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Home My WebLink About_ 3.1--Biennial Budget Revenue Discussion FY 26 & FY 27 GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: February 3, 2026 FROM: Greg Robinett, Director of ITEM NO. 3.1 Finance/City Treasurer ***APPROVED BY*** �. �� b i��* c3 a t,I) � tt�r �^int�nci,'Cattir`�'re�surer l,'��i2�)ZG ar' Ic�, nlerim City Pv%a�rx�i:�ri'��s�,� )ii�ct€>r t;2�?,'2()2 grobinett@cityofredding.org kkibler@cityofredding.gov SUBJECT: 3.1-City of Redding Biennial Budget Revenue Discussion for FY 26 &FY 27. Recommendation Receive information pertaining to the City of Redding Biennial Budget Revenue Discussion for Fiscal Years 2026 and 2027. Provide staff with direction regarding any revenue assumption modifications. Fiscal Impact Fiscal impact will be dependent upon the direction provided by Council. Alterna�ive Action City Council (Council) could choose to move forward with Council Member Audette's recommendation or provide an alternative direction to staff. Additionally, Council may request additional or modified information for future discussion regarding this item. Background/Analysis On November 18, 2025, Council requested a budget workshop to review revenue updates, revenue assumptions, and an analysis of expenditures rolled back to 2018 levels. In preparation far the workshop originally scheduled for December 18, 2025, staff developed dashboards for the requested information. These dashboards were eompleted in December for the previously scheduled budget workshop. This agenda item focuses on a discussion of General Fund revenues to determine whether the assumptions used during the budget development process should be revised and, if so, to what extent. The attached information is intended to provide Council with sufficient detail to offer direction on any updates of revenue assumptions to be used to update the adopted budget. Report to Redding City Council January 29,2026 Re: 3.1--Biennial Budget Revenue Discussion FY26&FY27 Page 2 The dashboards were grouped in a way to help facilitate conversation. The revenue grouping on the attached dashboards is as follows: Sales Tax, Property Tax, TOT, Cannabis Tax & Other Taxes, Internal Departments & Transfers, Public Safety Revenue, Development Services revenues, community services revenues, and miscellaneous & other revenues. Below are the adopted budget revenues by category in the General Fund 10-Year Plan for Fiscal Year FY 2026 & 2027. FY 2026 FI'2027 Revenues Sales Tax 31,368 31,995 Property Tax 30,560 31,500 TOT 7,570 7,873 Cannabis Tax 1,939 2,016 Other Taxes 2,750 2,750 Licenses &Permits 2,695 2,823 Fines &Penalties 791 811 Other Government 3,494 2,307 Internal Departments PILOT 5,998 6,894 Utility Street Impacts 1,510 1,560 Cost Allocation 4,463 4,597 NPDES Allocation 592 612 PW Admin Allocation 756 "794 Service Charges 5,179 5,299 Other Revenues 2,332 2,338 Use ofMoney&Property 825 829 Transfers In Gas Tax 10,086 10,151. Other Transfers In 523 523 Transfers Out Visit Redding&Convention Center (750) (756) z�bra�y �l,oss� �l,os6� Parking (38) Rolling Stock&Equipment (1,103) (1,079) Internal Loan Payments (72) (72) T`OTAL REVENLTES 110,413 112,679 While the attached revenue information is grouped differently it provides details into each of the revenues, how they are collected, how they were forecasted, how they are utilized, and other important context. Report to Redding City Council January 29,2026 Re: 3.1--Biennial BudgetRevenue Discussion FY26&FY27 Page 3 Many of these revenues are legally or operationally restricted to specific purposes and are not fu11y discretionary. If such a revenue source were reduced or eliminated, the Council would either need to increase General Fund support or reduce the associated expenditures, which would likely result in a lower level of service. Maintaining these revenues helps avoid additional General Fund impact. Examples include Development Services and Recreation revenues, which function as partial cost-recovery lnechanisms. For FY 2026, the Council previously set the General Fund subsidy for Development Services at approximately $1.3 million, recognizing that not all costs can be recovered through fees. Similarly, Recreation and the aquatic center