activities:
Subscriptions payable
$ 273
$ 2,127
$ 656
$ 1,744
Leases payable
426
352
225
553
Lease revenue bonds
25,605
-
1,640
23,965
Special assessment debt
-
-
-
-
Loan
574
-
1.1.8
456
Total government activities
26,878
2,479
2,639
26,718
Business -type activities:
Subscriptions payable
3,831
152
994
2,989
Leases payable
131
-
48
83
Revenue bonds
131,070
-
13,540
11.7,530
State loan payable
335
-
32
303
Total business -type activities
135,367
152
14,614
120,905
Total outstanding long-term debt
$ 162,245
$ 2,631
$ 17,253
$ 147,623
The City's total debt decreased by $14.6 million (net of bond premiums and discounts excluding deferred
charges) during the fiscal year ending June 30, 2024. The City made $17.3 million in regular scheduled debt
payments. The lease obligations increased by $0.35 million and subscription obligations increased by $2.3
million.
Currently, the City's legal debt margin is $298 million. However, this relates only to general obligation type
bonds. Other factors such as available revenues, special assessment pledges, etc. will affect the City's actual
capacity to issue future debt.
Additional information on the City's long-term debt can be found in Note 9 on pages 93-97 of this report_
Deferred Outflows of Resources & Deferred Inflows of Resources
Deferred Outflows of Resources
This classification balance, although similar to "assets," is set apart because these items do not meet the technical.
definition of being a City asset on the date of these financial statements. In other words, these amounts are not
available to pay liabilities in the way assets are available. When all the recognition criteria are met, the deferred
outflow of resources will become an expense/expenditure.
There are two primary components of the deferred outflows as reported. The first component is related to the
implementation of GASB Statement No. 68 and GASB Statement No. 71 for pension liability reporting. GASB
71 requires that contributions made during the fiscal year to the retirement system be reported as deferred
24
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
outflows of resources. Other potential deferred outflows of resources are attributable to the various components
that impact pension changes and can include investment earnings, changes due to actuarial assumptions, and
differences between expected or actual experience.
The second component of the deferred outflows of resources is related to the implementation of GASB Statement
75 for Other Post -Employment Benefits (OPEB). GASB 75, much like GASB 68 and 71, requires the recognition
of deferred outflows of resources. The deferred outflows of resources are attributable to the various components
that impact OPEB liability and can include contributions made after the measurement date (current year
contributions), investment earnings, changes due to actuarial assumptions, and the difference between expected
and actual experience.
Deferred Inflows of Resources
Deferred inflows of resources are the counterpart to deferred outflows of resources on the Statement of Net
Position. Deferred inflows of resources are not technically liabilities of the City as of the date of the financial
statements. When all the recognition criteria are met, the deferred inflow of resources will become revenue or an
increase to net position.
Deferred inflows of resources can also be impacted by the implementation of GASB 68 for pension liability
reporting and GASB 75 for OPEB. Deferred inflows of resources related to pensions represent the net amount
attributable to the various components that impact pension changes, and can include investment earnings, changes
due to actuarial assumptions, and differences between expected or actual experience. Deferred inflows related to
OPEB can include the same components.
Deferred inflows of resources are also impacted by the implementation of GASB 87 for lease reporting. Deferred
inflows of resources related to leases represent the deferred revenue related to the present value of lease
receivable.
Additional infonnation pertaining to deferred outflows and inflows for pensions and OPEB can be found in notes
17 and 18.
Economic Factors and Next Year's Budgets and Rates
• The City of Redding has experienced a decrease in population since 2020 of less than one percent per year.
This trended changed in 2024 as the City experienced an increase of 0.3%. While the unemployment rate
has decreased from 10% in 2020 to 5.4% in 2024, which included a slight increase of 0.3% in 2024.
• Inflationary trends in the region compare favorably to national indices.
• Overall tax revenue for the City's General Fund increased by $2.7 million during the year. This was
primarily due to the increase in property tax ($2.1 million) and increases in sales tax ($0.6 million),
cannabis tax ($0.2 million), and a decrease in transient occupancy tax ($0.2 million).
• The City's General Fund two most major tax revenue sources are sales tax and property tax. Sales tax
revenue is budgeted to increase by 2.5% in fiscal year 2024-25. Property tax revenue is budgeted to
increase by 3% in fiscal year 2024-25.
• The City's residential building activity is expected to increased slightly during 2024. However, building
permit activity has yet to match record highs seen in the years following the Carr fire. In 2024 total permit
numbers are expected to be nearly identical to 2023. Overall, building activity is expected to be consistent
25
City of Redding
Management's Discussion and Analysis (Continued)
For the Year Ended June 30, 2024
with the prior year with the exception of residential units having seen a slight boost. Permit activity is
expected to maintain these moderate levels through the end of fiscal year 2025.
• The future economic activity is uncertain at this time as many experts are predicting a possible recession in
calendar year 2025. The duration and severity of possible recession is uncertain as forecasts of future
economic activity very.
• The City of Redding Electric Utility fund is pursuing a bond issuance that may be completed in fiscal year
2024-25. If issued this bond issuance will not exceed $65 million and will be used to fund various general
system and capital improvement projects. Any bond issuance costs will come from proceeds if issued.
All of these factors were considered in preparing and updating the City's budget for the 2024-25 fiscal year.
During the current fiscal year fund balance in the General Fund decreased by $3.0 million to $26.5 million. The
City of Redding has a City Council policy that requires major funds, including the General Fund, to prepare and
maintain I 0-year financial plans that maintain a minimum 10% cash reserve for all years of the plan. The City
Council passed a 10-year Financial Plan on June 20, 2024 which maintains this standard for all years. The fund
balance is different than cash, which is used as the basis of measurement for the City Council policy (see Note 1
for definitions of fund balance and cash). Any changes to fund balance associated with changes in cash will be
analyzed and updated with future revisions to the City of Redding General Fund 10-year plan.
The Electric, Water, Wastewater, and Solid Waste rates will increase either as approved by City Council or at
rates proposed to City Council. The current rates for Water, Wastewater and Solid Waste were adopted by City
Council on November 7, 2023. The current Electric rates were adopted by City Council on December 5, 2023.
Request for Information
This financial report is designed to provide a general overview of the City's finances for all those with an interest
in the government's finances. This report can be found on the City of Redding website, www.cityofredding.gov
under Departments, under Finance Department. Questions concerning any information provided in this report or
request for additional financial information should be directed to:
The City of Redding - Finance Department
777 Cypress Avenue
Redding, CA 96001
26
Im
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GOVERNMENT -WIDE
FINANCIAL STATEMENTS
29
City of Redding
Statement of Net Position
June 30, 2024
ASSETS
Current assets:
Cash and investments
Receivables:
Interest
Accounts, net
Lease
Taxes
Intergovernmental
Notes, net
Special assessments
Other
Inventories
Prepaid items
Deposits
Total current assets
Noncurrent assets:
Internal balances
Restricted assets:
Cash and investments
Interest receivable
Lease receivable, net
Capital assets:
Land and construction in progress
Depreciable capital assets, net
Investment in JPA
Storage base gas
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding bonds or debt
Deferred outflows related to other post employment benefits
Deferred outflows related to pensions
Total deferred outflows of resources
See accompanying Notes to the Basic Financial Statements.
Primary Government
Governmental Business -Type
Activities Activities Total
$ 90,821,156 $ 184,262,891 $ 275,084,047
6,131,583
578,761
6,710,344
2,420,757
26,514,503
28,935,260
311,291
778,320
1,089,611
7,009,600
-
7,009,600
22,112,058
4,272,723
26,384,781
83,899,491
-
83,899,491
321,556
-
321,556
1,132,850
-
1,132,850
783,590
15,405,375
16,188,965
1,734,297
2,022,882
3,757,179
-
393,450
393,450
216,678,229
234,228,905
450,907,134
9,464,883 (9,464,883) -
1,11.9,1.78
6,551,113
7,670,291
15
4,523
4,538
1,767,884
9,132,429
10,900,313
114,450,556
100,878,374
215,328,930
263,682,904
460,892,478
724,575,382
-
8,114,485
8,114,485
-
13,570,000
13,570,000
390,485,420
589,678,519
980,163,939
607,1.63,649
823,907,424
1,431,071,073
124,917
5,398,112
5,523,029
24,127,301
16,460,838
40,588,139
72,509,731
44,425,169
116,934,900
96,761,949
66,284,119
163,046,068
(Continued)
30
City of Redding
Statement of Net Position (Continued)
June 30, 2024
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Intergovernmental payable
Accrued interest payable
Unearned revenue
Deposits
Landfill closing costs, due within one year
Claims and judgements payable, due within one year
Compensated absences, due within one year
Long-term debt, due within one year
Aggregate other post employment benefits liability
Total current liabilities
Noncurrent liabilities:
Landfill closing costs, due in more than one year
Claims and judgements payable, due in more than one year
Accrued compensated absences, due in more than one year
Long-term debt, due in more than one year
Aggregate other post employment benefits liability
Aggregate net pension liability
Total noncurrent liabilities
Total liabilities
DEFFERED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits
Deferred inflows related to pensions
Deferred inflows related to leases
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for:
Capital outlay
Debt service
Housing
Community development
Public works
Public safety
Community services
Other
Total restricted
Unrestricted (deficit)
Total net position
See accompanying Notes to the Basic Financial Statements.
Primary Government
Governmental
Business -Type
Activities
Activities
Total
6,068,720
15,367,504
21,436,224
2,399,008
1,713,935
4,112,943
1,963,677
5,761,660
7,725,337
301,522
480,406
781,928
25,848,876
1,763,215
27,612,091
196,807
9,645,430
9,842,237
-
185,700
185,700
5,036,490
-
5,036,490
5,826,489
3,587,921
9,414,410
2,440,786
17,427,691
19,868,477
2,840,081
2,980,082
5,820,163
52,922,456
58,91.3,544
111,836,000
-
2,678,671
2,678,671
13,605,950
-
13,605,950
10,169,132
7,674,315
17,843,447
26,851,773
122,226,191
149,077,964
44,116,569
29,056,079
73,172,648
239,094,911
121,774,287
360,869,198
333,838,335
283,409,543
617,247,878
386,760,791
342,323,087
729,083,878
2,260,870
1,542,474
3,803,344
1,578,293
54,099
1,632,392
2,079,175
9,910,749
11,989,924
5,918,338
11,507,322
17,425,660
348,502,520
425,350,722
773,853,242
-
2,575,699
2,575,699
619,346
-
619,346
19,226,627
-
19,226,627
76,444,659
-
76,444,659
24,581,897
-
24,581,897
2,995,380
-
2,995,380
6,483,393
-
6,483,393
1,510,313
-
1,510,313
131,861,615
2,575,699
134,437,314
(169,117,666)
108,434,713
(60,682,953)
$ 311,246,469 $ 536,361,134 $ 847,60703
(Concluded)
31
City of Redding
Statement of Activities and Changes in Net Position
Functions J Programs
Primary government:
Governmental activities:
General government
Police
Fire
Public works
Planning
Recreation and culture
Community development
Interest on long-term debt
Total governmental activities
Business -type activities:
Electric
Water
Wastewater
Storm drainage
Solid waste
Transportation
Convention center
Total business -type activities
Total primary government
For the Year Ended June 30, 2024
Program Revenues
Operating
Capital
Total
Charges for
Grants and
Grants and
Program
Expenses
Services
Contributions
Contributions
Revenues
$ 8,221,348
$ 8,278,901
$ 922,261
$ 143,257
$ 9,344,419
54,474,231
2,181,754
5,483,446
72,548
7,737,748
35,008,283
4,351,1.61
1,1.70,252
80,763
5,602,176
22,360,331
1,583,430
9,670,312
11,796,709
23,050,451
8,047,061
4,818,864
228,000
-
5,046,864
14,564,444
2,421,009
1,287,186
2,287,108
5,995,303
21,599,533
44,984
34,243,936
-
34,288,920
1,662,180
-
-
-
-
165,937,411
23,680,103
53,005,393
14,380,385
91,065,881
159,038,929
170,020,064
274,687
2,354,692
172,649,443
22,977,291
27,587,108
1,552,562
487,404
29,627,074
28,479,691
34,767,686
9,898
1,939,135
36,716,719
3,218,220
2,280,989
461,820
335,535
3,078,344
33,853,772
29,472,283
114,232
-
29,586,515
14,723,526
4,158,212
6,173,985
2,794,004
13,126,201
1,191,406
181,767
-
-
181,767
263,482,835
268,468,109
8,587,184
7,910,770
284,966,063
$ 429,420,246 $ 292,148,212 $ 61,592,577 $ 22,291,155 $ 376,031,944
See accompanying Notes to the Basic Financial Statements.
(Continued)
32
City of Redding
Statement of Activities and Changes in Net Position (Continued)
For the Year Ended June 30, 2024
Functions J Programs
Primary government:
Governmental activities:
General government
Police
Fire
Public works
Planning
Recreation and culture
Community development
Interest on long-term debt
Total governmental activities
Business -type activities:
Electric
Water
Wastewater
Storm drainage
Solid waste
Transportation
Convention center
Total business -type activities
Total primary government
General revenues and transfers:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Motor vehicle taxes
Franchise taxes
Othertaxes
Total taxes
Investment income (loss)
Other
Gain (Loss) on sale of assets
Transfers
Total general revenues and transfers
Changes in net position
Net position:
Beginning of year
End of year
Net (Expenses) Revenues
and Changes in Net Position
Governmental Business -Type
Activities Activities
Total
$ 1,1.23,071 $ -
$ 1,123,071
(46,736,483) -
(46,736,483)
(29,406,107) -
(29,406,107)
690,120 -
690,120
(3,000,197) -
(3,000,197)
(8,569,141) -
(8,569,141)
12,689,387 -
12,689,387
(1,662,180) -
(1,662,180)
(74,871,530) -
(74,871,530)
- 13,610,514
13,610,514
-
6,649,783
6,649,783
-
8,237,028
8,237,028
-
(139,876)
(139,876)
-
(4,267,257)
(4,267,257)
-
(1,597,325)
(1,597,325)
-
(1,009,639)
(1,009,639)
-
21,483,228
21,483,228
(74,871,530)
21,483,228
(53,388,302)
28,524,507
-
28,524,507
7,133,234
-
7,133,234
31,067,691
-
31,067,691
115,907
-
115,907
1,312,082
-
1,312,082
3,021,359
-
3,021,359
71,174,780
-
71,174,780
2,845,092
9,525,1.86
12,370,278
144,624
382,838
527,462
413,038
280,351
693,389
5,171,815
(5,171,815)
-
79,749,349
5,016,560
84,765,909
4,877,819 26,499,788 31,377,607
306,368,650 509,861,346 816,229,996
$ 311,246,469 $ 536,361,134 $ 847,607,603
(Concluded)
See accompanying Notes to the Basic Financial Statements.
33
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34
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
35
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36
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
General Fund
This fund is the general operating fund of the City which accounts for all financial resources except those
required to be accounted for in another fund.
General Capital Projects Fund
This fund was established to account for the financing and construction activities of the general
government.
Community Development Fund
This fund was established to account for financing and rehabilitation of homes and public facilities,
homeless services and the financing of multifamily housing. Financing is provided by Federal
Department of Housing and Urban Development and the California Department of Housing and
Community Development
37
City of Redding
Balance Sheet
Governmental Funds
June 30, 2024
General
Community
Non -Major
Total
General
Capital Projects
Development
Governmental
Governmental
Fund
Fund
Fund
Funds
Funds
ASSETS
Cash and investments
$ 24,550,081
$ 13,010,994
$ 10,770,661
$ 21,620,306
$ 69,952,042
Accounts receivable, net
2,130,480
59,973
42,585
48,953
2,281,991
Lease receivable
2,079,175
-
-
-
2,079,175
Intergovernmental receivable
1,847,924
11,026,860
5,315,134
3,921,863
22,111,781
Interest receivable
53,034
35,067
3,239,255
2,752,251
6,079,607
Taxes receivable
7,009,600
-
-
-
7,009,600
Other receivable
1,083,635
395
12,244
36,576
1,132,850
Due from other funds
827,921
-
-
-
827,921
Prepaid items
1,000,622
-
31,723
66,137
1,098,482
Inventories
206,267
-
-
-
206,267
Restricted assets:
Cash and investments
922,369
2,564
-
194,245
1,119,178
Interest receivable
5
10
-
-
15
Interfund receivable
251,407
-
-
-
251,407
Special assessments receivable
-
-
-
321,556
321,556
Notes receivable
-
-
68,762,751
15,136,740
83,899,491
Total assets
41,962,520
24,135,863
88,174,353
44,098,627
198,371,363
See accompanying Notes to the Basic Financial Statements.
(Continued)
38
City of Redding
Balance Sheet (Continued)
Governmental Funds
June 30, 2024
General
Community
Non -Major
Total
General Capital Projects
Development
Governmental
Governmental
Fund Fund
Fund
Funds
Funds
LIABILITIES
Accounts payable
952,484
2,875,918
953,719
374,023
5,156,144
Accrued liabilities
1,891,026
58,442
51,618
59,170
2,060,256
Intergovernmental payable
178,334
-
12,423
2,382
193,139
Due to other funds
-
-
-
151,935
151,935
Interfund payable
-
-
1,1.16,840
-
1,116,840
Unearned revenue
7,555,171
1,1.36,982
7,594,401
9,556,082
25,842,636
Deposits
1,375
-
-
195,432
196,807
Advances from other funds
3,588,088
-
2,000,693
420,694
6,009,475
Total liabilities
14,166,478
4,071,342
11,729,694
10,759,718
40,727,232
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
2,169,744
10,967,177
6,502,889
3,120,686
22,760,496
Leases
2,079,175
-
-
-
2,079,175
Total deferred inflows of resources:
4,248,919
10,967,177
6,502,889
3,1.20,686
24,839,671
Fund balances:
Nonspendable
2,1.27,863
-
31,723
66,1.37
2,225,723
Restricted
431,956
9,097,344
69,910,047
30,622,093
110,061,440
Assigned
13,529,698
-
-
-
13,529,698
Unassigned
7,457,606
-
-
(470,007)
6,987,599
Total fund balances
23,547,123
9,097,344
69,941,770
30,218,223
132,804,460
Total liabilities, deferred inflows of
resources and fund balances $
41.962,520
$ 24,135,863
$ 88,174,353
$ 44.098,627
$ 198.371,363
See accompanying Notes to the Basic Financial Statements.
(Concluded)
39
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City of Redding
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Position
June 30, 2024
Statement of Internal
Net Position Service Funds Net
Fund balances governmental funds
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets (net) have not been included as financial resources in governmental fund activity.
Deferred charges have not been included as financial resources in governmental fund activity.
Deferred outflows related to pensions and OPEB have not been included in governmental fund
activity.
Long-term debt that has not been included in the governmental fund activity.
Accrued interest payable for the current portion of interest due on bonds has not been reported in
the governmental funds.
The net other post employment benefit obligation has not been reported in the governmental funds
Net pension liability is not due and payable in the current period and therefore is not reported in
the fund financial statements.
Revenue reported as unavailable revenue in the governmental funds is recorded as revenue in the
statement of activities.
Deferred inflows related to pensions and OPEB have not been included in governmental fund
activity.
Internal service fund net position included in the governmental activities on the statement of
activities.
Accrued vacation and other leave not reported in governmental funds, but recorded as expense in
the Statement of Activities.
Net position of governmental activities
See accompanying Notes to the Basic Financial Statements.
$ 132,804,460
$ 378,133,461 $ 7,441,541
370,691,920
124,917 -
124,917
96,637,032 12,886,572
83,750,460
(29,292,559) (1,735,305)
(27,557,254)
(301,522)
(301,522)
(46,956,650) (7,250,477) (39,706,173)
(239,094,911) (26,724,880) (212,370,031)
22,760,496 - 22,760,496
(3,839,163) (358,174) (3,480,989)
- 1,553,869 (1,553,869)
(15,995,621) (2,079,675) (13,915,946)
$ 311,246,469
111
City of Redding
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024
REVENUES:
Property taxes
Sales and use taxes
Other taxes
Special assessments
Licenses and pen -nits
Intergovernmental revenues
Charges for services
Fines, forfeitures, and penalties
Use of money and property
Net investment earnings (loss)
Other
Total revenues
EXPENDITURES:
Current:
General government
Community development
Public safety:
Police
Fire
Public works
Planning
Recreation and culture
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
General
Community
Non -Major
Total
General
Capital Projects
Development
Governmental
Governmental
Fund
Fund
Fund
Funds
Funds
$ 28,453,138
$ -
$ -
$ -
$ 28,453,138
30,798,178
-
-
272,517
31,070,695
11,466,674
-
-
-
11,466,674
13,330
-
-
1,181,822
1,195,152
2,593,427
-
-
250,838
2,844,265
8,714,076
15,537,316
23,012,780
25,925,306
73,189,478
4,892,655
156,782
-
1,668,179
6,717,616
848,715
500
-
95,452
944,667
9,620,064
73,264
190
-
9,693,518
1,239,049
152,182
391,078
553,908
2,336,217
5,199,955
5,306,057
34
189,366
10,695,412
103,839,261
21,226,101
23,404,082
30,137,388
178,606,832
8,504,531
-
-
-
8,504,531
-
-
4,554,247
16,124,420
20,678,667
47,828,147
-
-
-
47,828,147
30,082,107
-
-
-
30,082,107
13,153,058
101,1.63
-
1,238,160
14,492,381
6,562,666
-
-
-
6,562,666
7,924,687
165,848
-
2,815,761
10,906,296
6,447,060
12,613,063
6,045,545
284,899
25,390,567
1,504,181
300,000
-
144,493
1,948,674
1,106,816
444,334
160,877
35,895
1,747,922
123,113,253
13,624,408
10,760,669
20,643,628
168,141,958
(19,273,992)
7,601,693
12,643,413
9,493,760
10,464,874
OTHER FINANCING SOURCES (USES):
Sale of assets
413,038
Long-term debt issued
352,244
Transfers in
17,529,790
Transfers out
(2,035,919)
Total other financing sources (uses) 16,259,153
NET CHANGE IN FUND BALANCES (3,014,839)
- - -
413,038
- - -
352,244
- - 994,235
18,524,025
- - (10,009,190)
(12,045,109)
- - (9,014,955)
7,244,198
7,601,693 12,643,413 478,805
17,709,072
Fund balances:
Beginning of year 26,561,962 1,495,651 57,298,357 29,739,418 115,095,388
End of year $ 23,547,123 $ 9,097,344 $ 69,941,770 $ 30,218,223 $ 132,804,460
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, 2024
Net change in fund balances - total governmental funds
$ 17,709,072
Amounts reported for 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
government -wide Statement of Activities and Changes in Net Position, the cost of those assets was allocated over
their estimated useful lives as depreciation expense. This was the amount of capital assets recorded in the current
period.
25,390,567
In the Statement of Activities, donated assets are reported as a capital contribution.
891,545
Transfer of capital assets between governmental, enterprise, and internal service funds.
(1,307,101)
Depreciation expense on capital assets was reported in the government -wide Statement of Activities and Changes in
Net Position, but it did not require the use of current financial resources. Therefore, depreciation expense, net of
internal service funds of $1,302,744 was not reported in the in governmental funds.
(16,833,950)
Disposal of capital assets is reported in the government -wide Statement of Activities and Changes in Net Position,
but it does not require the use of current financial resources. Therefore, it is not reported as expenditures in
governmental funds.
- Net book value of the assets disposed
(144,552)
- Decrease in debt related to right -to -use asset disposal
71,682
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues
in the governmental funds.
(12,620,858)
In the Statement of Activities, the other post employment benefit expense that does not require the use of financial
resources is not reported as revenue or expenditure.
(3,654,409)
Repayment of long -tern liabilities was an expenditure in governmental funds, but the repayment reduced long-term
liabilities in the Government -Wide Statement of Net Position.
Principal payment of long-term debt
1,948,674
Amortization of bond premium
130,904
Amortization of bond discounts
(2,184)
Proceeds from debt are a financing source in the governmental funds, but a liability in the Statement of Net Position (352,244)
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. (27,841)
Compensated absences in the Statement of Activities is reported as an expense but is not reported in the
governmental funds. (1,543,205)
In the Statement of Activities, pension expense that does not require the use of current financial resources is not
reported as revenue or expenditure. (6,620,397)
Net income (loss) before transfers and contributions - internal service funds 3,241,284
Less: portion allocated to business activities (1,399,168)
Change in net position of governmental activities $ 4,877,819
See accompanying Notes to the Basic Financial Statements.
43
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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, 2024
Enterprise Funds
Solid Waste
Electric
Water
Wastewater
Collection/
Utility
Utility
Utility
Disposal
ASSETS
Current assets:
Cash and investments
$ 58,180,631
$54,217,561
$ 43,514,026
$ 22,441,083
Accounts receivable, net
16,389,667
3,697,549
3,418,328
2,824,611
Lease receivable
-
118,005
-
-
Intergovernmental receivable
-
186,367
99,977
-
Interest receivable
178,268
169,495
128,708
71,413
Interfund receivable
488,142
191,771
130,752
61,018
Prepaid items
770,974
120,644
88,414
1,006,694
Inventories
13,771,155
1,207,203
15,557
271,791
Deposit
350,900
20,550
22,000
-
Total current assets
90,129,737
59,929,145
47,417,762
26,676,610
Noncurrent assets:
Restricted assets:
Cash and investments
14,541
2,575,698
687,951
-
Interest receivable
3,286
-
1,237
Total restricted assets
17,827
2,575,698
689,188
-
Capital assets:
Land
5,240,780
508,799
2,984,167
1,697,818
Construction in progress
19,739,798
22,627,210
26,312,110
1,235,128
Depreciable capital assets, net
176,027,338
61,938,705
156,642,468
16,726,993
Capital assets
201,007,916
85,074,714
185,938,745
19,659,939
Other assets:
Advances to other funds
4,942,258
440,152
300,104
140,048
Lease receivable, net current
-
250,359
-
-
Investment in JPA
8,114,485
-
Storage base gas
13,570,000
-
-
-
Total other assets
26,626,743
690,511
300,104
140,048
Total noncurrent assets
227,652,486
88,340,923
186,928,037
19,799,987
Total assets
317,782,223
148,270,068
234,345,799
46,476,597
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding
4,687,982
- 710,130 -
Deferred outflows related to other post employment benefits
10,685,532
1,142,789 1,539,252 2,578,057
Deferred outflows related to pensions
29,236,041
3,525,976 4,024,072 6,520,003
Total deferred outflows of resources
44,609,555
4,668,765 6,273,454 9,098,060
(Continued)
See accompanying Notes to the Basic Financial Statements.
City of Redding
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2024
Governmental
Enterprise Funds
Activities
Non -Major
Internal
Enterprise
Service
Funds Total
Funds
ASSETS
Current assets:
Cash and investments
Accounts receivable, net
Lease receivable
Intergovernmental receivable
Interest receivable
Interfund receivable
Prepaid items
Inventories
Deposit
Total current assets
Noncurrent assets:
Restricted assets:
Cash and investments
Interest receivable
Total restricted assets
Capital assets:
Land
Construction in progress
Depreciable capital assets, net
Capital assets
Other assets:
Advances to other funds
Lease receivable, net current
Investment in JPA
Storage base gas
Total other assets
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding
Deferred outflows related to other post employment benefits
Deferred outflows related to pensions
Total deferred outflows of resources
See accompanying Notes to the Basic Financial Statements.
$ 5,909,590 $ 184,262,891 $ 20,869,114
184,348
26,514,503
138,766
660,315
778,320
-
3,986,379
4,272,723
277
30,877
578,761
51,976
-
871,683
43,000
36,156
2,022,882
635,815
139,669
15,405,375
577,323
-
393,450
-
10,947,334
235,100,588
22,316,271
3,272,923 6,551,113
- 4,523
3,272,923 6,555,636
9,774,316
20,205,880
110,810
10,758,248
80,672,494
2,443,897
49,556,974
460,892,478
4,886,833
70,089,538
561,770,852
7,441,540
-
5,822,562
3,185,490
8,882,070
9,132,429
-
-
8,114,485
-
13,570,000
-
8,882,070
36,639,476
3,185,490
82,244,531
604,965,964
10,627,030
93,191,865
840,066,552
32,943,301
- 5,398,112 -
515,208 16,460,838 3,725,445
1,119,077 44,425,169 9,161,127
1,634,285 66,284,119 12,886,572
(Continued)
47
City of Redding
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2024
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable
Accrued liabilities
Accrued interest payable
Claims and judgements payable
Intergovernmental payable
Due to other funds
Interfund payables
Unearned revenue
Deposits
Accrued compensated absences, due with in one year
Landfill closure costs, due with in one year
Long-term debt, due with in one year
State loan, due with in one year
Aggregate net OPEB liability
Total current liabilities
Long-term liabilities:
Accrued compensated absences, due in more than one year
Landfill closure costs, due in more than one year
Advances from other funds
Claims and judgements, due in more than one year
Long-term debt, due in more than one year
State loan, due in more than one year
Aggregate net OPEB liability
Aggregate net pension liability
Total long-term liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits
Deferred inflows related to pensions
Deferred inflows related to leases
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for:
Capital projects
Unrestricted (deficit)
Total net position (deficit)
See accompanying Notes to the Basic Financial Statements.
Enterprise Funds
Solid Waste
Electric Water Wastewater Collection/
Utility Utility Utility Disposal
4,741,970
5,439,322
2,125,616
1,262,348
1,107,849
151,238
146,586
243,705
331,193
-
143,055
-
3,332,238
13,590
119
1,155,782
80,203
20,094
356,269
3,408,636
-
-
6,150,555
2,344,808
279,432
312,020
587,008
-
-
-
185,700
12,694,779
1,768
4,622,377
43,485
1,923,967 208,202 282,741 469,097
29,965,643 6,113,646 7,632,514 10,453,949
4,974,391 525,023 598,958 1,447,464
- - - 2,678,671
82,417,528 39,498,536 39,013
18,872,262
2,015,901
2,712,960
4,548,329
79,312,231
8,827,320
11,371,029
18,635,221
1.85,576,41.2
11,368,244
54,181,483
27,348,698
215,542,055
17,481,890
61,813,997
37,802,647
1,001,297 107,086 144,237 241,578
36,665 5,372 4,461 6,959
- 368,364 - -
1,037,962 480,822 148,698 248,537
110,171,174 83,587,175 142,321,790 19,577,441
- 2,575,699 - -
35,640,587 48,813,247 36,334,768 (2,053,968)
$ 145,811,761 $ 134,976,121 $ 178,656,558 $ 17,523,473
(Continued)
City of Redding
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2024
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable
Accrued liabilities
Accrued interest payable
Claims and judgements payable
Intergovernmental payable
Due to other funds
Interfund payables
Unearned revenue
Deposits
Accrued compensated absences, due with in one year
Landfill closure costs, due with in one year
Long-term debt, due with in one year
State loan, due with in one year
Aggregate net OPEB liability
Total current liabilities
Long-term liabilities:
Accrued compensated absences, due in more than one year
Landfill closure costs, due in more than one year
Advances from other funds
Claims and judgements, due in more than one year
Long-term debt, due in more than one year
State loan, due in more than one year
Aggregate net OPEB liability
Aggregate net pension liability
Total long-term liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits
Deferred inflows related to pensions
Deferred inflows related to leases
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for:
Capital projects
Unrestricted (deficit)
Total net position (deficit)
Net position reconciliation to statement of net position:
Net position of proprietary funds
Less business -type portion of the internal service func
Net position of business -type activities
See accompanying Notes to the Basic Financial Statements.
Governmental
Enterprise Funds
Activities
Non -Major
Internal
Enterprise
Service
Funds Total
Funds
1,798,248
15,367,504
912,576
64,557
1,713,935
338,752
6,158
480,406
-
-
-
5,036,490
1,259,931
5,761,660
1,770,538
675,986
675,986
-
43,000
43,000
6,250
1,306,649
1,763,215
6,240
86,239
9,645,430
-
64,653
3,587,921
642,382
-
185,700
-
33,041
17,395,450
477,563
32,241
32,241
-
96,075
2,980,082
672,536
5,466,778
59,632,530
9,863,327
128,479
7,674,315
1,437,293
-
2,678,671
-
2,998,577
2,998,577
-
-
-
13,605,950
-
121,955,077
1,257,742
271,114
271,114
-
906,627
29,056,079
6,577,941
3,628,486
121,774,287
26,724,880
7,933,283
286,408,120
49,603,806
13,400,061
346,040,650
59,467,133
48,276
1,542,474 349,094
642
54,099 9,080
9,542,385
9,910,749 -
9,591,303
11,507,322 358,174
69,693,142 425,350,722 5,706,236
- 2,575,699
2,1.41,644 120,876,278 (19,701,670)
$ 71,834,786 $ 548,802,699 $ (13,995,434)
$ 548,802,699
(12,441,565)
$ 536,361,134
(Concluded)
49
City of Redding
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2024
OPERATING REVENUES:
User fees and charges
Wholesale sales
Rental charges
Other operating revenue
Total operating revenues
OPERATING EXPENSES:
Cost of power, water, and transportation
Maintenance, operations, and administration
Depreciation and amortization
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES):
Net investment earnings (loss)
Interest expense
Intergovernmental revenues
Gain (loss) on disposal of assets
Other non -operating revenues (expenses)
Total nonoperating revenues (expenses)
INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS
Capital contributions
Transfers in
Transfers out
Change in net position
NET POSITION:
Beginning of year
End of year
See accompanying Notes to the Basic Financial Statements.
Enterprise Funds
Solid Waste
Electric Water Wastewater Collection/
Utility Utility Utility Disposal
$ 132,448,887
$ 27,420,129
$ 34,765,129
$ 28,065,727
30,153,666
-
-
-
138,000
-
-
-
7,052,474
18,772
6,207
1,015,165
169,793,027
27,438,901
34,771,336
29,080,892
53,212,490
796,226
-
-
87,755,528
18,095,146
20,348,914
30,600,162
14,665,782
4,105,646
7,300,649
3,059,937
155,633,800
22,997,018
27,649,563
33,660,099
14,159,227
4,441,883
7,121,773
(4,579,207)
3,603,164
2,580,761
1,862,698
1,117,573
(4,174,995)
(1,593)
(1,214,635)
(4,769)
271,066
25,321
3,691
113,375
(31.3,233)
(185,044)
5,650
(146,968)
335,524
1,845,089
1,385,337
2,462
(278,474)
4,264,534
2,042,741
1,081,673
13,880,753
8,706,417
9,164,514 (3,497,534)
3,543,271 514,983 383,939 389,785
204,059 182,236 - -
(7,428,733) (143,901) (521,661) -
10,199,350 9,259,735 9,026,792 (3,107,749)
135,612,411 125,716,386 169,629,766 20,631,222
$ 145,811,761 $ 134,976,121 $ 178,656,558 $ 17,523,473
(Continued)
50
City of Redding
Statement of Revenues, Expenses, and Changes in Net Position (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
OPERATING REVENUES:
User fees and charges
Wholesale sales
Rental charges
Other operating revenue
Total operating revenues
OPERATING EXPENSES:
Cost of power, water, and transportation
Maintenance, operations, and administration
Depreciation and amortization
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES):
Net investment earnings (loss)
Interest expense
Intergovernmental revenues
Gain (loss) on disposal of assets
Other non -operating revenues (expenses)
Total nonoperating revenues (expenses)
INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS
Capital contributions
Transfers in
Transfers out
Change in net position
NET POSITION:
Beginning of year
End of year
Change in net position reconciliation to statement of activities:
Change in net position of proprietary funds
Add internal service funds income - business -type activity
Change in net position of business -type activities
See accompanying Notes to the Basic Financial Statements.
Governmental
Enterprise Funds
Activities
Non -Major
Internal
Enterprise
Service
Funds
Total
Funds
$ 4,012,969 $
226,71.2,841
$ 100,044,827
-
30,153,666
-
1,971,795
2,109,795
-
1,085,499
9,178,117
40,533
7,070,263
268,154,419
100,085,360
4,827,677
58,836,393
-
9,835,219
166,634,969
96,582,119
4,464,300
33,596,314
1,302,744
19,127,196
259,067,676
97,884,863
(12,056,933)
9,086,743
2,200,497
348,108
9,512,304
645,020
(18,834)
(5,414,826)
(56,972)
7,094,471
7,507,924
450,511
249,792
(389,803)
2,228
458,099
4,026,511
-
8,131,636
15,242,110
1,040,787
(3,925,297)
24,328,853
3,241,284
2,447,038
7,279,016
-
1,507,987
1,894,282
33,1.33
(307,236)
(8,401,531)
(4,800)
(277,508)
25,100,620
3,269,617
72,112,294
523,702,079
(17,265,051)
$ 71,834,786 $
548,802,699
$ (13,995,434)
$ 25,100,620
1,399,168
$ 26,499,788
(Concluded)
51
City of Redding
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
Cash paid to suppliers
Cash paid to employees
Other income received
Net cash provided by (used in) operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Intergovernmental revenue received
Advances from other funds
Repayment of advances from other funds
Advances to other funds
Repayment of advances to other funds
Transfers in
Transfers out
Net cash provided by (used in) noncapital financing activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Capital grant received
Proceeds from sale of assets
Purchase of capital assets
Rents received
Interest paid
Principal paid on long-term debt
Cash collected for future capital outlay
Net cash provided by (used in) capital
and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Net investment earnings (loss)
Net cash (used in) investing activities
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
Reconciliation to statement of net position:
Cash and cash equivalents
Restricted cash and cash equivalents
See accompanying Notes to the Basic Financial Statements.
Enterprise Funds
Electric
Water
Wastewater
Utility
Utility
Utility
$ 160,768,697
$ 26,458,196 $
34,388,662
(128,816,863)
(9,989,315)
(12,847,099)
(15,666,132)
(5,740,389)
(6,651,548)
7,052,474
18,772
6,207
23,338,176
10,747,264
14,896,222
271,066
14,787
3,691
(702,207)
-
-
-
-
(300,104)
1,273,872
60,296
341,216
204,059
125,000
913,871.
(7,362,468)
(27,579)
(521,661)
(6,315,678)
172,504
437,013
(99,976)
38,023
17,820
(173,514)
(15,002,102)
(14,674,624)
(10,619,270)
(4,769,353)
(1,594)
(1,926,889)
(10,678,991)
(24,582)
(3,715,637)
335,524
1,845,089
1,385,337
(30,076,899) (12,837,891) (15,149,949)
3,725,917 2,723,390 1,965,433
3,725,917 2,723,390 1,965,433
(9,328,484) 805,267 2,148,719
67,523,656 55,987,992 42,053,258
$ 58,195,172 $ 56,793,259 $ 44,201,977
$ 58,180,631 $ 54,217,561 $ 43,514,026
14,541 2,575,698 687,951
$ 58,195,172 $ 56,793,259 $ 44,201,977
(Continued)
52
City of Redding
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
Cash paid to suppliers
Cash paid to employees
Other income received
Net cash provided by (used in) operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Intergovernmental revenue received
Advances from other funds
Repayment of advances from other funds
Advances to other funds
Repayment of advances to other funds
Transfers in
Transfers out
Net cash provided by (used in) noncapital financing activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Capital grant received
Proceeds from sale of assets
Purchase of capital assets
Rents received
Interest paid
Principal paid on long-term debt
Cash collected for future capital outlay
Net cash provided by (used in) capital
and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Net investment earnings (loss)
Net cash provided (used) by investing activities
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
Reconciliation to statement of net position:
Cash and cash equivalents
Restricted cash and cash equivalents
See accompanying Notes to the Basic Financial Statements.
Enterprise Funds
Solid Waste Non -Major
Collection/ Enterprise
Disposal Funds Total
Governmental
A rti viti ec
Internal
Service
Funds
$ 32,181,361 $ 6,987,850 $ 260,784,766 $ 99,876,223
(21,244,369)
(10,945,196)
(183,842,842) (79,016,434)
(12,304,772)
(2,142,728)
(42,505,569) (16,123,271)
1,015,747
48,671
8,141,871 -
(352,033)
(6,051,403)
42,578,226 4,736,518
330,789
6,693,744
7,314,077
450,511
-
675,986
675,986
-
-
(5,812,745)
(6,514,952)
-
(47,823)
-
(347,927)
(25,000)
67,009
-
1,742,393
79,530
-
1,507,987
2,750,917
-
-
(307,236)
(8,218,944)
(4,800)
349,975
2,757,736
(2,598,450)
500,241
-
4,207,810
4,1.07,834
-
12,905
387,683
282,917
2,228
(4,286,869)
(3,283,108)
(47,865,973)
(2,587,086)
-
54,859
54,859
-
(4,769)
(1.5,467)
(6,71.8,072)
(56,973)
(43,934)
(151,048)
(14,614,192)
(619,203)
-
354,569
3,920,519
40,533
(4,322,667)
1,555,298
(60,832,108)
(3,220,501)
1,193,039
366,938
9,974,717
691,630
1,193,039
366,938
9,974,717
691,630
(3,131,686)
(1,371,431)
(10,877,615)
2,707,888
25,572,769
10,553,944
201,691,619
18,161,226
$ 22,441,083
$ 9,182,513
$ 190,814,004
$ 20,869,114
$ 22,441,083
$ 5,909,590
$ 184,262,891
$ 20,869,114
-
3,272,923
6,551,1.13
-
$ 22,441,083
$ 9,182,513
$ 190,814,004
$ 20,869,1.14
(Continued)
53
City of Redding
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) to net cash provided by (used in)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Other non -operating revenue and expense
Depreciation and amortization
(Increase) decrease in accounts receivable
(Increase) decrease in inventories
(Increase) decrease in prepaid items
(Increase) decrease in investment in 7PA
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in claims and judgements payable
Increase (decrease) in deposits liability
Increase (decrease) in intergovernmental payable
Increase (decrease) in unearned revenue
Increase (decrease) in accrued compensated absences
Increase (decrease) in accrued landfill closure costs
Increase (decrease) in accrued liabilities long-term
Other post employment benefits related items
Pension related items
Total adjustments
Net cash provided by (used in) operating activities
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES:
Enterprise Funds
Electric Water Wastewater
Utility Utility Utility
$ 14,159,227 $ 4,441,883 $ 7,121,773
14,665,782
4,105,646
7,300,649
(1,971,856)
(961,933)
(376,467)
(2,924,886)
(131,603)
(448)
357,792
(115,756)
(82,296)
(529,847)
(250)
-
389,648
3,370,011
577,860
212,485
25,467
6,870
714,807
(12,714)
—
(119,584)
(561)
(262)
(46,528)
-
-
715,375
62,766
70,000
(447,705)
-
-
1,955,260
180,801
216,716
(3,791,794)
(216,493)
61,827
9,178,949
6,305,381
7,774,449
$ 23,338,176 $ 10,747,264 $ 14,896,222
Plant contributed from developers $ 3,543,271.
