HomeMy WebLinkAbout _ 9.10(a)--Consider Approving the Preliminary Draft GF and ISF Budgets for 25-27C IT Y OF
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AN CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: May 6, 2025
FROM: Greg Robinett, Director of
ITEM NO. 9.10(a)
Finance/City Treasurer
***APPROVED
BY***
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UBJECT: 9.10(a)--Consider Approving the Preliminary Draft General Fund Biennial
F
ud et for Fiscal Years Ending 2026 and 2027
Recommendation
Approve the preliminary draft General Fund and Internal Service Fund budgets for Fiscal Years
Ending 2026 and 2027.
Fiscal Impact
The presented preliminary budget forecasts a minor surplus and revenues in excess of expenses
for the General Fund in both Fiscal Year (FY) 2026 and FY 2027.
Alternative Action
The City Council (Council) could provide alternative direction on how to balance the budget.
Background/Analysis
This staff report provides a high-level review of the proposed General Fund budget. It is meant
to provide the basics of how the budget was developed and balanced. During the staff
presentation additional details will be provided for the General Fund and the Internal Service
Fund to ensure the Council has the necessary information to make decisions regarding the City
of Redding's (City) budget.
The significant revenue projections have been discussed at previous budget workshops. The
chart below summarizes all General Fund Revenues included in the 10-year plan for the first
two -years and are the basis for the current budget, under development. The final budget will be
presented for adoption at the June 17, 2025 Council meeting. The numbers below are reflected in
thousands.
Report to Redding City Council May 1, 2025
Re: 9.10(a)--Consider Approving the Preliminary Draft GF and ISF Budgets for 25-27 Page 2
The expenses by department are summarized in the table below. These expenses reflect the
previously approved reductions by the Council and include the following: eight police officer
positions, 12 firefighter positions, one Assistant City Clerk position, one Communications
position, and one Principal Planner position. In addition to those reductions it is also
recommended to reduce $100,000 in Full Time Temporary positions in Parks, one additional
Assistant City Clerk position, two Community Service Officer positions, one Fire Marshal
position, and a $100,000 reduction in Cadet positions in the Police Department. Additionally, the
Operations & Maintenance budgets have been reduced to five percent below the currently
adopted budget for 2024-25. Additionally, the City has always assumed a two percent savings in
the 10-year plan annually to reflect the historic underspending that occurs, typically with
personnel expense, and that is represented by the Projected Savings line.
Staff is still in the process of finalizing the budget and some of the revenues and expenses will
likely change, slightly, as all numbers are finalized. The presentation will detail the aspects of
each of these revenues and expenses and the assumptions therein.
Report to Redding City Council May 1, 2025
Re: 9.10(a)--Consider Approving the Preliminary Draft GF and ISF Budgets for 25-27 Page 3
While this budget is balanced there are still significant risks to the budget as time progresses.
The first and most noteworthy risk is the revenue performance of the General Fund major tax.
revenues due to uncertain economic times ahead. Additionally, the cuts to the O&M budgets of
the General Fund Departments creates risk and uncertainty related to potential future budget
needs of the departments and the services provided to the community. Staff will continually
assess the condition of the revenues and expenses and update the Council of any potential future
needs regarding expenses and/or revenue modifications.
Environmental Review
This item is not a project as defined under the California Environmental Quality Act, and no
further action is required.
Council Priority/City Manager Goals
• Budget and Financial Management — "Achieve balanced and stable 10-year Financial
Plans for all funds."
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