collectively require an estimated $1.5 million General Fund subsidy. It is important for Council to recognize that revenues and expenditures must be evaluated in context, as not all revenues have the same relationship to service costs or General Fund iinpact. As part of the budget development process, the Council directed staff to increase several fee-for- service revenues. Due to the timing of these changes, first-quarter results may not accurately reflect expected revenue performance once the increases are fully implemented. This applies to revenues such as the Cannabis Tax, development services fees, and recreation fees. When discussing revenues, it is important to distinguish between those that are restricted to speci�c uses and those that are fully discretionary. The revenues in the first chart with associated expenditures include licenses and permits, other government revenues, Utility Street Impacts, Cost Allocation Plan charges, NPDES allocation, Public Works administration allocation, service charges, and other revenues. The remaining revenues, listed below, are discretionary and support Council's broader budget decisions. F'Y 2026 FI'2027 Discretionary Revenue Sources Sales Tax 31,368 31,995 Property Tax 30,560 31,500 TOT '7,570 7,8"73 Cannabis Tax 1,939 2,016 Other Taxes 2,750 2,750 Fines &Penalties 791 811 PILOT 5,998 6,894 Late Fees 1,700 1,'700 Use of Money&Property 825 829 TOTAL DISCRETIONARY REVENLTE 83,501 86,368 Additionally, certain items are recorded as "transfer out" revenues for governmental accounting purposes but function more like expenditures from a budget and policy perspective. These items are listed below for Council's reference. Report to Redding City Council January 29,2026 Re: 3.1--Biennial BudgetRevenue Discussion FY26&FY27 Page 4 Transfers Out FY 2026 FY 2027 Visit Redding&Convention Center ('750) ('756) r.�bra�y �l,oss� �I,os6) Parking (38) Rolling Stock&Equipment (1,103) (1,0�9) Internal Loan Paytr�nts (72) (72) TOTAL TRANSFER OLTI` (3,018) (2,993) Interim Expenditure Controls In light of current budgetary revenue shortfalls, staff are in the process of implementing interim expenditure controls potentially including (but not limited to) a hiring freeze and restrictions in overtime and expenditures across all City Departments as necessary to minimize impacts to the General Fund. EnviNonmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals • Budget and Financial Management — "Achieve balance and stable 10-year Financial Plans for all funds." • Communication and Transparency — "Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust." Attachments ^Revenue Dashboards 1.15.26 C I T Y O F _ REL)[�►tN� � Sale� Tax R�venue C A L I F t! R N l.;L4" ,� Background & Information Sales Tax is paid monthly from California Department of Tax and Fee Administration (CDTFA).The first and third months of each quarter are paid using estimates, with minor previous period cleanups received as well. The second month following the close of each quarter is the true up for the quarter ending, which is August, November, February, and May. Citizens within Redding pay 7.25% on taxable purchases, which is broadly applicable to retail sales unless there is a specific exemption for the item being purchased, a few examples are groceries, prescription medicines, and services. The City of Redding only receives a portion of the 7.25% known as the Bradley Burns Tax. Below is the regulatory breakdown of the 7.25%. • 3.6875%- Goes to State General Fund under Revenue &Taxation Code Sections 6051 & 6201 • .25°0- Goes to State Genera) Fund under Revenue &Taxation Code Sections 6051.3 & 6201.3 � .50°0 - Goes to Local Public Safety Fund to Support �ocal criminal justice activities (1993). Received by Shasta County, City of Redding has received approximately $272,520 since this was implemented in 1993. Applicable under Section 35, Aritcle XIII of the State Constitution. • .50% - Goes to Local Revenue Fund to support local health and social services programs (1991 Realignment). Received by Shasta County. Applicable under Revenue & Taxation Code Sections 6051.2 & 6201.2. • 1.0625%-Goes to Local Revenue Fund 2011. Received by Shasta County under Revenue&Taxation Code Section 6051.15 & 6201.15. • .25°0- Goes