Right -to -use subscription debt issued 152,675
Right -to -use subscription assets capitalized from debt issued (152,675)
Transfer in of capital assets (7,158,409)
Total non -cash capital and related financing activities
See accompanying Notes to the Basic Financial ,Statements.
$ 514,983 $ 383,939
59,086 392,210
$ (3,615,138) $ 574,069 $ 776,149
(Continued)
54
City of Redding
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) to net cash provided by (used in)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Other non -operating revenue and expense
Depreciation and amortization
(Increase) decrease in accounts receivable
(Increase) decrease in inventories
(Increase) decrease in prepaid items
(Increase) decrease in investment in 7PA
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in claims and judgements payable
Increase (decrease) in deposits liability
Increase (decrease) in intergovernmental payable
Increase (decrease) in unearned revenue
Increase (decrease) in accrued compensated absences
Increase (decrease) in accrued landfill closure costs
Increase (decrease) in accrued liabilities long-term
Other post employment benefits related items
Pension related items
Total adjustments
Net cash provided by (used in) operating activities
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES:
Plant contributed from developers
Right -to -use subscription debt issued
Right -to -use subscription assets capitalized from debt issued
Equipment transfers
Total non -cash capital and related financing activities
See accompanying Notes to the Basic Financial Statements.
Governmental
Enterprise Funds
Activities
Solid Waste
Non -Major
Internal
Collection(
Enterprise
Service
Disposal
Funds
Total
Funds
$ (4,579,207)
$ (12,056,933) $
9,086,743
$ 2,159,964
582
48,671
49,253
-
3,059,937
4,464,300
33,596,314
1,302,744
(281,381)
(82,41.3)
(3,674,050)
14,896
56,029
24,588
(2,976,320)
(100,355)
(178,377)
(33,741)
(52,378)
(409,524)
-
-
(530,097)
503,515
158,816
4,999,850
(161,992)
22,511
8,128
275,461
(234)
-
-
-
1.25,200
(550,816)
(900)
150,377
-
1,111,336
1,135,354
2,126,283
629,744
-
(4,141)
(50,669)
(183,500)
52,366
(404)
900,103
65,451
99,534
-
99,534
-
-
-
(447,705)
-
414,742
55,846
2,823,365
523,099
(82,804)
231,426
(3,797,838)
771,025
4,227,174
6,005,530
33,491,483
2,576,554
$ (352,033) $ (6,051,403) $ 42,578,226 $ 4,736,518
$ 389,785 $ 957,854
469,503
$ 5,789,832 $ -
152,675 2,127,301
(152,675) (2,127,301)
(6,237,610) (4,800)
$ 389,785 $ 1,427,357 $ (447,778) $ (4,800)
(Concluded)
55
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56
FIDUCIARY FUND
FINANCIAL STATEMENTS
Custodial Funds
Custodial funds use the economic measurement focus. 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 (RODS).
57
City of Redding
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Successor Agency
Custodial
Private -Purpose
Funds
Trust Fund
ASSETS
Cash and investments
$ 2,617,633
$ 5,684,147
Restricted cash and investments
-
6,394
Interest receivable
16,824
55,011
Accounts receivable, net
104,811
-
Intergovernmental receivable
66,391
-
Prepaid costs
-
45,620
Capital assets:
Construction in progress
2,380,119
-
Depreciable capital assets, net
51,384
Net capital assets
2,431,503
-
Total assets
5,237,162
5,791,172
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - OPEB
-
21,542
Total deferred outflows of resources
-
21,542
LIABILITIES
Accounts payable
350,561
-
Accrued liabilities
21,849
-
Accrued interest payable
-
125,061
Intergovernmental payable
76,879
223,569
Unearned revenue
-
719,231
Deposits payable
1,543,619
-
Long-term debt
-
8,280,908
Total liabilities
1,992,908
9,348,769
NET POSITION (DEFICIT)
Restricted for:
Individuals, organizations, and other governments
3,244,254
-
Held in trust
-
(3,536,055)
Total net position
$ 3,244,254
$ (3,536,055)
See accompanying Notes to the Basic Financial Statements.
58
City of Redding
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
Successor Agency
Custodial
Private -Purpose
Funds
Trust Fund
ADDITIONS:
Intergovernmental revenues
$ 920,083 $
757,891
User fees
567,187
-
Net investment earnings (loss)
6,633
63,390
Total additions
1,493,903
821,281
DEDUCTIONS:
Administrative costs
1,153,906
250,000
Payment on recognized obligation payment schedule
-
627,195
Software maintenance and support
127,251
-
Project payments
218,604
-
Loss on property disposal
-
175,877
Depreciation
27,486
-
Total deductions
1,527,247
1,053,072
Net change in net position
(33,344)
(231,791)
NET POSITION:
Beginning of period
3,277,598
(3,304,264)
End of period
$ 3,244,254 $
(3,536,055)
See accompanying Notes to the Basic Financial Statements.
59
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•1
FINANCIAL STATEMENTS
61
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62
City of Redding
Index to Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
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, 2024.............
77
S.
Upcoming Governmental Accounting Standards Implementation......................................................
78
Note 2 — Cash and Investments............................................................................................................................ 79
A. Demand Deposits................................................................................................................................. 80
B. Investments.......................................................................................................................................... 80
C. Investments in Local Agency Investment Fund.................................................................................. 80
D. Investments in California Asset Management Program (CAMP) ....................................................... 81
E. Risk Disclosures.................................................................................................................................. 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................................................................................................... 87
D. Internal Balance Summary.................................................................................................................. 88
E. Transfer In and Out............................................................................................................................. 89
Note6 — Capital Assets......................................................................................................................................... 90
A. Governmental Activities...................................................................................................................... 90
B. Business -Type Activities..................................................................................................................... 91
Note7 — Storage Base Gas.................................................................................................................................... 92
Note8 — Unavailable Revenue.............................................................................................................................. 92
63
City of Redding
Index to Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note9 — Long Term Debt..................................................................................................................................... 93
Note10 — Pledged Revenue................................................................................................................................... 98
Note 11— Compensated Absences...........................................................................................100
Note12 — Self Insurance......................................................................................................100
Note 13 — Individual Fund Disclosures................................................................................................................101
Note1.4 — Joint Ventures......................................................................................................................................102
A. M-S-R Public Power Agency.............................................................................................................102
B. M-S-R Energy Authority....................................................................................................................104
C. Transmission Agency of Northern California....................................................................................105
D. Balancing Authority of Northern California......................................................................................106
E. Modesto Irrigation District Financing Authority................................................................................106
F. Contingent Liability ............................................................................................................................1.07
Note15 — Postclosure Care Costs.......................................................................................................................108
Note 1.6 — Public Transportation Modernization Improvement and Service Enhancement Account
(PTMISEA) Grant Information.........................................................................................................108
Note17 — Retirement Plans.................................................................................................................................1.09
A. Summary............................................................................................................................................109
B. CalPERS.............................................................................................................................................1.15
C. PARS..................................................................................................................................................123
Note 18 — Other Postemployment Healthcare Benefits.....................................................................................1.29
Note19 — Fund Balances.....................................................................................................................................138
Note 20 — Net Investment in Capital Assets.......................................................................................................1.39
Note 21— 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 22 — Successor Agency Trust for Assets of the Former Redevelopment Agency...................................1.42
64
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies
The following is a summary of the more significant accounting policies of the City of Redding (City), all of which
conform to United States generally accepted accounting principles (U.S. GAAP) as applicable to governmental units.
The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing
governmental accounting and financial reporting principles.
A. Reporting Entity
The City was incorporated on October 4, 1887, as a general law city formed under state legislative statutes and
governed by a body of laws in the State Constitution. The financial reporting entity (the government) includes all
the funds of the primary government (i.e., the City as legally defined), as well as all of its component units.
Component units are legally separate entities for which the primary government is financially accountable. The
government provides a full range of services including police and fire protection; sanitation, electric, water, and
wastewater services; the construction and maintenance of streets and infrastructure; recreational activities and
cultural events.
As required by U.S. GAAP, the accompanying basic financial statements present the City and its component
units. Component units are entities for which the City is considered to be financially accountable. GASB defines
component units as legally separate entities that meet any one of the following tests:
The component unit's governing body is substantively the same as the governing body of the City and:
o there is a financial benefit or burden relationship between the City and the component unit or
o Management of the City has operational responsibility for the component unit.
The component unit provides services entirely, or almost entirely, to the City or otherwise exclusively, or
almost exclusively, benefits the City even though it does not provide services to it.
The component unit's total debt outstanding, including leases and subscription based information
technology agreements (SBITAs), is expected to be repaid entirely or almost entirely with resources of the
City.
Management determined that the following component units should be blended based on the criteria above:
♦ Redding Housing Authority
♦ Redding Joint Power Financing Authority
♦ Redding Capital Services Corporation
♦ Redding Area Bus Authority
These component units are included in the primary government because of the significance of their financial or
operational relationship and the same City governing body.
Each of the blended component units in the accompanying basic financial statements of the City are described
below:
Redding Housing Authority (Authority) manages certain programs which are funded by the U.S. Department of
Housing and Urban Development, primarily to provide services under the Housing Assistance Payments Program.
The five City Council members and one person appointed by the City Council, in a separate session, serve as the
governing board of the Authority. The financial activity of the Authority has been included in the City's financial
statements as a special revenue fund.
65
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
A. Reporting Entity (Continued)
Redding Joint Powers Financing Authority (JPA) was created by a joint exercise of power agreement between
the City and the JPA with the purpose of financing public capital improvements. City Council members, in a
separate session, serve as the governing board of the JPA. The financing activity of the JPA has been included in
the City's financial statements.
Redding Capital Services Corporation (Corporation), a nonprofit public benefit corporation, was organized
under the Nonprofit Public Benefit Corporation Law of the State of California to provide financial assistance to
the City by constructing, financing, purchasing, selling and leasing various public facilities, land and equipment
for the use, benefit and enjoyment of the public serviced by the City. City council members, in a separate session,
serve as the board of directors of the Corporation. The financing activity of the Corporation has been included in
the City's financial statements in the enterprise funds.
Redding Area Bus Authority (RABA) is a separate governmental entity formed under a joint powers agreement
between the County of Shasta, City of Shasta Lake, the City of Anderson and the City. RABA's governing board
comprises members of both the Counties, and the cities of Redding, Anderson, and Shasta Lake's governing boards
based on population ratios within the service area. Currently, the Redding City Council comprises a majority of
the board members filling five of the eight positions. In addition, City of Redding personnel provides
administrative responsibility for RABA. The function of RABA is to provide the most cost effective public
transportation system utilizing federal and state funding participation. The financial activity of RABA has been
included in the City's financial statements as an enterprise fund.
Financial statements for each of the individual component units may be obtained from the Finance Department of
the City at 777 Cypress Avenue, Redding, California 96001.
B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting
entity. The operations of each fund are accounted for by providing a separate set of self -balancing accounts that
comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting
segregates funds according to their intended purpose and is used to aid management in demonstrating compliance
with finance -related legal and contractual provisions. The minimum number of funds is maintained in accordance
with legal and managerial requirements.
The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows
of Resources, when applicable.
Deferred Outflows of Resources represent a consumption of net assets that applies to future periods and that,
therefore, will not be recognized as an expense until that time.
Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods and that,
therefore, are not recognized as revenue until that time.
66
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Government -Wide Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all of the non -fiduciary activities of the primary government and its component units. For the most
part, the effect of interfund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from business -type
activities, which rely to a significant extent on fees and charges for support.
Government -Wide Financial Statements (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit
from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not included among program revenues are reported instead as general revenues.
The government -wide financial statements are reported using the "economic resources" measurement focus and
the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special
assessments. Internally dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are charges between the government's business type activities and
various other functions of the government. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and
Changes in Fund Balances for all major governmental funds and non -major funds aggregated. An accompanying
schedule is presented to reconcile and explain the differences in Net Position as presented in these statements to
the Net Position presented in the Government -Wide Financial Statements. The City has presented all major funds
that met the applicable criteria.
67
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Governmental Fund Financial Statements (Continued
Governmental fund financial statements are reported using the "current,financial resources" measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. The City considers all revenues as available if they are
collected within sixty (60) days of the end of the current fiscal period, except for sales tax which has a ninety (90)
day availability period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
The reconciliations of the Fund Financial Statements to the Government -Wide Financial Statements are provided
to explain the differences.
Property taxes, sales taxes, transient occupancy tax, grants, licenses, fees, charges and interest associated with the
current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the
current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is
considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to
be measurable and available only when cash is received by the government.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The General Capital Projects Fund accounts for the financing and construction activities of the general
government.
The Community Development Fund accounts for the financing and rehabilitation of homes and public
facilities, homeless services and the financing of multifamily housing.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses
and Changes in Net Position, and a Statement of Cash. Flows for each major Proprietary Fund.
A separate column representing internal service funds is also presented in these statements. However, internal
service balances and activities have been combined with the governmental activities in the Government -Wide
Financial Statements. The City's internal service funds account for the financing of goods or services provided by
one department to other departments of the City on a cost -reimbursement basis. Internal service funds used by the
City are:
Equipment Fund - this fund is used to account for vehicle maintenance and communication costs.
Information Systems - this fund is used to provide computer technology services as well as providing
programming and general information systems support services.
68
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Proprietary Fund Financial Statements (Continued)
General Support Services - this fund is used to provide printing, reprographics, geographic services, records
retention, building and maintenance services, volunteer services and employee services.
Risk Management — this fund is used to account for the accumulation of monies necessary to pay for worker's
compensation claims, health, dental and visions claims and liability claims under a self. -insurance program.
Municipal Utilities Support — this fund is used to account for the management and technician support given
to the Utilities and Street Maintenance funds.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of
accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of
Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and
decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the
period in which they are earned while expenses are recognized in the period in which the liability is incurred. In
these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds
and of the government's internal service funds are charges to customers for sales and services. Tap and similar
fees have been reported as non -operating revenues in the City's statement of revenues, expenses and changes in
net position for proprietary funds and as capital grants and contributions in the statement of activities and changes
in net position. Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non -operating revenues and expenses.
The City reports the following major proprietary funds:
The Electric Utility Fund accounts for the operations of the City's electric utility, a self-supporting activity
which renders a service on a user -charge basis to residents and businesses.
The Water Utility Fund accounts for the operations of the City's water utility, a self. -supporting activity which
renders a service on a user -charge basis to residents and businesses.
The Wastewater Utility Fund accounts for the operations of the City's wastewater utility, a self-supporting
activity which renders a service on a user -charge basis to residents and businesses.
The Solid Waste Collection / Disposal Fund accounts for the operations of the City's solid waste utility, a
self-supporting activity which renders a service on a user -charge basis to residents and businesses.
69
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of fiduciary net position and a statement of changes in
fiduciary net position. The City's fiduciary funds represent custodial funds and a Private -purpose Trust Fund.
Custodial funds report fiduciary activities that are not held in a trust or equivalent arrangement. These funds use
the economic resources measurement focus.
Fiduciary fund types are accounted for according to the nature of the fund.
The City's Custodial funds are used to account for assets held by a governmental unit as an agent for
individuals, governmental entities (other than the City) and non-public organizations. This fund is used to
account for deposits and collects monies for various community events which are remitted to the organizers.
The City's private purpose trust fund is a fiduciary fund type used to report all trust arrangements, other than
those properly reported in pension trust funds or investment trust funds, under which principal and interest
benefit individuals, private organizations, or other governments. This trust fund is used to account for the
fiduciary assets, liabilities and net position of the Successor Agency (Agency) to the Redding Redevelopment
Agency, the former redevelopment agency of the City.
C. Cash and Investments
The City pools idle cash from all funds for the purpose of increasing income through investment activities. Cash
deposits are stated at cost, which approximates fair value. Investments are stated at fair value. Investment income
is recorded as revenue in the individual funds based on the computed average interest rate of all investments and
the average daily cash balance of each fund. For purposes of the statement of cash flows of the proprietary fund
types, cash and cash equivalents include all investments, as the City operates an internal cash management pool
which maintains the general characteristics of a demand deposit account.
All cash and investments of proprietary funds are held in the City's investment pool. Therefore, all cash and
investments in the proprietary funds are considered cash and cash equivalents for purposes of the statement of cash
flows as these cash pools have the general characteristics of a demand deposit account.
Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas:
➢ Interest Rate Risk
Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
➢ Foreign. Currency Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments,
highly sensitive investments, credit quality at year-end and other disclosures.
70
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
C. Cash and Investments (Continued)
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about
fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of
Net Position or Balance Sheet, are categorized based upon the level of judgment associated with the inputs used
to measure their fair value. Levels of inputs are as follows:
Level 1 — Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the
measurement date.
Level 2 — Inputs, other than quoted prices included in Level 1, which are observable for the assets or liabilities
through corroboration with market data at the measurement date.
Level 3 — Unobservable inputs that reflect management's best estimate of what market participants would use
in pricing the assets or liabilities at the measurement date.
D. General Receivables and Property Taxes Receivable
The City records an allowance for doubtful accounts on general accounts receivable based on the experience
method.
The County of Shasta assesses, bills, and collects property taxes for the City. Property taxes attach as an
enforceable lien on property as of January 1. Taxes are levied on July 1. They become due November 1 and
February 1 and become delinquent December 10 and April 10. City property tax revenue is recognized when
levied to the extent that it is available (collected within 60 days of year-end).
E. Inventories and Prepaid Items
Inventories are physically counted at year-end and valued at their average cost. All inventories consist of
expendable supplies held for consumption. The cost is recorded as inventory when items are purchased and as
expenditures when the items are used (the consumption method of accounting for inventories). The weighted
average method is used for establishing the cost of inventory consumed.
Payments made to vendors that will benefit future accounting periods are recorded as prepaid items. Prepaid items,
as reported in the governmental funds balance sheet, are offset by a nonspendable fund balance account to indicate
such amounts are not in spendable form. The cost of prepaid items is recorded as expenditure/expenses when
consumed rather than when purchased.
F. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks,
and similar items), are reported in the applicable governmental or business -type activities columns in the
government -wide financial statements. Capital assets are defined by the government as assets with an initial cost
of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost
or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition
value at the date of donation. "Right -to -use" assets are defined by the government as assets with an initial present
value of more than $15,000 and an estimated life in excess of one year. Such assets are recorded at present value.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the
asset's life are not capitalized.
71
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
F. Capital Assets (Continued)
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful
lives are as follows:
Asset Types
Useful Life (in years)
Public domain infrastructure
30-50
Utility plants
15-50
Buildings
10-30
Improvements other than buildings
5-40
Equipment, furnishings and vehicles
5-10
Assets under capital lease
4-30
System infrastructure
30
Right -to -use assets
Term of Contract
For all infrastructure systems, the City elected to use the Basic Approach. The City defines infrastructure as the
basic physical assets that allow the City to function. The assets include the streets, water purification and
distribution system, sewer collection and treatment system, parks and recreation, lands and improvement system,
storm water conveyance system, and buildings combined with the site amenities such as parking and landscaped
areas used by the City in the conduct of its business. Each major infrastructure system can be divided into
subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks,
medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land.
These subsystems were not delineated in the basic financial statements. The appropriate operating department
maintains information regarding the subsystems.
G. Leases
Lessee
The City has a policy to recognize a lease liability and a right -to -use lease asset (lease asset) in our financial
statements with an initial, individual value of $15,000 or more with a lease term greater than one year. Variable
payments based on future performance or usage of the underlying assets are not included in the measurement of
the lease liability.
At the commencement of a lease, the lease liability is measured at the present value of payments expected to be
made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments
made.
Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease
payments made to the lessor at or before the commencement of the lease term, less any lease incentives received
from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary
charges necessary to place the lease assets into service. Lease assets are amortized using the straight—line method
over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase
option that the State has determined is reasonably certain of being exercised. In this case, the lease asset is
amortized over the useful life of the underlying asset.
72
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
G. Leases (continued)
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to
discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
1. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by
the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount
rate for leases.
2. The lease term includes the non -cancelable period of the lease, plus any option periods that are reasonably
certain to be exercised.
3. Lease payments included in the measurement of the lease liability are composed of fixed payments and
purchase option price that the City is reasonably certain to exercise. The City monitors changes in
circumstances that would require a remeasurement of a lease and will remeasure any lease asset and
liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported as right -to -use along with other capital assets and lease liabilities are reported on the
statement of net position as long-term debt.
Lessor
The City is a lessor for leases of buildings and land and recognizes leases receivable and deferred inflows of
resources in the financial statements. Variable payments based on future performance or usage of the underlying
asset are not included in the measurement of the lease receivable.
At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be
received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease
payments received. The deferred inflows of resources are initially measured as the initial amount of the lease
receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the
deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational
method.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected
lease receipts to present value, (2) lease term, and (3) lease receipts.
1. The City uses an incremental borrowing rate (IBR) calculated by using the 5, 7, or 10-year Constant Maturities
Treasury Bill Index plus a margin of 3% as instructed by one of our financial institutions at July 1, 2021 for
existing leases or the current rate at the time a new lease is executed.
2. The lease term includes the non -cancelable period of the lease plus any option periods that are likely to be
exercised.
Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the
lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure
the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly
affect the amount of the lease receivable.
73
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
H. Subscription Based Information Technology Arrangements (SBITA)
The City has a policy to recognize a SBITA liability and a right -to -use subscription asset (subscription asset) in
our financial statements with an initial, individual value of $15,000 or more with a term greater than one year.
At the commencement of a SBITA, the SBITA liability is measured at the present value of payments expected to
be made during the SBITA term. Subsequently, the SBITA liability is reduced by the principal portion of SBITA
payments made.
Subscription assets are recorded at the amount of the initial measurement of the SBITA liabilities and modified by
any SBITA payments made to the vendor at or before the commencement of the subscription term, plus
capitalizable implementation costs less any incentives received from the vendor at or before the commencement
of the subscription term. Subscription assets are amortized using the straight—line method over the subscription
term.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to
discount the expected lease payments to present value, (2) SBITA term, and (3) SBITA payments.
1. The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged
by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the
discount rate for SBITAs.
2. The lease term includes the non -cancelable period of the SBITA, plus any option periods that are
reasonably certain to be exercised.
3. SBITA payments included in the measurement of the SBITA liability are composed of fixed payments.
The City monitors changes in circumstances that would require a remeasurement of a SBITA and will
remeasure any subscription asset and liability if certain changes occur that are expected to significantly
affect the amount of the SBITA liability.
Subscription assets are reported as right -to -use along with other capital assets and SBITA liabilities are reported
on the statement of net position as long-term debt.
f Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the plans and
additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are
reported by the plans (Note 18). For this purpose, benefit payments (including refunds of employee contributions)
are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The
following timeframes are used for pension reporting:
CaIPERS:
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
PARS:
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
74
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
L Pensions (Continued)
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension
expense systematically over time. The first amortized amounts are recognized in pension expense for the year the
gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources
related to pensions and are to be recognized in future pension expense. The amortization period differs depending
on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line
over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of
all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement
period.
J. Other Postemployment Healthcare Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources
related to OPEB, and OPEB expense, information about the fiduciary net position of the plans and additions
to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported
by the plans (Note 19). For this purpose, benefit payments (including refunds of employee contributions) are
recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The
following timeframes are used for OPEB reporting:
Valuation Date
June 30, 2023
Measurement Date
June 30, 2023
Measurement Period
July 1, 2022 to June 30, 2023
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB
expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the
gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources
related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on.
the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over
5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all
members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement
period.
K. Vacation and Sick Pay
Vacation pay is vested to the employees as it accrues and is payable upon retirement or termination. Sick leave,
however, does not vest to the employees and is payable only when sick leave is taken, except when an individual
has been employed by the City for ten years or longer. If the employee severs their relationship with the City after
having been employed ten or more years, they receive from 33-1/3% to 60% payoffs depending on length of
service. If the employee retires from the City after having been employed ten or more years, they have the option
to take from 33-1/3% to 60% payoffs, per various Memoranda of Understandings, of their accrued sick pay as
additional termination pay and have the remaining accrued sick pay extend their term of service for retirement
benefit purposes. Vacation pay and 33-1/3% to 60% of the sick pay of employees with terms of services equal to
or exceeding ten years have been accrued in the accompanying government -wide financial statements and the
accompanying proprietary fund financial statements.
75
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
L. Unearned Revenue
In the government -wide financial statements and fund financial statements, unearned revenue is recorded for
transactions for which revenues have not been earned.
M. Long -Term Obligations
In the government -wide financial statements and proprietary fund types in the fund financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -
type activities, or proprietary fund type statement of net position. Lease and subscription liabilities with a present
value of more than $15,000 are also included in long-term debt. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the straight-line method, which does not materially differ from the
effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the
current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt
issuances are reported as other financing sources while discounts on debt issuances are reported as other financing
uses. Bond issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
expenditures unless they are related to insurance costs. Bond issuance insurance costs are reported as a prepaid
asset and amortized over the life of the bonds.
N. Net Position
For government -wide reporting as well as in proprietary funds, fund equity is called net position. Net position is
comprised of three components: net investment in capital assets, restricted, and unrestricted.
Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by
outstanding balance of bonds, notes and other debt that are attributed to the acquisition, construction, or
improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are
attributable to the acquisition, construction or improvement of those assets or related debt are included in this
component of net position.
Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related
to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties
or by law through constitutional provision or enabling legislation.
Unrestricted net position is the net amount of assets, deferred outflows 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 financial statements, governmental funds aggregate amounts for five classifications of fund balances
based on the constraints imposed on the use of these resources. The non -spendable fund balance classification
includes amounts that cannot be spent because they are either (a) not in spendable form — prepaid items or
inventories; or (b) legally or contractually required to be maintained intact.
The spendable portion of the fund balance comprises the remaining four classifications; restricted, committed,
assigned, and unassigned.
76
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
O. Fund Balances
Restricted fund balance. This classification reflects the constraints imposed on resources either (a) externally
by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislation.
Committed fund balance. These amounts can only be used for specific purposes pursuant to constraints
imposed ordinances of the City Council — the government's highest level of decision making authority. Those
committed amounts cannot be used for any other purpose unless the City Council removes the specified use
by taking the same type of action imposing the commitment. This classification also includes contractual
obligations to the extent that existing resources in the fund have been specifically committed for the use in
satisfying those contractual requirements.
Assigned fund balance. This classification reflects the amounts constrained by the City Council's "intent" to
be used for specific purposes, but are neither restricted nor committed. By Council Policy the City Council
and City Manager have the authority to allocate amounts to be used for specific purposes. City Council
approves the appropriation; however, the budget ordinance authorizes the City Manager to modify the
appropriations by resource or appropriation within a functional area or fund.
Unassigned fund balance. This amount is for any portion of the fund balances that do not fall into one of the
above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount.
In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount.
However, in governmental funds other than General Fund, if expenditures incurred for specific purposes
exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report
a negative unassigned fund balance in that fund.
P. Spending Policy
When both restricted and unrestricted resources are available for use, it is the City's policy to use externally
restricted resources first, then unrestricted resources -committed, assigned, and unassigned -in order as needed. The
City has no formal policy of assignment of fund balance. 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 financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those estimates.
R. New Governmental Accounting Standards Implemented for the Year Ended June 30, 2024
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, 2024. The financial statements included herein apply the
requirements and provisions of these statements, including necessary retroactive adjustments to financial statement
classifications and presentations.
The City is currently analyzing its accounting practices to determine the potential impact on the financial statements
for the following GASB statements:
77
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1— Summary of Significant Accounting Policies (Continued)
R. New Governmental Accounting Standards Implemented for the Year Ended June 30, 2024 (Continued)
GASB Statement No. 100 -In June 2022, GASB issued Statement No. 100, Accounting Changes and Error
Corrections — an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance
accounting and financial reporting requirements for accounting changes and error corrections to provide more
understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing
accountability. Application of this statement did not have a significant effect on the City's financial reporting for
the fiscal year ended June 30, 2024.
S. Upcoming Governmental Accounting Standards Implementation
GASB Statement No. 101-In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective
of this Statement is to better meet the information needs of financial statement users by updating the recognition
and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and
measurement guidance under a unified model and by amending certain previously required disclosures.
Application of this statement is effective for the City's fiscal year ending June 30, 2025.
GASB Statement No. 102 - In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The
objective of this Statement is to provide users of government financial statements with essential information about
risks related to a government's vulnerabilities due to certain concentrations or constraints which may limit a
government's ability to acquire resources or control spending. Application of this statement is effective for the
City's fiscal year ending June 30, 2025.
GASB Statement No. 103 - In April 2024, GASB issued Statement No. 103, Financial Reporting Model
Improvements. The objective of this Statement is to improve key components of the financial reporting model to
enhance its effectiveness in providing information that is essential for decision making and assessing a
government's accountability. Application of this statement is effective for the City's fiscal year ending June 30,
2026.
GASB Statement No. 104 - In September 2024, GASB issued Statement No. 104, Disclosure of Certain Capital
Assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note
disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and
intangible right -to -use assets recognized in accordance with Statement No. 94, Public -Private and Public -Public
Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying
asset in the capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96,
Subscription -Based Information Technology Arrangements, also should be separately disclosed. In addition, this
Statement requires intangible assets other than those three types to be disclosed separately by major class.
Application of this statement is effective for the City's fiscal year ending June 30, 2026.
78
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 2 — Cash and Investments
At June 30, 2024, cash and investments are reported in the accompanying basic financial statements as follows:
Government -Wide
Statement of Net Position
Fiduciary Funds
Governmental Business -Type Statement of
Activities Activities Total Net Position Total
Cash and investments $ 90,821,156 $ 184,262,891 $ 275,084,047 $ 8,301,780 $ 283,385,827
Restricted cash
and investments $ 1,119,178 $ 6,551,113 $ 7,670,291 $ 6,394 $ 7,676,685
At June 30, 2024, cash and investments, including cash and investments with fiscal agent, are reported at fair value in
accordance with generally accepted accounting principles. The following table presents the fair value measurements
of the investments recognized in the accompanying statement of net position and balance sheet measured at fair value
on a recurring basis and the levels within GASB 72 fair value hierarchy in which fair value measurement fall at June
30, 2024:
Fair Value Measurement
Unrestricted Restricted Total Input
Deposits $ 58,249,297 $ 194,243 $ 58,443,540 N/A
Medium Term Corporate Notes 16,878,000 - 16,878,000 Level 2
Federal Agency Bonds 114,206,160 - 114,206,160 Level
Mutual Funds* 86,874,858 7,482,442 94,357,300 Level
Local Agency Investment Fund 7,1.77,512 - 7,177,51.2 Uncategorized
Total investments 225,136,530 7,482,442 232,618,972
Total cash and investments $ 283,385,827 $ 7,676,685 $ 291,062,512
*Includes CAMP Investments
Securities classified in level l are valued using prices quoted in active markets for those securities. Securities classified
in level 2 are valued using significant other observable inputs such as institutional bond pricing techniques and
evaluated pricing applications and models.
79
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 2 — Cash and Investments (Continued)
The City maintains a cash and investment pool that is available for use by all funds, except for funds of the Authority,
Agency, and RABA (these funds have segregated accounts). Each fund's portion of the cash and investment pool or
segregated accounts is displayed on the Statement of Net Position and the Fund Financial Statement Balance Sheets as
"Cash and Investments."
A. Demand Deposits
At June 30, 2024, the carrying amount of the City's deposits was $58,443,540 of which $194,243 was restricted
and $58,249,297 was unrestricted. The bank balance was $62,536,038. Of the bank balance, $1,991,781.
was covered by Federal depository insurance, and $60,544,257 was covered by collateral held in the pledging
bank's trust department.
The California Government Code requires California banks and savings and loan associations to secure the City's
cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have
the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral
for cash deposits is considered to be held in the City's name.
The fair value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows
institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's
total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to
$250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization
requirements.
B. Investments
The California Government Investment Code and the investment policy of the City authorize the City to invest in
obligations, participation, or other instruments of the U.S. Government or its agencies, state and municipal bonds,
commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical rating as provided
by Standard & Poor's Corporation or Moody's Investor Service, Inc., bankers' acceptances, repurchase
agreements, mortgage pass -through securities, collateralized mortgage obligations, mortgage -backed or other 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 maximum of five years with
a minimum rating category of "A" by a nationally recognized rating service, notes, bonds, or other obligations
secured by a valid first priority security interest, and the State Treasurer's Investment Pool (LAIF). Reverse
repurchase agreements may be made only when prior approval of the City Council has been given.
C. Investments in Local Agency Investment Fund (LAID)
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, 2024 included a
portion of pool funds invested in Structure Notes and Asset -Backed Securities:
Structured Notes are debt securities (other than asset -backed securities) whose cash -flow characteristics
(coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have
embedded forwards or options.
Asset -Backed Securities, the bulk of which are mortgage -backed securities, entitle their purchasers to receive
a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages
(such as Collateralized Mortgage Obligations) or credit card receivables.
80
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 2 — Cash and Investments (Continued)
C. Investments in Local Agency Investment Fund (LAIF) (Continued)
As of June 30, 2024, the City had $7,177,512 invested in LAIF, which had invested 3.00% of the pool investment
funds in Structured Notes (1.40%) and Asset -Back Securities (1.60%). 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, 2024, by multiplying its account balance with LAIF times a fair
value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants' total
aggregate amortized cost by total aggregate fair value. The fair value of the City's position in the pool is the same
as the value of the pool shares. The credit quality rating of LAIF is unrated as of June 30, 2024.
D. Investments in California Asset Management Program (CAMP)
The City is a participant in CAMP which is a JPA (Joint Powers Authority) created by the Declaration of Trust
and established under the provisions of the Act for the purpose of exercising the common power of its Participants
to invest funds. The Trust is a JPA and a separate Public Agency established as a common law trust under the laws
of the State of California by execution of a Declaration of Trust by two California Public Agencies as the initial
Participants in the Trust.
The Trust is currently governed by a Board of seven Trustees, all of whom are officials or employees of Public
Agencies that are Participants in the Trust. Trustees are appointed pursuant to, and are provided authority under,
the Declaration of Trust.
PFMAM (PFM Asset Management) is an investment and advisory firm with offices in San Francisco, CA and
Harrisburg, PA, is the Trust's investment advisor and administrator. The daily management of the investment
affairs and research relating to the Portfolios is conducted by or under the supervision of the Investment Advisor.
The following Cash Reserve Portfolio invests exclusively in the following types of investments all of which are
authorized investments for Public Agencies pursuant to California Government Code Section 53601: U.S.
Government and agency obligations; Repurchase agreements collateralized by U.S. Government and agency
obligations; Bankers' acceptances; Negotiable certificates of deposit; Commercial paper, Corporate notes;
Supranationals; Asset -back Securities and Money Market Funds.
As of June 30, 2024, the City has $94,326,928 invested in CAMP, which had invested the pool investment funds
in a fully liquid, stable net asset value investments.
E. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market
interest rates. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City
varies its maturity dates throughout the five-year maturity period. The investments with maturities greater than 5
years pertain to investment agreements within the bond issues. These agreements afford the City long-term fixed
interest rates for the duration of the bond issue, with the option to utilize those funds for debt service payments and
at the City's option replenish those funds at the fixed rate until the maturity of the investment agreements. The
City has no formal policy regarding interest rate risk.
81
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 2 — Cash and Investments (Continued)
E. Risk Disclosures (Continued)
As of June 30, 2024, the City had the following investments and maturities:
Unrestricted:
Investment Type
Investments Maturities (in Years)
Fair Less
Value Than 1 1-2 3-4
Medium Term Corporate Notes $ 16,878,000 $ 4,928,000 $ 7,218,000 $ 4,732,000 $ -
Federal Agency Bonds 114,206,160 36,357,415 40,570,764 26,485,450 10,792,531
Investment in State Treasurer's
Investment Pool 7,177,512 7,177,512 - - -
Mutual Funds 86,874,858 86,874,858 - - -
Total $ 225,136,530 $ 135,337,785 $47,788,764 $31,217,450 $10,792,531
Restricted:
Investment Type
Investment in State Treasurer's Investment Pool
Mutual Funds
Total
Disclosures Relating to Credit Risk
Investments Maturities (in Years)
Fair Less More
Value Than 1 1-5 Than 5
7,482,442 7,482,442 - -
$ 7,482,442 $ 7,482,442
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, 2024, the City's investments in Federal Agency Bonds were rated AA and AAA by S&P. The
City's investments in Medium Term Corporate Notes were rated AAA by S&P. Investments in LAIF are not rated
as LAIF is a State sponsored investment pool. The City policy limits the percentage invested in various instruments
by category.
As of June 30, 2024, the City's investments in CAMP were rated AAA by S&P and exempt.
82
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 2 — Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Disclosures Relating; to Concentration of'Credit Risk
Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools)
that represent 5% or more of total City investments are as follows:
Issuer
Federal Farm Credit Bank
Federal National Mortgage Association
Federal Home Loan Mortgage Corporation
Federal Home Loan Bank
Disclosures Relating to Custodial Credit Risk
Investment Type Amount
Federal Agency Securities $ 18,518,750
Federal Agency Securities $ 24,613,200
Federal Agency Securities $ 31,689,428
Federal Agency Securities $ 39,387,21.2
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 government will not be able to recover the value of its investment or collateral securities
that are in the possession of another party. The California Government Code and the City's investment policy do
not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or
investments, other than the following provision for deposits.
All securities are held in the name of the City. As a result, the City had no custodial credit risk at June 30, 2024.
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, 2024, approximately $69.90
million of notes receivable, net of $1.15 million allowance for doubtful accounts, were reported in the Community
Development major fund. At June 30, 2024, approximately $15.14 million of notes receivable were reported in the
Housing non -major special revenue fund.
83
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 3 - Governmental Notes Receivable (Continued)
General governmental activities:
Community development fund loans
Community Development Block Grant (CDBG)
HOME Investment Program (HOME)
CalHome Program
Other California Programs (AHSC, I1G)
City Affordable Housing Loan Fund (AHLF)
Total community development fund loans
Allowance for bad debt
Community development fund notes receivable, net
Housing fund loans
Low Mod Income Housing Asset Fund
Total housing fund loans
Housing fund loans receivable, net
Total governmental note receivable
Business -type activities:
Electric utility loans
Redding Rodeo note
Total business -type note receivable
Total note receivable
Note 4 — Lease Receivable
Balance
Balance
July 1, 2023
Additions
Deletions
June 30, 2024
$ 2,874,205
$ 37,061
$ (32,245)
$ 2,879,021
23,777,133
1,082,054
(128,939)
24,730,248
1,738,420
92,800
(3,186)
1,828,034
30,285,089
5,258,425
-
35,543,514
5,266,572
(338,100)
-
4,928,472
63,941,419
6,132,240
(164,370)
69,909,289
(192,329)
(954,209)
-
(1,146,538)
63,749,090
5,178,031
(164,370)
68,762,751
15,236,117
-
(99,377)
15,136,740
15,236,117
-
(99,377)
15,136,740
15,236,117
-
(99,377)
15,136,740
78,985,207
5,178,031
(263,747)
83,899,491
90,688 - (90,688) -
90,688 - (90,688) -
$ 79,075,895 $ 5,1.78,031 $ (354,435) $ 83,899,491
Summary of changes in governmental activities leases receivable for the year ended June 30, 2024 is as follows:
Balance
Balance
Due within
Due in more
July 1, 2023
Additions Deletions
June 30, 2024
One Year
than One Year
Lease receivable
Governmental -type activities
$ 2,433,322
$ - $ (354,147)
$ 2,079,175
$ 311,291
$ 1,767,884
Business -type activities
9,103,738
1,649,954 (842,943)
9,910,749
778,320
9,132,429
Total lease receivable
$11,537,060
$1,649,954 $(1,197,090)
$11,989,924
$ 1,089,611
$ 10,900,313
84
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 4 - Lease Receivable (Continued)
A portion of the City's property is leased to others. Such property includes special purpose facilities, office and
commercial space, and land. Lease receivable consists of agreements with others for the right -to -use of the underlying
assets at various locations owned by the City. The terms of the arrangements range from 2 to 25 years. The calculated
interest rates used are based on the 5, 7, or 10-year Constant Maturities Treasury Bill Index plus a margin of 3%. It is
City policy to recognize leases as a lease receivable when the present value meets or exceeds $15,000. Lease revenues
are recognized as operating revenues in proprietary funds and as charges for services in governmental funds. The City
municipal airport holds the majority of the leases recognized, with a balance at June 30, 2024 of $8,609,888.
Governmental -type activities
Lease receivable
Year Ending June 30,
Principal
Interest
Total
Deferred Inflows
2025
$ 311,291
$
82,457
$
393,748
$
311,291
2026
183,298
72,581
$
255,879
1.83,298
2027
180,899
64,568
$
245,467
180,899
2028
171,494
56,821
$
228,315
171,494
2029
703,481
171,804
$
875,285
703,481.