to County Transportation Funds. • 1.00°0 - Goes to City or county operations. This is the amount received by The City under Revenue & Taxation Code Sections 7202 & 7203. The tax received by the City is collected on Point of Sale. Certain sales including online sales are placed into the County pool which is then divided amongst the jurisdictions within the county based on their percentage of the County Pool.The County Pool is weighted based on the volume of brick and mortar sales within each jurisdiction. The City receives 70-75%of the County Pool most quarters. Most online sales are placed in the County Pool. One major exception of online sales is related to fulfillment centers within California. In recent years sales tax related to online sales which are fulfilled from a fulfillment center are reported to the jurisdiction of the fulfillment center. � Actual Sales Tax Results Fiscal Year 2015 thru 2025 Actual results and % increase/(decrease) are listed below. The Fisca) Year 2025 number was not known during the budget development process for FY 2026 & 2027. Fiscal Year Actual %Increase FY 2015 $21,957 FY 2016 $22,314 1.63% FY 2017 $22,854 2.42% FY 2018 $23,803 4.15% FY 2019 $25,319 6.37% FY 2020 $25,859 2.13% FY 2021 $30,189 16.74% FY 2022 $32,089 6.29% FY 2023 $30,258 -5.71% FY 2024 $30,753 1.64% FY 2025 $30,253 -1.63% Below is a chart showing the actual sales tax results in dollars year over year. ��,oao ��o,000 ��`�° $z�,000 $Zo,00a _ �i�,oaa _ $20,000 ��,aaa �- FY 2015 FY 2C}16 FY 201? FY 2018 FY 2Q19 FY 2Q20 FY 2f}21 FY 2022 FY 2023 FY 2Q24 FY 2025 Below is a chart showing the change year over year as a percentage. z �: Zd.QQ°fa ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... 26.74% : �..�?.QQ°!o ..... ..... ..... ..... ..... ..... .__ ..... ..... ..... ..... ..... .''.. �.�.oQ°%a ..... ..... ..... ..... ..... ..... ..... . ..... ..... ..... ..... ..... �..�7�a �.Z��o 5.Q0% 4.15% .42% 2.13% o . /0 1.64!o Q.a�°lo ..... ..... ..... ..... _._ ..... ..... .._. ...... _... ._ ..... -1.63%" -5.00% -5.71°/a -1Q.4E3°/a FY 2016 FY 2017 FY 2Q18 FY 2019 FY ZQ20 �Y 2�21 FY 2022 FY 2Q23 FY 2024 FY 2025 This graph shows the volatility that has started from FY 2021 to FY 2025. Looking at the average Sales Tax growth from 2015 to 2020 returns an average of 3.34% and from 2021 to 2025 an average of 3.47%. However, where the story becomes more interesting to see the differences in standard deviation. Standard deviation is the measurement of the amount of variation of values relative to the mean. The standard deviation from 2015 to 2020 was 1.74% whereas the standard deviation from 2020 to 2025 is 7.72%. This illustrates the difficuity in forecasting that has been present since 2020. This is an important consideration for Council as we work on refining the updated forecast in light of the information received since the budget workshops and adoption. Adopted Budget Fiscal Year 2026 & 2027 The chart and graph below show the budgeted sales tax forecast as adopted. Fiscal Year Budget %Increase FY 2025 $30,753 0.00% FY 2026 $31,368 2.00% FY 2027 $31,995 2.00% FY 2028 $32,795 2.50% FY 2029 $33,615 2.50% FY 2030 $34,456 2.50% FY 2031 $35,317 2.50% The below is a graphical representation of the sales tax forecast. 3 i $�s,000 S��,aa� ��,00a ��,aoo �3z,000 ��a,000 _ $�o,00a $zs,aoo $2g,000 FY 2025 FY 2026 FY 2Q27 FY 2Q28 FV 2Q29 FY 2d3Q FY 2031 FY 2026 & 2027 Forecast & Sensitivity In order to accurately forecast the FY 2026, FY 2027, and thereafter it is important to forecast FY 2025 which was done in March of 2025 prior to the completion of the Fiscal Year. As a result of discussing the Revenue assumption it is important to measure the actual results of FY 2025 as part of this update process. During the Biennial Budget development process it was forecasted that Sales Tax would be flat from FY 2024 to FY 2025, which would have been $30,753 but the actual Sales Tax was $30,253. Staff is presenting three potential scenarios as depicted below. It is important to remember the volatility that has been demonstrated in recent years from Sales Tax with volatility increasing exponentially, which is adding to the difficulty in forecasting the Sales Tax. $��,000 $��,000 ��Z,000 . ��`� �� S�o,Qoa :,� _ �Z�,000 _ $2�,000 $za,000 ��z,aoo Szo,�oo FY 2Q2Q FY 2021 FY 2022 FY 2023 FY 2Q24 FY 2025 FY 2026 FY 2Q27 FY 2Q28 FY 2Q29 FY 2Q34 FY 203i ,4cTual Scer�ario 1 � ��Scenario 2 Scenario 3 i 4 Scenario 2 (BudgetJ— Given the information received since the budget forecasts were created this scenario has likely become the top end of potential expectations. This would include truing up FY 2025 to the actual amount received as discussed above and then using the approved assumptions as part of the adopted budget, which included a 2% increase in FY 2026 & FY 2027, and 2.5%thereafter. Below shows the projection, % Increase YoY, dollar value change from adopted, and the % change relative to the adopted budget. Fiscal Year Adopted Scenario 1 %Increase YoY $Change %Change Budget FY 2025 $30,753 $ 30,253 $ (500) FY 2026 $31,368 $ 30,858 2.00% $ (510) -1.63% FY 2027 $31,995 $ 31,475 2.00% $ (520) -1.63% FY 2028 $32,795 $ 32,105 2.50% $ (691) -2.11% FY 2029 $33,615 $ 32,747 2.50% $ (868) -2.58% FY 2030 $34,456 $ 33,402 2.50% $ (1,054) -3.06% FY 2031 $35,317 $ 34,070 2.50% $ (1,247) -3.53% This scenario would continue to use the same adopted assumption but updated the starting number for FY 2025 to the actual amount. This would result in approximately $500,000 per year growing to almost $1.25 million by year 6 without changing any of the future assumptions. This scenario still has high risk because through September Sales Tax was below the forecast by 10% and down year over year by approximately 7%. This was largely due to one-time adjustments and we were told that economically through June 2025 the City was flat. It is important to note that this is only 3 months of data for FY 2026. Thru November Sales Tax is down 1.78% year over year, and approximately 8% to budget. Sales Tax received thru November was $12,430,975 compared to a forecast of $13,524,000, which is $1,093,025 below forecast and $224,687 down year over year thru November. Scenario 2(Middle)— This scenario updates FY 2025 to $30,253 just the same as the scenario above but then projects that FY 2026 will be down two percent year over year from this amount.Given the recovery thru November as outlined above only being down 1.78% there is reason to believe it is trending the right direction and that the one-time adjustments were the reason for the first quarter results. Additionally, this scenario uses a new lower growth rate assumption of 1.5% per year.This is due to a changing environment of sales tax largely impacted by the impacts of inflation and changing demographic information. This is in line with the current forecasts received by MuniServices, who is the City's Sales Tax consultant and provides Sales Tax forecasts. Below shows the projection, % Increase YoY, dollar value change from adopted, and the % change relative to the adopted budget. s Fiscal Year Adopted Scenario 2 %Increase YoY $Change %Change Budget FY 2025 $30,753 $ 30,253 $ (S00) FY 2026 $31,368 $ 29,648 -2.00% $ (1,720) -5.48% FY 2027 $31,995 $ 30,093 1.50% $ (1,903) -5.95% FY 2028 $32,795 $ 30,544 1.50% $ (2,251) -6.86% FY 2029 $33,615 $ 31,002 1.50% $ (2,613) -7.77% FY 2030 $34,456 $ 31,467 1.50% $ (2,988) -8.67% FY 2031 $35,317 $ 31,939 1.50% $ (3,378) -9.56% Scenario 3(Downside)- This scenario shows the 7% down year over year relative to actual FY 2025 to FY 2026 and then returning to the adopted budget assumptions thereafter. Given the recovery thru November this would be an extremely conservative approach but would provide downside flexibility in the early years as the City attempts to find the bottom of the Sales Tax revenue. This scenario could protect against potential downside as a result of an economic recession. Below shows the projection, % Increase YoY, dollar value change from adopted, and the % change relative to the adopted budget. Fiscal Year Adopted Scenario 3 %Increase YoY $Change %Change Budget FY 2025 $30,753 $ 30,253 $ (500) FY2026 $31,368 $ 28,135 -7.00% $ (3,233) -10.31% FY 2027 $31,995 $ 28,698 2.00% $ (3,297) -10.31% FY2028 $32,795 $ 29,415 2.50% $ (3,380) -10.31% FY 2029 $33,615 $ 30,151 2.50% $ (3,464) -10.31% FY2030 $34,456 $ 30,905 2.50% $ (3,551) -10.31% FY 2031 $35,317 $ 31,677 2.50% $ (3,640) -10.31% Additionat Information- Below is a table of a standard 