2030-2034
197,695
84,552
$
282,247
197,695
2035-2039
190,622
46,066
$
236,688
190,622
2040-2044
140,395
9,187
$
149,582
140,395
2045-2049
-
-
-
-
Total
$ 2,079,175
$
588,036
$
2,667,211
$
2,079,175
Business -type activities
Lease receivable
Year Ending June 30,
Principal
Interest
Total
Deferred Inflows
2025
$ 778,320
$
525,407
$
1,303,727
$
778,320
2026
728,424
492,990
$
1,221,414
728,424
2027
641,321
461,167
$
1,102,488
641,321
2028
657,597
430,1.31
$
1,087,728
657,597
2029
475,019
402,183
$
877,202
475,019
2030-2034
2,043,145
1,704,616
$
3,747,761
2,043,145
2035-2039
1,234,595
1,273,229
$
2,507,824
1,234,595
2040-2044
1,048,204
941,448
$
1,989,652
1,048,204
2045-2049
1,015,114
608,264
$
1,623,378
1,015,114
2049-2054
1,001,985
233,037
$
1,235,022
1,001,985
Thereafter
287,025
104,191
$
391,216
287,025
Total
$ 9,910,749
$
7,176,663
$ 17,087,412
$
9,910,749
85
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 5 — Interfund Activities
A. Due From and Due To Other Funds
At June 30, 2024, due to and due from other funds balances are as follows:
Due From
Due To Other Funds General Fund Total
Governmental funds:
Nonmajor governmental funds $ 151,935 $ 151,935
Enterprise funds:
Nonmajor enterprise funds 675,986 675,986
Total $ 827,921 $ 827,921
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, 2024, Interfund receivable and payable balances are as follows:
Interfund Receivable
Electric Water Wastewater Solid Waste Internal
General Utility Utility Utility Utility Service
Interfund Payable Fund Fund Fund Fund Fund Funds Total
Governmental Funds:
Community Development $ 245,157 $ 488,142 $ 191,771 $ 130,752 $ 61,018 $ - $ 1,116,840
Enterprise funds:
Nonmajor enterprise funds - - - - - 43,000 43,000
Internal service funds 6,250 - - - - - 6,250
Total $ 251,407 $ 488,142 $ 191,771 $ 130,752 $ 61,018 $ 43,000 $ 1,166,090
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, 2024
Note 5 — Interfund Activities (Continued)
C. Advances To and From Other Funds
At June 30, 2024, long-term advances consisted of the followings:
Advances to Other Funds
Solid
Electric Wastewater Water Waste
Advances from other funds Utility Utility utility utility
Governmental funds:
General fund
Community Development
Nonmajor: governmental funds
Enterprise funds:
Nonmajor: enterprise funds
Total
$3,588,088 $ - $ - $ - $
1,120,389 300,104 440,152 140,048
233,781 - - -
Internal
Service
Funds Total
- $3,588,088
- 2,000,693
186,913 420,694
- - - 2,998,577 2,998,577
$4,942,258 $ 300,1.04 $440,152 $140,048 $3,185,490 $9,008,052
a) The Electric Utility loaned the Parking Fund additional funds for another parking structure at the Downtown
Mall. The outstanding balance at year-end was $233,781; all of which is classified as long-term.
b) The Electric Utility Fund advanced $3,621,500 to the General Fund for the replacement of the Redding Soccer
Park turf. The outstanding balance of the advance including accrued interest at the City's average earnings on
its pooled cash is $489,024; all of which is classified as long-term.
c) The General Fund has advanced funds to the Parking Fund to cover operating expenditures. This balance has
been transferred to the Risk Management Fund and had a balance of $186,913 at year-end; all of which is
classified as long-term.
d) In recent years the General Fund has advanced $8,917,054 to the Airport Fund to finance improvements and
operating expenses. The balance was transferred to the Risk Management Fund during the 2009-2010 fiscal
year. The Airport Fund has repaid $7,392,640 to date. At year-end the balance was $1,524,384. Of this amount
$1,499,384 is classified as long-term.
e) In recent years the General Fund has advanced $1,374,847 to the Convention Center Fund to finance
improvements and operating expenses. The balance was transferred to the Risk Management Fund during the
2009-2010 fiscal year. The balance at year-end was $732,186; of this amount $714,186 is classified as long-
term.
f) The Risk Management Fund advanced funds to the Convention Center Fund to finance additional
improvements. At year-end the balance was $785,007; all of which is classified as long-term at year-end.
g) The Electric Fund advanced funds of $681,400 to the General Fund by paying for a portion of the Redding
Police Department's share of the communication platform overhaul. An additional advance was taken in fiscal
year 2021-22 in the amount of $1,340,345 and $1,384,510 in fiscal year 2022-23. The outstanding balance of
the advance including accrued interest at the City's average earnings on its pooled cash is $3,099,064; all of
which is classified as long term.
h) The Utilities Funds (Electric, Water, Wastewater and Solid Waste) advanced funds totaling $2,872,376 to the
Community Development Fund to finance the improvements for the Block 7 Downtown Project. (Electric -
$1,608,531 Water - $631,923; Wastewater - $430,856; and Solid Waste - $201,066). The balance at year end
was $2,872,376; of this amount $2,000,693 is classified as long term.
87
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 5 — Interfund Activities (Continued)
D. Internal Balance Summary
At June 30, 2024, the internal balance summary consisted of the followings:
Governmental Funds
Internal
General
Community Special Service
Fund
Development Revenue Funds
Total
Assets
Due from other funds
$ 827,921
$ - $ - $ -
$ 827,921
Interfund receivable
251,407
- - 43,000
294,407
Advances to other funds
-
- - 3,185,490
3,185,490
1,079,328
- - 3,228,490
4,307,818
Liabilities
Due to other funds
-
-
151,935
-
151,935
Interfund payable
-
1,116,840
-
6,250
1,123,090
Advances from other funds
3,588,088
2,000,693
420,694
-
6,009,475
3,588,088
3,11.7,533
572,629
6,250
7,284,500
Net difference
(2,976,682)
Business -type portion of the internal service funds
12,441,565
Statement of net assets internal balance
$ 9,464,883
Proprietary
Funds
Electric
Wastewater
Solid
Nonmajor
Utility
Water Utility
Utility
Waste
Enterprise
Total
Assets
Due from other funds
$ -
$ -
$ - $
-
$ - $
Interfund receivable
488,142
191,771
130,752
61,018
-
871,683
Advances to other funds
4,942,258
440,152
300,104
140,048
-
5,822,562
5,430,400
631,923
430,856
201,066
-
6,694,245
Liabilities
Due to other funds - - - - 675,986 675,986
Interfund payable - - - - 43,000 43,000
Advances from other funds - - - - 2,998,577 2,998,577
- - 3,717,563 3,717,563
Net difference 2,976,682
Business -type portion of the internal service funds (12,441,565)
Statement of net assets internal balance $ (9,464,883)
88
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 5 — Interfund Activities (Continued)
E. Transfer In and Out
The following operating transfers were made during the fiscal year -ended June 30, 2024:
Transfers In
Nonmajor
Nonmajor
Internal
Governmental
Electric
Enterprise
Service
Transfers Out
General Fund
Funds
Fund
Water Fund
Funds
Funds
Total
Governmental funds:
Major funds:
General fund
$ -
$ 994,235
$ 3,200
$ -
1,038,484
$ -
$ 2,035,919
General capital projects fund
-
-
-
-
-
-
-
Nonmajor governmental funds
10,009,190
-
-
-
-
-
10,009,190
Enterprise funds:
Major enterprise funds:
Electric
7,270,600
-
-
125,000
-
33,133
7,428,733
Water
-
-
-
-
143,901
-
143,901
Wastewater
-
-
196,059
-
325,602
-
521,661
Nonmajor enterprise funds
250,000
-
-
57,236
-
-
307,236
Internal service funds
-
-
4,800
-
-
-
4,800
Total
$ 17,529,790
$ 994,235
$204,059
$ 182,236
$1,507,987
$33,133
$20,451,440
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) Funds transferred for used vehicles purchased internally per City policy between General Fund, Electric and
Internal Service Funds.
89
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 6 — Capital Assets
A. Governmental Activities
Summary of changes in capital assets for the year ended June 30, 2024 consisted of the following:
Balance
Balance
July 1, 2023
Additions
Deletions
Transfers
June 30, 2024
Total governmental activities:
Capital assets, not being depreciated:
Land
$ 36,426,744
$ 1,004,179
$ (12,307)
$ 2,510,994
$ 39,929,610
Construction in process
67,369,947
22,1.38,295
(67,911)
(14,919,385)
74,520,946
Total capital assets, not being depreciated
103,796,691
23,142,474
(80,218)
(12,408,391)
114,450,556
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Infrastructure
Automotive equipment
Furnishings and equipment
Assets under lease:
Right -to -use improvements
Right -to -use automotive equipment
Right -to -use subscription
Total capital assets, being depreciated
Accumulated depreciation:
Buildings
Improvements other than buildings
Infrastructure
Automotive equipment
Furnishings and equipment
Assets under lease:
Right -to -use improvements
Right -to -use automotive equipment
Right -to -use subscription
Total accumulated depreciation
64,865,090
- - 173,677
65,038,767
1.07,085,499
- - 684,093
107,769,592
350,412,573
872,259 - 10,182,055
361,466,887
20,433,546
3,818,588 (379,104) 155,651
24,028,681
12,467,909
100,047 - -
1.2,567,956
113,677
- - - 113,677
609,387
413,244 (165,214) - 857,417
348,734
4,572,851 - - 4,921,585
556,336,415
9,776,989 (544,318) 11,195,476 576,764,562
(41,983,997)
(2,022,596) -
- (44,006,593)
(77,825,051)
(3,480,014) -
- (81,305,065)
(152,560,479)
(9,191,121) -
- (161,751,600)
(12,569,097)
(1,654,044) 379,104
(89,386) (13,933,423)
(10,059,882)
(607,756) -
- (10,667,638)
(70,377)
(30,485) -
- (100,862)
(182,446)
(164,163) 100,880
- (245,729)
(84,233)
(986,515) -
- (1,070,748)
(295,335,562)
(18,136,694) 479,984
(89,386) (313,081,658)
Total capital assets,
being depreciated, net 261,000,853 (8,359,705) (64,334) 11,106,090 263,682,904
Total governmental activities $ 364,797,544 $ 14,782,769 $ (144,552) $ (1,302,301) $ 378,133,460
Depreciation expense was charged to governmental activities as follows:
Program
Depreciation
General government
$ 1,688,492
Police
1,739,245
Fire
1,074,723
Public works
9,358,697
Recreation and culture
4,221,117
Community development
54,420
Total
$ 18,136,694
90
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 6 — Capital Assets (Continued)
B. Business -Type Activities
Summary of changes in capital assets for the year ended June 30, 2024 consisted of the following:
Balance Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024
Business -type activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Utility plants
Buildings
Improvements other than buildings
Automotive equipment
Furnishings and equipment
Assets under lease:
Right -to -use equipment
Right -to -use subscription
Total capital assets, being depreciated
Less accumulated depreciation for:
Utility plants
Buildings
Improvements other than buildings
Automotive equipment
Furnishings and equipment
Assets under lease:
Right -to -use equipment
Right -to -use subscription
Total accumulated depreciation
Total capital assets,
being depreciated, net
Total business -type activities
$ 20,394,310 $ - $ - $ - $ 20,394,310
55,199,976 34,721,404 (111,617) (9,325,699) 80,484,064
75,594,286 34,721,404 (111,617) (9,325,699) 100,878,374
911,186,961
11,005,449 (1,594,899) 10,314,811 930,912,322
78,207,472
- - - 78,207,472
56,726,919
- - 457,155 57,184,074
50,838,342
4,697,248 (2,116,690) (155,651) 53,263,249
33,417,001
213,194 - - 33,630,195
264,602 - - - 264,602
4,806,628 1,299,176 - - 6,105,804
1,135,447,925 17,215,067 (3,711,589) 10,616,315 1,159,567,718
(522,865,169)
(22,959,1.02) 1,131,069
- (544,693,202)
(51,774,458)
(2,179,403) -
- (53,953,861)
(35,574,974)
(1,822,610) -
- (37,397,584)
(31,309,920)
(3,741,006) 1,929,871
89,386 (33,031,669)
(25,526,618)
(1,751,351) -
- (27,277,969)
(134,681) (48,804) - - (183,485)
(1,043,432) (1,094,038) - - (2,137,470)
(668,229,252) (33,596,314) 3,060,940 89,386 (698,675,240)
467,218,673 (16,381,247) (650,649) 10,705,701 460,892,478
$ 542,812,959 $ 18,340,157 $ (762,266) $ 1,380,002 $ 561,770,852
Depreciation expense was charged to the business -type activities as follows:
Program
Depreciation
Electric
$ 14,665,783
Water
4,1.05,646
Wastewater
7,300,649
Storm drainage
1,215,140
Solid waste
3,059,937
Airport
1,841,941
RABA
1,332,273
Convention center
74,945
Total
$ 33,596,314
91
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 7 — Storage Base Gas
Redding Electric Utility (REU) entered into a natural gas lease agreement on August 28, 2009 with Gill Ranch Storage,
LLC (GRS) in which GRS (Lessee) would provide firm natural gas storage service to REU (Lessor). The firm storage
service is provided at the GRS facility in Madera County, California, near the City of Fresno. 2,250,000 Dth of natural
gas was initially acquired by REU for GRS' use as base gas under the lease at a total cost of $11,850,000. Additionally,
in order to effect the right to offset provisions per the lease contract between REU and GRS, REU paid GRS an amount
equal to $1,720,000. The total cost to REU to implement this lease agreement was $13,570,000. The lease arrangement
dictates that GRS shall make monthly payments to REU as rent for the base gas in an amount equal to $100,000 per
month. If REU does not purchase and deliver to GRS the base gas then GRS shall not be required to pay rent to REU.
As of June 30, 2024, the lease agreement between Redding Electric Utility and Gill Ranch Storage, LLC continues to
be in effect.
Note 8 — Unavailable Revenue
On the fund financial statements, unavailable revenue consisted of the following as of June 30, 2024:
General
Community
Nonmajor
General
Capital Projects
Development
Governmental
Fund
Fund
Fund
Funds
Total
Unavailable revenues:
Sales tax
$ 55,964
$ -
$ -
$ -
$ 55,964
Property taxes
910,667
-
-
-
910,667
Grant revenue
1,203,113
10,967,177
3,192,296
-
15,362,586
Assessments
-
-
-
312,180
312,180
Housing loans - interest
-
-
3,310,593
2,808,506
6,119,099
Total
$ 2,169,744
$ 10,967,177
$ 6,502,889
$ 3,120,686
$ 22,760,496
92
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 9 - Long -Term Debt
Summary of changes in long-term debt for the year ended June 30, 2024, is as follows:
Balance
Balance
Due within
Due in more
July 1, 2023
Additions
Deletions
June 30, 2024
One Year
than One Year
Governmental activities:
Long-term debt:
SBITAs
$ 272,909
$ 2,127,301
$ (656,1.41)
$ 1,744,069
$ 486,327
$ 1,257,742
Leases
426,454
352,244
(225,441)
553,257
143,976
409,281
Revenue bonds
25,604,783
-
(1,639,783)
23,965,000
1,555,000
22,410,000
Loan
573,566
-
(118,193)
455,373
126,257
329,116
Long-termdebt before
unamortized amounts
26,877,712
2,479,545
(2,639,558)
26,717,699
2,311,560
24,406,139
Bond premium
2,738,077
-
(130,904)
2,607,173
130,904
2,476,269
Bond discount
(34,497)
-
2,184
(32,313)
(1,678)
(30,635)
Total governmental
activities long-termdebt
29,581,292
2,479,545
(2,768,278)
29,292,559
2,440,786
26,851,773
Business -type activities:
Long-term debt:
SBITAs
3,831,283
152,675
(994,475)
2,989,483
994,162
1,995,321
Leases
130,817
-
(48,319)
82,498
43,485
39,013
Revenue bonds
1.31,070,214
-
(13,540,214)
117,530,000
14,135,000
103,395,000
State loans payable
334,537
-
(31,181)
303,356
32,240
271,116
Long-term debt before
unamortized amounts
135,366,851
152,675
(14,614,189)
120,905,337
15,204,887
105,700,450
Bond premium
20,971,352
-
(2,222,807)
18,748,545
2,222,804
16,525,741
Total business -type
activities long-term debt
156,338,203
152,675
(16,836,996)
139,653,882
17,427,691
122,226,191
Total long-term debt
$ 185,919,495
$ 2,632,220
$ (19,605,274)
$ 168,946,441
$ 19,868,477
$ 149,077,964
Current year amortization expense for bond premiums and discounts was $128,720 for the governmental activities and
$2,222,807 for the business -type activities.
The annual requirements to amortize all debt outstanding as of June 30, 2024, excluding obligations associated with
bond premiums (discounts) are as follows:
Year Ending Governmental Activities
June 30,
Principal.
2025
$ 2,311,560
2026
2,414,853
2027
1,81.6,272
2028
1,326,629
2029
1,285,954
2030-2034
6,932,431
2035-2039
5,665,000
2040-2044
4,965,000
2045-2049
-
1,344,309
1,210,878
1,066,726
956,201
884,623
3,354,400
1,662,577
564,391
Business -Tune Activities
Principal
Interest
$ 15,204,887
$ 5,977,040
15,668,997
5,193,514
1.6,422,908
4,392,699
16,835,888
3,559,323
16,951,861
2,729,200
36,671,907
4,417,644
3,148,889
131,713
Government -Wide
Principal. Interest
$ 17,516,447
$ 7,321,349
18,083,850
6,404,392
18,239,180
5,459,425
18,162,517
4,515,524
18,237,815
3,613,823
43,604,338
7,772,044
8,813,889
1,794,290
4,965,000
564,391
Total $ 26,717,699 $ 11,044,105 $ 120,905,337 $ 26,401,133 $ 147,623,036 $ 37,445,238
93
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 9 - Long -Term Debt (Continued)
Issue
Balance
Governmental activities
Amount
06/30/2024
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
2013 Lease Revenue Bonds, Series B
Principal Payment
$ 9,046,060
$
5,770,001
$ 235,000
$ 245,000
$ 255,000
$ 265,000
Bond Discount
(120,916)
(32,31.3)
(1,678)
(1,678)
(1,678)
(1,678)
2013 Lease Revenue Bonds, Series C
Principal Payment
2,135,000
1,270,000
110,000
120,000
125,000
130,000
2019 Lease Revenue Bonds, Series A
Principal Payment
24,085,000
16,925,000
1,210,000
1,275,000
695,000
735,000
Bond Premium
3,272,602
2,607,173
130,904
130,904
130,904
130,904
2022 Parking Loan
Principal Payment
648,138
455,373
126,257
134,870
144,071
50,175
Leases Payable
Principal Payment
553,256
553,256
143,976
130,018
129,391
103,063
SBITAs Payable
Principal Payment
1,744,069
1,744,069
486,327
509,965
467,810
43,391
Total governmental activities
$ 41,363,209
$
29,292,559
$ 2,440,786
$ 2,544,079
$ 1,945,498
$ 1,455,855
Business -type activities
2013 California Airport Loan -Benton
Principal Payment
$ 350,000
$
170,252
$ 21,782
$ 22,578
$ 23,404
$ 24,259
2018 California Airport Loan- Benton
Principal Payment
190,000
133,104
10,459
10,760
11,069
11,388
2020 Wastewater Revenue Bonds
Principal Payment
52,420,000
34,810,000
3,865,000
4,060,000
4,260,000
4,475,000
Bond Premium
12,075,581
9,308,259
754,724
754,724
754,724
754,724
2018 Electric Systems Revenue Bonds,
Series A
Principal Payment
39,510,000
21,430,000
3,155,000
3,305,000
3,475,000
3,645,000
Bond Premium
6,232,541
2,907,120
525,067
525,067
525,067
525,067
2017 Electric Systems Revenue Bonds,
Series A
Principal Payment
55,785,000
32,850,000
4,830,000
5,075,000
5,320,000
5,590,000
Bond Premium
9,436,880
4,120,844
733,246
733,246
733,246
733,246
2015 Electric Systems Revenue Bonds,
Series A
Principal Payment
37,955,000
28,440,004
2,285,000
2,405,000
2,530,000
2,650,000
Bond Premium
4,195,346
2,412,318
209,766
209,767
209,767
1,048,835
Leases Payable
Principal Payment
82,498
82,498
43,485
39,013
-
-
SBITAs Payable
Principal Payment
2,989,483
2,989,483
994,162
751,646
803,435
440,240
Total business -type activities
$ 221,222,329
$
139,653,882
$ 17,427,691
$17,891,801
$ 18,645,712
$19,897,759
*Additional Information on the Bond Issues follows this note
94
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 10 — Long -Term Debt (Continued)
Final
Interest
FY 2028-29
FY 2030-34
FY 2035-39
FY 2040-44 FY 2045-49
Thereafter Maturity
Rate
2043
2-5%
$ 280,000
$ 1,650,001
$ 1,230,000
$ 1,610,000 $ -
$ -
(8,390)
(8,390)
(8,390)
(431) -
-
2032
3.75-6.5%
785,000
-
-
- -
-
2044
3.125-5%
4,235,000
4,810,000
3,250,000
715,000 -
-
654,520
654,520
654,520
119,997 -
-
2027
6.62%
2027
3.89%
46,808
-
-
- -
-
2026
7.13%
49,145
187,431
-
- -
-
$ 6,042,083
$ 7,293,562
$ 5,126,130
$ 2,444,566 $ -
$ -
$ 78,229
$ - $
62,041
27,387
16,540,000
1,610,000
3,773,620
2,515,744
3,830,000
4,020,000
525,067
281,786
12,035,000
-
1,187,861
-
$ - $ - $ - 2031 3.655%
- 2035 2.87%
- 2036 5%
2030 4-5%
2030 3-5%
13,115,000 5,455,004 - - - - 2035
734,180 - - - - -
- - - - - - 2023
- - - - - - 2023
$ 51,880,998 $ 13,909,921
2-5%
3.89%
7.13%
95
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 9 — Long -Term Debt (Continued)
2013 Lease Revenue Bonds. Series B and C
The 2013 Lease Revenue Bonds, Series B and Series C were issued to finance the construction of the Redding police
building and refinance the 2003 Aquatic Center, the Sports Complex, SHASCOM, Convention Center and the
Municipal Airport, which was used to refinance the 1993 Lease Revenue Bonds for SHASCOM, Convention Center
and the Municipal. Airport.
The Bonds are payable from the operating revenues of the Redding Aquatic Center, Sports Complex, SHASCOM,
Convention Center, and Municipal Airport Funds. The security for the bonds is the title to the City's existing police
facility, its SHASCOM communications facility, the Redding Aquatic Center and the land on which the to -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, 2004 Civic
Center Refunding Series C, and the 2007 Capital Project Series A and to finance acquisition and construction of capital
projects within the City of Redding. Payable from revenues generated pursuant to the Facilities Lease between the
Redding Joint Powers Financing Authority (Authority) and the City of Redding whereby the City has transferred title
to its Civic Center and leases it back from the Authority.
The Bonds are payable from revenues generated pursuant to the Facilities Lease between the Redding Joint Powers
Financing Authority (Authority) and the City of Redding whereby the City has transferred title to its Civic Center and
leases it back from the Authority.
2022 Parking Loan
The 2022 Parking Loan was for the purchase of electronic parking meter pay stations for downtown Redding.
2013.California Airport Loan (Benton)
The 2013 California Airport Loan (Benton) was to repay the California Highway Patrol Hangar at the Benton Airpark.
2015 California Airport Loan (Municipal)
The 2015 California Airport Loan (Municipal) was for the PV Solar Array lease purchase at the Redding Municipal
Airport.
2018 California Airport Loan (Benton)
The 2018 California Airport Loan (Benton) was for the construction of a new hangar roof and other exterior
improvements at the Benton Airpark.
96
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 9 — 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 System Revenue Bonds
The 2018 Electric System Revenue Bonds, Series A were issued to prepay and refund a portion of the City's
outstanding 2008 A Electric System Certificates of Participation Bonds and pay costs of issuance monies on deposit in
the Electric Revenue Fund of the City.
The payments are payable from operating revenues of the Electric Utility Fund. The 2018 bonds are special obligations
of the City payable solely from and secured by a pledge of and lien on net revenues of the electric system and all
monies on deposit in the Electric Revenue Fund of the City.
2017 Electric System Revenue Bonds
The 2017.Electric System Revenue Bonds, Series A were issued to prepay and refund a portion of the City's
outstanding 2008 A Electric Systems Certificates of Participation Bonds and pay cost of issuance of the 2017 bonds.
The payments are payable from operating revenues of the Electric Utility Fund. The 2017 bonds are special obligation
of the City payable solely from and secured by a pledge of and lien on net revenues of the electric system and all
monies on deposit in the Electric Revenue Fund of the City.
2015 Electric System Revenue Bonds
The 2018 Electric System Revenue Bonds, Series A were issued to finance the cost of design, acquisition and
construction of new administrative building for the Electric Utility of the City and to refinance the 2005 Electric
Certificates of Participation Bonds, which were used to provide funds to finance costs of acquisition and construction
of certain additions, betterments and improvements to the City's electric system. These payments are payable from
operating revenues of the Electric Utility Fund.
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 TechnoloLv ArranLements (SBITA's
SBITA's are subscription -based contracts that convey the control of the right to use vendor -provided information
technology software, which provides governments with access to vendors' IT software and associated tangible capital
assets for subscription payments without granting government perpetual license or title to the IT software and
associated tangible capital assets.
97
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 10 — Pledged Revenue
Revenue Pledged
Borrowing
Fund/Entity
Bond/Loan
Net Revenues
Wastewater
Bond
Utility
Net Revenues Plus
Electric Utility
Bond
Reserves
Net Revenues Plus
Electric Utility
Bond
Reserves
Net Revenues Plus
Electric Utility
Bond
Reserves
Year ofLoan or
Year Repayments
Original
and/or Interest
Issue/Loan
Use of Funds
Payments Began
Amount
Refund prior debt
2020
52,420,000
issues. (SRF Loan)
Refund prior debt
2015
37,955,000
Refund prior debt
2017
55,785,000
Refund prior debt
2018
39,510,000
98
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 10 — Pledged Revenue (Continued)
Estimated % of
Estimated % of
Pledged
Pledged
Revenue Plus
Payments
Revenue
Reserves
Remaining
Amortized
Required for
Required for
Principal &
Thru
Debt Service
Debt Service
Interest
2036
32%
32%
43,271,000
2035
13%
4%
36,053,875
2030
24%
7%
38,832,000
2030
16%
5%
25,332,000
Current Year
Current Year
Pledged
Principal &
Revenue
Interest Paid
Available
5,604,500
17,664,250
3,604,520
26,988,475
6,472,500 26,988,475
4,221,500 26,988,475
Reserve
Balance
59,881,615
59,881,615
59,881,615
99
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 11— Compensated Absences
The compensated absences liability will be paid from the General Fund, Housing Authority, Community Development,
Airports, Electric Utility, Water Utility, Wastewater Utility, Solid Waste Utility, Storm Drainage Utility, Equipment
Fund, Information Systems, General Support Services, Risk Management and Municipal Utility Support.
The City's changes in compensated absences for the year ended June 30, 2024 were as follows:
Balance
July 1, 2023
Governmental activities $ 14,386,965
Balance
Additions Deletions June 30, 2024
10,071,291 $ (8,462,635) $ 15,995,621
Due within Due in More
One Year Than One Year
$ 5,826,489 $ 10,169,132
Business -type activities 10,362,133 6,945,002 (6,044,899) 11,262,236 3,587,921 7,674,315
Total $ 24,749,098 $ 17,016,293 $ (14,507,534) $ 27,257,857 $ 9,414,410 $ 17,843,447
Note 12 — Self -Insurance
The City administers self-insurance programs for general liability and workers' compensation. These programs are
accounted for in the Risk Management Fund. Liability for each claim is estimated on a case -by -case basis for all
pending claims. There has been no significant reduction in any of the insurance coverages from the prior year. Costs
in the City's Risk Management Fund have not exceeded charges to the various funds of the City and its component
units. Settled claims resulting from these risks have not exceeded co-insurance plan coverage or commercial insurance
coverage in any of the past three fiscal years. The City is also self -insured for health benefits and is a member of CSAC
Excess Insurance Authority which administers the health benefits program.
Employee Health Insurance - The City is part of the California Public Entity Public Insurance Authority, a joint
powers authority. The Risk Management Fund recognizes revenue from fund charges and accounts for actual
expenditures. Funds determined to be at risk are charged estimated claims expense based on salary. The interfund
charges are reported as an expense or expenditure in the at risk fund. The estimated liability for pending and incurred
but not reported employee health insurance claims relating to July 1, 2023 and prior at June 30, 2024, has been included
as an accrued liability in the risk management internal service fund.
Workers' Compensation Insurance is administered as a co-insurance plan. The City is self -insured up to $750,000
with an insurance company co-insuring claims from $750,001 to $50,000,000. Funds determined to be at risk are
charged a percentage of the total estimated insurance and claim expense. Percentages are based upon loss experience
and salary costs. The interfund charges are reported as an expense or expenditure in the fund at risk. The estimated
liability for pending and incurred but not reported claims at June 30, 2024, has been included in the Risk Management
Fund's claims payable amount as of June 30, 2024.
General Liability Insurance is self-administered and is self -insured up to $750,000. Any claims from $750,001 to
$40,000,000 are administered through a governmental pooling joint powers authority, California Joint Powers Risk
Management Authority. The Risk Management Fund recognizes revenue from fund charges and accounts for actual
expenditures. Funds determined to be at risk are charged a percentage of the total estimated insurance and claim
expense. Percentages are based upon loss experience and salary. The interfund charges are reported as an expense or
expenditure in the funds at risk. Incurred but not reported claims liability has been included in the claims payable
amount as of June 30, 2024.
100
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 12 — Self -Insurance (Continued)
Property Insurance is administered as a co-insurance plan. The City is self -insured for claims up to $250,000 for all
Risk and $500,000 for Wildfire. An insurance company co-insures claims over $250,000 for all Risk and $500,000
for Wildfire. Additionally, the City has acquired coverage for the Redding Power Plant up to $100,000,000 with
various sub -limits and deductibles for different types of losses. The Risk Management Fund recognizes revenue from
fund charges and accounts for actual expenditures. Funds determined to be at risk are charged a percentage of the total
estimated insurance and claim expense. Percentages are based upon loss experience and salary costs. The interfund
charges are reported as an expense or expenditure in the funds at risk. Incurred but not reported claims liability has
been included in the claims payable amount as of June 30, 2024.
The following is a reconciliation of changes in claims liability amounts for fiscal years ended June 30, 2024:
Claims
For the Years Payable
Ended June 30, July 1,
Workers' Compensation
2022
13,554,200
2023
13,285,170
2024
12,887,870
General Liability
2022
296,920
2023
4,189,380
2024
5,51.6,620
Health and Dental
2022
99,090
2023
182,390
2024
112,750
Total
2022
13,950,210
2023
17,656,940
2024
18,517,240
Note 13 — Individual Fund Disclosures
Claims
Claims
Clairns
Payable
Due within
Due in More
Incurred
Payments
June 30,
One Year
Than One Year
2,784,524
(3,053,554)
13,285,170
4,567,826
8,717,344
2,918,791
(3,316,091)
12,887,870
4,614,008
8,273,862
3,188,576
(2,585,236)
13,491,210
3,590,830
9,900,380
2,479,008
(1,251,548)
4,189,380
2,400,823
1,788,557
2,972,395
(1,645,1.55)
5,516,620
3,495,427
2,021,193
2,038,611
(2,536,901)
5,018,330
1,31.2,760
3,705,570
25,573,792
(25,490,492)
182,390
182,390
-
26,676,115
(26,745,755)
112,750
112,750
-
31,902,144
(31,881,994)
132,900
132,900
-
30,837,324
(29,795,594)
17,656,940
7,151,039
10,505,901.
32,567,301
(31,707,001)
1.8,517,240
8,222,185
10,295,055
37,129,331
(37,004,131)
18,642,440
5,036,490
13,605,950
The following fund reported a deficit fund balance as of June 30, 2024:
Equipment Fund — The deficit of $3,021,116 in this fund resulted from the City funding Internal Service Funds
on a cash flow basis. Until the City funds the Other Post Employment Benefit (OPEB) and the pension liability,
this fund will continue to have a deficit balance.
General Support Services Fund — The deficit of $3,572,954 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.
101
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 13 — Individual Fund Disclosures (Continued)
Risk Management Fund — The deficit of $4,992,478 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 $3,987,660 in this fund resulted from the City funding Internal
Service Funds on a cash flow basis. Until the City funds the Other Post Employment Benefit (OPEB) and the
pension liability, this fund will continue to have a deficit balance.
Parking Fund — The deficit of $357,495 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.
Continuum of Care Fund — The deficit of $46,375 in this fund arose from operational losses which have been
covered by the General Fund. The deficit is due to the GASB 31 adjustment which is not included in the unearned
revenue calculation.
Note 14 — Joint Ventures
The City participates in the following five joint ventures:
• M-S-R Public Power Agency
• M-S-R Energy Authority
• Transmission Agency of Northern California
• Balancing Authority of Northern California
• Modesto Irrigation District Financing Authority
A. M-S R Public Power Agency
M-S-R Public Power Agency (the Power Agency) was formed in 1980 by the Modesto Irrigation District (MID)
and the Cities of Santa Clara and Redding, California, pursuant to Section 6500, et seq., of the California
Government Code. The Agency was formed to conduct research and exploration for energy sources to provide
additional electric power for the electric distribution systems of its members.
The Agency is governed by a Commission which consists of one member from each of the Power Agency's
members. For action, the Commission must have a quorum (minimum of two members) present, and there must
be a unanimous vote of all Commissioners present. The Treasurer of the Power Agency is designated by the Joint
Powers Agreement to be the Treasurer/Controller of MID. The selection of other management positions is made
by the Commission from the personnel of its members. These functions are performed without compensation to
the members.
The members' rights, property, income, and expense -sharing ratio in most 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 2024, declining on -going administrative activities and other remaining obligations
and costs associated with the San Juan Power Plant (described below), will remain at the 50% - 35% - 15% ratio.
102
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 14 — Joint Ventures (Continued)
A. M-S-R Public Power Agency (Continued)
The majority of activities are related to renewables (Big Horn Wind energy project described below).
Coordinating, regulatory, and compliance services costs will be shared as follows: Modesto Irrigation District —
40%, City of Santa Clara — 40%, and City of Redding — 20%. Renewable administrative services, electric product,
delivery and environmental attribute rights, benefits and costs will be shared by contracted participation ratios as
described below.
The activities of M-S-R consist of a previous 28.8% ownership interest in a 498-megawatt coal -fire electricity
generating plant located in New Mexico (the "San Juan" plant). The San Juan plant began commercial operation
in 1982 and had been owned jointly by the Public Service Company of New Mexico (38.5%), M-S-R (28.8%), and
four other municipal power entities (32.7%).
The owners of the San Juan Generation Station approved an ownership restructuring of the San Juan Generation
Station effective December 31, 2017 under which M-S-R's (and thereby the City's) interest in the station and its
generation will be transferred to the remaining owners. Definitive agreements for the proposed ownership
restructuring of the San Juan Generation Station have been executed by all nine San Juan Generation Station
owners and the Public Service Company of New Mexico Resources (PNMR).
With the ownership restructuring of the San Juan Generation Station, M-S-R Public Power Agency sold its interest
of the Southwest Transmission on May 25, 2016. Proceeds of the sale of the Southwest Transmission Project
assets were applied primarily to the defeasance of a portion of M-S-R Public Power Agency's outstanding revenue
bonds, and to fund certain deposits for future payments to the plant decommissioning trust fund, and to the mine
reclamation trust fund established under the agreements relating to the ownership restructuring of the San Juan
Generation Station. At this time, M-S-R Public Power Agency has no ongoing or regular cash called expenses
with regard to this divested asset other than for administrative activities and existing bonds expired in early FY
2023.
Additionally, in 2005, M-S-R entered into a 20-year power purchase agreement (PPA) with PPM Energy, Inc. —
now known as Avangrid Renewables, LLC (Avangrid—formerly Iberdrola Renewables) to procure 100% of the
output from the Big Horn Wind Energy facility located near the town of Bickleton in Klickitat County, Washington.
The project began commercial operation in October of 2006. The facility is interconnected through an 11 mile
transmission line with the Bonneville Power Administration's Spring Creek Substation. Redding receives a 35%
share of the 199.5 MW project, while Santa Clara and Modesto receive 52.5% and 12.5% respectively. The power
purchase agreement extends 5 years to 2031 unless Avangrid repowers the project and notifies Redding by October
2025. M-S-R Public Power Agency members have first -refusal rights.
In addition to the procurement of energy from the Big Horn Wind Energy facility, the M-S-R Public Power Agency
has also signed an agreement with Avangrid to procure shaping and firming services for the output of the Big Horn
facility. Through this agreement, Avangrid receives 100% of the output from the Big Horn facility as generated,
and delivers such energy to M-S-R at the California -Oregon Border pursuant to firm pre -established delivery
schedules.
103
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 14 — Joint Ventures (Continued)
A. M-S-R Public Power Agency (Continued)
Summary audited financial information of the M-S-R Public Power Agency as of and for the year ended
December 31, 2023 is as follows (in thousands):
Total assets and deferred outflows $ 62,466
Total liabilities and deferred inflows 21,539
Total members' deficit 40,927
Total liabilities and members' deficit $ 62,466
Total revenues $ 46,456
Total expenses (44,800)
Net income 1,656
Members' deficit, January 1, 2023 39,271
Members' deficit, December 31, 2023 $ 40,927
The debt of the Power Agency is comprised entirely of revenue bonds totaling $0. The agency made its last payment
on the revenue bonds in 2022. These bonds are secured by a pledge and assignment of the net electric revenues of
the Power Agency and are supported by take -and -pay commitments of the participants.
On June 13, 2018, bonds in the amount of $98,850,000, the 2018R bonds, were issued with an average interest rate
of 4.71% to refund; $88,000,000 of the outstanding 2008L bonds with an average interest rate of 5.00%, and
$30,595,000 and $1.4,685,000 of the outstanding variable interest rate 2008M and 2008N bonds, respectively. The
net proceeds of the 2018R bonds plus $33,257,000 of restricted funds on hand were used to prepay the outstanding
debt service requirements on the old bonds.
The cash flow requirements on the old bonds prior to the current refunding was $150,475,000 from 2018 through
2022. The cash flow requirements on the new bonds are $110,992,000 from 2018 through 2022. The current refund
resulted in an economic gain of $5,147,000.
The City utilizes the equity method of accounting for M-S-R Public Power Agency. The City has invested $17.4
million in this joint venture. Operating profits have caused the City to have equity in the Power Agency of $5.9
million at December 31, 2023. Under the joint exercise of power agreement, which formed M-S-R, the City is
responsible for funding up to 15% of M-S-R's operating costs, to the extent such funding is necessary. During the
year ended June 30, 2024, the City made no contributions to fund its share of prior operating deficits. If there were
such contributions, they would be included in operating expenses.
B. M-S-R Energy Authority
The Modesto Irrigation District, the City of Santa Clara, and the City of Redding formed M-S-R Energy Authority
for the principal purpose to acquire, construct, maintain, operate and finance projects for the benefit of any one or
more of the Members. On September 10, 2009, the Authority entered into a series of thirty-year prepaid gas
contracts with Citigroup Energy, Inc., which are financed by non -recourse revenue bonds. The M-S-R Energy
Authority also entered into matching Natural Gas Supply Agreements ("Supply Agreements") whereby each
member is obligated to purchase the natural gas from the Authority at a discount from the Index Price. The Supply
Agreements will continue in effect until September 30, 2039, unless terminated earlier due to certain defaults, as
set forth therein, or the termination of the matching prepaid gas contract. If the M-S-R Energy Authority fails on
any day to deliver the quantity of natural gas required to be delivered pursuant to a Supply Agreement, the member
will have no obligation for any of the natural gas supply that was not delivered as a result of such delivery default.
104
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 14 — Joint Ventures (Continued)
B. M-S-R Energy Authority (Continued)
The equity of the M-S-R Energy Authority is split between the members based on the revenues and expenses
applicable to each individual member's Supply Agreement. Redding's equity in the M-S-R Energy Authority's
net losses exceeds its investment and, therefore, the equity method of accounting has been suspended. As of
December 31, 2022, the City's unrecognized share of member's deficit of the M-S-R Energy Authority was
$118,408,933.
The long-term debt of the M-S-R Energy Authority totaled $868,935,000 at December 31, 2023. The M-S-R
Energy Authority did not make any principal payments in 2023.
Summarized financial information of M-S-R Energy Authority as of and for the year ended December 31, 2023, is
as follows (in thousands):
Total assets and deferred outflows $ 872,961
Total liabilities and deferred inflows $ 872,961
Total net position $ -
Total liabilities and net position $ 872,961
Net increase (decrease) in net position $ -
C. Transmission Agency of Northern California
The Transmission Agency of Northern California (TANG) 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 $8,114,485 member's equity balance at June 30, 2024. 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, 2024.
The debt of the Transmission Agency of Northern California is comprised entirely of revenue bonds totaling $
159,565,000. These bonds are secured by a pledge and assignment of the net electric revenues of the Agency and
are supported by take -and -pay commitments of the participants.
Investment in JPA 8,114,485
Summarized financial information of TANC as of and for the year ended June 30, 2024, is as follows (in thousands):
Total assets and deferred outflows
$ 402,509
Total liabilities and deferred inflows
302,430
Total net position
100,079
Total liabilities and net position
$ 402,509
Net increase (decrease) in net position
$ 5,777
105
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 14 — Joint Ventures (Continued)
D. Balancing Authority of Northern California
The Balancing Authority of Northern California (BANC) is a joint powers agency consisting of the Sacramento
Municipal Utility district (SMUD), Modesto Irrigation District (MID), Roseville Electric and City of
Redding -Electric Utility (REU) as its founding members as was formed in 2009. Subsequent to its formation,
Trinity Public Utilities District (TPUD) and Shasta Lake Public Utility District (SLPUD) have joined as new
members. REU participates in BANC through the Western sub -balancing authority. BANC assumed the balancing
authority responsibilities on May 1, 2011, from SMUD that include the matching of generation to load and
coordinating system operations with neighboring Balancing Authorities. The Central Valley Project (CVP)
generation, owned by the Bureau of Reclamation and Western Area Power Administration's transmission facilities
along with the 500 kV California Oregon Transmission Project (COTP), are included among other resources within
the BANC footprint. BANC members contract for about 40 percent of the CVP hydroelectric resource. The COTP
is jointly owned by several parties including WAPA and BANC members via the Transmission Agency of Northern
California (TANC).
BANC provides its members 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, REU, and Shasta Lake respectively. These participation
percentages can be updated as the need requires.
Summarized financial information of BANC as of and for the year ended December 31, 2023, is as follows (in
thousands):
Total current assets $ 8,092,601
Total current liabilities 8,092,601
Total net position -
Total liabilities and net position $ 8,092,601
Net increase (decrease) in net position $ -
Complete separate financial statements for each of the joint ventures in which the City participates may be obtained
from the City of Redding Finance Department, 777 Cypress Avenue, Redding, California 96001.
106
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 14 — Joint Ventures (Continued)
E. Modesto Irrigation District Financing Authority
The Modesto Irrigation District Financing Authority (MIDFA) is a joint powers agency consisting of the Modesto
Irrigation District (District) and the City of Redding (City) formed July 1, 1989, pursuant to Article 4 of Chapter 5
of Division 7 of Title 1 of the Government Code of the State of California (the "Marks -Roos Local Bond Pooling
Act of 1.985"). Which authorizes and empowers the Authority to enter into contracts to assist the District and the
City in financing public capital improvements, working capital, liability, and other insurance needs, or projects
whenever there are significant public benefits, as determined by the City or the District.
The agreement states "any obligations incurred or any bonds issued by the Authority shall not constitute general
obligations of the Authority" and "In the event either the City or the District separately contract for specific debts,
liabilities or obligations, the member of this Authority not party to such contact shall not be liable or responsible
for such debts, liabilities or obligations of the Authority.
The City has no debts, liabilities or obligations issued through the Authority.
On March 21, 2023 City Council adopted resolution 2023-025 which extended the agreement from August 2, 2019
to August 1, 2040.
F. Contingent Liability
Under the terms of the various joint venture agreements, the City is contingently liable for a portion of the 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 joint ventures, the City is contingently liable
for long-term debt as follows:
Total
Debt
M-S-R (1):
Bonds $ -
TANC (2)
Bonds (2016A) 159,565,000
TANC subtotal 159,565,000
Total $ 159,565,000
(1) As of December 31, 2022
(2) As of June 30, 2023
City ofRedding's City ofRedding's
Participating Share Contingent liability
15.000% $ -
8.3912% 13,389,418
13,389,418
$ 13,389,418
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.
107
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 15 — Postclosure Care Costs
State and federal laws and regulations required the City to place a final cover on Benton Landfill, which closed in 1990.
The City has completed the final cover and other closure items required. The City is also required under state and
federal laws and regulations to perform certain maintenance and monitoring functions at the landfill site for the next
15 years. The remaining estimated liability for landfill postclosure care cost was $2,864,371 as of June 30, 2024, 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, 2024. There is no
requirement to currently fund this amount. The cost for postclosure care at the landfill and additional costs that might
arise from changes in postclosure requirements (due to changes in technology or more rigorous environmental
regulations, for example) will be covered by charges to Solid Waste rate payers.
Changes in postclosure care costs for the year ended June 30, 2024, were as follows:
Balance
Balance Due within Due in. More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year
Postclosure care liability $ 2,764,837 $ 339,315 $ 239,781 $ 2,864,371 $ 185,700 $ 2,678,671
Note 16 — Public Transportation Modernization Improvement and Service Enhancement Account
(PTMISEA) Grant Information.
In. November 2006, California Voters passed bond measure 1 B, enacting the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006. Of the $19.925 billion of state general obligation bonds authorized, $3.6
billion was allocated to PTMISEA to be available to transit operators over a ten-year period. These funds may be used
for transit rehabilitation, safety or modernization improvements, capital service enhancements or expansions, new
capital projects, bus rapid transit improvements, or rolling stock (buses and rail cars) procurement, rehabilitation or
replacement.
In fiscal year 2023-24, 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, 2024 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, 2024
Note 17 — Retirement Plans
A. Summary
Aggregate Net Pension Liability
Aggregate Net pension liability is reported in the accompanying Statements of Net Position as follows:
Miscellaneous
Plan
Safety
Plan
PARS
Plan
Total
Governmental Activities
(minus Internal Service Funds)
$ 53,553,844
$ 1.55,334,059
$ 3,482,128
$ 21.2,370,031
Internal Service Funds:
Equipment
4,953,221
-
229,604
5,182,825
Information Systems
5,551,275
-
230,581
5,781,856
General Support Services
6,503,779
-
423,642
6,927,421
Risk Management
1,540,517
-
70,406
1,610,923
Municipal Utilities Support
6,533,987
-
687,868
7,221,855
Total Internal Service Funds
25,082,779
-
1,642,101
26,724,880
Total Governmental Activities
78,636,623
155,334,059
5,124,229
239,094,911
Enterprise funds:
Electric Utility
72,682,269
-
6,629,962
79,312,231
Water Utility
7,856,101
-
971,219
8,827,320
Wastewater Utility
10,564,148
-
806,881
11,371,029
Solid Waste Utility
17,377,011
-
1,258,210
18,635,221
Airport
2,285,739
-
1,047
2,286,786
Storm Drainage Utility
1,226,780
-
1.14,920
1,341,700
Total Enterprise funds
111,992,048
-
9,782,239
121,774,287
Total
$ 190,628,671
$ 155,334,059
$ 14,906,468
$ 360,869,198
109
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — Retirement Plans (Continued)
A. Summary (Continued)
Deferred Outflows of Resources
Deferred outflows of resources are reported in the accompanying Statements of Net Position as follows:
Pension Contributions Made after the Measurement Date
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(rninus Internal Service Funds)
$ 5,527,616
$ 15,375,993 $ 3,989,337
$ 24,892,946
Internal Service Funds:
Equipment
511,252
- 263,049
774,301
Information Systems
572,981
- 264,167
837,148
General Support Services
671,294
- 485,351
1,156,645
Risk Management
159,005
- 80,661
239,666
Municipal Utilities Support
674,412
- 788,065
1,462,477
Total Internal Service Funds
2,588,944
- 1,881,293
4,470,237
Total Governmental Activities
8,116,560
15,375,993 5,870,630
29,363,183
Enterprise funds:
Electric Utility
7,501,976
- 7,595,688
15,097,664
Water Utility
810,876
- 1,112,688
1,923,564
Wastewater Utility
1,090,390
- 924,412
2,014,802
Solid Waste Utility
1,793,587
- 1,441,483
3,235,070
Airport
235,925
- 1,199
237,124
Storm Drainage Utility
126,623
- 1.31,660
258,283
Total Enterprise funds
1.1,559,377
- 11,207,1.30
22,766,507
Total
$ 19,675,937
$ 15,375,993 $ 17,077,760
$ 52,129,690
110
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 - Retirement Plans (Continued)
A. Summary (Continued)
Deferred Outflows of Resources (Continued)
Difference between Projected and Actual Earnings of Pension Plan Investments
Miscellaneous Safety PARS
Plan Plan
Plan
Total
Governmental Activities
(minus Internal Service Funds)
$ 4,515,813 $ 1.0,959,650 $
985,609
$ 16,461,072
Internal Service Funds:
Equipment
417,669 -
64,989
482,658
Information Systems
468,099 -
65,265
533,364
General Support Services
548,418 -
119,911
668,329
Risk Management
129,901 -
19,929
149,830
Municipal Utilities Support
550,964 -
194,700
745,664
Total Internal Service Funds
2,115,051 -
464,794
2,579,845
Total Governmental Activities
6,630,864 10,959,650
1,450,403
19,040,917
Enterprise funds:
Electric Utility
6,128,776 -
1,876,598
8,005,374
Water Utility
662,449 -
274,902
937,351
Wastewater Utility
890,799 -
228,386
1,119,185
Solid Waste Utility
1,465,279 -
356,134
1,821,413
Airport
192,740 -
296
193,036
Storm Drainage Utility
1.03,446 -
32,528
135,974
Total Enterprise funds
9,443,489 -
2,768,844
12,212,333
Total
$ 1.6,074,353 $ 10,959,650 $
4,219,247
$ 31,253,250
Changes of Assumptions
Miscellaneous
Plan
Safety PARS
Plan Plan
Total
Governmental Activities
(nrinus Internal Service Funds)
$ 1,884,543
$ 7,307,742 $
- $ 9,192,285
Internal Service Funds:
Equipment
174,302
- -
174,302
Information Systems
195,348
-
- 195,348
General Support Services
228,866
- -
228,866
Risk Management
54,210
- -
54,210
Municipal Utilities Support
229,929
- -
229,929
Total Internal Service Funds
882,655
- -
882,655
Total Governmental Activities
2,767,1.98
7,307,742 -
10,074,940
Enterprise funds:
Electric Utility
2,557,667 -
- 2,557,667
Water Utility
276,454 -
- 276,454
Wastewater Utility
371,749 -
- 371,749
Solid Waste Utility
611,492 -
- 611,492
Airport
80,434 -
- 80,434
Storm Drainage Utility
43,170 -
- 43,170
Total Enterprise funds
3,940,966 -
- 3,940,966
Total
$ 6,708,164 $ 7,307,742 $
- $ 14,015,906
111
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 - Retirement Plans (Continued)
A. Summary (Continued)
Deferred Outflows of Resources (Continued)
Difference between Expected and Actual Experience
Miscellaneous
Safety
PARS
Plan
Plan
Plan
Total
Governmental Activities
(minus Internal Service Funds) $
2,593,026
$ 1.0,179,795
$ 29,480
$ 12,802,301.
Internal Service Funds:
Equipment
239,827
-
1,944
241,771
Information Systems
268,787
-
1,952
270,739
General Support Services
314,910
-
3,586
318,496
Risk Management
74,592
-
597
75,189
Municipal Utilities Support
316,371
-
5,824
322,195
Total Internal Service Funds
1,214,487
-
13,903
1,228,390
Total Governmental Activities
3,807,513
10,179,795
43,383
14,030,691
Enterprise funds:
Electric Utility
3,519,205 -
56,131
3,575,336
Water Utility
380,384 -
8,223
388,607
Wastewater Utility
511,505 -
6,831
518,336
Solid Waste Utility
841,376 -
10,652
852,028
Airport
110,674 -
9
110,683
Storm Drainage Utility
59,400 -
973
60,373
Total Enterprise funds
5,422,544 -
82,819
5,505,363
Total
$ 9,230,057 $ 10,179,795 $
126,202
$ 19,536,054
Total Deferred Outflows
Miscellaneous
Plan
Safety
Plan
PARS
Plan
Total
Governmental Activities
(minus Internal Service Funds)
$ 14,520,998
$ 43,823,180
$ 5,004,426
$ 63,348,604
Internal Service Funds:
Equipment
1,343,050
-
329,982
1,673,032
Infon ation Systems
1,505,215
-
331,384
1,836,599
General Support Services
1,763,488
-
608,848
2,372,336
Risk Management
41.7,708
-
101,187
518,895
Municipal Utilities Support
1,771,676
-
988,589
2,760,265
Total Internal Service Funds
6,801,137
-
2,359,990
9,161,127
Total Governmental Activities
21,322,135
43,823,180
7,364,416
72,509,731
Enterprise funds:
Electric Utility
19,707,624
- 9,528,417
29,236,041
Water Utility
2,130,1.63
- 1,395,813
3,525,976
Wastewater Utility
2,864,443
- 1,159,629
4,024,072
Solid Waste Utility
4,711,734
- 1,808,269
6,520,003
Airport
61.9,773
- 1,504
621,277
Storm Drainage Utility
332,639
- 165,161
497,800
Total Enterprise funds
30,366,376
- 14,058,793
44,425,169
Total
$ 51,688,511
$ 43,823,180 $ 21,423,209
$ 116,934,900
112
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — 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
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds) $
- $ - $ 19,256 $
19,256
Internal Service Funds:
Equipment
- - 1,269
1,269
Information Systems
- - 1,275
1,275
General Support Services
- - 2,343
2,343
Risk Management
- - 389
389
Municipal Utilities Support
- - 3,804
3,804
Total Internal Service Funds
- - 9,080
9,080
Total Governmental Activities
- - 28,336
28,336
Enterprise funds:
Electric Utility
- - 36,665
36,665
Water Utility
- - 5,372
5,372
Wastewater Utility
- - 4,461
4,461.
Solid Waste Utility
- - 6,959
6,959
Airport
- - 6
6
Stonn Drainage Utility
- - 636
636
Total Enterprise funds
- - 54,099
54,099
Total $
- $ - $ 82,435 $
82,435
113
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 - Retirement Plans (Continued)
A. Summary (Continued)
Deferred Inflows of Resources
Differences between Expected and Actual Experience
Miscellaneous Safety PARS
Plan Plan Plan Total
Governmental Activities
(minus Internal Service Funds)
$ - $ 1,549,957 $ -
$ 1,549,957
Internal Service Funds:
Equipment
- - -
-
Information Systems
- - -
-
General Support Services
- - -
-
Risk Management
- - -
-
Municipal Utilities Support
- - -
-
Total Internal Service Funds
- - -
-
Total Governmental Activities
- 1,549,957 -
1,549,957
Enterprise funds:
Electric Utility
- - -
-
Water Utility
- - -
Wastewater Utility
- - -
-
Solid Waste Utility
- - -
-
Airport
- - -
-
Storm Drainage Utility
- - -
Total Enterprise funds
- - -
-
Total
$ - $ 1,549,957 $ -
$ 1,549,957
Total Pension -related Deferred Inflows
Miscellaneous Safety PARS
Plan Plan Plan
Total
Governmental Activities
(minus Internal Service Funds) $
- $ 1,549,957 $ 19,256 $
1,569,213
Internal Service Funds:
Equipment
- - 1,269
1,269
Information Systems
- - 1,275
1,275
General Support Services
- - 2,343
2,343
Risk Management
- - 389
389
Municipal Utilities Support
- - 3,804
3,804
Total Internal Service Funds
- - 9,080
9,080
Total Governmental Activities
- 1,549,957 28,336
1,578,293
Enterprise funds:
Electric Utility
- - 36,665
36,665
Water Utility
- - 5,372
5,372
Wastewater Utility
- - 4,461
4,461
Solid Waste Utility
- - 6,959
6,959
Airport
- - 6
6
Storm Drainage Utility
- - 636
636
Total Enterprise funds
- - 54,099
54,099
Total $
- $ 1,549,957 $ 82,435 $
1,632,392
114
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — Retirement Plans (Continued)
A. Summary (Continued)
Pension Expense
The total pension expense related to all retirement plans is $54,686,887. This is comprised of three parts CalPERS
Miscellaneous Plan, CalPERS Safety Plan, and the PARS plan. The CalPERS Miscellaneous Plan pension expense
was $29,596,848, the CalPERS Safety Plan pension expense was $21,698,893, and the PARS plan was $3,391,146.
Responsible Governmental Funds
The governmental funds responsible for liquidating pension liabilities include; General. Fund, Community
Development and Parking.
B. CalPERS
General Information about the Pension Plans
All qualified permanent and probationary employees are eligible to participate in the City's separate Miscellaneous
and Safety (police and fire) Plans, agent multiple -employer defined benefit pension plans administered by the
California Public Employee's Retirement System (CalPERS), which acts as a common investment and
administrative agent for its participating member employers. Benefit provisions under the Plans are established by
State statute and Local Government resolution. CalPERS issues publicly available reports that include a full
description of the pension plans regarding benefit provisions, assumptions and membership information that can
be found on the CalPERS website.
General Information about the Pension Plans (continued
In addition to the defined benefit pension plan through CalPERS, the City offers a defined benefit Retirement
Enhancement Plan (REP) to the CalPERS Miscellaneous Plan through Public Agency Retirement Services (PARS).
This plan became effective on January 1, 2005. Information about the REP Plan through PARS will be discussed
following the discussion of the CalPERS Plan.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits
to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service,
equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50
with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 10 years of service.
The death benefit is one of the following: the Basis Death Benefit, the 1957.Survivor Benefit, or the Optional
Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public
Employees' Retirement Law.
115
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — Retirement Plans (Continued)
B. CalPERS (Continued)
The Plans' provisions and benefits in effect at June 30, 2024, are summarized as follows:
Hire date
Benefit formula
Benefit vesting schedule
Benefit Payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Hire date
Benefit formula
Benefit vesting schedule
Benefit Payments
Retirement age
Monthly benefits, as a % of eligible compensation.
Required employee contribution rates
Required employer contribution rates
a. Net Pension Liability
Employees Covered by Benefit Terms
Mscellaneous
Prior to
On or after
January 1, 2013
January 1, 2013
2% @ 55
2% @ 62
5 years service
5 years service
monthly for life
monthly for life
50-55
52-67
1.426% to 2.0%
1.01/o to 2.5%
7.00%
7.25%
9.96%
9.96%
Safetv
September 8, 2012
Prior to
to December 31,
On or after
September 8, 2012
2012
January 1, 2013
3% @ 50
3% @ 55
2.7% @ 57
5 years service
5 years service
5 years service
monthly for life
monthly for life
monthly for life
50-55
50-55
52-57
3.0%
2.4% to 3.0%
2.0% to 2.7%
9.0%
9.0%
14.50%
21.554%
21.554%
23.89%
At June 30, 2021 (actuarial valuation date), the following employees were covered by the benefit terms for
each Plan:
Inactive employees or beneficiaries currently receiving benefits
Inactive employees entitled to but not yet receiving benefits
Active employees
Total
Miscellaneous Safety
914 324
370 79
663 206
1,947 609
116
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — Retirement Plans (Continued)
B. CalPERS (Continued)
a. Net Pension Liability (Continued)
Contributions
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be
effective on the July I following notice of a change in the rate. The total plan contributions for both Plans are
determined through CalPERS' annual actuarial valuation process. The actuarially determined rate is the
estimated amount necessary to finance the cost of benefits earned by employees during the year, with an
additional amount to finance any unfunded accrued liability. The City is required to contribute the difference
between the actuarially determined rate and the contribution rate of employees. Employer contribution rates
may change if plan contracts are amended. It is the responsibility of the employer to make necessary
accounting adjustments to reflect the impact due to any Employer -Paid Member Contributions or situations
where members are paying a portion of the employer contribution.
The City's net pension liability for each Plan is measured as the total pension liability, less the pension plan's
fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2022, using an
annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update
procedures. A summary of principal assumptions and methods used to determine the net pension liability is
shown below.
Actuarial Assumptions
The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following
actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial As sumptions :
Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Mortality Rate Table i
Post Retirement Benefit Increase
Miscellaneous
June 30, 2022
June 30, 2023
Entry -Age Nortna1 Cost
6.90%
2.50%
Safety
June 30, 2022
June 30, 2023
6.90%
2.50%
2.75% 2.75%
Varies by Entry Age and Service
7.00%Net of Pension Plan Investment Expense,
includes Inflation
Derived using CalPERS' Membership Data for all
Funds.
Contract COLA up to 2.50% until Purehasing Power
Protection Allowance Floor on Purchasing Power
applies, 2.50% thereafter
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the
2017 CalPERS Experience Study for the period from 1997 to 2015..Preretirement and Post -retirement mortality rates
include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions
report from December 2017 that can be found on the CalPERS website.
117
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — Retirement Plans (Continued)
B. CalPERS (Continued)
a. Net Pension Liability (Continued)
All other actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial
experience study for the period from 1997 to 2011,.including updates to salary increase, mortality and
retirement rates. The Experience Study report can be obtained at CalPERS' website under Forms and
Publication.
Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. To determine whether the
municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested
plans that would most likely result in a discount rate that would be different from the actuarially assumed
discount rate. The tests revealed the assets would not run out. Therefore, the current 6.90 percent discount
rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term
expected discount rate of 6.90 percent is applied to all plans in the Public Employees Retirement Fund. The
stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be
obtained at CalPERS' website under the GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best -estimate ranges of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS staff took into account both short-term and
long-term market return expectations as well as the expected pension fund (Public Employees' Retirement
Fund) cash flows. Such cash flows were developed assuming that both members and employers will make
their required contributions on time and as scheduled in all future years. Using historical returns of all the
funds' assets classes, expected compound (geometric returns were calculated over the short-term (first 10
years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns
for both short-term and long-term, the present value of benefits was calculated for each fund. The expected
rate of return was set by calculating the single equivalent expected return that arrived at the same present value
of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate
of return was then set equivalent to the single equivalent rate calculated above the rounded down to the nearest
one quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated
using the capital market assumptions applied to determine the discount rate and asset allocation. The target
allocation shown was adopted by the Board effective on November 17, 2021.
118
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — Retirement Plans (Continued)
B. CalPERS (Continued)
a. Net Pension Liability (Continued)
Current Target
Asset Class'
Allocation Real Return 1'2
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%
0.50%
Investment Grade Corporates
10.0%
1.56%
High Yield
5.0%
2.27%
Emerging Market Debt
5.0%
2.48%
Private Debt
5.0%
3.57%
Real Assets
15.0%
3.21 %
Leverage
-5.0%
-0.59%
1An expected inflation of 2.0% used for this
period
2 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 Plan follow:
Miscellaneous Plan:
Balance at June 30, 2022 (Measurement date)
Changes in the year:
Service costs
Interest on the total pension liability
Changes of benefit terms
Differences between actual and expected experience
Change in assumptions
Plan to plan resource movement
Contributions - employer
Contribution - employee
Net investment income
Benefit payments, including refunds of employee
contributions
Administrative expense
Other miscellaneous income/(expense)
Net changes
Balance at June 30, 2023 (Measurement date)
Increase
(Decrease) Plan
Total. Pension
Fiduciary Net
Net Pension
Liability
Pension
Liability/ (Asset)
$ 521,555,019
$ 343,028,506
$ 178,526,51.3
9,334,553
-
9,334,553
35,983,1.88
-
35,983,1.88
650,322
-
650,322
10,088,251
-
10,088,251
-
18,430,558
(18,430,558)
-
4,567,962
(4,567,962)
-
21,207,883
(21,207,883)
(30,930,761) (30,930,761) -
- (252,247) 252,247
25,125,553 13,023,395 12,102,158
$ 546,680,572 $ 356,051,901 $ 190,628,671
119
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — Retirement Plans (Continued)
B. CaIPERS (Continued)
b. Changes in Net Pension Liability (Continued)
Safety Plan:
Balance at June 30, 2022 (Measurement date)
Changes in the year:
Service costs
Interest on the total pension liability
Changes of benefit terms
Differences between actual and expected experience
Change in assumptions
Plan to plan resource movement
Contributions - employer
Contribution - employee
Net investment income
Benefit payments, including refunds of employee
contributions
Administrative expense
Other miscellaneous income/(expense)
Net changes
Balance at June 30, 2023 (Measurement date)
Increase
(Decrease) Plan
Total Pension
Fiduciary Net
Net Pension
Liability
Pension
Liability/ (Asset)
$ 371,246,281
$ 230,968,103
$ 140,278,178
7,540,245
-
7,540,245
26,093,991
-
26,093,991
155,404
-
155,404
12,924,945
-
12,924,945
-
13,986,612
(13,986,612)
-
3,512,078
(3,512,078)
-
14,329,857
(14,329,857)
(19,845,923) (19,845,923) -
- (169,843) 169,843
26,868,662 11,812,781 15,055,881
$ 398,11.4,943 $ 242,780,884 $ 155,334,059
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Plan as of the measurement date, calculated using the
discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a
discount rate that is 1 percentage -point lower (5.90 percent) or 1 percentage -point higher (7.90 percent) than
the current rate:
1% Decrease
Net pension liability
Current discount rate
Net pension liability
1% Increase
Net pension liability
Miscellaneous Safety
5.90% 5.90%
$ 257,998,531 $ 210,247,611
6.90% 6.90%
$ 190,628,671 $ 155,334,059
7.90% 7.90%
$ 134,527,226 $ 110,440,375
120
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — Retirement Plans (Continued)
B. CalPERS (Continued)
b. Changes in Net Pension Liability (Continued)
Pension Plan Fiduciary Net Position
The plan fiduciary net position disclosed in the City's GASB 68 accounting valuation report may differ from
the plan assets report in the funding actuarial valuation report due to several reasons. First, for the account
valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense
included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In
addition, differences may result from early Annual Comprehensive Financial Report closing and final
reconciled reserves.
c. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2024, the City recognized pension expense of $51,295,741, which is comprised of
$29,596,848 of pension expense related to the CalPERS Miscellaneous plan and $21,698,893 of pension
expense related to the CalPERS Safety plan. At June 30, 2024, the City reported deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
Miscellaneous Plan:
Pension contributions made after ineasurement date
Changes of Assumptions
Difference between expected and actual experience
Net difference between projected and actual earnings
on pension plan investments
Total
Safety Plan:
Pension contributions made after ineasurement date
Changes of Assumptions
Difference between expected and actual experience
Net difference between projected and actual earnings
on pension plan investments
Total
Deferred Outflows Deferred Inflows of
of Resources Resources
$ 19,675,937 $
6,708,164
9,230,057
16,074,353 -
$ 51,688,511 $ -
Deferred Outflows Deferred Inflows of
of Resources Resources
$ 1.5,375,993 $ -
7,307,742 -
10,1.79,795 (1,549,957)
10,959,650 -
$ 43,823,180 $ (1,549,957)
121
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — 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 2022-23 measurement period expense.
The expected average remaining service lifetime (" BARSU) 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 2022-23 measurement is 3.8 and 4.7 years, which was obtained by dividing the
total service years of 7,407 and 2,868 (the sum of remaining service lifetimes of the active employees) by
1,947 and 609 (the total number of participants: active, inactive and retired), respectively.
The $19,675,937 and $15,375,993 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, 2024 will
be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts
reported as deferred outflow and deferred inflows of resources related to pensions will be recognized in future
pension expense as follows:
Year Ended June 30 Miscellaneous Plan Safety Plan
2024
$ 10,553,955 $
6,859,812
2025
7,559,978
6,193,787
2026
13,472,103
11,617,489
2027
426,538
2,226,142
2028
-
-
Thereafter
-
-
Total
$ 32,012,574 $
26,897,230
d. Payable to the Pension Plan
At June 30, 2024, The City reported a payable of $ -0- for the outstanding amount of contributions to the
pension plan required for the year ended June 30, 2024.
122
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — Retirement Plans (Continued)
C. PARS
a. General Information about the Pension Plans
Effective January 1, 2005, the City adopted a defined benefit plan administered through the Public Agency
Retirement System (PARS) to provide supplemental retirement benefits to eligible employees in addition to
the benefits the employees receive from Ca1PERS. The plan is an agent multiple -employer defined benefit
plan. The financial statement is issued as part of an audited trust Financial Statement and is available thru the
State Controller website and filed on an annual basis. Employee groups who are eligible to participate in the
Retirement Enhancement Plan (REP) are as follows: Tier I — Executive Management
Employees, Tier 11— Redding Independent Employees' Organization (RIEO) represented employees, Tier III
Redding Police Officers' Association (RPOA) - Miscellaneous Unit employees, Tier IV International
Brotherhood of Electrical Workers (IBEW) — Maintenance unit represented employees, Tier V International
Brotherhood of electrical Workers (IBEW) — Electric represented employees, and Tier VI United Public
Employees of California represented employees. The Plan is now closed to new participants.
Benefits Provided
The REP plan provides service retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members and beneficiaries. Benefits are based on years of service credited service, equal to
one year of full time employment. Members in Tiers I, III, IV, V and VI with five years of service with the
City are eligible to retire at age 50. Members in Tier II with ten years of service with the City are eligible to
retire at age 50. The death benefit is one of the following: the Basis Death Benefit, the 1957 Survivor Benefit,
or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as
specified by the Public Employees' Retirement Law.
The Plans' provisions and benefits in effect at June 30, 2024, are summarized as follows:
Tier I Tier 11 Tier IR Tier IV Tier V Tier VI
Hire date 1/1/2005thru 1/l/2005 thru 1/1/2005 thru 1/1/2005thru 1/1/2005thru 1/1/2005thru
8/7/2011 12/31/2012 1/5/2011 1/5/2011 9/21/2011 9/21/2011
Benefit formula 2.7% @ 55 2.7% @ 55 2.5% @ 55 2.7% @ 55 2.7% @ 55 2.7% @ 55
Benefit vesting
schedule 5 years service 10 years service 5 years service 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for fife monthly for life monthly for life monthly for life monthly for life
Retirement age
Monthly benefits
as a % of eligible
compensation
Required employee
contribution rates
Required employer
contribution rates
50-55 50-55 50-55 50-55
2.0% to 2.7%
2.70%
54.24%
50-55 50-55
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%
2.26%
1.71%
2.08%
2.08%
2.62%
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, 2024
Note 17 — Retirement Plans (Continued)
C. PARS (Continued)
a. General Information about the Pension Plans (Continued)
Employees Covered
At July 1, 2022, the following employees were covered by the benefit terms for each Plan:
Inactive employees or beneficiaries
currently receiving benefits
Inactive employees entitled to
but not yet receiving benefits
Active employees
Total
b. Net Pension Liability
Tier I Tier II Tier III Tier IV Tier V Tier VI Total
110
222
10
103
50
14
509
5
4
-
3
1
1
14
38
79
2
48
22
8
197
153
305
12
154
73
23
720
The City's total pension liability was determined by an actuarial valuation as of the valuation date, calculated
based on the discount rate and actuarial assumptions below, and was then projected forward to the measurement
date. There have been no significant changes between the valuation date and the fiscal year end. As summary
of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions
The total pension liabilities in the June 30, 2022 actuarial valuation were determined using the following
actuarial assumptions:
Valuation Date
June 30, 2022
Measurement Date
June 30, 2023
Actuarial Cost Method
Entry -Age Norina1
Actuarial Assumptions:
Discount Rate
7.00%
Inflation
2.30%
Projected Salary Increase
Graded rates based on years of services, 3.34% after
30 years of service.
Investment Rate of Return
7.00%
Mortality Rate Table
Pre-retirement/Post-retirement: Consistent with Non -
Industrial rates used to value the Miscellaneous
CalPERS Pension Plans after June 30, 2021
124
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — 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, 2024.
Long -Tenn Long -Term
Expected
Expected
Arithmetic
Geometric
Target
Real Rate of
Real Rate of
Asset Class
Index
Allocation
Return
Return
US Cash
BAML 3-Mon Tbill
3.65%
94.00%
91.00%
US Core Fixed Income
Barclays Aggregate
37.68%
2.52%
2.36%
US Equity Market
Russell 3000
46.92%
5.52%
3.82%
Foreign Developed Equity
MSCI EAFE NR
6.82%
6.92%
5.12%
Emerging Markets Equity
MSCI EM NR
3.18%
9.34%
6.21%
US REITs
FTSENAREIT Equity REIT
1.75%
6.91%
4.72%
Assumed inflation -mean
2.31%
2.30%
Assumed inflation - standard deviation
1.45%
1.45%
Portfolio real mean return
4.46%
3.82%
Portfolio noimnal mean return
6.77%
6.68%
Portfolio standard deviation
10.85%
Long-term expected rate of return
7.00%
125
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — 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
Balance at July 1, 2022 (Measurement date)
Changes in the year:
Service costs
Interest on the total pension liability
Changes of benefit terms
Effect of economic/demographic gains or losses
Differences between actual and expected experience
Change in assumptions
Contributions - employer
Contribution - employer (paid by inember)
Net investment income
Administrative expenses
Benefit payments, including refunds of employee
contributions
Net changes
Balance at June 30, 2023 (Measurement date)
Sensitivitv Analvsis
Increase
(Decrease) Plan Net Pension
Total Pension Fiduciary Net Liability/
Liability Pension (Asset)
$ 93,145,586 $ 70,205,340 $ 22,940,246
796,513 -
796,513
6,374,156 -
6,374,156
- 8,911,917
(8,911,917)
- 455,876
(455,876)
- 6,042,441
(6,042,441)
- (205,787)
205,787
(5,864,634) (5,864,634) -
1,306,035 9,339,813 (8,033,778)
$ 94,451,621 $ 79,545,153 $ 14,906,468
The following presents the net pension liability of the City of Redding Retirement Enhancement Plan,
calculated using the discount rate of 7.0%, as well as what the Plan's net pension liability would be if it were
calculated using a discount rate that is 1 percentage point lower (6.0%) or 1 percentage point higher (8.0%)
than the current rate.
Current
1% Decrease
Discount Rate
1% Increase
6.0%
7.0%
8.0%
Total pension liability $ 104,464,244
$ 94,451,621
$ 85,925,157
Fiduciary net position 79,545,1.53
79,545,153
79,545,153
Net pension liability 24,919,091
14,906,468
6,380,004
126
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 17 — Retirement Plans (Continued)
C. PARS (Continued)
c. Changes in Net Pension Liability (Continued)
Pension Plan Fiduciary Net Position
The plan fiduciary net position disclosed in the City's GASB 68 accounting valuation report may differ from
the plan assets report in the funding actuarial valuation report due to several reasons. First, for the account
valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense
included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In
addition, differences may result from early Annual Comprehensive Financial Report closing and final
reconciled reserves.
d. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2024, the City recognized pension expense of $3,391,146. At June 30, 2024, 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 contributions made after measurement date $ 17,077,760 $ -
Changes of Assumptions - (82,435)
Difference between expected and actual experience 126,202 Net difference between projected and actual earnings on
pension plan investments 4,21.9,247 -
Total
$ 21,423,209 $ (82,435)
The amounts above are net of outflow and inflows recognized in the 2022-23 measurement period expense.
The expected average remaining service lifetime ("EARSL") is calculated by dividing the total future service
years by the total number of plan participants (active, inactive, and retired). The EARSL for the PARS plan
for the 2022-23 measurement is 2.1 years, which was obtained by dividing the total service years of 1,523 (the
sum of remaining service lifetimes of the active employees) by 727 (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, 2024
Note 17 — Retirement Plans (Continued)
C. PARS (Continued)
d. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The $17,077,760 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, 2024 will be recognized
as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred
outflow and deferred inflows of resources related to pensions will be recognized in future pension expense as
follows.
Year Ended June 30
2024
2025
2026
2027
Thereafter
Total
e. Payable to the Pension Plan
Amount
$ 1,048,634
678,810
2,738,493
(202,923)
$ 4,263,014
At June 30, 2024, The City reported a payable of $ -0- for the outstanding amount of contributions to the
pension plan required for the year ended June 30, 2024.
128
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 18 — 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, 2024:
As!2regate Net OPEB Liability
Aggregate Net OPEB Liability is reported in the accompanying Statements of Net Position as follows:
OPEB
Governmental Activities
(minus Internal Service Funds)
Internal Service Funds:
Equipment
Information Systerns
General Support Services
Risk Management
Municipal Utilities Support
Total Internal Service Funds
Total Governmental Activities
Enterprise funds:
Electric Utility
Water Utility
Wastewater Utility
Solid Waste Utility
Airport
Storm Drainage Utility
Total Enterprise funds
Total
$ 39,706,173
1,462,816
1,645,917
1,825,998
455,430
1,860,316
7,250,477
46,956,650
20,796,229
2,224,103
2,995,701
5,017,426
678,279
324,423
32,036,161
$ 78,992,811
129
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 18 — Other Postemployment Healthcare Benefits (Continued)
Deferred Outflows of Resources
Deferred outflows of resources are reported in the accompanying Statements of Net Position as follows:
OPEB Contributions made after the Measurement Date
I
Governmental Activities
(minus Intemal Service Funds)
$ 2,167,545
Internal Service Funds:
Equipment
79,855
Information Systems
89,850
General Support Services
99,681
Risk Management
24,862
Municipal Utilities Support
101,554
Total Internal Service Funds
395,802
Total Governmental Activities
2,563,347
Enterprise funds:
Electric Utility
1,135,258
Water Utility
121,413
Wastewater Utility
163,534
Solid Waste Utility
273,899
Airport
37,027
Storm Drainage Utility
17,710
Total Enterprise funds
1,748,841
Total
$ 4,312,188
Difference between Projected and Actual Earnings on Pension Plan Investments
OPEB
Governmental Activities
(minus Intemal Service Funds)
$ 1,058
Internal Service Funds:
Equipment
39
Information Systems
44
General Support Services
48
Risk Management
12
Municipal Utilities Support
50
Total Internal Service Funds
193
Total Governmental Activities
1,251
Enterprise funds:
Electric Utility
554
Water Utility
59
Wastewater Utility
81
Solid Waste Utility
133
Airport
18
Storm Drain age Utility
9
Total Enterprise funds
854
Total
$ 2,105
130
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 18 — Other Postemployment Healthcare Benefits (Continued)
Deferred Outflows of Resources (Continued)
Changes of Assumptions
OPEB
Governmental Activities
(minus Internal Service Funds)
Internal Service Funds:
Equipment
Information Systems
General Support Services
Risk Management
Municipal Utilities Support
Total Internal Service Funds
Total Governmental Activities
Enterprise funds:
Electric Utility
Water Utility
Wastewater Utility
Solid Waste Utility
Airport
Storm Drainage Utility
Total Enterprise funds
Total
$ 4,783,700
176,236
198,296
21.9,992
54,869
224,126
873,519
5,657,219
2,505,478
267,954
360,91.5
604,487
81,717
39,086
3,859,637
$ 9,516,856
131
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 18 — Other Postemployment Healthcare Benefits (Continued)
Deferred Outflows of Resources (Continued)
Differences between Expected and Actual Experience
Total Deferred Outflows
OPEB
Governmental Activities
(minus Internal Service Funds)
Internal Service Funds:
Equipment
Information Systems
General Support Services
Risk Management
Municipal Utilities Support
Total Internal Service Funds
Total Governmental Activities
Enterprise funds:
Electric Utility
Water Utility
Wastewater Utility
Solid Waste Utility
Airport
Storm Drainage Utility
Total Enterprise funds
Total
C
$ 13,449,552
495,494
557,517
61.8,51.5
154,267
630,139
2,455,932
15,905,484
7,044,242
753,363
1,014,722
1,699,538
229,751
109,890
10,851,506
$ 26,756,990
Governmental Activities
(minus Internal Service Funds)
$ 20,401,856
Internal Service Funds:
Equipment
751,624
Infortration Systems
845,707
General Support Services
938,235
Risk Management
234,010
Municipal Utilities Support
955,869
Total Internal Service Funds
3,725,445
Total Governmental Activities
24,127,301
Enterprise funds:
Electric Utility
10,685,532
Water Utility
1,142,789
Wastewater Utility
1,539,252
Solid Waste Utility
2,578,057
Airport
348,513
Storm Drainage Utility
166,695
Total Enterprise funds
16,460,838
Total
$ 40,588,139
132
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 18 — 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
Total Deferred Inflows
•
Governmental Activities
(minus Internal Service Funds)
Internal Service Funds:
Equipment
Infortration Systems
General Support Services
Risk Management
Municipal Utilities Support
Total Internal Service Funds
Total Governmental Activities
Enterprise funds:
Electric Utility
Water Utility
Wastewater Utility
Solid Waste Utility
Airport
Storm Drainage Utility
Total Enterprise funds
Total
I
$ 1,911,776
70,431
79,248
87,917
21,928
89,570
349,094
2,260,870
1,001,297
107,086
144,237
241,578
32,656
15,620
1,542,474
$ 3,803,344
Governmental Activities
(minus Internal Service Funds)
$ 1,911,776
Internal Service Funds:
Equipment
70,431
Information Systems
79,248
General Support Services
87,91.7
Risk Management
21,928
Municipal Utilities Support
89,570
Total Internal Service Funds
349,094
Total Governmental Activities
2,260,870
Enterprise funds:
Electric Utility
1,001,297
Water Utility
107,086
Wastewater Utility
144,237
Solid Waste Utility
241,578
Airport
32,656
Storm Drainage Utility
1.5,620
Total Enterprise funds
1,542,474
Total
$ 3,803,344
133
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 18 — Other Postemployment Healthcare Benefits (Continued)
Responsible Governmental Funds
The governmental funds responsible for liquidating OPEB liabilities include; General Fund, Community Development,
and Parking.
General Information about the OPEB Plan
Plan Description
The City of Redding PARS Post -Retirement Health Care Plan (the "Plan") is a single -employer defined benefit
healthcare plan administered by Phase II Systems, dba Public Agency Retirement Services (PARS). The Plan provides
medical and dental insurance benefits to eligible retirees and their spouses. The City Council has the authority to
establish and amend benefit provisions to the plan.
Funding Policy
The contribution requirements of plan members are established and may be amended by the City Council. The required
contribution is based on projected pay-as-you-go financing requirements, with an additional amount to prefund benefits
as determined annually by the City Council.
Employees Covered by Benefit Term
Inactive employees or beneficiaries currently receiving benefits 372
Inactive employees entitled to but not yet receiving benefits -
Active employees 871
Total 1,243
134
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 18 — Other Postemployment Healthcare Benefits (Continued)
Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2023, and the actuarial valuation used to calculate the
net OPEB liability was as of June 30, 2023.