5% up & down from Scenario 2. This gives Council a sense of the impact but this is importantly not compounded-it is 5%measured by each year individually.As noted earlier in the presentation the volatility on the range of outcomes of Sales Tax has increased in the past 5 years. Fiscal Year 5%Down Baseline 5%Up FY 2025 28,740 $30,253 31,766 FY 2026 28,166 $29,648 31,130 FY 2027 28,588 $30,093 31,597 FY 2028 29,017 $30,544 32,071 FY2029 29,452 $31,002 32,552 FY2030 29,894 $31,467 33,041 FY 2031 30,342 $31,939 33,536 The value of a 1% miss in any given individual year is approximately $300K. As illustrated in the chart S% is $1.5 million in the early years and $1.6 million by year 6.This is an important reminder to Council that inherently the risk of missing the sales tax projection by only 5%,which means the forecast would be 95%accurate could result in an additional or less revenue by$1.5 Million. 6 C I T Y O F : REDDIN� Pr�per�y Ta�c Revenue C A L I F Q R N I��-bk"" � Background & Information Property Tax is collected from citizens and distributed to the City of Redding (City) by Shasta County. These payments are made after collection from the County. Most of the property tax is received from the County in lanuary and May. There are smaller amounts paid in other months for specific aspects of the property tax. The base rate of property tax is set to a maximum of 1%of the property's assessed value.There can be additional levies for bonds and special assessments that increase the effective tax rate. However, the portion of the tax rate paid and received by the general fund is 1%of the property's assessed value. Proposition 13 and AB 8 have set certain limitations on valuations and distribution schedules of Property Tax by the County. The historical allocation base was set through AB 8, which set the allocation to the local agencies based on their average property tax revenue in the three years preceding FY 1978-79, when proposition 13 was adopted. Each year thereafter, counties have allocated property tax according to this schedule from the prior year and modifying it for the proportionate share of growth in tax revenues resulting from increases in assessed value in the jurisdiction. Actua) Property Tax Results Fiscal Year 2015 thru 2025 Actual results and % increase/(decrease) are listed below. The Fiscal Year 2025 number was not known during the budget development process for FY 2026 & 2027. Fiscal Year Actual %Change FY 2015 $ 17,281 FY 2016 $ 18,192 5.27% FY 2017 $ 18,184 -0.04% FY 2018 $ 19,260 5.92% FY 2019 $ 19,949 3.58% FY 2020 $ 21,328 6.91% FY 2021 $ 22,821 7.00% FY 2022 $ 24,285 6.42% FY 2023 $ 26,410 8.75% FY 2024 $ 28,392 7.50% FY 2025 $ 29,751 4.79% Below is a chart showing the actual property tax results in dollars year over year. � $��,00a ��a,000 $2s,o�a �zo,000 �a.�,aoa ��a,000 ��,aao � _ ' FY 2Q15 FY 2016 FY 2017 FY 2018 FY 2Q19 �Y 2Q2Q FY 2021 FY ZQ22 FY 2023 FY 2024 FY 2025 Below is a chart showing the change, year over year, as a percentage. zo.aoia 9.C}C}°f`n 8.f�C?/a 7.00% � 6.Q0% 5.00/a �; 'i.QVF6 ... ..... .... . ... ..... ..... .... .._. ..... .... ' �.��°F�a ...... ..... . ..... .._. ..... ..... ..... ..... ..... ..... ...... 2.404/q _ _ 1.00% iQ.�Q°/�a ..... .... ...... _... ..... ..... ..... ..... ..... ..._ ..... ..... FY 2016 FY 2Q17 FY 2028 FY 2019 FY 2Q20 FY 2021 FY 2022 FY 2023 FV 2024 FY 2025 -1.00% Property tax has increased by an average 5.61%since 2015. This revenue has seen one year where it effectively did not grow and all other years are between 3.58% and 8.75%. The standard deviation or range of potential outcomes is much smaller compared to sales tax. Meaning that the projections and confidence level are easier to achieve. s Adopted Budget Fiscal Year 2026 & 2027 The chart and graph below show the budgeted property tax forecast as adopted. Fiscal Year Budget %Change FY 2025 $ 29,670 4.50% FY 2026 $ 30,560 3.00% FY 2027 $ 31,477 3.00% FY 2028 $ 32,421 3.00% FY 2029 $ 33,393 3.00% FY 2030 $ 34,395 3.00% FY 2031 $ 35,427 3.00% The below is a graphical representation of the property tax forecast. ; �3�,00a S�s,aao _ ; ��,00�a ; S��,00a ; S3z,000 $�i,oao _ ', ��a,aoo _ ' S2s,000 S2$,000 _ Sz a,Qao $26,OOd _ FY 2025 FY 2026 FY 2027 �Y 2028 FY 2029 FY 2030 FY 2031 Updated FY 2026 & 2027 Forecast & Sensitivity As a part of updating the forecast the FY 2026, FY 2027, and thereafter it is important to remember FY 2025 was done in March of 2025 prior to the completion of the Fiscal Year. As a result of discussing the Revenue assumption it is important to measure the Actual results of FY 2025 as part of this update process. During the Biennial Budget development process it was forecasted that Property Tax would be up 4.5%from FY 2024 to FY 2025, which would have been $29,670 but the actual Property Tax was $29,751. 