Actuarial Assumptions
The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial
assumptions:
Valuation Date
June 30, 2023
Measurement Date
June 30, 2023
Actuarial Assumptions:
Discount Rate
3.65% at June 30, 2023 Bond Buyer 20-bond Index
3.54% at June 30, 2022 Bond Buyer 20-bond Index
General Inflation
2.50%
Expected Net Long-TermRate
3.50% at June 30, 2023
of Return on Investments:
3.50% at June 30, 2022
Mortality Rate Table
Ca1PERS 2000-2019 Experience Study
Mortality Improvement
Mortality projected fully generational with Scale MP-
2021
Salary Increases
2.75%
Medical Trend
Non -Medicare - 8.50% for 2025, decreasing to an
ultimate rate of 3.45% in 2076
Medicare - 7.50% for 2025, decreasing to an ultimate
rate of 3.45% in 2076
Medical participation
Medicare - 100% actives and retirees assumed to be
eligible and will participate in Medicare
Healthcare participation for
future retirees
Single coverage: 60% pre-65, 20% post-65
2-Party and family coverage -75%pre-65, 50%post-65
Healthcare participation for
301/o for single and 70% for 2-party/family 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, 2024
Note 18 — Other Postemployment Healthcare Benefits (Continued)
Net OPEB Liability (Continued)
Changes in Net OPEB Liability
Balance at June 30, 2022 (Measurement Date)
Changes in the year:
Service costs
Interest on the total pension liability
Changes of benefit tenns
Effect of economic/demographic gains or losses
Differences between actual and expected experience
Change in assumptions
Contributions - employer
Contributions - employee
Net investment income
Administrative expenses
Benefit payments, including refunds of employee
contributions
Net changes
Balance at June 30, 2023 (Measurement date)
Total OPEB Fiduciary Net Net OPEB
Liability Position Liability
$ 51,617,397 $ 52,505 $ 51,564,892
2,842,623 - 2,842,623
1,874,402 - 1,874,402
19,953,859 - 19,953,859
5,780,385 - 5,780,385
- 3,021,637 (3,021,637)
1,846 (1,846)
(133) 1.33
(3,021,637) (3,021,637) -
27,429,632 1,713 27,427,919
$ 79,047,029 $ 54,218 $ 78,992,811
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the plan as of the measurement date, calculated using the discount
rate of 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
(2.65%) (3.65%) (4.65%)
Net OPEB Liability $ 85,488,106 $ 78,992,811 $ 73,029,887
Sensitivity of the Net OPEB Liability to Changes in the Healthcare cost Trend Rates
The following presents the net OPEB liability of the plan as of the measurement date, calculated using healthcare cost
trend rates, as well as what the net OPEB liability would be if it were calculate using a trend that are one percentage
point lower or one percentage higher than the current healthcare cost trend rates:
1% Decrease Current Trend 1%Increase
Net OPEB Liability $ 71,407,727 $ 78,992,81.1 $ 87,814,352
136
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 18 — 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, 2024, the City recognized OPEB expense of $11,439,659. At June 30, 2024, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
OPEB contributions ride after measurement date
Changes of assumptions
Difference between expected and actual experience
Net difference between projected and actual earnings on
OPEB plan investments
Total
Deferred Outflows Deferred Inflows of
of Resources Resources
$ 4,312,188 $ -
9,516,856 3,803,344
26,756,990 -
2,1.05 -
$ 40,588,139 $ 3,803,344
The $4,312,188 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, 2024 will be recognized as a reduction of
the net OPEB liability in the year ended June 30, 2025. 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
2025
2026
2027
2028
2029
Thereafter
Total
Amount
$ 6,239,550
5,946,474
4,626,856
4,262,701
4,072,072
7,324,954
$ 32,472,607
137
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 19 - Fund Balances
Fund balance as of June 30, 2024, consists of the following:
General
Major Capital Community
Other
Fund
Project Fund Development
Funds
Total
Fund balances:
Nonspendable fund balance:
Prepaids and inventory
$ 1,206,889
$ - $ 31,723
$ 66,137
$ 1,304,749
Contractually nonspendable
920,974
- -
-
920,974
Total nonspendable
21127,863
- 31,723
66,137
2,225,723
Restricted fund balance:
Fiscal agent reserves
1,395
- -
-
1,395
Capital projects
-
9,097,344 -
-
9,097,344
Debt service
-
- -
318,174
318,174
Opioid Settlement
430,561
- -
-
430,561
Special Revenue
Community development
-
- 69,910,047
-
69,910,047
Housing
-
- -
16,443,534
16,443,534
Landscape maintenance
-
- -
1,272,263
1,272,263
Library
-
- -
1,193,795
1,193,795
Local transportation
-
- -
11,287,477
11,287,477
Police asset seizure
-
- -
106,850
106,850
Total restricted
431,956
9,097,344 69,910,047
30,622,093
110,061,440
Assigned fund balance:
Operations and maintenance
Police
144,516
- -
-
144,516
Fire
654,1.68
- -
-
654,168
Public works
367,005
- -
-
367,005
Planning
123,371
- -
-
123,371
Recreation and culture
100,092
- -
-
100,092
General Government
852,267
- -
-
852,267
Capital projects
Public works
3,028,392
- -
-
3,028,392
Recreation and culture
73,342
- -
-
73,342
General Government
101,261
- -
-
101,261
Vehicles and equipment
Police
137,387
- -
-
137,387
Fire
1.45,442
- -
-
145,442
Recreation and culture
229,509
- -
-
229,509
Rolling stock
1,468,206
- -
-
1,468,206
Future expenditures
5,317,000
- -
-
5,317,000
Future capital projects
787,740
- -
-
787,740
Total assigned
13,529,698
- -
-
13,529,698
Unassigned:
General fund
7,457,606
- -
-
7,457,606
Special Revenue
-
- -
(470,007)
(470,007)
Total unassigned
7,457,606
- -
(470,007)
6,987,599
Total fund balances
$ 23,547,123
$ 9,097,344 $ 69,941,770
$ 30,218,223
$ 132,804,460
138
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 20 — Net Investment in Capital Assets
Net Investment in Capital Assets as of June 30, 2024, consisted of the following:
Governmental
Business -Type
Activities
Activities
Net investment in capital assets
Capital assets, nondepreciable $
114,450,556
$ 100,878,374
Capital assets, depreciable
263,682,904
460,892,478
Deferred amount on refunding
Current portion of long-term debt:
Governmental
(2,440,786)
-
Electric Utility
-
(12,694,779)
Water Utility
-
(1,768)
Wastewater Utility
-
(4,622,377)
Solid Waste Utility
-
(43,485)
Airport
-
(32,241)
Storm Drainage Utility
-
(884)
Redding Area Bus Authority
-
(32,157)
Long-term debt, excluding current portion:
Governmental
(26,851,773)
-
Electric Utility
-
(82,417,528)
Wastewater Utility
-
(39,498,536)
Solid Waste Utility
-
(39,013)
Airport
-
(271,114)
Deferred gain/loss on refunding
Governmental
124,917
-
Electric Utility
-
4,687,982
Wastewater Utility
-
710,130
Debt not used for capital assets
Governmental
65,392
-
Electric Utility
-
14,541
Accounts payable used for capital assets
Governmental
(528,690)
-
Electric Utility
-
(426,958)
Water Utility
-
(1,485,771)
Wastewater Utlity
-
(206,172)
Redding Area Bus Authority
-
(60,000)
Net investment in capital assets $
348,502,520
$ 425,350,722
139
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 21— Commitments and Contingencies
A. Construction Commitments
A number of construction contracts existed at June 30, 2024. The unexpended authorized amount of $32,307,589
represents a commitment by the City.
B. Redding Electric Utility (REU)
i) REU was contractually obligated to purchase 7,500 Dth/day of GTN natural gas pipeline capacity that expired
October 31, 2023, through which REU sold its delivery rights to the GTN through the remainder of the contract
period. The City realized a small net revenue from this asset due to the GTN rate reductions implemented
annually and the sale of GTN capacity rights. Beginning November 1, 2023, REU permanently released its
rights and no longer has any ownership, fees, or revenue related to the GTN pipeline.
ii) REU is contractually committed to purchase natural gas in the 2025 through 2028 time period. The following
table provides on a fiscal -year basis the approximate purchase dollar amount and what percentage these
purchases cover of the minimum fuel requirements for the expected operating level of the Redding Power
facility.
f►�17►��►�17►L'�►�II7►aI�17►F:�I17►�9
Purchase Cost $ (million) $ 1.4.5 $ 14.1 $ 6.3 $ 3.5 $ -
% Natural Gas Hedge * * 87% 73% 36% 19% 0%
** This is the % of gas acquired to meet power retail sales after
considering all other power resources and before wholesale power and gas
transactions.
iii) In 2010, REU entered into a 28 - year term contract with Gill Ranch Storage. Under the Agreement REU has
leased 2,250,000 Dth of cushion gas initially valued at $13,570,000 to Gill Ranch and Gill Ranch provides
REU with approximately 600,000 Dth of natural gas storage. At the end of the contract term in 2038, the
cushion gas will be returned to REU with an anticipated value greater than the initial $13,570,000 value.
iv) REU has contractually committed to purchase power from M-S-R Public Power Agency on an as -delivered
basis from the Big Horn Wind energy 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 $13,540,000 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 completed an amendment to the Big Horn contract which
addresses financial responsibility for the Bonneville Power Administration's Wind Integration Charge (WIC).
Currently, the WIC is approximately $1.01 per kw-mo and is included in the annual expected expense
mentioned above.
140
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 21— Commitments and Contingencies (Continued)
B. Redding Electric Utility (REU) (Continued)
i) The City of Redding, in conjunction with the Northern California Power Agency (NCPA) and Cities of
Roseville and Santa Clara (collectively the "Plaintiffs"), filed a complaint in September 2014 in the U.S. Court
of Claims seeking recovery of more than $45 million in overcharges imposed by the Bureau of Reclamation
for the Central Valley Project Improvement Act (CVPIA). The CVPIA, established in 1992, obligates
Reclamation to collect roughly $30 million per year (in 1992 dollars) from water and power customers who
benefit from the Central Valley Project (CVP), in proportion to the users' project repayment obligation over a
10-year rolling average. Through the end of 2019, Reclamation estimates CVP capital costs to the power users
over the previous 10 years is 34.07%; however, the CVPIA collections had averaged 45% over the same time
period. Redding and the other plaintiffs in this claim, believe that Reclamation has overcharged the CVP
power customers and are seeking repayment. In July of 2018, the U.S. Court of Federal Claims denied the
Plaintiffs' complaint. Due to the large amount of overcharges, the Plaintiffs filed notices of appeal of the case
to the Federal Circuit in September of 2018. On November 6, 2019, the Federal Circuit issued an opinion
where they reversed the Court of Federal Claims judgment and remanded for future proceedings consistent
with the opinion. In June 2023, the City of Redding was awarded $15,884,1.02 in damages from the litigation.
C. West Central Landfill
In 1990 the City entered into an agreement with Shasta County to operate West Central Landfill (the landfill).
Under the agreement, the City is obligated to operate the landfill at least until there are no bonds or contracts
outstanding. The 1997 refunding bonds expired July 1, 2010, and the bonds were paid off. The City records the
activity and net position of the operations portion of the landfill in its Solid Waste enterprise fund. Net position
associated with the landfill, recorded on the City's books at June 30, 2024, was $7,376,210. The net position
includes net investment in capital assets of $4,586,703 and unrestricted of $2,789,507.
D. Grants
Amounts received or receivable from granting agencies are subject to audit and adjustments by grantor agencies.
While no matters of non-compliance were disclosed by the audit of the financial statements or single audit of the
Federal programs, grantor agencies may subject grant programs to additional compliance tests, which may result
in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if
any, would not have material adverse effect on the financial position of the City.
E. Litigation
Various claims and suits have been filed against the City in the normal course of business. Although the outcome
of these matters is not presently determinable in the opinion of legal counsel, the city believes that the resolutions
of these matters will not have a material adverse effect on the financial condition of the City.
141
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 22 — Successor Agency Trust for Assets of the Former Redevelopment Agency
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the Bill") that provides for the
dissolution of all redevelopment agencies in the State of California. In accordance with the timeline set forth in the
Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of
California were dissolved and ceased to operate as a legal entity as of February 1, 2012. The assets and activities of
the dissolved redevelopment agency are reported in a fiduciary fund (private -purpose trust fund) in the financial
statements of the City.
The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government
will agree to serve as the "successor agency" to hold the assets until they are distributed to other units of state and local
government. On January 12, 2012, the City Council elected to become the Successor Agency for the former
redevelopment agency in accordance with the Bill as part of City resolution number 2012-001.
Following the disbursement of unencumbered funds, the Department of Finance of the State of California granted a
"Finding of Completion" on June 20, 2013, to the City of Redding Successor Agency. The Successor Agency is now
allowed to place loan agreements between the former redevelopment agency and sponsoring entity on the Recognized
Obligation Payment Schedule and utilize remaining bond proceeds.
Successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual installment
payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior
redevelopment agency have been paid in full and all assets have been liquidated.
The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between
redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received
such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the
State Controller is required to order the available assets to be transferred to the public body designated as the successor
agency by the Bill. The State Controller completed the review of all assets transferred and issued a report dated October
13, 2014.
The review found that the Agency transferred $69,027,149 in assets after January 2, 2011, including unallowable
transfers to the City totaling $876,800. The City turned over the $876,800 to the Agency that was subsequently remitted
to the Shasta County Auditor -Controller for distribution to the taxing entities.
142
City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 22 — Successor Agency Trust for Assets of the Former Redevelopment Agency (Continued)
Long-term debt consisted of the following as of June 30, 2024:
SHASTEC TaxAllocation Bonds, Series 2023 (Retuned SHASTEC 2006):
Interest at 5.0% payable March 1 and September 1; maturities are payable September
1 in annual redemptions from $425,000 to $770,000; final payment September 1, 2036.
Original issue: $15,000,000. Refunded at $7,545,000 on the Series 2006 SHASTEC
Bonds whose proceeds from the Series 2006 Bonds are used to finance various
capital improvements within the SHASTEC Redevelopment Area. 7,545,000
Total bonds outstanding 7,545,000
Prernium on SHASTEC 20023 735,908
Total discount/premium 735,908
Total long-term bonded debt $ 8,280,908
Annual requirements to amortize long-term bonds outstanding as of June 30, 2024, are set forth below:
Fiscal Year
Principal
Interest
Total
2024
$ 425,000
$ 366,625
$ 791,625
2025
440,000
345,000
785,000
2026
465,000
322,375
787,375
2027
490,000
298,500
788,500
2028
520,000
273,250
793,250
2029-2033
3,005,000
941,125
3,946,125
2034-2038
2,200,000
168,500
2,368,500
2039-2043
-
-
-
Total
$ 7,545,000
$ 2,715,375
$ 10,260,375
143
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0 11117 J 7. 101.
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146
City of Redding
Required Supplementary Information
Budgetary Information (Unaudited)
For the Year Ended June 30, 2024
Note 1- Budgetary Principles
Budget Data
The operating budget of the City is adopted by the City Council prior to July 1 each year primarily on a cash basis.
The City Manager is authorized to transfer budget amounts between divisions of a department within any fund;
however, any revisions that alter the total expenditures of any fund require City Council resolution.
Budget information is adopted and presented for the general, special revenue (except for the Landscape Maintenance
Districts and Asset Seizure Fund), capital project and the debt service funds. The presentations represent original
appropriations adjusted for supplemental appropriations, if any, made during the year.
The City does not formally adopt a budget for the debt service fund. The bond documents are the controlling factor.
Summary of Differences between Bud,-etary Basis and Generally Accepted Accountin,- Principles (GAAP)
The following are the differences between the City's budgetary basis and GAAP:
A. The City does not budget for the fair value adjustment required under GASB 31.
B. The City does not budget for accounts payable or intergovernmental payables.
C. The City does not budget for benefit accruals.
D. The City budgets for certain receivables and payables on a cash basis.
E. The City budgets for land to be held for resale as expenditure.
F. Encumbrances are not included in the Statement of Revenue, Expenditures and Changes in Fund
Balance
Budgetary Basis Reconciliation
Budgets are not adopted for the Landscape Maintenance Districts Fund and the Asset Seizure Fund.
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, 2024
REVENUES:
Property taxes
Sales and use taxes
Other taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines, forfeitures, and penalties
Use of money and property
Net investment earnings (loss)
Other revenue
Total revenues
EXPENDITURES:
Current:
General government:
City Attorney
City Clerk
City Manager
City Treasurer
Finance
Personnel
Purchasing
Public safety:
Police
Fire safety
Public works
Planning
Recreation and culture
Debt service:
Principal payments
Interest and fiscal charges
Total expenditures
Budgeted Amounts
Original Final
$ 26,789,090
32,121,180
12,536,000
2,394,480
3,721,600
3,753,960
768,230
8,005,020
125,210
405,000
90,619,770
$ 28,334,090
30,753,180
11,450,000
2,394,480
4,988,250
4,140,670
1,115,650
6,590,900
125,210
1,423,045
91,315,475
Actual
Amounts
Budgetary
Basis
$ 28,453,138
30,752,903
11,439,841
1,946,218
3,506,813
4,875,700
848,715
9,444,806
667,755
5,164,764
97,100,653
Variance With
Final Budget
Positive
(Negative)
$ 119,048
(277)
(10,159)
(448,262)
(1,481,437)
735,030
(266,935)
2,853,906
542,545
3,741,719
5,785,178
834,100
863,180
685,344
177,836
1,262,980
1,262,980
966,261
296,719
7,003,600
7,105,480
4,540,066
2,565,414
831,640
831,640
707,098
124,542
2,064,690
1,986,390
1,955,242
31,148
918,560
918,560
894,217
24,343
704,490
706,260
504,506
201,754
49,945,830
28,523,260
22,271,850
8,958,360
9,926,390
1,244,590
784,180
135,274,520
52,508,320
33,788,610
23,193,990
9,082,570
10,720,340
1,711,130
872,730
145,552.180
49,287,683
31,228,261
16,863,401
8,234,509
9,123,648
1,491,763
830,728
127,312,727
3,220,637
2,560,349
6,330,589
848,061
1,596,692
219,367
42,002
18,239,453
REVENUES OVER (UNDER) EXPENDITURES
(44,654,750)
(54,236,705)
(30,212,074)
(12,454,275)
OTHER FINANCING SOURCES (USES):
Sale of capital assets
-
-
330,746
330,746
Transfers in
19,532,510
22,204,900
17,080,460
(5,124,440)
Transfers out
(3,580,310)
(3,600,650)
(2,365,308)
1,235,342
Total other financing sources (uses)
15,952,200
18,604,250
15,045,898
(3,558,352)
CHANGE IN FUND BALANCE
(28,702,550)
(35,632,455)
(15,166,176)
(16,012,627)
BUDGETARY FUND BALANCES:
Beginning of year 26,561,962 26,561,962 26,561,962 -
End of year $ (2,140,588) $ (9,070,493) $ 11,395,786 $ (16,012,627)
(Continued)
148
City of Redding
Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual (Unaudited)
General Fund (Continued)
For the Year Ended June 30, 2024
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
1. The City budgets for taxes on a cash basis.
2. The City budgets for grants on a cash basis.
3. Timing difference due to GASB #33.
4. The City does not budget for accounts payable adjustments.
5. The City does not budget for benefit accruals.
6. Financial statement only adjustment for GASB #31.
7. The City does not budget for interest, sale of property or rental income related to the rolling
stock fund. The City budgets only for the transfers in and out of the rolling stock fund.
8. The City does not budget for special assessments.
9. The City does not budget for interest on the long-term advances.
10. Encumbrances are not included in the Statement of Revenues, Expenditures and Changes
in Fund Balance.
11. The City does not budget for interest on long-term advances
12. The City does not budget for developer's fees that are prepaid.
13. The City budgeted for prepaid expenditures.
14. The City does not budget for interest on deposits held in trust.
15. The City does not budget interest accrued at year-end
16. The City does not budget for CalFire lease of Cypress property that make loan payment
76. The City does not budget for interest expended on loan for CalPers UAL prepayment
Budgetary fund balance
$ 23,547,123
(72,108)
(5,208,629)
(55,065)
(623,806)
(82,039)
(600,845)
(230,419)
(13,330)
(752,747)
(6,185,572)
114,408
(647,209)
2,113,466
(16,759)
122,345
(175,258)
162,230
$ 11,395,786
(Concluded)
149
City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net Pension Liability and Related Ratios
For the Year Ended June 30, 2024
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan
Measurement Period
TOTAL PENSION LIABILITY:
Service Costs
Interest
Changes of Benefit Terms
Difference Between Expected and Actual Experience
Changes of Assumptions
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension 'Liability - Ending (a)
PLAN FIDUCIARY NET POSITION:
Contributions - Employer
Contributions - Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee Contributions
Plan to Plan Resource Movement
Administrative Expense
Other Miscellaneous Income/(Expense)
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position - Beginnings
Plan Fiduciary Net Position - Ending (b)
Plan Net Pension Liability/(Asset) - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
Covered Payroll
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll
Notes to Schedules of Changes in Net Pension Liability and Related Ratios:
2023
2022
2021
$ 9,334,553
$ 8,538,665
$
7,299,034
35,983,188
34,337,125
33,378,172
650,322
-
-
10,088,251
3,379,785
1,706,144
-
14,600,120
-
(30,930,761)
(29,381,884)
(27,548,141)
25,125,553
31,473,811
14,835,209
521,555,019
490,081,208
475,245,999
$ 546,680,572
$ 521,555,019
$
490,081,208
$ 18,430,558
$ 16,761,832
$
15,066,353
4,567,962
3,941,926
3,711,059
21,207,883
(28,706,945)
71,581,234
(30,930,761)
(29,381,884)
(27,548,141)
(252,247)
(237,123)
(317,820)
13,023,395
(37,622,194)
62,492,685
343,028,506
380,650,700
318,158,015
$ 356,051,901
$ 343,028,506
$
380,650,700
$190,628,671
$ 178,526,513
$
109,430,508
65.13%
65.77%
77.67%
$ 53,097,570
$ 48,405,131
$
44,861,920
359.02%
368.82%
243.93%
During Fiscal Year 2017-18, as a result of Governmental Accounting Standard Board Statement (GASB No. 75, Accounting and Financial
Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to
postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expenses as
a result of the adoption of GASB 75.
Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, Ca1PERS
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 for Schedules of Changes in Net Pension Liability and Related Ratios is intended to show information
for ten years; as additional years' information becomes available it will be displayed accordingly.
150
City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net Pension Liability and Related Ratios
For the Year Ended June 30, 2024
California Public Employees` Retirement System ("CalPERS") - Miscellaneous Plan
2020 2019 2018 2017 2016 2015 2014
$ 7,095,018 $ 7,333,947 $ 7,260,646 $ 7,191,855 $ 6,259,646 $ 6,164,984 $ 6,465,244
32,355,397 31,319,926 30,024,355 29,157,632 28,527,904 27,466,002 26,335,482
1,379,900 4,475,575 414,506 (3,221,954) (705,952) (551,120) -
- - (2,598,628) 23,416,908 - (6,578,864) -
$ 13,743,592 $ 12,199,094 $ 10,902,871 $ 1.0,045,335 $ 8,742,083 $ 7,771,417 $ 7,140,089
3,533,531 3,132,551 3,149,996 3,177,532 2,849,237 2,892,519 2,924,099
15,455,298 19,732,888 24,307,041 29,710,153 1,432,535 6,167,183 41,359,309
(26,359,866) (24,504,515) (22,850,231) (21,305,301) (19,821,373) (18,361,188) (16,894,132)
(702) (145) (1,256) 20,221 -
(440,162) (215,428) (448,271) (393,376) (166,624) (307,951) -
- 702 (851,273) - - - -
5,932,393 10,345,292 14,209,431 21,234,198 (6,965,398) (1,817,799) 34,529,365
312,225,622 301,880,330 287,670,899 266,436,701 273,402,099 275,219,898 240,690,533
$318,158,015 $ 312,225,622 $ 301,880,330 $ 287,670,899 $ 296,204,582 $ 303,236,784 $ 310,058,548
$157,087,984 $ 148,549,928 $ 140,270,287 $ 185,586,639 $ 98,456,247 $ 77,1.63,820 $ 62,202,242
66.95% 67.76% 68.28% 66.92% 67.51% 71.87% 73.93%
$ 42,974,064 $ 43,942,160 $ 43,633,688 $ 42,409,809 $ 41,323,256 $ 40,294,018 $ 40,286,914
365.54% 338.06% 321.47% 335.37% 310.30% 265.54% 240.87%
151
City of Redding
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions
For the Year Ended June 30, 2024
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan
Actuarially Determined Contribution 2
Contributions in Relations to the Actuarially Determined
Contribution 2
Contribution Deficiency (Excess)
Covered Payroll 3
Contributions as a Percentage of Covered -Employee Payroll 3
2024 2023 2022
$ 19,675,937 $ 18,428,744 $ 16,765,328
(19,675,937) (18,428,744) (16,765,328)
$ 63,976,833 $ 56,506,209 $ 50,582,394
30.75% 32.61% 33.14%
As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be determined
as of the employer's most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the
standard as this data is not available to CalPERS.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may
choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the
actuarially determined contributions.
3Includes one year's payroll growth using 2.75 percent payroll assumption for fiscal year ended June 30, 2018; 3.00 percent payroll
assumption for fiscal years ended June 30, 2014-17.
Notes to Schedule of Plan Contributions:
The Required Supplementary Information for Schedule of Plan Contributions is intended to show information for ten years; as additional
years' information becomes available it will be displayed accordingly.
152
City of Redding
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions
For the Year Ended June 30, 2024
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan
2021 2020 2019 2018 2017 2016 2015
$ 15,066,353 $ 13,743,592 $ 12,199,094 $ 10,902,871 $ 10,045,335 $ 8,742,083 $ 7,771,417
(15,066,353) (13,743,592) (12,199,094) (10,902,871) (10,045,335) (8,742,083) (7,771,417)
$ 46,184,875 $ 42,974,064 $ 43,942,160 $ 43,633,688 $ 42,409,809 $ 41,323,256 $ 40,294,018
32.62% 31.98% 27.76% 24.99% 23.69% 21.1.6% 19.29%
153
City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net Pension Liability and Related Ratios
For the Year Ended June 30, 2024
California Public Employees' Retirement System ("CalPERS") - Safety Plan
Measurement Period
TOTAL PENSION LIABILITY:
Service Costs
Interest
Changes of Benefit Terms
Difference Between Expected and Actual Experience
Changes of Assumptions
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
PLAN FIDUCIARY NET POSITION:
Contributions - Employer
Contributions - Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee Contributions
Plan to Plan Resource Movement
Administrative Expense
Other Miscellaneous Income/(Expense)`
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position - Beginnings
Plan Fiduciary Net Position - Ending (b)
Plan Net Pension Liability/(Asset) - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
Covered Payroll
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll
Notes to Schedules of Changes in Net Pension Liability and Related Ratios:
2023
2022
2021
$ 7,540,245
$ 6,602,064
$
5,835,290
26,093,991
24,351,275
23,600,338
155,404
-
-
12,924,945
(1,991,350)
(1,394,330)
-
13,153,936
-
(19,845,923)
(18,646,091)
(17,632,371)
26,868,662
23,469,834
10,408,927
371,246,281
347,776,447
337,367,520
$ 398,114,943
$ 371,246,281
$
347,776,447
$ 13,986,612
$ 12,961,721
$
12,01.5,895
3,512,078
2,979,070
2,413,060
14,329,857
(19,281,616)
47,488,980
(19,845,923)
(18,646,091)
(17,632,371)
(169,843)
(157,674)
(208,814)
11,812,781
(22,144,590)
44,076,750
230,968,103
253,112,693
209,035,943
$242,780,884
$ 230,968,103
$
253,112,693
$155,334,059
$ 140,278,178
$
94,663,754
60.98%
62.21%
72.78%
$ 22,863,083
$ 19,695,894
$
19,213,993
679.41%
712.22%
492.68%
During Fiscal Year 2017-1.8, as a result of Governmental Accounting Standard Board Statement (GASB No. 75, Accounting and Financial
Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to
postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, Cal PERS 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 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 for Schedules of Changes in Net Pension Liability and Related Ratios is intended to show
information for ten years; as additional years' information becomes available it will be displayed accordingly.
154
2020
$ 5,609,745
22,885,014
198,438
(16,785,010)
11,908,187
$ 10,962,279
2,206,742
10,081,863
(16,785,010)
(285,977)
$128,331,577
61.96%
$ 18,386,577
697.96%
City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net Pension Liability and Related Ratios
For the Year Ended June 30, 2024
California Public Employees` Retirement System ("Ca]PERS") - Safety Plan
$ 5,654,637 $ 5,621,256 $ 5,567,053 $
22,052,183 21,033,750 20,189,512
2,573,209 1,287,937 (1,169,833)
- (1,265,088) 17,369,797
1,258,688 $ 4,702,492 $ 4,982,595
19,492,841 18,712,421 18,027,294
(610,852) (1,889,558)
(4,730,1.35) -
$ 9,775,655 $ 9,016,294 $ 8,645,061 $ 7,839,435 $ 7,466,754 $ 6,761,771
1,983,768 2,086,601 1,955,068 1,620,695 1,570,703 1,517,735
12,784,582 15,509,897 18,500,1.88 828,855 3,715,343 25,448,647
(15,684,647) (14,317,530) (13,680,425) (13,015,636) (12,355,104) (11,659,397)
(452) - 1,256 193,399 -
(138,539) (284,643) (247,291) (103,802) (191,504)
452 (540,541) - - - -
8,721,271 11,469,626 15,172,601 (2,829,197) 399,591 22,068,756
194,134,775 182,665,149 167,492,548 170,321,745 169,922,154 147,853,398
$ 202,856,046 $ 194,134,775 $ 182,665,149 $ 167,492,548 $ 170,321,745 $ 169,922,154
$ 122,603,287 $ 116,729,176 $ (104,068,440) $ 99,1.25,420 $ 89,171,182 $ 85,130,657
62.33% 62.45% 61.19% 61.98% 65.64% 66.62%
$ 18,244,296 $ 18,109,134 $ 17,705,784 $ 29,767,881 $ 29,834,685 $ 34,838,650
672.01% 644.59% 654.24% 593.38% 537.11% 506.71%
155
City of Redding
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions
For the Year Ended June 30, 2024
California Public Employees' Retirement System ("CalPERS") - Safety Plan
Actuarially Determined Contribution
Contributions in Relations to the Actuarially Determined
Contribution 2
Contribution Deficiency (Excess)
Covered Payroll 3
Contributions as a Percentage of Covered Payrol13
2024 2023 2022
$ 15,375,993 $ 13,986,466 $ 12,958,225
(15,375,993) (13,986,466) (12,958,225)
$ 28,035,020 $ 23,977,908 $ 21,536,663
54.85% 58.33% 60.17%
As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be determined
as of the employer's most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the
standard as this data is not available to CalPERS.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may
choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the
actuarially determined contributions.
3 Includes one year's payroll growth using 2.75 percent payroll assumption for fiscal year ended June 30, 2018; 3.00 percent payroll assumption for
fiscal years ended June 30, 2014-17.
Notes to Schedule of Plan Contributions:
The Required Supplementary Information for Schedule of Plan Contributions is intended to show information for ten years; as additional years'
information becomes available it will be displayed accordingly.
156
City of Redding
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions
For the Year Ended June 30, 2024
California Public Employees' Retirement System ("CalPERS") - Safety Plan
2021
2020
2019
2018
2017
2016
2015
$ 12,015,895
$ 10,962,279
$ 9,775,655
$ 9,016,294
$ 8,645,061
$ 7,839,435
$ 7,466,754
(12,015,895)
(10,962,279)
(9,775,655)
(9,016,294)
(8,645,061)
(7,839,435)
(7,466,754)
$ 19,383,450
$ 18,386,577
$ 18,244,296
$ 18,109,134
$ 17,705,784
$ 17,313,615
$ 16,601,913
61.99%
59.62%
53.58%
49.79%
48.83%
45.28%
44.98%
157
City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net Pension Liability and Related Ratios
For the Year Ended June 30, 2024
Public Agency Retirement System - Miscellaneous Plan (PARS)1
Measurement Period
TOTAL PENSION LIABILITY:
Service Costs
Interest
Effect of economic/demographic gains or losses
Changes of Assumptions
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
PLAN FIDUCIARY NET POSITION:
Contributions - Employer
Contributions - Employee
Net Investment Income 2
Benefit Payments, Including Refunds of Employee Contributions
Administrative Expenses
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Plan Net Pension Liability/(Asset) - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
Covered Payroll
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll
2023
2022
2021
$ 796,513
$
960,178
$
934,480
6,374,156
6,218,106
6,099,199
-
2,650,226
-
-
(1,731,147)
-
(5,864,634)
(5,549,535)
(5,178,122)
$ 1,306,035
$
2,547,828
$
1,855,557
93,145,586
90,597,758
88,742,201
$ 94,451,621
$
93,145,586
$
90,597,758
$ 8,911,917
$
9,061,771
$
6,575,412
455,876
393,779
353,687
6,042,441
(9,274,876)
14,530,931
(5,864,634)
(5,549,535)
(5,178,122)
(205,787)
(213,951)
(191,545)
9,339,813
(5,582,812)
16,090,363
70,205,340
75,788,152
59,697,789
$ 79,545,153
$
70,205,340
$
75,788,152
$ 14,906,468
$
22,940,246
$
14,809,606
84.22%
75.37%
83.65%
$ 19,229,455
$
19,143,035
$
20,161,261
77.52%
119.84%
73.46%
Historical information is presented only for measurement periods for which GASB 68 is applicable.
Z Net of administrative expenses.
Notes to Schedules of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after
June 30, 2014. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden
Handshakes).
Changes of Assumptions: There were no changes in assumptions.
The Required Supplementary Information for Schedules of Changes in Net Pension Liability and Related Ratios is intended to show
information for ten years; as additional years' information becomes available it will be displayed accordingly.
158
2020
$ 909,470
5,933,422
535,027
(4,896,050)
$ 2,481,869
.1 ". 11�
City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net Pension Liability and Related Ratios
For the Year Ended June 30, 2024
Public Agency Retirement System - Miscellaneous Plan (PARS)
$ 1,122,061 $ 1,441,162 $ 1,258,688 $ 1,170,873 $ 1,478,671 $ 1,432,128
5,794,604 5,468,051 5,387,397 5,162,353 4,941,220 4,689,105
- 2,071,932 - 92,895 - -
456,118 3,255,582 - - -
�p G,J UJ,VIJ .� J,G70,U1V �p U,411,7U4 .P 0,U04,07't 11f J,N47,'tOJ .ip J,'t74,UVU
OQ O(1G 0A[l no G(lL nnn 11 QUA 0.1 1. - - LG 011 Al. 1111.01.
yr uo, i ��,A.v a
yr
uv,wv,✓✓c
.v
u✓,u�✓,✓ ��
yr
i o,✓iv, i v�
.v
�,✓u-quv i
yr
vi,oviy A.✓
.v
vo,u i c,-r.w
$ 6,888,868
$
5,944,074
$
6,648,630
$
4,816,795
$
5,020,997
$
5,760,375
$
6,042,892
224,631
122,545
92,709
-
-
-
-
2,318,864
3,330,635
3,208,975
4,418,967
643,326
998,681
4,209,807
(4,896,050)
(4,551,652)
(4,138,653)
(3,689,765)
(3,343,227)
(2,990,408)
(2,628,633)
(324,596)
(366,455)
(338,499)
(301,577)
(269,745)
(258,434)
(219,880)
4,211,717
4,479,147
5,473,162
5,244,420
2,051,351
3,510,214
7,404,186
55,486,072
51,006,925
45,533,763
40,289,343
38,237,992
34,727,778
27,323,592
$ 59,697,789
$
55,486,072
$
51,006,925
$
45,533,763
$
40,289,343
$
38,237,992
$
34,727,778
$29,044,412
$
30,774,260
$
32,888,394
$
33,062,946
$
32,095,464
$
31,063,921
$
31,1.44,652
67.27%
64.32%
60.80%
57.93%
55.66%
55.18%
52.72%
$21,474,397
$
23,687,133
$
27,974,321
$
29,767,881
$
29,834,685
$
34,838,650
$
33,451,518
135.25%
129.92%
117.57%
111.07%
107.58%
89.17%
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, 2024
Public Agency Retirement System - Miscellaneous Plan (PARS) All Tiers'
2024 2023 2022
Actuarially Determined Contribution $ 17,077,760 $ 9,823,669 $ 9,589,481
Contribution 2 (17,077,760) (9,823,669) (9,589,481)
Contribution Deficiency (Excess) $ - $ - $ -
Covered Payroll 3
Contributions as a Percentage of Covered Payro113
$ 19,650,436 $ 19,482,915 $ 19,255,663
86.91% 50.42% 49.80%
i Historical information is presented only for measurement periods for which GASB 68 is applicable.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may
choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially
determined contributions.
3 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68
defines covered payroll as the total payroll of employees that are provided pensions through the pension plan.
Accordingly, if pensionable earnings are different than total earnings for the covered -employees, the employer should display in the
disclosure footnotes the payroll passed on total earnings for the covered group and recalculate the required payroll -related ratios.
Notes to Schedules:
The following actuarial methods and assumptions were used in the July 1, 2017 funding valuation. Please see the valuation report dated
April 25, 2017 for further details.
Valuation Timing
Actuarially determined contribution rates are calculated as of June 30, two years
prior to the end of the fiscal year in which the contributions are reported.
Actuarial Cost Method
Entry Age Normal
Amortization Method/Period
Level dollar, closed, amortization 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 Investment and Administrative Expenses
Cost of Living Adjustments
2.00%
Consistent with Non -Industrial rates used to value the Miscellaneous
Withdrawal
CalPERS Pension Plan.
Mortality
Pre-Retirement/Post-Retirement: CalPERS 1997-2011 Healthy Retiree Tables
(sex distinct) projected using Scale AA and base year of 2008.
Disability
None assumed.
The Required Supplementary Information for Schedules of Public Agency Retirement Services Retirement Enhancement Plan Contributions
All Tiers is intended to show information for ten years; as additional years' information becomes available it will be displayed accordingly.
160
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, 2024
Public Agency Retirement System - Miscellaneous Plan (PARS) All Tiers
2021 2020 2019 2018 2017 2016 2015
$ 7,158,333 $ 6,925,920 $ 5,917,528 $ 6,988,001 $ 4,816,795 $ 5,020,997 $ 5,760,375
(7,158,333) (6,888,868) (5,917,528) (6,988,001) 1,258,688 (5,020,997) (5,760,375)
$ - $ 37,052 $ - $ - $ 6,075,483
$ 21,054,825 $ 21,474,397 $ 23,687,133 $ 27,974,321 $ 29,767,881 $ 29,834,685 $ 34,838,650
34.00% 32.25% 24.98% 24.98% 16.18% 16.83% 16.53%
1.61
City of Redding
Required Supplementary Information (Unaudited)
Schedules of Changes in Net OPEB Liability and Related Ratios
For the Year Ended June 30, 2024
Other Postemployment Benefits (OPEB)
Measurement Period 2023
TOTAL OPEB LIABILITY:
Service Costs
$ 2,842,623
Interest
1,874,402
Difference Between Expected and Actual Experience
19,953,859
Changes of Assumptions
5,780,385
Benefit Payments, Including Refunds of Employee Contributions
(3,021,637)
Net Change in Total OPEB Liability
$ 27,429,632
Total OPEB Liability - Beginning
51,617,397
Total OPEB Liability - Ending (a)
$ 79,047,029
PLAN FIDUCIARY NET POSITION:
Contributions - Employer
$
3,021,637
Net Investment Income
1,846
Benefit Payments, Including Refunds of Employee Contributions
(3,021,637)
Administrative Expenses
(133)
Net Change in Fiduciary Net Position
1,713
Plan Fiduciary Net Position - Beginning
52,505
Plan Fiduciary Net Position - Ending (b)
$
54,218
Plan Net OPEB Liability/(Asset) - Ending (a) - (b)
$
78,992,811
Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability
0.07%
Covered -Employee Payroll
$
77,182,339
Plan Net OPEB Liability/(Asset) as a Percentage of Covered -Employee Payroll 102.35%
Historical information is required only for measurement periods for which GASB 75 is applicable.
Notes to Schedules of Changes in Net OPEB Liability and Related Ratios:
Changes of Assumptions: There were no changes in assumptions.
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 (Unaudited)
Schedules of Changes in Net OPEB Liability and Related Ratios
For the Year Ended June 30, 2024
2022
2021
2020
2019
2018
2017
$ 3,366,492
$ 2,473,321
$ 2,266,201
$
(13,080)
$
(185,355)
$
(744,002)
1,210,868
913,626
1,532,174
1,185,185
1,124,094
852,000
-
12,995,166
-
3,574,842
-
-
(3,351,682)
1,566,528
(2,741,226)
9,724,504
1,582,262
4,331,000
(4,601,018)
(3,646,314)
(3,753,880)
(3,444,608)
(3,490,701)
(3,480,000)
$ (3,375,340)
$14,302,327
$ (2,696,731)
$
11,026,843
$
(969,700)
$
958,998
54,992,737
40,690,410
43,387,141
32,360,298
33,329,998
32,371,000
$ 51,617,397
$ 54,992,737
$ 40,690,410
$
43,387,141
$
32,360,298
$
33,329,998
$ 4,601,018
$ 3,646,314
$ 3,753,880
$
3,444,608
$
3,490,701
$
3,480,000
67
10
634
1,068
376
-
(4,601,018)
(3,646,314)
(3,753,880)
(3,444,608)
(3,490,701)
(3,480,000)
(131)
(132)
(131)
(129)
(127)
-
(64)
(122)
503
939
249
-
52,569
52,691
52,188
51,249
51,000
51,000
$ 52,505
$ 52,569
$ 52,691
$
52,188
$
51,249
$
51,000
$ 51,564,892
$ 54,940,168
$ 40,637,719
$
43,334,953
$
32,309,049
$
33,278,998
0.10%
0.10%
0.13%
0.12%
0.16%
0.15%
$ 69,040,537
$ 63,075,673
$ 58,084,647
$
57,452,344
$
58,314,156
$
58,084,647
74.69%
87.1.0%
69.96%
75.43%
55.41%
57.29%
163
City of Redding
Required Supplementary Information (Unaudited)
Schedule of Contributions-OPEB
For the Year Ended June 30, 2024
Other Postemployment Benefits (OPEB)
2024
Actuarially Determined Contribution 2 $ 4,312,188
Contribution 2 (4,312,188)
Contribution Deficiency (Excess) $ -
Covered -employee Payroll $ 87,775,715
Contributions as a Percentage of Covered -employee Payroll 4.91 %
1 GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
2 The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years 6/30/17, 6/30/18 and 6/30/19.
Notes to Schedules:
The Required Supplementary Information for Schedules of Public Agency Retirement Services Retirement Enhancement Plan
Contributions All Tiers is intended to show information for ten years; as additional years' information becomes available it will be
displayed accordingly.
164
City of Redding
Required Supplementary Information (Unaudited)
Schedule of Contributions-OPEB
For the Year Ended June 30, 2024
2023
2022
2021
2020
2019
2018
2017
$ 3,021,637
$ 4,601,018
$ 3,646,314
$ 3,753,880
$ 3,444,608
$ 3,490,701
$ 3,480,000
(3,021,637)
(4,601,018)
(3,646,314)
(3,753,880)
(3,444,608)
(3,490,701)
(3,480,000)
$77,182,339
$69,040,537
$63,073,360
$ 60,225,532
$ 57,452,344
$ 58,314,156
$ 58,084,647
3.91%
6.66%
5.78%
6.23%
6.00%
5.99%
5.99%
165
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166
C "all r Ile
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168
NONMAJOR
GOVERNMENTAL 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 low 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.
Continuum of Care
This fund was established to account for subsidies received for Norcal Continuum of Care which consists of
seven counties. The Continuum uses the subsidies to address homelessness and imporove coordination and
integration with mainstream resouces and programs. This fund is funded by the Federal Department of
Housing and Urban Development and the California Department of Housing and Community Development.
General Special Revenue
This fund was established to account for receipts and disbursements of special revenues required to be
segregated from the General Fund revenues.
Landscape Maintenance Districts
This fund was established to account for the activities of landscape maintenance assessment districts. The
landscape districts collect assessments to pay for landscape maintenance in the assessment area.
Library Fund
This fund was established to account for the activities of the public library.
Asset Seizure Fund
This fund was established to account for the activities involved with asset seizures.
DEBT SERVICE FUND
The debt service fund is used to account for the payment of interest and principal on general debt of the City.
1915 Act Assessment District Bonds
Established to accumulate monies for payment of 1915 Act Special Assessment bonds when the government is
obligated in some manner.
169
City of Redding
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Interest receivable, unrestricted
Accounts receivable, net
Intergovernmental receivable
Other receivable
Restricted cash and investments
Prepaid items
Special assessments receivable
Notes receivable
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Intergovernmental payable
Due to other funds
Unearned revenue
Deposits
Advances from other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
Total deferred inflows of resources:
FUND BALANCES
Nonspendable
Restricted
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Special Revenue
Continuum General
Street
of Special
Parking
Maintenance
Housing
Care Revenue
$ -
$ 7,378,520
$ 3,874,514
$ 5,687,083 $ -
-
28,898
2,692,095
17,136 -
-
-
48,953
- -
-
3,880,059
41,804
- -
34,484
-
2,092
- -
-
-
194,245
- -
66,137
-
-
- -
-
-
15,136,740
- -
$ 100,621
$ 11,287,477
$ 21,990,443
$ 5,704,219 $ -
$ 465 $ - $ 37,546 $ 103,643 $ -
10,854 - 40,588 2,784 -
- - 1,004 - -
690 - 151,245 - -
- - 2,338,188 5,644,167 -
- - 195,245 - -
420,694 - - - -
432,703 - 2,763,816 5,750,594 -
25,413 - 2,783,093 -
25,413 - 2,783,093 - -
66,137 - - - -
- 11,287,477 16,443,534 - -
(423,632) - - (46,375) -
(357,495) 11,287,477 16,443,534 (46,375) -
$ 100,621 $ 11,287,477 $ 21,990,443 $ 51704,219 $ -
(Continued)
170
City of Redding
Combining Balance Sheet (Continued)
Non -Major Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Interest receivable, unrestricted
Accounts receivable, net
Intergovernmental receivable
Other receivable
Restricted cash and investments
Prepaid items
Special assessments receivable
Notes receivable
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Intergovernmental payable
Due to other funds
Unearned revenue
Deposits
Advances from other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
Total deferred inflows of resources:
FUND BALANCES
Nonspendable
Restricted
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Special Revenue Debt Service
1915 Act
Total
Landscape Assessment
Non -Major
Maintenance Asset District
Governmental
Districts Library Seizure Bonds
Funds
$ 1,305,324 $ 2,950,927 $ 106,716 $ 317,222 $ 21,620,306
3,985 8,864 321 952 2,752,251
- - - - 48,953
- - 3,921,863
- - - - 36,576
- - - 194,245
- - - - 66,137
21,779 - - 299,777 321,556
- - - - 15,136,740
$ I331,088 $ 2,959,791 $ 107,037 $ 617,951 $ 44,098,627
$ 42,352 $ 190,017 $ -
3,094 1,850 -
976 402 -
- 1,573,727 -
- 187
46,422 1,765,996 187
$ - $ 374,023
59,1.70
- 2,382
151,935
- 9,556,082
195,432
- 420,694
12,403 - - 299,777 3,120,686
12,403 - - 299,777 3,120,686
- - - - 66,137
1,272,263 1,1.93,795 106,850 318,174 30,622,093
- - - - (470,007)
1,272,263 1,193,795 106,850 318,174 30,218,223
$ 1,331,088 $ 2,959,791 $ 107,037 $ 617,951 $ 44,098,627
(Concluded)
171
City of Redding
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2024
REVENUES:
Sales tax revenue
Special assessments
Licenses, fees and permits
Intergovernmental revenues
Charges for services
Fines, forfeitures and penalties
Net investment earnings (loss)
Other revenues
Total revenues
EXPENDITURES:
Current:
Community development
Public works
Recreation and culture
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
REVENUE OVER
(UNDER) EXPENDITURE
OTHER FINANCING
SOURCES (USES):
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Special Revenue
Continuum
General
Street
of Care
Special
Parking
Maintenance
Housing
Revenue
272,517
250,838
-
-
-
-
-
9,667,032
15,127,026
792,501
-
-
-
27,536
-
-
65,992
-
-
-
-
12,182
375,428
46,946
(46,375)
-
-
-
19,870
-
-
329,012
10,042,460
15,221,378
746,126
272,517
-
-
15,340,669
783,751
-
358,153
-
-
-
-
33,613
-
17,925
8,750
-
144,493
-
-
-
-
35,895
-
-
-
-
572,154
-
15,358,594
792,501
-
(243,142)
10,042,460
(137,216)
(46,375)
272,517
-
(9,736,673)
-
-
(272,517)
-
(9,736,673)
-
-
(272,517)
(243,142)
305,787
(137,216)
(46,375)
-
(114,353) 10,981,690 16,580,750 - -
$ (357,495) $ 11,287,477 $ 16,443,534 $ (46,375) $ -
(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, 2024
REVENUES:
Sales tax revenue
Special assessments
Licenses, fees and permits
Intergovernmental revenues
Charges for services
Fines, forfeitures and penalties
Net investment earnings (loss)
Otherrevenues
Total revenues
EXPENDITURES:
Current:
Community development
Public works
Recreation and culture
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
REVENUE OVER
(UNDER) EXPENDITURE
OTHER FINANCING
SOURCES (USES):
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Special Revenue Debt Service
1915 Act
Landscape Assessment Non -Major
Maintenance Asset District Governmental
Districts Library Seizure Bonds Funds
$ - $ - $ - $ - $ 272,517
1,181,822 - - - 1,181,822
- - - - 250,838
- 338,747 - - 25,925,306
- 1,640,643 - - 1,668,179
1,252 28,208 - - 95,452
31,050 118,265 2,903 13,509 553,908
- 7,460 162,036 - 189,366
1,214,124 2,133,323 164,939 13,509 30,137,388
- - - - 16,124,420
808,094 - 71,913 - 1,238,160
- 2,815,761 - - 2,815,761
- 224,611 - - 284,899
- - - - 144,493
- - - - 35,895
808,094 3,040,372 71,913 - 20,643,628
406,030 (907,049) 93,026 13,509 9,493,760
994,235 - - 994,235
- - - - (10,009,190)
- 994,235 - - (9,014,955)
406,030 87,186 93,026 13,509 478,805
866,233 1,106,609 13,824 304,665 29,739,418
$ 1,272,263 $ 1,193,795 $ 106,850 $ 318,174 $ 30,218,223
(Concluded)
173
City of Redding
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Parking Special Revenue Fund
For the Year Ended June 30, 2024
Actual
Variance with
Amounts
Final Budget
Budgeted Amounts
Budgetary
Positive
Original
Final
Basis
(Negative)
REVENUES:
Licenses and permits
$ 450,300 $
450,300
$ 250,838
$ (199,462)
Fines, forfeitures and penalties
76,500
76,500
91,405
14,905
Interest revenue
600
600
2,540
1,940
Total revenues
527,400
527,400
344,783
(182,617)
EXPENDITURES:
Current:
Public works
344,560
358,300
391,766
(33,466)
Debt Service:
Principal payments
211,080
211,080
144,493
66,587
Interest and fiscal charges
34,420
34,420
35,895
(1,475)
Total expenditures
590,060
603,800
572,154
31,646
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
(62,660)
(76,400)
(227,371)
(214,263)
OTHER FINANCING SOURCES (USES):
Transfers out
(10,000)
(10,000)
-
10,000
Total other financing sources (uses)
(10,000)
(10,000)
-
10,000
Net change in fund balance
(72,660)
(86,400)
(227,371)
(204,263)
FUND BALANCE:
Beginning of year
(114,353)
(11.4,353)
(114,353)
-
End of year
$ (187,013) $
(200,753)
$ (341,724)
$ (204,263)
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
$ (357,495)
1. Financial statement only adjustment per GASB #31.
(10,855)
2. The City does not budget for deferred revenue.
25,413
3. The City budgets for interest on a cash basis
1,213
4. The City budgets for lease payment, but not at the inception
of the lease
60,609
5. The City does not budget the required other financing lease
or SBITA revenue at the
inception of the lease
(60,609)
Budgetary fund balance $ (341,724)
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, 2024
REVENUES:
Intergovernmental revenue
Interest revenues
Total revenues
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Actual
Variance with
Amounts
Final Budget
Budgeted Amounts
Budgetary
Positive
Original
Final
Basis
(Negative)
$ 14,449,080
$ 14,449,080
$ 8,079,744
$ (6,369,336)
50,000
50,000
180,102
130,102
14,499,080
14,499,080
8,259,846
(6,239,234)
14,499,080
14,499,080
8,259,846
(6,239,234)
(10,674,580)
(10,674,580)
(9,736,673)
937,907
(10,674,580)
(10,674,580)
(9,736,673)
937,907
3,824,500
3,824,500
(1,476,827)
(5,301,327)
10,981,690
10,981,690
10,981,690
-
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
1. Financial statement only adjustment per GASB #31.
2. The City budgets for grants and taxes on a cash basis
3. The City does not budget for revenue accruals.
Budgetary fund balance
$ 11,287,477
(165,165)
(1,587,288)
$ 9,504,863
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, 2024
REVENUES:
Intergovernmental
Interest revenue
Use of money and property
Otherrevenues
Total revenues
EXPENDITURES:
Current:
Community development
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Actual
Variance with
Amounts
Final Budget
Budgeted Amounts
Budgetary
Positive
Original
Final
Basis
(Negative)
$ 50,071,670
$ 62,550,811
$ 26,766,652
$ (35,784,159)
95,140
129,690
284,703
155,013
634,610
634,610
168,158
(466,452)
277,760
3,019,120
34
(3,019,086)
51,079,180
66,334,231
27,219,547
(39,114,684)
56,000,390 71,339,910 15,334,578 56,005,332
56,000,390 71,339,910 15,334,578 56,005,332
(4,921,210) (5,005,679) 11,884,969 16,890,648
(4,921,210) (5,005,679) 11,884,969 16,890,648
57 29R 157 57 29R 157 57 29R 157 -
$ 52,377,147 $ 52,292,678 $ 69,183,326 $ 16,890,648
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 $ 69,941,770
1. Financial statement only adjustment per GASB #31. (44,132)
2. The City does not budget for benefit accrual on a cash basis. 289,708
3. End of year encumbrances are included in actual expenditures budgetary basis, but are
not included in the Statement of Revenues, Expenditures, and Fund Balance. (4,573,909)
4. The City doe not budget for interest accruals. (62,243)
5. The City does not budget for unearned revenue. 1.67,968
6. The City budgets for grants on a cash basis. - McConnell 3,464,164
Budgetary fund balance $ 69,183,326
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, 2024
REVENUES:
Intergovernmental revenue
Charges for services
Use of money and property
Interest
Other revenues
Total revenues
EXPENDITURES:
Current:
Community development
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Actual
Variance with
Amounts
Final Budget
Budgeted Amounts
Budgetary
Positive
Original
Final
Basis
(Negative)
$ 14,489,700 $
15,677,079
$ 15,81.7,706
$ 140,627
14,300
27,536
27,536
-
115,040
115,040
99,358
(15,682)
31,730
31,730
5,903
(25,827)
-
-
17,224
17,224
14.650.770
15_R51 _IR5
15.967.727
1 16_142
15,109,000 16,632,790 15,504,397 1,128,393
15,109,000 16,632,790 15,504,397 1,128,393
(458,230) (781,405)
463,330 1,244,735
(458,230) (781,405) 463,330 1,244,735
16,580,750 16,580,750 16,580,750 -
$ 16,122,520 $ 15,799,345 $ 17,044,080 $ 1,244,735
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
1. Financial statement only adjustment per GASB #31.
2. The City budgets for and records loans made in the expenditure accounts, but adjusts the
actual disbursement to loans receivable.
3. The City budgets for grants on a cash basis.
4. End of year encumbrances are included in actual expenditures budgetary basis, but are
not included in the Statement of Revenues, Expenditures, and Fund Balance.
5. The City does not budget for interest accruals.
6. The City does not budget for unearned revenue.
Budgetary fund balance
$ 16,443,534
(43,364)
(57,319)
688,034
(88,484)
2,321
99,358
$ 1.7,044,080
177
City of Redding
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
Continuum of Care Special Revenue Fund
For the Year Ended June 30, 2024
REVENUES:
Intergovernmental revenue
Interest
Total revenues
EXPENDITURES:
Current:
Community development
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Actual Variance with
Amounts Final Budget
Budgeted Amounts Budgetary Positive
Original Final Basis (Negative)
$ - $ 6,436,668 $ 6,436,668 $
- (229,793) (229,793)
6,436,668 6,206,875 (229,793)
6,436,670 2,268,624 4,1.68,046
6,436,670 2,268,624 4,168,046
(2) 3,938,251 (4,397,839)
(2) 3,938,251 (4,397,839)
$ $ (2) $ 3,938,251 $ (4,397,839)
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
1. Financial statement only adjustment per GASB #31.
2. The City does not budget for accounts payable or intergovernmental payable adjustments.
3. The City budgets for grants on a cash basis.
4. End of year encumbrances are included in actual expenditures budgetary basis, but are
not included in the Statement of Revenues, Expenditures, and Fund Balance.
5. The City does not budget for interest accruals.
Budgetary fund balance
$ (46,375)
(166,282)
(8,750)
5,644,167
(1,467,373)
/1111KG
$ 3,938,251
178
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, 2024
Actual
Variance with
Amounts
Final Budget
Budgeted Amounts
Budgetary
Positive
Original
Final
Basis
(Negative)
REVENUES:
Sales tax
$ 272,520 $
272,520
$ 272,517
$ (3)
Total revenues
272,520
272,520
272,517
(3)
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
272,520
272,520
272,517
(3)
OTHER FINANCING SOURCES (USES):
Transfers out
(272,520)
(272,520)
(272,517)
3
Total other financing sources (uses)
(272,520)
(272,520)
(272,517)
3
Net change in fund balance
-
-
-
-
FUND BALANCE:
Beginning of year
-
-
-
-
End of year
179
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, 2024
REVENUES:
Intergovernmental
Charges for services
Fines, forfeitures and penalties
Interest revenue
Other revenue
Total revenues
EXPENDITURES:
Current:
Recreation and culture
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Actual
Variance with
Amounts
Final Budget
Budgeted Amounts
Budgetary
Positive
Original
Final
Basis
(Negative)
$ -
$ 150,470
$ 210,647
$ 60,177
1,665,780
1,673,780
1,640,643
(33,137)
-
-
28,208
28,208
3,000
3,000
82,061
79,061
3,930
6,600
7,460
860
1 AT) 11 A
I Q11 Q;A
I GAO () 1 0
11; 1 A0
2,590,200
2,903,450
4,022,514
(1,119,064)
2,590,200
2,903,450
4,022,514
(1,119,064)
(917,490)
(1,069,600)
(2,053,495)
(983,895)
994,230
1,135,350
994,235
(141,115)
(50,000)
(50,010)
-
50,010
944,230
1,085,340
994,235
(91,105)
26,740
15,740
(1,059,260)
(1,075,000)
1,106,609
1,106,609
1,106,609
-
$ 1,133,349 $
1,122,349 $
47,349
$ (1,075,000)
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 $ 1,193,795
1. Financial statement only adjustment per GASB #31. (37,833)
2. The City does not budget for accounts payable adjustments. (232,502)
3. The City budgets for grants on a cash basis. (128,100)
4. The City budgets for interest on a cash basis. 1,629
5. End of year encumbrances are included in actual expenditures budgetary basis, but are
not included in the Statement of Revenues, Expenditures, and Fund Balance. (749,640)
Budgetary fund balance $ 47,349
180
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, 2024
REVENUES:
Intergovernmental revenue
Charges for services
Fines, forfeitures and penalties
Use of money and property
Investment revenue
Other
Total revenues
EXPENDITURES:
Current:
General government
Public works
Recreation and culture
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
Budgeted Amounts
Original Final
$ 35,760,180 $ 72,947,580 $
Actual
Variance with
Amounts
Final Budget
Budgetary
Positive
Basis
(Negative)
15,680,604 $ (57,266,976)
- -
156,782
156,782
- 117,130
500
(116,630)
- -
73,264
73,264
134,890 134,890
(842)
(135,732)
1,674,870 3,538,080
4,334,863
796,783
37,569,940 76,737,680
20,245,171
(56,492,509)
35,640 35,640 46,800 (11,160)
50,243,890 82,500,120 26,664,839 55,835,281.
22,841,040 36,521,640 6,969,570 29,552,070
300,000 300,000 300,000 -
442,390 443,730 444,334 (604)
73,862,960 119,801,130 34,425,543 85,375,587
(UNDER) EXPENDITURES
(36,293,020)
(43,063,450)
(14,180,372)
28,883,078
OTHER FINANCING SOURCES (USES):
Transfers in
-
152,760
-
(152,760)
Total other financing sources (uses)
152,760
(152,760)
Net change in fund balance
(36,293,020)
(42,910,690)
(14,180,372)
28,730,318
FUND BALANCE:
Beginning of year
1,495,651
1,495,651
1,495,651
-
End of year
$ (34,797,369)
$ (41,415,039)
$ (12,684,721) $
28,730,318
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
1. Financial statement only adjustment per GASB #31.
2. The City does not budget for accounts payable adjustments.
3. End of year encumbrances are included in actual expenditures budgetary basis, but are
not included in the Statement of Revenues, Expenditures, and Changes in Fund Balance.
4. The City budgets for grants on a cash basis.
5. The City budgets for interest on a cash basis.
6. The City did not budget for revenue from the Agency Fund.
Budgetary fund balance
$ 9,097,344
(139,574)
(107,480)
(20,693,655)
143,288
(13,450)
(971,194)
$ (12,684,721)
181
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182
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.
183
City of Redding
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2024
ASSETS
Current assets:
Cash and investments
Accounts receivable, net
Lease receivable
Interest receivable
Intergovernmental receivable
Prepaid items
Inventories
Total current assets
Non -current assets:
Restricted assets:
Cash and investments
Total restricted assets
Capital assets:
Land
Construction in progress
Depreciable capital assets, net
Total capital assets
Other assets:
Lease receivable, net current
Total other assets
Total non -current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to other post
employment benefits
Deferred outflows related to pensions
Total deferred outflows of resources
Storm Redding
Drainage Area Bus Convention
Airport Utility Authority Center Total
$ -
$ 3,951,066
$ 955,698
$ 1,002,826
$ 5,909,590
86,022
64,803
28,523
5,000
184,348
465,430
-
28,193
166,692
660,315
-
21,204
6,658
3,015
30,877
1,019,215
257
2,966,907
-
3,986,379
20,324
12,626
-
3,206
36,156
-
22,593
117,076
-
139,669
1,590,991
4,072,549
4,103,055
1,180,739
10,947,334
- 3,272,923 - - 3,272,923
- 3,272,923 - - 3,272,923
6,242,894
909,184
2,622,238
-
9,774,316
7,487,680
1,393,659
1,688,479
188,430
10,758,248
25,513,134
16,643,591
6,775,739
624,510
49,556,974
39,243,708
18,946,434
11,086,456
812,940
70,089,538
8,144,458
-
62,000
675,612
8,882,070
8,144,458
-
62,000
675,612
8,882,070
47,388,166
22,219,357
11,148,456
1,488,552
82,244,531
48,979,157
26,291,906
15,251,511
2,669,291
93,191,865
348,513
166,695 -
621,277
497,800 -
969,790
664,495 -
- 515,208
- 1,119,077
- 1,634,285
(Continued)
184
City of Redding
Combining Statement of Net Position (Continued)
Nonmajor Enterprise Funds
June 30, 2024
Storm
Redding
Drainage
Area Bus
Convention
Airport
Utility
Authority
Center
Total
LIABILITIES
Current liabilities:
Accounts payable
134,242
74,958
1,501,810
87,238
1,798,248
Accrued liabilities
28,498
26,182
9,877
-
64,557
Accrued interest payable
6,1.58
-
-
-
6,158
Intergovernmental payables
800
62
1,259,069
-
1,259,931
Due to other funds
514,560
-
161,426
-
675,986
Interfund payables
25,000
-
-
18,000
43,000
Unearned revenue
19,886
871,350
415,413
-
1,306,649
Deposits payable
83,239
-
3,000
-
86,239
Compensated absences, due within one year
23,980
40,673
-
-
64,653
Long-term debt, due within one year
-
884
32,157
-
33,041
State loan, due within one year
32,241
-
-
-
32,241
Aggregate net OPEB liability
65,604
30,471
-
-
96,075
Total current liabilities
934,208
1,044,580
3,382,752
105,238
5,466,778
Long-term liabilities:
Compensated absences, due in more than one year
40,697
87,782
-
128,479
Advances from other funds
1,499,384
-
-
1,499,193
2,998,577
State loan, due in more than one year
271,114
-
-
-
271,114
Aggregate net OPEB liability
612,675
293,952
-
-
906,627
Aggregate net pension liability
2,286,786
1,341,700
-
-
3,628,486
Total long-term liabilities
4,710,656
1,723,434
-
1,499,193
7,933,283
Total liabilities
5,644,864
2,768,014
3,382,752
1,604,431
13,400,061
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post
employment benefits
32,656
15,620
-
-
48,276
Deferred inflows related to pensions
6
636
-
-
642
Deferred inflows related to leases
8,609,888
-
90,193
842,304
9,542,385
Total deferred inflows of resources
8,642,550
16,256
90,193
842,304
9,591,303
NET POSITION
Net investment in capital assets 38,940,353 18,945,550 10,994,299 812,940 69,693,142
Unrestricted (deficit) (3,278,820) 5,226,581 784,267 (590,384) 2,141,644
Total net position $ 35,661,533 $ 24,172,131 $ 11,778,566 $ 222,556 $ 71,834,786
(Concluded)
185
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186
City of Redding
Statement of Revenues, Expenses, and Changes in Net Position
Nonmajor Enterprise Funds
For the Year Ended June 30, 2024
Storm
Redding
Drainage
Area Bus
Convention
Airport
Utility
Authority
Center
Total
OPERATING REVENUES:
User fees and charges
$ 195,355
$ 2,280,989
$ 1,536,625
$ -
$ 4,012,969
Rental fees
1,789,943
-
-
181,852
1,971,795
Other operating revenue
1,085,499
-
-
-
1,085,499
Total operating revenues
3,070,797
2,280,989
1,536,625
181,852
7,070,263
OPERATING EXPENSES:
Cost of power, water, and transportation
-
-
4,827,677
-
4,827,677
Maintenance, operations, and administration
3,822,817
1,862,968
3,031,385
1,118,049
9,835,219
Depreciation and amortization
1,841,941
1,215,140
1,332,274
74,945
4,464,300
Total operating expenses
5,664,758
3,078,108
9,191,336
1,192,994
19,127,196
Operating gain (loss)
(2,593,961)
(797,119)
(7,654,711)
(1,011,142)
(12,056,933)
NONOPERATING REVENUE (EXPENSES):
Net investment earnings (loss)
(1,688)
317,088
(6,681)
39,389
348,108
Interest expense
(13,459)
(731)
(4,323)
(321)
(18,834)
Intergovernmental revenues
688,180
461,820
5,944,471
-
7,094,471
Gain (loss) on disposal of assets
249,792
-
-
-
249,792
Other non -operating revenues (expenses)
396,457
6,783
54,859
-
458,099
Total nonoperating revenues (expenses)
1,319,282
784,960
5,988,326
39,068
8,131,636
Gain (loss) before operating
transfers and capital contributions
(1,274,679)
(12,159)
(1,666,385)
(972,074)
(3,925,297)
Capital contributions
134,568
957,854
1,354,616
-
2,447,038
Transfers in
-
469,503
-
1,038,484
1,507,987
Transfers out
(307,236)
-
-
-
(307,236)
Change in net position
(1,447,347)
1,415,198
(311,769)
66,410
(277,508)
NET POSITION:
Beginning of year
37,108,880
22,756,933
12,090,335
156,146
72,112,294
End ofyear
$ 35,661,533
$ 24,172,131
$ 11,778,566
$ 222,556
$ 71,834,786
187
City of Redding
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended June 30, 2024
Storm Redding
Drainage Area Bus Convention
Airport Utility Authority Center Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 3,019,402
Cash paid to suppliers (2,462,166)
Cash paid to employees (1,218,278)
Other operating revenue 48,671
Net cash provided by (used in) operating activities (612,371)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Intergovernmental revenue received
Advances from other funds
Repayment of advances from other funds
Transfers in
Transfers out
Net cash provided by
non -capital financing activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Capital grants received
Proceeds from sale of assets
Purchases of capital assets
Rents received
Interest paid
Principal paid on long-term debt
Cash collected for future capital outlay
Net cash provided by (used in)
capital and related financing activities
$ 2,283,476 $ 1,508,120 $ 1.76,852 $ 6,987,850
(1,322,832) (6,070,597) (1,089,601) (10,945,196)
(897,866) (26,584) (2,142,728)
- - 48,671
62,778 (4,562,477) (939,333) (6,051,403)
1,950,241 461,820
4,281,683 - 6,693,744
514,560 -
161,426 - 675,986
(5,517,888) -
(240,326) (54,531) (5,812,745)
- 469,503
1,038,484 1,507,987
(307,236) -
- - (307,236)
(3,360,323) 931,323 4,202,783 983,953 2,757,736
4,325,234
(461,820)
344,396
- 4,207,810
271,057
116,626
- 387,683
(879,814)
(1,037,469)
(1,365,825)
- (3,283,108)
-
-
54,859
- 54,859
(9,772)
(731)
(4,323)
(641) (15,467)
(80,266)
(11,167)
(28,485)
(31,130) (151,048)
347,786
6,783
-
- 354,569
3,974,225 (1,504,404) (882,752) (31,771) 1,555,298
CASH FLOWS FROM INVESTING ACTIVITIES:
Net investment earnings (loss) (1,533) 336,494 (4,410) 36,387 366,938
Net cash provided by (used in) investing activities (1,533) 336,494 (4,410) 36,387 366,938
Net increase (decrease) in cash
and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
Reconciliation to statement of net position:
Cash and cash equivalents
Restricted cash and cash equivalents
(2) (173,809) (1,246,856) 49,236 (1,371,431)
2 7,397,798 2,202,554 953,590 10,553,944
$ - $ 7,223,989 $ 955,698 $ 1,002,826 $ 9,182,513
$ - $ 3,951,066 $ 955,698 $ 1,002,826 $ 5,909,590
3,272,923 - - 3,272,923
$ - $ 7,223,989 $ 955,698 $ 1,002,826 $ 9,182,513
(Continued)
188
City of Redding
Combining Statement of Cash Flows (Continued)
Nonmajor Enterprise Funds
For the Year Ended June 30, 2024
Stone Redding
Drainage Area Bus Convention
Airport Utility Authority Center Total
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) to net cash provided by (used in) $ (2,593,961) $ (797,119) $ (7,654,711) $ (1,011,142) $ (12,056,933)
Adjustments to reconcile operating (loss) to net
cash provided (used) by operating activities:
Other non -operating revenue and expense
48,671
-
Depreeiation and amortization
1,841,941
1,215,140
(Increase) decrease in accounts receivable
(51,395)
2,487
(Increase) decrease in inventories
-
35,940
(Increase) decrease in prepaid items
(20,324)
(11,706)
(Increase) decrease in accounts payable
(127,642)
(377,333)
Increase (decrease) in accrued liabilities
3,994
3,440
Increase (decrease) in deposits liability
(900)
-
Inerease (decrease) in intergovernmental payable
800
62
Increase(decrease)in unearned revenue
(8,556)
-
Inerease (decrease) in accrued compensated absences
(20,383)
19,979
Other post employment benefits related items
30,656
25,190
Pension related items
284,728
(53,302)
Total adjustments
1,981,590
859,897
48,671
1,332,274
74,945
4,464,300
(28,505)
(5,000)
(82,413)
(11,352)
-
24,588
-
(1,711)
(33,741)
660,216
3,575
158,816
694
-
8,128
-
-
(900)
1,134,492
-
1,135,354
4,415
-
(4,141)
-
-
(404)
-
55,846
-
-
231,426
3,092,234
71,809
6,005,530
Net cash provided by (used) operating activities $ (612,371) $ 62,778 $ (4,562,477) $ (939,333) $ (6,051,403)
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES:
Plant contributed from developers
Transfer of capital assets
Total non -cash capital and
related financing activities
$ - $ 957,854 $ - $ - $ 957,854
469,503 - - 469,503
$ - $ 1,427,357 $ - $ - $ 1,427,357
(Concluded)
189
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190
INTERNAL SERVICE FUNDS
Internal service funds are used to finance and account for special activities and services performed by a designated
department to other departments within the same governmental unit on a cost reimbursement basis.
Equipment Fund
This fund was established to account for all motorized and communications equipment utilization by City departments.
Information Systems Fund
This fund was established to account for the data processing activities utilized by all City departments.
General Support Services Fund
This fund was established to account for general support services utilized by all City departments.
Risk Management Fund
This fund was established to account for the self-insurance activities of the City.
Municipal Utilities Support Fund
This fund was established to provide management and electrical technician support to the Utilities and Street
Maintenance.
191
City of Redding
Combining Statement of Net Position
All Internal Service Funds
June 30, 2024
ASSETS
Current assets:
Cash and investments
Interest receivable
Accounts receivable, net
Prepaid items
Intergovernmental receivable
Inventories
Interfund receivable
Total current assets
Non -current assets:
Capital assets:
Land
Construction in progress
Depreciable capital assets, net
Capital assets, net
Other assets:
Advances to other funds
Total other assets
Total non -current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to other post employment benefits
Deferred outflows related to pensions
Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable
Intergovernmental payable
Accrued liabilities
Claims and judgements payable
Interfund payable
Unearned revenue
Compensated absences - current
Long-term debt, due within one year
Aggregate net OPEB liability
Total current liabilities
Long-term liabilities:
Compensated absences
Claims and judgements
Long-term debt, due in more than one year
Aggregate net OPEB liability
Aggregate net pension liability
Total long-term liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits
Deferred inflows related to pensions
Total deferred inflows of resources
NET POSITION
Investment in capital assets
Unrestricted (deficit)
Total net position
Information General Support
Equipment Systems Services
$ 743,873 $ 3,129,914 $ 1,765,027
1,477 9,554 5,916
92 - 1,146
48,328 64,091 66,243
277 - -
577,323 - -
1,371,370 3,203,559 1,838,332
- 110,810
- 1,845,862 598,035
365,593 3,890,283 271,907
365,593 5,736,145 980,752
365,593
5,736,145
980,752
1,736,963
8,939,704
2,819,084
751,624
845,707
938,235
1,673,032
1,836,599
2,372,336
2,424,656
2,682,306
3,310,571
126,350
395,693
137,744
-
-
4,500
61,856
60,273
88,472
-
-
6,250
79,737
119,170
161,000
-
420,716
56,847
131,326
147,717
171,815
399,269
1,143,569
626,628
197,451
322,973
362,490
-
1,216,115
41,627
1,331,490
1,498,200
1,654,183
5,182,825
5,781,856
6,927,421
6,711,766
8,819,144
8,985,721
7,111,035
9,962,713
9,612,349
70,431
79,248
87,917
1,269
1,275
2,343
71,700
80,523
90,260
365,593
4,099,314
882,279
(3,386,709)
(2,520,540)
(4,455,233)
(3,021,116) $
1,578,774
$ (3,572,954)
(Continued)
192
City of Redding
Combining Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2024
ASSETS
Current assets:
Cash and investments
Interest receivable
Accounts receivable, net
Prepaid items
Intergovernmental receivable
Inventories
Interfund receivable
Total current assets
Non -current assets:
Capital assets:
Land
Construction in progress
Other capital assets, net
Capital assets, net
Other assets:
Advances to other funds
Total other assets
Total non -current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to other post employment benefits
Deferred outflows related to pensions
Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable
Intergovernmental payable
Accrued liabilities
Claims and judgements payable
Interfund payable
Unearned revenue
Compensated absences - current
Long-term debt, due within one year
Aggregate net OPEB liability
Total current liabilities
Long-term liabilities:
Compensated absences
Claims and judgements
Long-term debt, due in more than one year
Aggregate net OPEB liability
Aggregate net pension liability
Total long-term liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits
Deferred inflows related to pensions
Total deferred inflows of resources
NET POSITION
Investment in capital assets
Unrestricted (deficit)
Total net position
Risk
Municipal Utilities
Management
Support
Total
$ 13,328,517
$ 1,901,783
$ 20,869,114
27,462
7,567
51,976
137,528
-
138,766
409,537
47,616
635,815
-
-
277
-
-
577,323
43,000
-
43,000
13,946,044
1,956,966
22,316,271
-
-
110,810
-
-
2,443,897
-
359,050
4,886,833
-
359,050
7,441,540
3,185,490
-
3,185,490
3,185,490
-
3,185,490
3,185,490
359,050
10,627,030
17,131,534
2,316,016
32,943,301
234,010
955,869
3,725,445
518,895
2,760,265
9,161,127
752,905
3,716,134
12,886,572
224,800
27,989
912,576
1,766,038
-
1,770,538
31,641
96,510
338,752
5,036,490
-
5,036,490
-
-
6,250
6,240
-
6,240
33,133
249,342
642,382
-
-
477,563
43,700
177,978
672,536
7,142,042
551,819
9,863,327
83,955
470,424
1,437,293
13,605,950
-
13,605,950
-
-
1,257,742
411,730
1,682,338
6,577,941
1,610,923
7,221,855
26,724,880
15,712,558
9,374,617
49,603,806
22,854,600
9,926,436
59,467,133
21,928
89,570
349,094
389
3,804
9,080
22,317
93,374
358,174
359,050
5,706,236
(4,992,478)
(4,346,710)
(19,701,670)
(4,992J28)
(3,987,660)
$ (13,995,434)
(Concluded)
193
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194
City of Redding
Combining Statement of Activities and Changes in Net Position
All Internal Service Funds
For the Year Ended June 30, 2024
General
Municipal
Information
Support
Risk
Utilities
Equipment
Systems
Services
Management
Support
Total
OPERATING REVENUES:
User fees and charges
$ 6,865,354
$ 6,627,950
$ 8,025,440
$ 71,665,513
$ 6,860,570
$100,044,827
Other operating revenue
7,009
-
-
33,524
-
40,533
Total operating revenues
6,872,363
6,627,950
8,025,440
71,699,037
6,860,570
100,085,360
OPERATING EXPENSES:
Maintenance, operations,
7,430,522
4,068,737
8,612,755
70,575,132
5,894,973
96,582,119
and administration
Depreciation and amortization
140,775
964,212
126,617
-
71,140
1,302,744
Total operating expenses
7,571,297
5,032,949
8,739,372
70,575,132
5,966,113
97,884,863
OPERATING INCOME (LOSS)
(698,934)
1,595,001
(713,932)
1,123,905
894,457
2,200,497
NONOPERATING REVENUE
(EXPENSES):
Net investment earnings (loss)
35,590
123,884
90,381
328,649
66,516
645,020
Interest expense
(4,129)
(39,565)
(7,683)
-
(5,595)
(56,972)
Intergovernmental revenues
3,596
48
180,308
225,236
41,323
450,511
Gain (loss) on disposal of capital assets
-
-
2,228
-
-
21228
Total nonoperating expenses
35,057
84,367
265,234
553,885
102,244
1,040,787
Income (loss) before transfers
(663,877)
1,679,368
(448,698)
1,677,790
996,701
3,241,284
and contributions
Transfers in
-
-
-
-
33,133
33,133
Transfers out
-
-
-
-
(4,800)
(4,800)
Changes in net position
(663,877)
1,679,368
(448,698)
1,677,790
1,025,034
3,269,617
NET POSITION:
Beginning of year
(2,357,239)
(100,594)
(3,1.24,256)
(6,670,268)
(5,012,694)
(17,265,051)
End of year
$ (3,021,116)
$ 1,578,774
$ (3,572,954)
$ (4,992,478)
$ (3,987,660)
$ (13,995,434)
195
City of Redding
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
General Municipal
Information Support Risk Utilities
Equipment Systems Services Management Support Total
CASH FLOWS FROM
OPERATING ACTIVITIES:
Cash received from other funds
$ 6,865,354 $
6,627,950
$ 8,026,033
$ 71,496,316
$ 6,860,570
$ 99,876,223
Cash paid to suppliers
(4,202,156)
(1,105,407)
(3,729,071)
(68,563,555)
(1,416,245)
(79,016,434)
Cash paid to employees
(2,647,441)
(2,613,381)
(4,388,597)
(1,610,332)
(4,863,520)
(16,123,271)
Net cash provided by
operating activities
15,757
2,909,162
(91,635)
1,322,429
580,805
4,736,518
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Repayment of advances to other funds
-
-
-
79,530
-
79,530
Advances to other funds
-
-
(25,000)
-
-
(25,000)
Intergovernmental revenue received
3,596
48
180,308
225,236
41,323
450,511
Transfers out
-
-
-
-
(4,800)
(4,800)
Net cash provided by (used in)
noncapital financing activities
3,596
48
155,308
304,766
36,523
500,241.
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Proceeds from sale of assets
-
-
2,228
-
-
2,228
Purchase of capital assets
-
(2,369,302)
(176,776)
-
(41,008)
(2,587,086)
Interest paid
(4,129)
(39,565)
(7,683)
-
(5,596)
(56,973)
Principal paid on long-term debt
-
(560,010)
(59,193)
-
-
(619,203)
Cash collected for future capital outlay
7,009
-
-
33,524
-
40,533
Net cash (used in)
capital and related financing activities
2,880
(2,968,877)
(241,424)
33,524
(46,604)
(3,220,501)
CASH FLOWS FROM
INVESTING ACTIVITIES:
Investment revenue received
36,219
130,147
93,541
366,367
65,356
691,630
Net cash (used in)
investing activities
36,219
130,147
93,541
366,367
65,356
691,630
Net increase (decrease) in cash
and cash equivalents
58,452
70,480
(84,210)
2,027,086
636,080
2,707,888
CASH AND CASH EQUIVALENTS:
Beginning of year
685,421
3,059,434
1,849,237
11,301,431
1,265,703
18,161,226
End ofyear
$ 743,873 $
3,129,914
$ 1,765,027
$ 13,328,517
$1,901,783
$ 20,869,114
(Continued)
196
City of Redding
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2024
General
Municipal
Information
Support
Risk
Utilities
Equipment
Systems
Services
Management
Support
Total
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES:
Operating income (loss) to net cash provided by
$ (705,943)
$ 1,595,001
$ (713,932)
$ 1,090,381
$ 894,457
$ 2,159,964
(used in)
Adjustments to reconcile operating
income (loss) to net cash provided
(used) by operating activities:
Depreciation and amortization
140,775
964,212
126,617
-
71,140
1,302,744
(Increase) decrease in
-
-
593
14,303
-
14,896
accounts receivable
(Increase) decrease in inventories
(100,355)
-
-
-
-
(100,355)
(Increase) decrease in prepaid items
(46,774)
27,337
66,060
(408,531)
(47,61.6)
(409,524)
Increase (decrease) in
110,029
(191,225)
77,435
(168,640)
10,409
(161,992)
accounts payable
Increase (decrease) in
4,191
10,593
(23,035)
(1,429)
9,446
(234)
accrued liabilities
Increase (decrease) in claims
-
-
-
125,200
-
125,200
and judgements payable
Increase (decrease) in
(39,314)
669,058
-
629,744
intergovernmental payable
Increase (decrease) in
-
-
(183,500)
-
(183,500)
unearned revenue
Increase (decrease) in accrued
(20,066)
70,024
(32,737)
22,264
25,966
65,451
compensated absences
Other post employment benefits
184,061
207,638
-
24,642
106,758
523,099
related items
Pension related items
449,839
225,582
446,678
138,681
(489,755)
771,025
Total adjustments
Net cash provided by
operating activities
Schedule of noncash capital activities:
Right -to -use subscription debt issued
Right -to -use subscription assets capitalized from
debtissued
Transfer in of capital assets
Total non -cash capital and related
financing activities
721,700 1,314,161 622,297 232,048 (313,652) 2,576,554
$ 15,757 $ 2,909,162 $ (91,635) $ 1,322,429 $ 580,805 $ 4,736,518
$ - $ 2,104,608 $ 22,693 $
(2,104,608) (22,693)
$ - $ 2,127,301
(2,127,301)
(4,800) (4,800)
$ (4,800) $ (4,800)
(Concluded)
197
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198
FIDUCIARY FUNDS - CUSTODIAL FUNDS
The Custodial Funds are used to account for assets held by a government unit as an agent for individuals, governmental
entities (other than the City) and non-public organizations.
Special Deposits
This fund was established to account for deposits and collect monies for various community events, which are remitted
to the organizers.
IPSS Fund
This fund collects and disburses payments for a joint powers authority (JPA) between the Cities of Redding, Anderson,
and Shasta County. The JPA is responsible for integrating public safety records between the entities.
Enterprise Anderson Groundwater Fund
This fund collects and disburses payments for an MOU between the City of Redding, Shasta County, the City of
Anderson, ACID, CCCSD, and BVWD. The purposes of the MOU are to comply with the Sustainable Groundwater
Management Act of 2014, ensure the continued sustainability of the Anderson and Enterprise Subbasins, and to develop,
adopt, implement and manage a groundwater sustainability plan for the sustainable management of groundwater within.
the Enterprise and Anderson Subbasins of the Redding Area Groundwater Basin while keeping the complexity and costs
as low as practicable.
199
City of Redding
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2024
ASSETS
Cash and cash equivalents
Accounts receivable
Intergovernmental receivable
Interest receivable
Capital assets
Construction in progress
Depreciable capital assets, net
Total assets
LIABILITIES
Deposits
Accounts payable
Accrued payroll
Intergovernmental payable
Total liabilities
NET POSITION
Individuals, organizations, and other governments
Total net position
Special
$ 1,776,951 $ 840,682 $
5,484 99,327
14,190 2,634
Enterprise
Anderson
Groundwater
Fund Total
$ 2,617,633
- 104,811
66,391 66,391
- 16,824
1,796,625 3,374,146 66,391 5,237,162
1,543,619 - - 1,543,619
222,516 128,045 - 350,561
1,778,027 149,271 65,610 1,992,908
18,598 3,224,875 781 3,244,254
$ 18,598 $ 3,224,875 $ 781 $ 3,244,254
200
City of Redding
Combining Statement Changes in Fiduciary Net Position
Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2024
ADDITIONS
Intergovernmental -fees
Intergovernmental - grants
User fees
Investment income (loss)
Total additions
DEDUCTIONS
Administration
Software maintenance and support
Project payments
Depreciation
Total deductions
Changes in net position
NET POSITION
Beginning of year
End of year
Enterprise
Special
Anderson
Deposits
IPSS
Groundwater
Fund
Fund
Fund
Total
$ $
821,327
$ -
$ 821,327
-
98,756
98,756
567,187
-
567,187
(22,387)
28,530
490
6,633
(22,387)
1,417,044
99,246
1,493,903
-
1,138,578
15,328
1,153,906
-
127,251
-
127,251
130,491
88,113
218,604
1,423,806
(22,387) (6,762)
40,985 3,231,637
$ 18,598 $ 3,224,875 $
103,441 1,527,247
(4,195) (33,344)
4,976 3,277,598
781 $ 3,244,254
201
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202
m
el ioN m VA I le
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204
Other Supplementary Information is provided for the City of Redding Municipal Airport Passenger Facility Charges
activity for the fiscal year. Passenger Facility Charge is a fee charged on commercial airline tickets for every enplaned
passenger. Commercial airports use these fees to fund FAA -approved projects that enhance safety, security, or capacity;
reduce noise; or increase air carrier competition.
Below is the current approved application of projects funded by Passenger Facility Charges:
Application 11-04-C-01-RDD
001-Storage Building for FAR Part 139 Equipment
002-Update Airport Layout Plan (ALP)
003-Prepare Airport Electrical Master Plan
004-Acquire Aircraft Rescue Fire Fighting (A.RFF) Equipment
005-Rehabilitate Airfield Guidance Signs
006-Rehabilitate Runway 13134 - Design Only
007-Rehabilitate Parallel and Connecting Taxiways - Design Only
008-Rehabilitate Terminal Building
009-Conduct Wildlife Hazard Assessment
010-Terminal Building Expansion - Design Only
011-PFC Administration Costs
017-Rehabilitate and Expand Terminal Building
Application 17-05-C-00-RDD
001-Aircraft Rescue and Fire Fighting Vehicle Acquisition
002-Airport Master Plan Update
003-ADA Passenger Loading Ramp
004-Airport Pavement Management System Study
005-T-Hangar Taxilane Reconstruction
006-West Tie Down Apron Reconstruction
007-Airecraft Rescue and Fire Fighting Station Modifications
009-Environmental Assessment Parallel Runway
013-PFC Application/Administration Costs
Application 23-06-C-00-RDD
001-PFC Audit
002-Guidance Sign Installation & Misc NAVAID
003-Terminal Loop Design
004-AAAE-IET Training Program
005-Update Airport Master Plan Study
006-Master Drainage Study
205
City of Redding
Redding Municipal Airport
Schedule of Passenger Facility Charges Collected and Expended and Interest Collected
For the Quarters Ended September 30, 2023, December 31, 2023, March 31, 2024, and June 30, 2024
Unexpended (over expended) passenger facility
charges and interest, beginning of period
Revenues:
Passenger facility charges collected
Interest earned
Total passenger facility charge revenue
Expenses:
Project Number/Project Name
Completed and Closed Applications
Open Projects
Application 11-04-C-01-RDD
001-Storage Building for FAR Part 139 Equipment
002-Update Airport Layout Plan (ALP)
003-Prepare Airport Electrical Master Plan
004-Acquire Aircraft Rescue Fire Fighting (ARFF) Equipment
005-Rehabilitate Airfield Guidance Signs
006-Rehabilitate Runway 13/34 - Design Only
007-Rehabilitate Parallel and Connecting Taxiways - Design Only
008-Rehabilitate Terminal Building
009-Conduct Wildlife Hazard Assessment
010-Terminal Building Expansion - Design Only
01 I-PFC Administration Costs
017-Rehabilitate and Expand Terminal Building
Application 17-05-C-00-RDD
001-Aircraft Rescue and Fire Fighting Vehicle Acquisition
002-Airport Master Plan Update
003-ADA Passenger Loading Ramp
004-Airport Pavement Management System Study
005-T-Hangar Taxitane Reconstruction
006-West Tie Down Apron Reconstruction
007-Airecraft Rescue and Fire Fighting Station Modifications
009-Environmental Assessment Parallel Runway
013-PFC Application/Administration Costs
Application 23-06-C-00-RDD
001-PFC Audit
002-Guidance Sign Installation & Misc NAVAID
003-Terminal Loop Design
004-AAAE-IET Training Program
005-Update Airport Master Plan Study
006-Master Drainage Study
Application 24-07-C-00-111313
001-PFC Audit
002-PFC Application
003-NEPA Environmental Evaluation for Runway 16-34 Improvements
004-Runway 16-34 Rehabilitation Design
005-Runway 16-34 Blast Pad Design
006-Runway 16-34 Connector Taxiways Design
007-Runway 16-34 MAGVAR Update Design
008-Runway 16-34 Rehabilitation Construction
009-Runway 16-34 Blast Pad Construction
010-Runway 16-34 Connector Taxiways Construction
011-Runway 16-34 MAGVAR Update Construction
Total passenger facility charge revenue expenditures
Unexpended (over expended) passenger facility
charges and interest, end of period
For the Quarter Ended
Cumulative Total
September 30,
December 31,
.Tune 30, 2023
2023
2023
$ 247,576
$ 340,055
$ 407,127
Amount
Approved
4,870,953
94,708
102,828
25,786
114
173
$ 6,483,283
4,896,739
94,822
103,001
Amount
Approved
$ 2,766,535
2,766,535
-
-
14,791
14,791
1,500
1,500
1,500
1,500
1,992
1,992
16,588
16,588
3,250
3,250
2,302
2,302
60,346
60,346
4,510
4,510
12,498
12,498 -
35,000
35,000
519,645
519,645
68,676
68,676
44,832
44,800
4,984
4,984
4,735
4,735
458,672
394,850
323,278
313,730
1,735
1,735
32,690
187
150,000
54,870
61,141
61,141
30,811
30,811
53,633
67,660 -
42,000
14,250 27,750
103,927
32,640 -
52,001
21,158
10,750
67,222
17,051
87,288
6,006
10,414
431
1,532,385 - - -
106,615
201,900
7,655 - -
4,556,684 27,750
$ 340,055 $ 407,127 $ 510,128
(Continued)
206
City of Redding
Redding Municipal Airport
Schedule of Passenger Facility Charges Collected and Expended and Interest Collected (Continued)
For the Quarters Ended September 30, 2023, December 31, 2023, March 31, 2024, and June 30, 2024
Unexpended (over expended) passenger facility
charges and interest, beginning of period
Revenues:
Passenger facility charges collected
Interest earned
Total passenger facility charge revenue
Expenses:
Proiect Number/Proiect Name
Completed and Closed Applications
Open Projects
Application 11-04-C-01-RDD
001-Storage Building for FAR Part 139 Equipment
002-Update Airport Layout Plan (ALP)
003-Prepare Airport Electrical Master Plan
004-Acquire Aircraft Rescue Fire Fighting (ARFF) Equipment
005-Rehabilitate Airfield Guidance Signs
006-Rehabilitate Runway 13/34 - Design Only
007-Rehabilitate Parallel and Connecting Taxiways - Design Only
008-Rehabilitate Terminal Building
009-Conduct Wildlife Hazard Assessment
010-Terminal Building Expansion -Design Only
011-PFC Administration Costs
017-Rehabilitate and Expand Terminal Building
Application 17-05-C-00-RDD
001-Aircraft Rescue and Fire Fighting Vehicle Acquisition
002-Airport Master Plan Update
003-ADA Passenger Loading Ramp
004-Airport Pavement Management System Study
005-T-Hangar Taxilane Reconstruction
006-West Tie Down Apron Reconstruction
007-Airecraft Rescue and Fire Fighting Station Modifications
009-Environmental Assessment Parallel Runway
013-PFC Application/Administration Costs
Application 23-06-C-00-RDD
001-PFC Audit
002-Guidance Sign Installation & Misc NAVAID
003-Terminal Loop Design
004-AAAE-IET Training Program
005-Update Airport Master Plan Study
006-Master Drainage Study
Application 24-07-C-00-RDD
001-PFC Audit
002-PFC Application
003-NEPA Environmental Evaluation for Runway 16-34 Improvements
004-Runway 16-34 Rehabilitation Design
005-Runway 16-34 Blast Pad Design
006-Runway 16-34 Connector Taxiways Design
007-Runway 16-34 MAGVAR Update Design
008-Runway 16-34 Rehabilitation Construction
009-Runway 16-34 Blast Pad Construction
010-Runway 16-34 Connector Taxiways Construction
011-Runway 16-34 MAGVAR Update Construction
Total passenger facility charge revenue expenditures
Unexpended (over expended) passenger facility
charges and interest, end of period
For the Quarter Ended
March 31, June 30,
2024 2024
$ 510,128 $ 459,685 $
For the Year
Ended
June 30, Cumulative Total
2024 June 30, 2024
340,055 $
72,425 87,815 357,776 5,228,729
138 193 618 26A04
72,563 88,008 358,394 5,255,133
- - - 2,766,535
14,791
1,500
1,500
1,992
16,588
3,250
2,302
60,346
4,510
12,498
35,000
519,645
68,676
44,800
4,984
4,735
394,850
313,730
1,735
187
54,870
61,141
30,811
- 67,660
27,750 42,000
- 32,640
- - 21,158
14,796 (4,080) 10,716 10,716
22,567 766 23,333 23,333
71,453
12,212
83,665
83,665
4,919
841
5,760
5,760
8,525
1,457
9,982
9,982
350
60
410
410
328
5,130
5,458
5,458
23
357
380
380
43
676
719
719
$ 459,685 $ 530,248 $ 530,248 $ 530,248
(Concluded)
207
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208
Im
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210
City of Redding
Statistical Section
Overview
This part of the City of Redding's annual comprehensive financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City's overall financial health.
INDEX Page
Financial Trends 212
These schedules contain trend information to help the reader understand how the
City's financial performance and well-being have changed over time.
Revenue Capacity 223
These schedules contain information to help the reader assess the City's most
significant local revenues sources.
Debt Capacity 230
These schedules present information to help the reader assess the affordability of
the City's current levels of outstanding debt and the City's ability to issue
additional debt in the future.
Demographic and Economic Information 241.
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take
place.
Operating Information 245
These schedules contain service and infrastructure data to help the reader
understand how the information in the City's financial report relates to the
services the City provides and the activities it performs.
211
City of Redding
Net Position by Component
Last Ten Fiscal Years Ended June 30, 2024
(accrual basis of accounting)
2014-15
Governmental activities
Fiscal Year
2015-16 2016-17 2017-18
2018-19
Net investment in capital assets
$ 303,789,845
$ 304,441,380
$ 299,478,797
$ 298,515,126
$ 296,238,160
Restricted
44,242,198
43,495,762
42,760,454
41,076,874
67,544,524
Unrestricted
(150,344,065)
(146,838,910)
(157,129,728)
(135,453,029)
(157,348,852)
Total governmental activities net position
$ 197,687,978
$ 201,098,232
$ 185,1.09,523
$ 204,1.38,971
$ 206,433,832
Business -type activities
Net investment in capital assets
$ 286,401,920
$ 284,346,442
$ 293,920,914
$ 314,064,755
$ 320,934,467
Restricted
18,326,176
15,155,154
14,068,393
12,204,596
10,072,298
Unrestricted
32,692,674
54,363,934
66,198,888
99,325,093
112,968,216
Total business -type activities net position
$ 337,420,770
$ 353,865,530
$ 374,188,195
$ 425,594,444
$ 443,974,981
Primary government
Net investment in capital assets
$ 590,191,765 $
588,787,822
$ 593,399,711
$ 612,579,881
$ 617,172,627
Restricted
62,568,374
58,650,916
56,828,847
53,281,470
77,61.6,822
Unrestricted
(117,651,391)
(92,474,976)
(90,930,840)
(36,127,936)
(44,380,636)
Total primary government net position
$ 535,108,748 $
554,963,762
$ 559,297,718
$ 629,733,415
$ 650,408,813
Source: City of Redding Annual Comprehensive Financial Report
212
City of Redding
Net Position by Component (Continued)
Last Ten Fiscal Years Ended June 30, 2024
(accrual basis of accounting)
2019-20
Governmental activities
Fiscal Year
2020-21 2021-22 2022-23
2023-24
Net investment in capital assets
$ 293,561,715
$ 307,597,872
$ 317,742,758
$ 335,471,207
$ 348,502,520
Restricted
67,415,758
99,523,339
99,799,590
123,734,817
131,861,615
Unrestricted
(152,188,061)
(157,650,758)
(146,175,614)
(152,837,374)
(169,117,666)
Total governmental activities net position
$ 208,789,412
$ 249,470,453
$ 271,366,734
$ 306,368,650
$ 311,246,469
Business -type activities
Net investment in capital assets $
327,301,815
$ 358,579,485
$ 368,787,712
$ 392,864,351
$ 425,350,722
Restricted
8,589,905
9,433,039
6,782,510
8,921,648
2,575,699
Unrestricted
127,947,134
105,661,660
110,264,669
108,075,347
108,434,713
Total business -type activities net position $
463,838,854
$ 473,674,184
$ 485,834,891
$ 509,861,346
$ 536,361,134
Primary government
Net investment in capital assets
$ 620,863,530 $
666,177,357
$ 686,530,470
$ 728,335,558
$ 773,853,242
Restricted
76,005,663
108,956,378
106,582,100
132,656,465
134,437,314
Unrestricted
(24,240,927)
(51,989,098)
(35,910,945)
(44,762,027)
(60,682,953)
Total primary government net position
$ 672,628,266 $
723,144,637
$ 757,201,625
$ 816,229,996
$ 847,607,603
Source: City of Redding Annual Comprehensive Financial Report
213
Expenses
Governmental activities
General government
Police
Fire
Public works
Planning
Recreation and culture
Community development
Interest on long-term debt
Total governmental activities expenses
Business -type activities
Electric
Water
Wastewater
Storm drainage
Solid waste
Transportation
Convention center
Total business -type activities expenses
Total primary government expenses
Program revenues
Governmental activities
Charges for services:
General government
Public works
Planning
Other activities
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Program revenues
Business -type activities
Charges for services:
Electric
Water
Wastewater
Solid waste
Transportation
Other activities
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
City of Redding
Change in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2014-15
2015-16
2016-17
2017-18
2018-19
$ 7,112,939
$ 8,077,255
$ 7,576,731
$ 7,678,431
$ 7,503,465
34,476,947
30,751,887
32,114,904
32,742,710
34,001,886
20,558,967
20,467,167
22,299,466
23,264,792
23,685,713
7,261,903
14,954,615
16,211,855
15,039,604
16,096,332
3,933,284
4,013,885
4,290,932
3,918,206
3,879,239
9,366,789
10,791,830
1.1,21.9,774
1.1,137,417
1.1,360,417
9,503,654
9,991,686
10,241,866
9,377,682
9,724,970
1,840,755
1,720,036
1,623,654
1,575,210
1,495,440
94,055,238
100,768,361
105,579,182
104,734,052
107,747,462
152,786,522
144,525,611
144,826,944
139,069,185
148,470,304
16,921,142
17,023,112
17, 810,721
18, 714, 649
18,403, 516
22,541,672
23,872,035
23,748,358
23,807,419
24,553,202
1,919,740
2,094,900
2,037,068
2,032,999
2,155,137
20,410,950
20,209,534
22,430,632
22,835,505
25,668,200
9,569,808
9,948,552
10,114,207
10,256,990
10,837,593
1,229,354
1,187,415
1,349,400
1,316,803
1,408,622
225,379,188
218,861,159
222,317,330
21.8,033,550
231,496,574
$ 319A34A26
$ 319,629,520
$ 327,896,512
$ 321767,602
$ 339,244,036
$ 6,516,578
$ 6,213,317
$ 6,395,898
$ 6,522,621
$ 6,332,966
682,515
650,616
669,769
785,973
1,375,532
1,673,717
1,286,338
1,986,579
1,822,316
3,031,727
4,167,614
4,743,501
4,804,529
4,921,877
4,555,208
18,014,648
18,663,414
16,491,007
15,293,829
22,924,591
5,505,363
18,960,524
6,040,837
11,061,017
8,618,248
36,560,435
50,517,710
36,388,619
40,407,633
46,838,272
163,301,368
158,275,732
165,157,048
158,286,134
155,200,165
17,871,349
17,995,434
19,591,568
22,1.58,506
22,486,899
24,577,645
26,776,762
26,939,000
27,592,665
29,145,722
20,505,176
21,200,419
22,167,885
22,703,424
23,639,052
3,790,418
3,717,047
3,814,776
5,463,971
2,006,964
1,622,114
1,744,369
1,687,107
1,419,953
1,495,369
4,405,158
4,300,769
4,441,415
6,219,525
5,803,463
6,079,058
3,343,536
2,624,987
8,173,146
7,413,845
242,152,286
237,354,068
246,423,786
252,017,324
247,191,479
Total primary government program revenues $ 278,712,721 $ 287,871,778 $ 282,812,405 $ 292,424,957 $ 294,029,751
Net (expense) revenue
Governmental activities $ (57,494,803) $ (50,250,651) $ (69,190,563) $ (64,326,419) $ (60,909,190)
Business -type activities 16,773,098 18,492,909 24,106,456 33,983,774 15,694,905
Total primary government $ (40,721,705) $ (31,757,742) $ (45,084,107) $ (30,342,645) $ (45,214,285)
Soh 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)
Expenses
Governmental activities
General government
Police
Fire
Public works
Planning
Recreation and culture
Community development
Interest on long-term debt
Total governmental activities expenses
Business -type activities
Electric
Water
Wastewater
Storm drainage
Solid waste
Transportation
Convention center
Total business -type activities expenses
Total primary government expenses
Program revenues
Governmental activities
Charges for services:
General government
Public works
Planning
Other activities
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Program revenues
Business -type activities
Charges for services:
Electric
Water
Wastewater
Solid waste
Transportation
Other activities
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Net (expense) revenue
Fiscal Year
2019-20
2020-21
2021-22
2022-23
2023-24
$ 9,842,219
$ 7,305,048
$ 7,444,640
$ 11,842,912
$ 8,221,348
36,954,392
38,537,805
36,227,155
46,859,911
54,474,231
24,997,889
27,416,745
24,061,217
27,823,146
35,008,283
16,133,278
12,781,403
17,139,094
17,061,623
22,360,331
5,049,433
4,261,253
5,529,441
6,855,776
8,047,061
12,101,698
11,436,375
12,086,281
14,167,809
14,564,444
10,825,020
10,788,241
11,712,568
24,470,351
21,599,533
1,832,339
1,501,079
1,448,241
1,450,653
1,662,180
117,736,268
114,027,949
115,648,637
150,532,181
165,937,411
154,180,658
158,675,983
158,141,420
187,014,653
159,038,929
18,747,880
20,163,278
20,378,700
21,304,950
22,977,291
25,734,531
25,097,221
24,957,471
27,965,652
28,479,691
2,313,546
2,529,827
2,024,016
2,653,578
3,218,220
26,604,891
27,348,763
24,546,239
29,546,236
33,853,772
11,140,459
11,187,003
13,906,912
13,700,891
14,723,526
1,785,044
873,731
1,221,786
1,299,789
1,191,406
240,507,009
245,875,806
245,1.76,544
283,485,749
263,482,835
S 159241277
S 159.901755
S 160.825.191
S 434.017.910
S 429.420246
$ 7,030,150
$ 5,427,109
$ 6,483,335
$ 8,075,361
$ 8,278,901
770,387
822,537
1,055,233
1,196,177
1,583,430
4,201,516
4,917,418
5,502,403
5,392,509
4,818,864
5,182,252
8,134,737
5,910,441
6,934,857
8,998,908
22,540,523
34,693,970
26,364,886
62,612,981
53,005,393
13,690,648
27,665,920
18,621,461
23,463,752
14,380,385
53,415,476
81,661,691
63,937,759
107,675,637
91,065,881
151, 851,828
15 8,263,003
159,904,815
199,349,597
170,020,064
23,665,086
26,431,076
25,183,388
26,106,650
27,587,108
29,287,911
30,841,837
32,707,404
33,662,337
34,767,686
24,174,557
26,017,505
26,844,590
27,086,157
29,472,283
3,578,926
3,379,397
4,016,624
2,246,283
4,158,212
1,944,149
1,950,674
2,400,572
2,449,974
2,462,756
7,396,940
7,387,085
11,230,562
8,021,675
8,587,184
16,790,748
7,1.34,115
5,308,211
13,997,809
7,910,770
258,690,145
261,404,692
267,596,166
312,920,482
284,966,063
$ 312,105,621 $ 343,066,383 $ 331,533,925 $ 420,596,119 $ 376,031,944
Governmental activities $ (64,320,792) $ (32,366,258) $ (51,710,878) $ (42,856,544) $ (74,871,530)
Business -type activities 18,183,136 15,528,886 22,419,622 29,434,733 21,483,228
Total primary government $ (46,137,656) $ (16,837,372) $ (29,291,256) $ (13,421,811) $ (53,388,302)
Source: City of Redding Annual Comprehensive Financial Report
215
General revenue and
other changes in net position
Governmental activities
Taxes
Sales taxes
Property taxes
Transient and occupancy taxes
Motor vehicle in -lieu taxes
Franchise taxes
Other taxes
Investment earnings (loss)
Gain on sale of property
Miscellaneous
Transfers
Special item
Total governmental activities
Business -type activities
Investment earnings (loss)
Gain on sale of property
Transfers
Other items
Total business activities
Total primary government
Change in net position
Governmental activities
Adjustments
Total governmental activities
Business -type activities
Adjustments - business activities
Total business activities
City of Redding
Change in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
�n1A_1c �n1c_1K �n1�_17
$ 22,053,840 $ 22,586,087 $ 23,199,460
16,292,632
17,357,917
17,924,119
4,458,110
4,61.6,654
4,778,285
(141)
36,761
40,422
972,438
1,005,928
1,088,088
1,112,392
1,103,021
1,189,035
582,552
780,348
374,394
48,699
1,401,277
166,278
142,599
203,979
152,135
5,020,485
4,568,933
4,289,638
sn ARIA tiny
s,i Acn on,;
51 ?m RSA
2n17_1R 2n1R_10
$ 23,507,550 $ 26,879,606
19,156,295 20,075,405
5,168,477
6,91.6,257
47,718
43,852
1,131,066
1,138,077
1,134,113
1,317,172
525,477
1,868,1.51
1,464,193
7,303
166,647
190,920
5,440,006
4,767,308
(2,485,800)
SS ?i5 7A? FI ?nA n51
1,833,914
2,515,901
505,847
980,902
7,452,940
(5,013,200)
(4,568,933)
(4,289,638)
(5,440,006)
(4,767,308)
2,361
4,883
-
-
-
(3,176,925)
(2,048,149)
(3,783,791)
(4,459,104)
2,685,632
47,506,681
51,61.2,756
49,418,063
50,796,638
65,889,683
(6,811,197)
3,410,254
(15,988,709)
(9,070,677)
2,294,861
(151,367,658)
-
-
28,100,125
-
(158,178,855)
3,410,254
(15,988,709)
19,029,448
2,294,861
13,596,173
16,444,760
20,322,665
29,524,670
18,380,537
(75,256,413)
-
-
21,881,579
-
(61,660,240)
16,444,760
20,322,665
51,406,249
18,380,537
Total changes in net position - primary government $ (219,839,095) $ 19,855,014 $ 4,333,956 $ 70,435,697 $ 20,675,398
Source: City of Redding Annual Comprehensive Financial Report
216
City of Redding
Change in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2019-20
2020-21
2021-22
2022-23
2023-24
General revenue and
other changes in net position
Governmental activities
Taxes
Sales taxes
$ 26,695,889
$ 31,159,466
$ 31,845,575
$ 30,469,277
$ 31,067,691
Property taxes
21,519,652
22,777,902
24,231,038
26,375,135
28,524,507
Transient and occupancy taxes
5,206,330
6,222,974
8,266,136
7,293,033
7,1.33,234
Motor vehicle in -lieu taxes
73,478
67,288
105,953
96,183
115,907
Franchise taxes
1,188,938
1,190,714
1,237,911
1,325,736
1,312,082
Other taxes
2,034,827
3,931,465
3,646,978
2,912,615
3,021,359
Investment earnings
1,660,407
340,588
(2,241,966)
1,112,841
2,845,092
Gain on sale of property
2,859,435
1,050,911
2,154,810
239,117
413,038
Miscellaneous
1,1.71,866
147,1.75
226,659
200,627
144,624
Transfers
4,265,550
6,158,816
4,134,065
7,833,896
5,171,815
Special item
-
-
-
-
-
Total governmental activities
66,676,372
73,047,299
73,607,159
77,858,460
79,749,349
Business -type activities
Investment earnings (loss)
5,946,287
457,322
(6,1.24,850)
2,409,343
9,525,186
Gain on sale of property
-
-
-
-
280,351
Transfers
(4,265,550)
7,938
(4,1.34,065)
(7,833,896)
(5,171,815)
Other items
-
(6,158,816)
-
16,275
382,838
Total business activities
1,680,737
(5,693,556)
(10,258,915)
(5,408,278)
5,016,560
Total primary government
68,357,109
67,353,743
63,348,244
72,450,182
84,765,909
Change in net position
Governmental activities 2,355,580 40,681,041 21,896,281 35,001,916 4,877,819
Adjustments - - - - -
Total governmental activities 2,355,580 40,681,041 21,896,281 35,001,916 4,877,819
Business -type activities 19,863,873 9,835,330 12,160,707 24,026,455 26,499,788
Adjustments - business activities - - - - -
Total business activities 19,863,873 9,835,330 12,160,707 24,026,455 26,499,788
Total changes in net position - primary government $ 22,219,453 $ 50,516,371 $ 34,056,988 $ 59,028,371 $ 31,377,607
Source: City of Redding Annual Comprehensive Financial Report
217
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218
General fund
Nonspendable
Restricted
Assigned
Unassigned
Total general fund
All other governmental funds
Nonspendable
Restricted
Unassigned
Total all other governmental funds
General fund
Nonspendable
Restricted
Assigned
Unassigned
Total general fund
All other governmental funds
Nonspendable
Restricted
Unassigned
Total all other governmental funds
City of Redding
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2014-15 2015-16 2016-17 2017-18 2018-19
$ 1,726,623 $ 1,875,032 $ 1,833,006 $ 2,748,604 $ 1,841,971
648,655 756,897 757,254 762,753 -
(720,495) 678,089 5,509,567 5,489,161 3,533,413
20,565,578 18,534,694 12,381,575 9,682,620 16,686,434
N n'1 n . 1L1 N — OAA — N — A01 A— N 10 col 110 N - nc, .10
$ 18,045 $ 20,521 $ 18,429 $ 20,291 $ 24,616
47,850,398 53,237,478 50,903,778 44,380,448 67,207,281
(275,436) (307,291) (344,254) (344,640) (342,425)
$ 47,593,007 $ 52,950,708 $ 50,577,953 $ 44,056,099 $ 66,889,472
Fiscal Year
2019-20 2020-21 2021-22 2022-23 2023-24
$ 1,911,241 $ 6,771,284 $ 3,224,350 $ 3,283,430 $ 2,127,863
273,610
209,316
141,236
604,458
431,956
3,195,034
10,524,976
10,117,549
7,923,890
13,529,698
16,964,783
13,001,211
15,242,047
14,750,184
7,457,606
$ 22,344,668
$ 30,506,787
$ 28,725,182
$ 26,561,962
$ 23,547,123
$ 24,078
$ 19,107
$ 777
$ 77,577
$ 97,860
67,142,148
78,074,986
73,886,067
88,647,271
109,629,484
-
-
-
(191,422)
(470,007)
$ 67,1.66,226
$ 78,094,093
$ 73,886,844
$ 88,533,426
$ 109,257,337
Source: City of Redding Annual Comprehensive Financial Report
219
Revenues:
Taxes
Licenses and pen -nits
Intergovernmental revenues
Charges for services
Fines
Use of money and property
Interest revenue
Special assessments
Miscellaneous
Total revenues
Expenditures:
General government
Community development
Public safety
Public works
Planning
Recreation and culture
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Bond issuance costs
Total expenditures
City of Redding
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2014-15 2015-16 2016-17 2017-18 2018-19
$ 45,125,212 $ 47,889,908 $ 48,385,407 $ 50,114,315 $ 56,183,337
1,142,654
1,321,422
1,319,041
1,304,712
1,777,332
21,555,631
33,039,876
19,301,043
17,561,603
31,593,447
3,543,025
3,135,897
3,763,928
3,968,265
4,011,783
968,591
1,434,429
1,598,215
1,445,372
2,005,413
6,979,312
7,774,752
7,905,927
7,903,045
7,965,078
408,382
559,933
351,277
505,398
1,333,966
480,861
311,291
480,855
612,627
575,104
2,917,802
6,151,375
3,321,608
4,141,927
4,251,526
83,1.21,470
101,61.8,883
86,427,301
87,557,264
109,696,986
5,335,175
5,531,550
6,170,131
6,061,390
6,175,867
9,391,315
9,833,058
9,988,629
9,208,634
9,479,314
44,658,160
47,667,150
49,561,988
51,305,095
52,470,544
5,333,076
7,736,374
8,089,769
6,280,036
7,785,619
3,643,893
4,005,836
4,054,107
3,751,957
3,718,793
6,923,444
7,090,091
7,477,025
7,895,240
7,668,664
16,601,544
16,012,801
6,902,183
11,354,447
6,897,619
3,721,171
2,785,484
2,532,744
2,657,496
20,291,342
1,812,496
1,658,488
1,557,407
1,510,512
1,629,677
450
-
-
-
223,905
97,420,724
102,320,832
96,333,983
100,024,807
116,341,344
Excess of revenues over (under) expenditures
(14,299,254)
(701,949)
(9,906,682)
(12,467,543)
(6,644,358)
Other financing sources (uses)
Sale of capital asset
55,055
1,401,276
166,279
1,275,193
196,303
Long-term debt issued
-
-
-
-
23,996,354
Premium on bonds issued
-
-
-
-
3,272,602
Transfers in
14,082,943
12,233,284
13,756,026
12,677,169
13,665,199
Transfers out
(9,069,743)
(7,950,559)
(7,751,688)
(7,307,089)
(8,274,047)
Total other financing sources (uses)
5,068,255
5,684,001
6,170,617
6,645,273
32,856,411
Special item
-
-
-
(2,485,800)
-
Net change in fund balances
$ (9,230,999)
$ 4,982,052 $
(3,736,065)
$ (8,308,070) $
26,212,053
Fund balances (deficit), beginning
of year, as originally stated
Prior period adjustment
Fund balances (deficit), beginning
of year, as restated
Fund balances (deficit), end of year
Debt service as a percentage of
noncapital expenditures
$ 79,044,367 $ 69,813,368 $ 74,795,420 $ 71,059,355 $ 62,739,237
- - - (12,048) -
79,044,367 69,zi13,36zs 74, /9J,420 / 1,047,3U / 62, /39,237
$ 69,813,368 $ 74,795,420 $ 71,059,355 $ 62,739,237 $ 88,951,290
7% 7% 5% 5% 5%
Source: City of'Redding Annual Comprehensive Financial Report
220
City of Redding
Changes in Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues:
Taxes
Licenses and pen -nits
Intergovernmental revenues
Charges for services
Fines
Use of money and property
Interest revenue
Special assessments
Miscellaneous
Total revenues
Expenditures:
General government
Community development
Public safety
Public works
Planning
Recreation and culture
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Bond issuance costs
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses)
Sale of capital asset
Long-term debt issued
Premium on bonds issued
Transfers in
Transfers out
Total other financing sources (uses)
Special item
Net change in fund balances
Fund balances (deficit), beginning
of year, as originally stated
Prior period adjustment
Fund balances (deficit), beginning
of year, as restated
Fund balances (deficit), end of year
Debt service as a percentage of
noneapital expenditures
Fiscal Year
2019-20 2020-21 2021-22 2022-23 2023-24
$ 56,585,655 $ 65,233,262 $ 69,214,157 $ 68,252,800 $ 70,990,507
2,588,480
2,449,876
2,495,389
2,496,607
2,844,265
24,712,718
31,838,001
33,322,809
62,217,825
73,189,478
5,199,913
6,393,638
7,357,575
6,403,256
6,717,616
1,173,384
1,346,858
1,368,471
1,630,544
944,667
7,874,941
6,761,893
8,349,455
8,823,765
9,693,518
1,233,375
348,081
(1,616,423)
1,005,404
2,336,217
697,098
707,108
928,727
994,049
1,195,152
7,095,919
18,101,754
6,127,608
12,932,340
10,695,412
107,161,483
133,180,471
127,547,768
164,756,590
178,606,832
7,402,934
6,999,481
8,781,231
10,803,116
8,504,531
10,622,163
11,129,141
12,106,454
24,473,014
20,678,667
53,761,183
58,097,550
64,675,885
69,156,652
77,910,254
7,596,809
6,328,452
10,716,202
8,651,241
14,492,381
4,543,768
5,1.22,727
5,843,580
6,582,099
6,562,666
8,146,931
7,893,793
8,692,187
9,838,579
10,906,296
17,919,482
21,604,121
26,023,167
27,843,932
25,390,567
1,964,210
1,853,967
2,046,549
2,265,970
1,948,674
1,543,376
1,587,580
1,513,691
1,550,338
1,747,922
(466)
-
-
-
-
113,500,390
120,616,812
140,398,946
161,164,941
168,141,958
(6,338,907)
12,563,659
(12,851,178)
3,591,649
10,464,874
2,859,435
1,050,911
2,154,810
239,117
413,038
-
-
151,196
865,1.13
352,244
1.4,516,043
12,832,566
15,31.1,345
20,659,066
18,524,025
(10,476,967)
(7,357,150)
(10,755,027)
(12,871,583)
(12,045,109)
6,898,511
6,526,327
6,862,324
8,891,713
7,244,198
$ 559,604 $ 19,089,986 $ (5,988,854) $ 12,483,362 $ 17,709,072
$ 88,951,290 $ 89,510,894 $ 108,600,880 $ 102,612,026 $ 115,095,388
66,7J1'zVV 6J,JIV,b74 1V6,0VV'66u 1V6,o1G,V6b 11J,VYJ,Jbb
$ 89,510,894 $ 108,600,880 $ 102,612,026 $ 115,095,388 $ 132,804,460
i0/ ')no/ A0/ 10/ A0/
Source: City of'Redding Annual Comprehensive Financial Report
221
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222
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
2014-2015
16,253
4,459
22,330
2,083
45,125
2015-2016
17,247
4,616
23,918
2,1.10
47,891
2016-2017
18,131
4,779
23,199
2,276
48,385
2017-2018
19,173
5,168
23,507
2,266
50,114
2018-2019
19,934
6,916
26,878
2,455
56,183
2019-2020
21,460
5,206
26,695
3,224
56,585
2020-2021
22,809
6,224
31,079
5,121
65,233
2021-2022
24,196
8,262
31,867
4,889
69,214
2022-2023
26,250
7,248
30,472
4,283
68,253
2023-2024
28,453
7,210
31,071
4,256
70,990
Source: City of'Redding Annual Comprehensive Financial Report
223
City of Redding
Revenue Base - Own Source Revenue
Metered Customers and MWHs Sold
Last Ten Fiscal Years
Fiscal Year ended June 30,
2015
2016
Base Rate
Electricity Sold
Base Rate
Electricity Sold
Type of Customer
Customers
(MWHs)
Customers
(MWHs)
Residential
37,561
356,071
37,751
361,427
Commercial
5,034
338,292
5,025
332,232
Industrial
322
12,366
335
13,394
Other
915
43,087
928
42,358
Total
43,832
749,816
44,039
749,411.
Fiscal Year ended June 30,
2020
2021
Base Rate
Electricity Sold
Base Rate
Electricity Sold
Type of Customer
Customers
(MWHs)
Customers
(MWHs)
Residential
38,320
358,510
38,587
393,404
Commercial
4,972
298,242
4,975
302,067
Industrial
338
12,349
353
11,552
Other
936
41,639
966
50,105
Total
44,566
44,881
757,128
710,740
224
City of Redding
Revenue Base - Own Source Revenue (Continued)
Metered Customers and MWHs Sold
Last Ten Fiscal Years
Fiscal Year ended June 30,
2017
2018
2019
Base Rate
Electricity Sold
Base Rate
Electricity Sold
Base Rate
Electricity Sold
Type of Customer
Customers
(MWHs)
Customers
(MWHs)
Customers
(MWHs)
Residential
38,015
366,354
38,088
368,829
38,058
356,741
Commercial
4,949
324,202
4,955
323,799
4,942
312,484
Industrial
336
13,226
326
12,626
334
12,372
Other
933
41,825
935
41,471
930
39,765
Total
44,233
745,607
44,304
746,725
44,264
721,362
Fiscal Year ended June 30,
2022
2023
2024
Base Rate
Electricity Sold
Base Rate
Electricity Sold
Base Rate
Electricity Sold
Type of Customer
Customers
(MWHs)
Customers
(MWHs)
Customers
(MWHs)
Residential
38,572
375,818
38,706
394,986
39,019
372,342
Commercial
5,088
300,597
5,092
308,606
5,101
305,667
Industrial
351
12,155
336
12,152
326
12,128
Other
970
49,924
974
46,678
967
46,467
Total
44,981
738,494
45,108
45,413
736,604
762,422
225
City of Redding
Electric Utility Rates
Last Ten Fiscal Years
Residential
Commercial
Monthly Base Rate
Energy Charge
Small
Large
Commercial
Commercial
Small
Large
Per kwh in
Monthly Base
Energy Charge
(< 15,000
(> 15,000
Commercial
Commercial
excess of
Fiscal Year
Rate
per kwh
kwh)
kwh)
All kwh
All kwh
15,000
2015
13.00
0.1528
20.00
33.00
0.1679
0.1679
0.0809
2016
15.00
0.1528
25.00
140.00
0.1679
0.1679
0.0809
2017
15.00
0.1528
25.00
140.00
0.1679
0.1679
0.0809
2018
15.00
0.1528
25.00
140.00
0.1679
0.0980
0.0980
2019
15.00
0.1528
25.00
140.00
0.1679
0.0980
0.0980
2020
15.00
0.1528
25.00
140.00
0.1679
0.0980
0.0980
2021
15.00
0.1528
25.00
140.00
0.1679
0.0980
0.0980
2022
20.00
0.1508
30.00
145.00
0.1679
0.101.1
0.101.1.
2023
25.00
0.1488
40.00
145.00
0.1645
0.1044
0.1044
2024
32.50
0.1492
55.00
95.00
0.1645
0.1065
0.1065
Source: City of Redding Utility Rate Schedules
226
City of Redding
Electric Utility Rates (Continued)
Last Ten Fiscal Years
Industrial
On Peak Energy Charge
Off Peak Energy Charge
If Off -Peak
If Off -Peak
Per kWh in
Demand
Demand is
Monthly Base
Excess of
Exceeds On-
Less Than On -
Fiscal Year
Rate
All kwh
15,000
Peak Demand
Peak Demand
2015
66.00
0.1766
0.0820
0.0692
0.0820
2016
230.00
0.1766
0.0820
0.0692
0.0820
2017
230.00
0.1766
0.0820
0.0692
0.0820
2018
140.00
0.0980
0.0980
0.0980
0.0980
2019
140.00
0.0980
0.0980
0.0980
0.0980
2020
140.00
0.0980
0.0980
0.0980
0.0980
2021
140.00
0.0980
0.0980
0.0980
0.0980
2022
145.00
0.1011
0.1011
0.1011
0.1.011
2023
145.00
0.1044
0.1044
0.1044
0.1044
2024
95.00
0.1065
0.1065
0.1065
0.1065
Source: City of'Redding Utility Rate Schedules
227
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228
Utility Payer
Customer #1
Customer #2
Customer #3
Customer #4
Customer #5
Customer #6
Customer #7
Customer #8
Customer #9
Customer #10
Customer #11
Customer #12
Customer #13
Customer #14
Customer #15
Customer #16
Customer #17
Customer #1.8
Customer #19
Total
City of Redding
Principal Electric Utility Payers
Fiscal Years 2023-24 and 2014-15
June 30, 2024 Fiscal Year June 30, 2015 Fiscal Year
Percentage of Percentage of
City Total City Total
Utilities Paid Rank Utilities Paid Utilities Paid Rank Utilities Paid
$5,147,591
1
4.06%
2,094,094
2
1.80%
1,813,291
3
1.71 %
1,429,182
4
1.09%
1,421,535
5
1.32%
1,231,425
6
1.03%
1,101,500
7
1.03%
818,543
8
0.70%
721,809
9
0.61%
524,533
10
0.58%
$16,303,503
Source: City of Redding Electric Utility
13.93%
$5,112,987
1
2,056,432
2
1,503,211
4
1,902,134
3
1,085,403
5
773,462
6
699,897
8
737,112 7
630,542 9
595,124 10
$15,096,304
4.04%
1.62%
1.19%
1.50%
0.86%
0.61 %
0.55%
0.58%
0.50%
0.47%
11.92%
229
City of Redding
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Fiscal Year
Ending
Revenue Bonds
2015
36,632
2016
34,318
2017
31,915
2018
29,418
2019
36,562
2020
34,531
2021
32,551
2022
30,470
2023
28,308
2024
26,540
Governmental Activities
Special
Assessment
Loans Bonds SBITAS Leases
320 123 - 574
- 92 - 405
- 63 - 292
- - 177
- - - 60
- - - 338
574 - 273 426
455 - 1,744 553
(1) Tax Allocation Bonds were associated with the Redevelopment Agency (RDA). The RDA's
debt was removed from the City of Redding's totals as the RDA was dissolved by the State of
California in 2012.
230
City of Redding
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Business-TvDe Activities
Percentage of
Fiscal Year
Revenue
Certificates of
Total Primary
Personal
Per Capita
Ending
Bonds
Participation
Loans SBITAS
Leases
Government
Income (1)
(1)
2015
12,081
160,556
84,429 -
1,774
296,489
8.27%
3,284
2016
46,761
126,082
84,164 -
1,356
293,178
7.67%
3,245
2017
98,629
65,905
80,784 -
-
277,589
6.98%
3,043
2018
134,994
18,249
75,716 -
-
258,553
6.32%
2,830
2019
126,304
16,781
70,323 -
-
250,029
5.85%
2,725
2020
118,796
15,312
64,800 -
-
233,439
5.25%
2,544
2021
169,902
13,844
1,212 -
-
217,509
4.59%
2,372
2022
168,955
-
1,128 -
65
200,956
3.93%
2,162
2023
152,042
-
335 3,831
131
185,919
3.72%
2,011
2024
136,279
-
303 2,989
82
168,945
2.77%
1,597
(1) See the Schedule of Demographics for population information by year and personal income.
231
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232
Jurisdiction
Direct:
City of Redding: (1)
Revenue bonds
Loans
SBITAS
Leases
City of Redding
Computation of Direct and Overlapping Debt
As of June 30, 2024
Net Debt
Outstanding
$ 26,539,860
455,373
1,744,069
553,257
Percentage
Applicable to
City of Redding (3)
100.000%
100.000%
100.000%
100.000%
Amount
Applicable to
City of Redding
$ 26,539,860
455,373
1,744,069
553,257
Total direct debt
29,292,559
29,292,559
Overlapping:
County of Shasta: (2)
Bonds
17,211,407
51.376%
8,842,532
Notes
17,017,729
51.376%
8,743,028
SBITAS
335,299
51.376%
1.72,263
Leases
10,748,830
51.376%
5,522,319
Shasta County Schools: (2)
Enterprise School District
37,660,335
98.998%
37,282,978
Shasta Union High School District
57,729,251
39.675%
22,904,080
Gateway School
25,333,559
40.679%
10,305,438
Redding School District
25,160,000
99.327%
24,990,673
Columbia School District
7,629,994
73.540%
5,611,098
Shasta College
140,710,000
51.520%
72,493,792
Cascade School
19,829,848
2.069%
410,280
Pacheco School
9,543,254
58.842%
5,615,442
Grant School
1,025,000
52.940%
542,635
Andersion Union High School District
3,140,000
1.101%
1,938,051.
Junction School
10,197,816
12.603%
1,285,231
Total overlapping debt
383,272,322
206,659,840
Total direct and overlapping debt $
412,564,881
$ 235,952,399
Source: (1) City of Redding
(2) Shasta County Auditor -Controller's Office
(3) Percentages for Computation of Direct and Overlapping Debt are calculated
by using the Shasta County valuations by taxing district for fiscal year 2022-23.
233
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
City of Redding
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year
2014-15 2015-16 2016-17 2017-18 2018-19
$ 266,962 $ 275,659 $ 289,198 $ 301,829 $ 318,039
0.19% 0.04% 0.03% 0.02% 0.00%
234
City of Redding
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
2019-20 2020-21 2021-22 2022-23 2023-24
$ 3J1,116 $ 37U,6/V $ J90,3J3 $ 420,21 / $ 4J0,2J4
$ 334,352 $ 351,116 $ 370,670 $ 390,353 $ 450,254
0.00% 0.00% 0.00%
Legal debt margin calculation for fiscal year 2023-24
Assessed value (1)
Debt limit - 3.75% of total assessed value
Amount of debt applicable to the limit
Legal debt margin
Note: Debt limit of 15% is based on assessed valuation being equivalent to 25% of full market valuation.
In 1981-1982, assessed valuation became equal to full market valuation. As a result, 1981-1982 and
subsequent years' debt limit is computed at 1/4 of 15% or 3.75% of full market valuation.
(1) Assessed valuation includes supplemental tax rolls.
0.00% 0.00%
$ 12,006,786
$ 450,254
$ 450,254
235
City of Redding
Wastewater Revenue Bond Coverage
Last Ten Fiscal Years
Fiscal Year Ending
2014-15
2015-16
2016-17
2017-18
2018-19
Operating revenue
$ 24,563,888
$ 25,451,684
$ 25,815,214
$ 27,575,888
$ 29,125,869
Other revenue**
13,756
15,453
16,261
16,778
19,854
Interest revenue
468,529
609,119
80,155
199,081
1,434,691
Adjusted revenue
25,046,173
26,076,256
25,911,630
27,791,747
30,580,414
25% of adjusted revenue
6,261,543
6,519,064
6,477,908
6,947,937
7,645,104
Actual connection fees
842,721
1,309,625
1,162,532
874,321
657,024
Allowable connection fees
842,721
1,309,625
1,162,532
874,321
657,024
Total revenue
25,888,894
27,385,881
27,074,162
28,666,068
31,237,438
Operating expense
(20,045,882)
(21,561,048)
(21,645,196)
(21,888,127)
(22,864,621)
Add back depreciation/amortization
6,886,048
7,026,394
7,018,740
7,289,864
7,345,254
Net operating expense
(13,159,834)
(14,534,654)
(14,626,456)
(14,598,263)
(15,519,367)
Net wastewater revenues*
$ 12,729,060
$ 12,851,227
$ 12,447,706
$ 14,067,805
$ 15,718,071
Total debt service***
$ 8,131,564
$ 8,129,964
$ 8,569,619
$ 8,573,419
$ 8,574,819
Debt coverage ratio
1.57
1.58
1.45
1.64
1.83
* Excludes interest expense and gain/loss on disposal of assets.
** Excludes capital grants.
*** Excludes 2014 defeased debt of $9,126,250
236
City of Redding
Wastewater Revenue Bond Coverage (Continued)
Last Ten Fiscal Years
Fiscal Year Ending
2019-20
2020-21
2021-22
2022-23
2023-24
Operating revenue
$ 29,544,078
$ 30,815,373
$ 32,689,735
$ 33,644,745
$ 34,775,027
Other revenue**
40,019
26,463
17,669
17,592
(169,859)
Interest revenue
1,056,758
81,245
(1,248,594)
515,892
1,862,698
Adjusted revenue
30,640,855
30,923,081
31,458,810
34,178,229
36,467,866
25% of adjusted revenue
7,660,214
7,730,770
7,864,703
8,544,557
9,116,967
Actual connection fees
990,667
1,167,190
1,053,707
1,673,885
1,555,196
Allowable connection fees
990,667
1,167,190
1,053,707
1,673,885
1,555,196
Total revenue
31,631,522
32,090,271
32,512,517
35,852,114
38,023,062
Operating expense
(23,847,874)
(23,748,891)
(23,382,959)
(26,709,582)
(27,649,563)
Add back depreciation/amortization
7,627,592
7,810,350
7,530,265
7,319,789
7,300,649
Net operating expense
(16,220,282)
(15,938,541)
(15,852,694)
(19,389,793)
(20,348,914)
Net wastewater revenues*
$ 15,41.1,240
$ 16,151,730
$ 16,659,823
$ 16,462,321
$ 17,674,148
Total debt service***
$ 6,973,569
$ 6,826,083
$ 6,720,500
$ 6,723,000
$ 5,604,500
Debt coverage ratio
2.21
2.37
2.48
2.45
3.15
237
City of Redding
Water Revenue Bond Coverage
Last Ten Fiscal Years
Fiscal Year Ending
2014-15
2015-16
2016-17
2017-18
2018-19
Operating revenue
$ 17,646,476
$ 16,860,160
$ 18,549,702 $
22,017,718
$ 22,346,030
Other revenue**
224,874
149,471
137,769
141,212
145,516
Interest revenue
330,1.37
439,975
77,297
122,970
1,364,769
Adjusted revenue
18,201,487
17,449,606
18,764,768
22,281,900
23,856,315
25% of adjusted revenue
4,550,372
4,362,402
4,691,192
5,570,475
5,964,079
Actual connection fees
662,463
985,803
961,572
775,752
543,546
Allowable connection fees
662,463
985,803
961,572
775,752
543,546
Total revenue
18,863,950
18,435,409
19,726,340
23,057,652
24,399,861
Operating expense
(16,588,595)
(16,224,118)
(17,486,280)
(18,285,529)
(18,381,575)
Add back depreciation/amortization
3,342,717
3,425,653
3,421,610
3,449,869
3,504,227
Net operating expense
(13,245,878)
(12,798,465)
(14,064,670)
(14,835,660)
(14,877,348)
Net water revenues*
$ 5,618,072
$ 5,636,944
$ 5,661,670
$ 8,221,992
$ 9,522,513
Total debt service
$ 764,100
$ 768,100
$ 770,500
$ 711,900
$ 704,700
Debt coverage ratio
7.35
7.34
7.35
11.55
13.51
* Excludes interest expense and gain/loss on disposal of assets.
** Excludes capital grants.
*** Excludes 2014 defeased debt of $7,547,500
238
City of Redding
Water Revenue Bond Coverage (Continued)
Last Ten Fiscal Years
Fiscal Year Ending
2019-20
2020-21
2021-22
2022-23
2023-24
Operating revenue
$ 23,787,534
$ 26,296,180
$ 25,279,631 $
24,381,200
$ 27,464,222
Other revenue**
151,785
156,454
174,432
722,459
317,867
Interest revenue
1,238,316
113,638
(1,605,195)
579,629
2,580,761
Adjusted revenue
25,177,635
26,566,272
23,848,868
25,683,288
30,362,850
25% of adjusted revenue
6,294,409
6,641,568
5,962,217
6,420,822
7,590,713
Actual connection fees
819,035
1,062,722
913,210
1,542,997
1,527,222
Allowable connection fees
819,035
1,062,722
913,210
1,542,997
1,527,222
Total revenue
25,996,670
27,628,994
24,762,078
27,226,285
31,890,072
Operating expense
(18,456,013)
(19,819,040)
(20,142,960)
(21,849,404)
(22,997,018)
Add back depreciation/amortization
3,523,021
3,670,489
3,928,806
4,102,715
4,105,646
Net operating expense
(14,932,992)
(16,148,551)
(16,214,154)
(17,746,689)
(18,891,372)
Net water revenues*
$ 11,063,678
$ 11,480,443
$ 8,547,924
$ 9,479,596
$ 12,998,700
Total debt service
$ 731,200
$ 731,200
$ 730,200
$ 733,200
$ 1,594
Debt coverage ratio
15.13
15.70
11.71
11.35
6892.05
239
City of Redding
Electric Revenue Bond Coverage
Last Ten Fiscal Years
Funds
Debt
Available
Available for
Service
Fiscal Year
Revenue
Expense
Reserves
Debt Service
Debt Service
Coverage
2014-2015
163,267,269
129,689,792
47,747,852
81,325,329
13,857,050
6.07
2015-2016
158,250,632
122,455,892
63,410,359
99,205,099
14,941,042
6.85
2016-2017
165,123,848
120,122,216
81,313,278
126,314,910
14,852,439
8.50
2017-2018
158,389,789
117,670,195
89,028,316
129,747,910
14,117,844
9.19
2018-2019
155,311,811
121,974,239
96,916,465
130,254,037
12,781,170
10.19
2019-2020
151,940,928
130,536,877
102,018,489
123,422,540
12,778,070
9.66
2020-2021
158,320,116
131,172,825
87,201,242
114,348,533
12,780,320
8.95
2021-2022
159,786,038
144,524,041
71,970,574
87,232,571
12,785,570
6.82
2022-2023
199,366,526
166,075,505
70,486,678
103,777,699
14,304,520
7.25
2023-2024
169,793,027
142,804,552
59,881,615
86,870,090
14,298,520
6.08
Source: Electric Utility Bond Disclosure Reports
240
Fiscal Year
City of Redding
Demographic Statistics
Last Ten Fiscal Years
Personal Income Per Capita Unemployment
Square Miles (1) Population (2) (thousands of dollars) Personal Income (3) Rates (4)
2014-2015
60.68
91,052
3,489,022
38,319
7.80
2015-2016
60.68
90,630
3,686,285
40,674
7.00
2016-2017
60.68
90,765
3,789,439
41,750
5.90
2017-2018
60.68
90,995
3,911,420
42,985
5.10
2018-2019
60.68
91,621
4,040,486
44,100
4.80
2019-2020
60.68
91,503
4,219,478
46,113
9.90
2020-2021
60.88
93,879
4,836,083
51,514
7.10
2021-2022
61.94
92,963
5,110,362
54,972
4.00
2022-2023
61.94
92,465
5,004,206
24,120
5.10
2023-2024
61.94
92,446
5,328,310
57,637
5.40
Note: Per capita personal income is based on the calendar year information ending during that fiscal year.
Source: (1) City of'Redding -Development Services
(2) State of California Department of Finance
(3) Bureau of Economic Analysis, U.S. Department of Commerce
(4) State of California Employment Development Department
All numbers revised annually to source.
241
City of Redding
Principal Employers in the Greater Redding Metropolitan Area
Current Year and Nine Years Ago
Employer
Mercy Medical Center
Shasta County
City of Redding **
Shasta Regional Medical Center
CA Transportation Department
Shasta Union High School District
Shasta Community College
Shasta Community Health
Win -River Casino
Redding Rancheria
2024
2015
Percentage
Percentage
of Total Area
of Total Area
Employees
Rank
Employment
Employees
Rank
Employment
1,980
1
2.82%
1,727
2
2.37%
1,773
2
2.53%
1,905
1
2.61%
91.8
3
1.31%
1,1.17
3
1.53%
880
4
1.25%
829
4
1.14%
573
5
0.82%
459
6
0.63%
559
6
0.80%
397
8
0.54%
512
7
0.73%
308
10
0.42%
507
8
0.72%
351
9
0.50%
462
5
0.63%
187
10
0.27%
450
7
0.62%
Total 8,240 7,654
* Full-time equivalent budgeted positions. This includes employees who work outside of the City.
** Full-time budgeted positions
In 2023-24 there were 906 full-time and 293 part-time/temporary positions filled.
Source: Derived roughly from the Employment Development Department's (EDD) listing of the top 25 employers in Shasta County.
242
Function/Program
General government
Police
Fire
Public works
Planning
Recreation and culture
Community development
Electric
Water
Wastewater
Storm drainage
Solid waste
Transportation
Convention center
City of Redding
Full -Time City Budgeted Employees by Function/Program
Last Ten Fiscal Years
Budgeted Full-time Employees
at June 30,
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
88
91
92
91
91
95
95
85
86
123
131
135
135
136
136
143
142
170
170
171
85
85
85
76
76
79
79
98
99
114
66
66
66
70
70
70
71
93
94
81
29
29
29
30
30
30
30
29
29
40
21
21
21
22
22
24
25
46
48
43
8
10
10
12
12
13
13
14
18
19
180
180
180
181
181
180
180
193
193
199
27
28
28
29
29
30
31
30
30
32
34
36
36
36
36
37
37
39
40
43
5
5
5
5
5
6
6
6
6
8
79
79
79
82
82
85
85
88
88
97
7
7
7
7
7
6
6
10
12
14
760
772
773
777
777
798
800
901
913
984
Source: City of'Redding Personnel Division
243
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244
City of Redding
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/PrOEram
Police
Stations
1
1
1
1
1
1
1
1
1
1
Patrol units
41
45
45
46
46
45
45
45
45
55
Fire stations
8
8
8
8
8
8
8
8
8
8
Public works
Streets (miles)
468.0
468.7
469.1
442.3
455.8
459.5
445.7
446.1
449.0
454.0
Streetlights
8,051
8,086
8,204
8,376
8,446
8,876
8,603
8,724
8,874
8,961.
Recreation and culture
Maintained trails (miles)
67
68
39
39
39
39
40
41
41
41
Parks acreage (improved)
636
636
620
598
598
598
598
598
598
598
Parks acreage (unimproved)
487
487
460
443
443
457
457
457
457
457
Electric
Transmission and
Distribution system (miles)
798
812
812
815
818
822
824
824
831
833
Water
Length of water mains
557
558
559
557
558
565
566
564
559
558
Wastewater
Sewer lines (miles)
431.5
433.2
433.5
432.6
434
436
439
440
442
443
Solid waste
Collection trucks
36
38
37
38
39
39
39
40
41
42
Storm drainage
Length of system (miles) *
397
397
397
393
393
391
391
391
393
390
Catch basins*
6,594
6,590
6,594
6,593
6,646
6,748
6,748
6,745
6,799
6,967
Transportation
Buses
18
20
20
18
18
18
18
18
35
36
* Prior to 2014 the storm drain data included both public and private segments and facilities (the data for
only the public portion for years prior to 2014 is not available). Starting in 2014 the storm drain data
only includes public segments and facilities.
Source: City of Redding
245
City of Redding
Operating Indicators by Function/Program
Last Ten Fiscal Years
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019
Function/PrOEram
Police
Calls for service
95,237
96,436
95,233
Felony arrests
2,237
2,259
2,245
Misdemeanor arrests
5,668
6,039
7,860
Total arrests
7,905
8,298
10,105
Fire
Fire, explosion
466
476
418
Rescue, emergency medical call
8,334
8,131
8,502
Fire safety inspections
3,511
3,661
3,500
Public works
Miles of roadway resurfaced
1.4
7.0
4.0
Miles of roadway slurry sealed
26.1
18.0
-
Planning
Number of building permits issued
3,575
3,813
4,107
Recreation and culture
Recreation division programs
2,800
2,650
** 1,073
Program participants
13,854
13,793
** 12,887
Redding Aquatic Center attendees
-
-
22,626
Special events programs
94
Special events attendance
-
-
24,962
Community development
Number of households assisted (rental assistance)
1,447
1,556
1,542
Owner occupied loans made for rehabilitation/purchase
20
17
17
Rental loans/grants for rehabilitation/purchase
3
1
1
Electric
Electric customers billed monthly
43,832
44,039
44,233
Average sustained outages per customer per year
0.49
0.38
0.53
System average retail rates
16.6
16.7
16.8
Water
Water produced (acre ft.)
21,51.4
20,411
21,674
Wastewater
Totals household equivalents served
42,641
42,209
46,079
Clear Creek dry flow
5.7
5.7
5.9
Stillwater dry flow
1.9
1.9
2.1
Storm drainage
Percentage of inlets cleaned/maintained (annually)
4.0%
4.0%
4.0%
Solid I waste
Total waste collected (tons)
75,929
82,985
86,826
Recyclables sales (tons)
6,846
7,860
8,897
Transportation
Airport passenger movements/enplanements
27,148
35,844
48,048
RABA bus passengers
742,712
664,367
679,527
* Calendar year figures, as Fiscal Year amounts are not available
** Figures were unavailable prior to the implementation of the recreation
management software
in 2016-17.
Source: City of Redding
100,562 87,389
2,526
2,209
7,674
5,958
10,200
8,167
485
495 *
8,907
8,569 *
2,796
2,756 *
5.0
1.4
-
13.5
4,223
4,123
929
841
12,917
12,586
22,193
12,899 **
71
118 **
20,998
21,384 **
1,514
1,513
12
6
5
9
44,304
44,264
0.42
0.86
16.7
16.5
25,656
24,053
43,526
43,550
5.9
5.3
2.3
2.1
4.0%
4.0%
86,942
87,849
10,282
9,538
42,723 47,833
659,562 575,978
246
City of Redding
Operating Indicators by Function/Program (Continued)
Last Ten Fiscal Years
Fiscal Year Ended June 30,
2020 2021 2022 2023 2024
Function/PrOEram
Police
Calls for service
85,638
87,959
83,504
Felony arrests
2,108
2,325
2,234
Misdemeanor arrests
6,897
8,519
7,045
Total arrests
9,005
10,844
9,279
Fire
Fire, explosion
451
641
534
Rescue, emergency medical call
8,504
9,116
8,999
Fire safety inspections
2,087
1,900
982
Public works
Miles of roadway resurfaced
2.5
2.8
1.8
Miles of roadway slurry sealed
21.5
11.0
-
Planning
Number of building permits issued
6,301
5,844
4,688
Recreation and culture
Recreation division programs
636
652
703
Program participants
11,576
9,438
7,683
RAC Attendees
18,505
300
8,019
Special events programs
25
11
6
Special events attendance
12,830
3,756
2,306
Community development
Number of households assisted (rental assistance)
1,531
1,502
1,511
Owner occupied loans made for rehabilitation/purchase
10
2
-
Rental loans/grants for rehabilitation/purcbase
9
8
8
Electric
Electric customers billed monthly
44,566
44,881
44,981
Average sustained outages per customer per year
0.87
0.49
0.47
System average retail rates
14.9
16.3
16.4
Water
Water produced (acre ft.)
25,337
26,897
23,846
Wastewater
Totals household equivalents served
43,11.4
43,955
40,210
Clear Creek dry flow
6.3
6.1
5.9
Stillwater dry flow
2.5
2.4
2.2
Storm drainage
Percentage of inlets cleaned/maintained (annually)
4.0%
4.0%
4.0%
Solid I waste
Total waste collected (tons)
93,339
98,433
96,883
Recyclables sales (tons)
9,799
9,415
9,053
Transportation
Airport passenger movements/enplanements
42,136
46,138
48,209
RABA bus passengers
513,618
330,690
360,044
* Calendar year figures, as Fiscal Year amounts are not available
** Figures were unavailable prior to the implementation of the recreation
management software in 2016-17.
Source: City of Redding
90,361 111,249
2,152
2,128
6,337
8,468
8,489
10,596
402
399 *
9,353
8,703 *
1,238
923 *
5.2
7.1
12.5
-
4,285
3,918
731
734
9,449
17,313
17,517
17,517 **
32
32 **
7,576
8,232 **
1,798
1,789
1
45,108
45,413
0.45
0.54
16.9
17.6
20,875
22,789
43,190
43,624
4.8
7.2
2.2
2.6
4.0%
4.0%
93,003
90,817
8,333
9,139
92,848 91,194
406,268 501,689
247
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248
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250
STATEMENT OF PHYSICAL CONDITION OF
AIRPORT ASSETS
Redding Regional Airport (RDD)
The Redding Regional Airport is a non -hub primary commercial air service airport operated by the City of
Redding and located in Redding, California. The Redding Regional Airport hosts commercial air service,
including both scheduled and unscheduled passenger and freight services, as well as general aviation. SkyWest
Airlines (dba United Express) offers direct flights from RDD to destinations including Los Angeles, California,
San Francisco California, and Denver, Colorado (beginning May 22, 2025); Alaska Airlines offers direct flights
from RDD to Seattle, Washington. Freight is handled by various commercial operators both based and itinerant
and may be scheduled or unscheduled. The passenger catchment area for RDD spans an eight -county region with
a population of approximately 450,000 people about 50% of which are located within a 50-mile radius of the
airport itself. Fixed -based operators (FBOs) provide a wide range of services including general aircraft frame and
engine maintenance, as well as avionics, charter services, sales of aircraft, flight instruction, and sales of fuels,
lubricants, and accessories. Medical helicopter services and helicopter charters, repairs, and sales, are also
available. Currently, four car rental agencies are available to serve the traveling public, three are on -site in the
passenger terminal building.
There are thirty-six permanently assigned tie -downs, seventy-five aircraft and eight helicopter tie -downs for
transient aircraft, one hundred thirteen T-hangars, and fifteen large commercial/corporate hangars that are
maintained and leased to aircraft owners/operators by the City of Redding Airports Division. The T-hangars are
100% occupied, with no vacancies. In FY24, there were 46,359 recorded aircraft operations recorded by the Air
Traffic Control Tower during its hours of operation, which varied due to inconsistent staffing by the contract air
traffic control tower service provider, and in the same period there 91,194 passenger enplanements.
Enplanements at RDD held relatively steady with a minor decrease by 1.78% despite the loss of air service to Las
Vegas, Nevada during that period. Year-to-date figures for FY25 suggest that passenger enplanements will
continue to hold steady despite Avelo Airlines exiting the market in Redding. Additionally, United Airlines has
announced that beginning May 22, 2025 passenger air service to Denver, Colorado from Redding will begin
which RDD anticipates will have a positive effect on passenger enplanement levels.
The Airport features a 32,000 square foot terminal building to serve the traveling public that was recently
expanded as part of a remodel that occurred 2014. The terminal facility houses passenger air service facilities for
Airline Use such as counters, security lines, and gates, as well as space for airport concessionaires currently
comprised of two dining vendors and four rental car vendors. There is a 333-space public automobile parking lot,
as well as a 77 space for rental car lot, adjacent to the terminal building. The passenger terminal aircraft parking
ramp is capable of receiving six medium -size jet aircraft at one time. The airport property includes a total of
1,503 acres.
The primary runway (16/34) is 7,003 feet in length and 150 feet wide with lighted distance -remaining markers. It
also has a medium -intensity approach lighting system with runway alignment indicator lights (MALSR), a
Category I instrument landing system (ILS) on Runway 34, runway -end identifier lights on Runway 16, precision
approach path indicator lights (PAPIs), a back -course instrument landing system on Runway 16, a global position
system (GPS/RNAV) approach, and a VHF omni-directional range (VOR) with distance -measuring equipment
(DME) for Runway 34. The crosswind runway (12/30) is 5,067 feet long and 150 feet wide and is equipped with
PAPIs for Runway 30.
Benton Field (085)
Benton Field is located within the city limits of Redding, only a few blocks from the downtown area. It features a
runway that is 2,420 feet in length, 75 feet in width, and is lighted for night operations. The runway has two
precision approach path indicator light (PAPIs) on both ends of the runway. The Fixed -Base Operator (FBO)
251
facility is operated by Cardan Aviation Services which operates the facility as a full -service FBO providing
aircraft fuel, maintenance, equipment sales as well as sublicensing a restaurant which is open to both flying
customers and the public. The California Highway Patrol bases two helicopters and two fixed -wing aircraft at
Benton. Also, there are sixty T-hangars, thirty sun /shade covered aircraft parking spaces and sixty-four 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 one hundred aircraft based on the airfield.
Benton Field has over 301 acres of land, and an Automated Weather Observation System (AWOS).
252
HISTORY AND STATEMENT OF PHYSICAL CONDITION OF
ELECTRIC UTILITY SYSTEM ASSETS
History
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, 1902,
the Northern California Power Company was incorporated, and proceedings were initiated to acquire control of
all properties of the Keswick Company through an exchange of stock. This was succeeded in 1908 by the
Northern California Power Company Consolidated, which continued operation until October 3, 1919, when it was
acquired by Pacific Gas and Electric Company (PG&E) under a merger authorized by the California Railroad
Commission.
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 762 miles of overhead and underground 12-kV distribution lines. The City is
proud of its record over the past five years of 99.9996 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 will not interrupt power to any City customer.
Design and right-of-way acquisition for the Stillwater Business Park distribution service was completed in
FY2008. The Stillwater 115-kV line termination work was completed on August 15, 2008. The Stillwater 115-
kV transmission project began construction in April 2012 and was completed on April 20, 2017. The City's
current distribution system consists of eleven 115/1.2-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.
253
Power Supply
The City's retail power supply comes from a diverse portfolio. Redding typically receives about 27% of its power
supply from Western in an average hydro year. FY 2023-24 was slightly below average, with Western providing
25.5% of the City's system load. Western's power is generated at Shasta Dam and 11 other facilities, which are a
part of the Central Valley Project (CVP). Redding also relies on the City's existing generation resources and other
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 City commissioned Unit 5,
a 43-MW highly efficient combined -cycle gas turbine with a heat recovery steam generator to be operated with
the 28-MW steam turbine, bringing the total on -site generation to 141-MW. Construction began in September
2008 on Unit 6, which is a 47-MW combined cycle gas turbine nearly identical to the existing Unit 5. Unit 6 went
into service in August 2011,.which increased the overall. Redding Power Plant capacity to 183-MW.
In addition to its own generation, the City has acquired several other sources of electric power through long-term,
purchase -power contracts. Through its membership in a joint powers agency consisting of Modesto Irrigation.
District, City of Santa Clara, and City of Redding (M-S-R), the City entered into a long-term power purchase
agreement for 70-MW of wind -generated power through the Big Horn Wind I Project (Big Horn). Deliveries for
Big Horn began on October 1, 2006.
The City is a member of various organizations and agencies: Balancing Authority of Northern California
(BANC), Northern California Power Agency (NCPA), M-S-R, Transmission Agency of Northern California
(TANC), and Western. Systems Power Pool (WSPP). The City contracted for and developed various power
generation and transmission resources through these affiliations, including partial ownership of the San Juan 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 2022.
In response to changes in the bilateral power markets, the City officially joined the Energy Imbalance Market
(EIM) through BANC, and became an active participant on April 1, 2021. The EIM, administered by the
California Independent System Operator (CAISO), is a 5-minute, real-time bulk power trading market that
optimizes the lowest -cost energy to serve real-time customer demand across a wide geographical region.
To operate cost-effectively, the City developed several load -management and energy -conservation programs,
including public awareness campaigns, technical conservation assistance, rebates on energy -efficient products and
technologies, renewable technologies, and energy -efficient streetlights. In FY 2022, the City developed the
Demand -Side Integrated Resource Plan (DSM-IRP) and determined that decarbonization programs (i.e.
electrification) were more cost-effective than energy -efficiency programs due to their inherent ability to produce
downward rate pressure from the increased retail load. The electrification rebate programs, which help reduce
carbon emissions by including incentives for switching appliances from natural gas to electric technologies, were
launched at the beginning of FY2023. Additionally, the City has provided opportunities for load management
through applicable rate design.
254
Customer Base
The table below shows a five-year history of the growth in electric system customer accounts.
Number of Customer Accounts
Fiscal Year
Ending June 30
Residential
Non -Residential
Total
2020
38,320
6,246
44,566
2021
38,587
6,294
44,881
2022
38,572
6,409
44,981
2023
38,706
6,402
45,108
2024
39,019
6,394
45,413
Source: Utility Billing System Marketing Report of Quarterly NAICS Usage.
The total number of electric system customer accounts increased 1.9 percent during the last five years.
255
HISTORY AND STATEMENT OF PHYSCAL CONDITION OF
STORM DRAINAGE UTILITY SYSTEM ASSETS
History
The City Council established the Storm Drainage Utility on September 21, 1993. The utility is part of the Public
Works Department. Responsibilities include monitoring, maintaining, and cleaning the storm drainage networks
of the City.
Service Area and Customers
The service area encompasses storm drainage facilities within the City limits. The overall conveyance system is
comprised of both public and private segments. The Storm Drain Utility responds to the needs of the public
component of the overall conveyance system. The following table provides an overview of the storm drainage
system as of June 30, 2024:
Workload and Performance
Measures
2019-20
2020-21
202422
2022-23
2023-
24
Miles of Storm Drain Pipe
191
1.91
191
198
1.91
Miles of Channels/Ditches
200
200
200
200
200
Miles of Maintained
Channels/Ditches
17
17
17
17
17
Number of Inlets
6,747
6,784
6,745
6750
6967
Number of Outfalls
1,341
1,337
1,337
1360
1338
The Storm Drainage Utility charges are based on impervious area. An impervious area is one that prohibits the
natural drainage of rainwater into the ground (i.e., building, parking lot, etc.). Effective February 4, 2014,.the
City directed the Shasta County Auditor -Controller to collect the Storm Drain service charges. Storm Drain
service fees have been frozen since 1993. The annual fees are as follows:
Commercial
Multi-family/Mobile Home
Residential
Condition of System
$19.07 per impervious acre x 12
$9.96 per unit
$15.84 per household
The City of Redding maintains a well -trained and well-equipped work force with very limited funding. The
Storm Drain Utility's primary function is to operate the Storm Drainage system to prevent flooding, make
systematic inspections as part of the preventive maintenance program, and plan and construct replacements.
The City of Redding completed a Citywide Master Storm Drain Study in October 1993. A new Operations and
Maintenance Plan was prepared in 2003, along with a project update of the 1993 Master Plan, which included a
survey of the storm drain system_ In 2015, City Council gave direction to proceed with an update to the Citywide
Master Storm Drain Study.
The Statewide NPDES Phase II Small MS4 (municipal separate storm sewer system) permit became effective
256
July 1, 2013, with a five-year implementation schedule of increased activities. A trash provision amendment to
the Statewide permit was approved in April 2015. While the prevention of trash entering the waterways has
multiple benefits, the realities of capturing all trash as small as 5mm in high priority areas (high density
residential, industrial, commercial, mixed urban and public transportation stations) will prove to be challenging.
The City has a consultant providing recommendations for compliance with the Trash Amendment.
257
HISTORY AND STATEMENT OF PHYSICAL CONDITION OF
WASTEWATER UTILITY SYSTEM
History
The City began construction of the Wastewater System soon after its incorporation in 1887. The Wastewater
System developed slowly until the early 1950s,.at which time approximately 20 percent of the City's approximate
5,200 acres were served. Recognizing the need for a systematic expansion of the Wastewater System, in 1956,
the City commissioned the development of a master plan for the City to follow in making necessary
improvements. As a result of this plan, which was updated in 1964,.the City added approximately 27 miles of
sewer lines, primarily as a result of a series of sewer assessment districts, and in 1966 relocated its wastewater
treatment plant from a location near the Cypress Avenue Bridge, to the present Clear Creek site, approximately
5.5 miles to the south.
Over the succeeding ten years, various districts including the Buckeye Community Water District, the Cascade
Community Services District, and the Enterprise Public Utilities District, were annexed to the City. This resulted
in the elimination of the existing treatment plants of these districts and consolidated the wastewater treatment and
disposal at the City's Clear Creek Regional Wastewater Treatment Plant (described below). To maintain
compliance with the Clean Water Act, the Clear Creek Plant was expanded and upgraded to an advanced
secondary wastewater treatment plant in 1979. Throughout the years, the plant has undergone process upgrades
and expansions with the most recent starting in 2006.
In 1983, the City, Shasta County, and Shasta Dam Area Public Utility District (the "Shasta Dam PUD")
commissioned Ott Water Engineers to prepare a regional sewage study of the Central Shasta County area. It was
determined that the Clear Creek Wastewater Treatment Plant was operating at two-thirds of its capacity and the
Shasta Dam PUD was operating essentially at its capacity. Additionally, significant growth for this area was
projected. As a result of this study and analysis of various alternatives, it was determined that an additional.
wastewater treatment plant on the east side of the City near Stillwater Creek and the Sacramento River would be
constructed and that the Clear Creek Wastewater Treatment Plant would continue operation on the west side of
the City. The advanced secondary Stillwater Regional Wastewater Treatment Plant was constructed near the
confluence of Clover Creek and the Sacramento River and began operation in 1990.
Existing Facilities
The Wastewater System consists of the collection, treatment, and disposal facilities for domestic and industrial
sewage serving the City. The system inventory includes over 440 miles of interceptor and trunk sewers, 18
sewage lift stations, and two tertiary treatment plants.
The 2022 Master Plan, completed by MCC Engineering has been completed including many capacity and
maintenance -driven improvements. One such recommendation is to adopt a city wide ordinance to require
inspection and repair of private lateral sewers in an effort to further reduce Inflow and Infiltration (I&I).
Clear Creek Wastewater Treatment Plant
The Clear Creek Wastewater Treatment Plant is located at the confluence of Clear Creek and the Sacramento
River. The plant has a dry weather daily flow capacity of 9.4 million gallons per day (MGD) and a peak day flow
capacity of 40 MGD. The unit processes utilized at the plant include, among other things, the Clear Creek Lift
Station, with an estimated effective pump capacity of 40 MGD, primary and secondary clarification, gravity
filtration, chlorination for disinfection and sulfonation for dechlorination prior to discharge into the Sacramento
River outfall via a new diffuser system. In addition, a series of eight flow equalization ponds provide raw sewage
and/or primary effluent temporary flow storage should the influent flow exceed the capacity of the secondary
treatment and filtration processes. Solids handling process include primary and secondary waste sludge streams
258
being mixed, thickened and anaerobically digested. Additional solids treatment can take place in facultative
sludge lagoons. A new Biosolids Handling Facility recently completed construction and is now in operation. This
facility was designed for future centralization of biosolids for both Wastewater Treatment Plants. In 2005, the
City Council had authorized modifications to the Clear Creek Plant at an estimated cost exceeding $80 million.
The upgrades were constructed in the following seven Bid Packages:
• Bid Package I began construction in the fall of 2006
• Bid Package II began construction in the fall of 2007
• Bid Package III began construction in the spring of 2008
• Bid Package IV began construction in the fall of 2008
• Bid Package V began construction in the summer of 2011
• Bid Package VI began construction in the winter of 2010
•- Bid Package VII began construction in the fall of 2012 and was completed in the spring of 2014
The plant expansion and upgrades were funded by a combination of low interest loans from the State of California
Revolving Loan Fund and ARRA Stimulus grant funds, with repayment through a combination of new connection
fee revenue and monthly service charges.
The 2022 Facility Plan, completed by Jacobs Engineering has been completed with various improvements
recommended, including influent pump station screening and the potential for a PFAS removal treatment.
Recently, gaseous chlorine and sulfur dioxide have become volatile markets and have the potential to be in short
supply. In response, plant staff is making provisions for a redundant dechlorination process utilizing liquid
sodium bisulfite, which will in turn replace the gaseous sulfur dioxide dichlorination system. Soon to follow will
be the redundant chlorination process utilizing sodium hypochlorite, replacing the gaseous chlorine dosing
system.
A biosolids biodrying and pyrolysis system will be online in 2023 to eliminate landfill disposal of biosolids.
Stillwater Regional Wastewater Treatment Plant
The Stillwater Regional Wastewater Treatment Plant is located on an approximately 300-acre site along Airport
Road at the Sacramento River. The plant is designed for an average dry weather flow of 3.4 MGD and a peak wet
weather flow of 14.4 MGD.
A facilities plan was prepared in 2008 for expansion of the plant in stages to treat an average dry weather flow
capacity to 8 MGD and a peak wet weather flow capacity to 24 MGD. The first plant expansion project (Phase 1
A/B) began construction in the spring of 2012, and was completed in the spring of 2014. This plant expansion was
funded by Wastewater Utility funds, and a loan from the State of California Revolving Loan Fund, with
repayment through a combination of new connection fee revenue and monthly service charges.
The 2022 Facility Plan, completed by Waterworks Engineering has been completed with various improvements
recommended, including the installation of Facultative Sludge Lagoons and drying beds. Recently, gaseous
chlorine and sulfur dioxide have become volatile markets and have the potential to be in short supply. In response,
plant staff is making provisions for a redundant dechlorination process utilizing liquid sodium bisulfite, which
will in turn replace the gaseous sulfur dioxide dichlorination system. Soon to follow will be the redundant
chlorination process utilizing sodium hypochlorite, replacing the gaseous chlorine dosing system.
Environmental Compliance
The discharge requirements for the wastewater system are established by the State of California Water Resources
Control Board, Central Valley Region (the "Regional Board") which administers and enforces all Federal and
259
State of California discharge requirements. The Regional Board administers regulations promulgated under the
National Pollutant Discharge Elimination System (NPDES) by the United States Environmental Protection
Agency (the "EPA"). The Clear Creek Wastewater System's present discharge permit was adopted in 2022. The
Stillwater Wastewater system permit was adopted in 2018 and is in the process of renewal for 2023.
The City is responsible for satisfying these Federal and State -mandated discharge requirements. The
requirements include provisions requiring the City to comply with all pretreatment requirements contained in the
Federal Water Pollution Control Act. The City has an approved pretreatment program that includes local limits
for priority pollutants along with inspection and permitting of industrial discharges.
In general, plant performance has consistently met discharge requirements, and any instances of noncompliance
have been isolated incidents that have not reoccurred.
Service Area
The service area of the wastewater system is primarily the City, but includes small -unincorporated areas in the
county. The service area lies entirely within the City's sphere of influence.
Historical Operations
The following table shows the historical number of residential customer household equivalents and the combined
commercial and industrial customer household equivalents for the five fiscal years ending June 30, 2024. 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.
2019-20
020-21
2021-22
2022-23
2023-24
Residential HEs
32,526
32,904
33,078
33,140
33,395
Commercial/Industrial HEs
10,588
10,894
11,132
10,171
10,171
Total System HEs
43,114
43,798
44,210
43,674
43,625
Annual System Growth
1%
1.6%
1.0%
1.0%
1.01%
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, 2024, is shown below.
Average Dry Weather Daily Flows --Fiscal Years Ended June 30, 2024
2019-20
2020-21
2021-22
2022-23
2023-24
Clear Creek Plant
6.3
6.1
5.9
6.1
7.2
Stillwater Plant
2.5
2.4
2.2
2.16
2.6
Total Wastewater System
8.8
8.5
8.1
8.26
9.75
260
HISTORY AND STATEMENT OF PHYSICAL CONDITION OF
WATER UTILITY SYSTEM
History
The Redding water supply and treatment facilities date back to the early 1.900s. The raw water supply pump
station on the Sacramento River was built in stages beginning in 1939.
The City's rights to water from the Sacramento River stem from the 1941 acquisition of the local facilities of the
California Water Service Company, together with its water rights, which date from 1886 and from a license to
appropriate 5 cfs, issued in 1944.
Since 1939, when the City of Redding assumed control and operation of the water system, the City's population
has grown from approximately 7,500 to 90,600. This growth includes two large increases in 1976 and 1977,
when Redding annexed the Cascade Community Services District (serving approximately 4,450 residents) and the
Enterprise Public Utility District (serving approximately 1.3,500 residents). Additionally, in 1967, the City
assumed operation of the Buckeye County Water District serving about 1,500 residents outside the City limits.
A 1966 contract with the United States Bureau of Reclamation (USBR or Bureau) was renegotiated in. June 2005,
with the USBR extending the contract for an additional 40 years through March 31, 2045. It details Redding's
principal rights to the Sacramento River. The "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 1.5
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 charge and $0.1.5 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
November 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
Buckeye 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, $0.15 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, Department of Public Health, Division of Drinking Water, and Environmental. Management.
261
Performance Measures and Workload Indicators
The Water Utility Staff has met the established goals, with the majority of the workload objectives being
accomplished:
ACTIVITY
2019-20
2020-21
2021-22
2022-23
2023-24
Number of customers/services
29,905
30,250
30,427
30,649
30,830
Number of new meter sets
136
188
104
223
151
Quantity of water produced
(acre feet)
25,337
26,897
23,846
20,875
21,841
Percentage of days water quality met
standards
100%
100%
100%
100%
100%
Number of service calls
(Includes water quality)
4,225
4,143
3,063
3,799
3,709
Miles of water mains
560
566
564
560
558
Number of main and water service
failures/disruptions per year
62
229
219
263
194
Miles of substandard mains
42
42
42
42
42
Customers/service connections per employee
1,031
1,031
1,049
1,022
1,028
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 MG tank with an overflow elevation of 955 feet above mean sea level (msl). In 2002, an
additional 4 MG reservoir was constructed 1/4 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 (USEPA) 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 Environmental Management. (State regulatory
262
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 Pump 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
additional 30-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 MG 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 Hill 900.
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 Hill 900 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 Enterprise 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 five 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, 1.6,
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 main 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 wells were added during 2003. In 2007, another 2 MGD
capacity well was added to the Enterprise Zone and in 2008, an additional 2 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.
263
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. Originally, 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 4.3
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 system 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 wells will be necessary to maintain the current level of service, due
to the demands of population growth and aging infrastructure.
264
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