9 $��,000 $�a,000 �� ,000 �,�� `�� , � � ��a,000 _ $z5,000 �zo,000 Ss�,aao _ FY FY FY FY FY FY FY FY FY FV FY FY ' 2Q20 2Q21 2022 2023 2C}24 2025 2026 2027 2028 Z029 2030 2Q31 �Octual Adopted ��»��Scenario 1 Scenario 2 Scenario 3 Scenario 1 (UpsideJ— This scenario relies on the historical averages and assumes that after the current year update to approximately 4% based on the Assessor Report released recently from Shasta County. The increase should be slightly above 4% based on the report. After this year this scenario would leverage 5% in line with the historical averages noted earlier in the write up. This scenario is in line with historical averages but has risk because it presents an option that could easily not be met causing future reductions to the budget and/or revenue assumptions as a result of missed forecasts. Given the current state of the General Fund it would not be prudent to have overly optimistic scenarios approved. Below shows the projection, %o Increase YoY, dollar value change from adopted, and the % change relative to the adopted budget. Fisca)Year Adopted Scenario 1 %Increase YoY $Change %Change Budget FY 2025 $29,670 $ 29,751 $ 81 FY2026 $30,560 $ 30,941 4.00% $ 381 1.25% FY 2027 $31,477 $ 32,488 5.00% $ 1,012 3.21% FY 2028 $32,421 $ 34,112 5.00% $ 1,692 5.22% FY 2029 $33,393 $ 35,818 5.00% $ 2,425 7.26% FY2030 $34,395 $ 37,609 5.00% $ 3,214 9.34% FY 2031 $35,427 $ 39,489 5.00% $ 4,062 11.47% Scenario 2 (Middle)— This scenario updates FY 2025 to $29,751, the same as the scenario above but then says that FY 2026 will grow by 4% based on the information from the Assessor Report as above. However, after FY 2026 it returns to the budget assumption of 3%growth per year. Given the historical tax growth in this revenue this scenario is far below the averages and presents mitigation of risk to City operations by assuming a more moderate rate of growth in the future. Below shows the projection, % Increase YoY, dollar value change from adopted, and the % change relative to the adopted budget. io Fisca)Year Adopted Scenario 2 %Increase YoY $Change %Change Budget FY 2025 $29,670 $ 29,751 $ 81 FY2026 $30,560 $ 30,941 4.00% $ 381 1.25% FY 2027 $31,477 $ 31,869 3.00% $ 393 1.25% FY 2028 $32,421 $ 32,825 3.00% $ 405 1.25% FY 2029 $33,393 $ 33,810 3.00% $ 417 1.25% FY2030 $34,395 $ 34,824 3.00% $ 429 1.25% FY2031 $35,427 $ 35,869 3.00% $ 442 1.25% Scenario 3 (Downside)— The final scenario presented shows a potential downside risk where Property Tax starts to grow and a much slower rate in the coming years. It utilizes the FY 2025 and FY 2026 information the same as Scenario 1 & 2 but instead moves the long-term growth rate to 2%o. While this further mitigates the risk of projecting too high it presents a risk of artificially lowering revenue assumptions and having to make additional cuts despite a high likelihood revenue will exceed these projections. This scenario again could be used to mitigate against any downside risk present in the local economy and avoid future uncertainties regarding levels of service. Below shows the projection, %o Increase YoY, dollar value change from adopted, and the %o change relative to the adopted budget. Fisca)Year Adopted Scenario 3 %Increase YoY $Change %Change Budget FY 2025 $29,670 $ 29,751 $ 81 FY2026 $30,560 $ 30,941 4.00% $ 381 1.25% FY 2027 $31,477 $ 31,560 2.00% $ 83 0.26% FY 2028 $32,421 $ 32,191 2.00% $ (230) -0.71% FY 2029 $33,393 $ 32,835 2.00% $ (559) -1.67% FY 2030 $34,395 $ 33,492 2.00% $ (904) -2.63% FY 2031 $35,427 $ 34,161 2.00% $ (1,266) -3.57% Additional Information— Below is a table of a standard 5% up & down from Scenario 2. This gives council a sense of the impact but this is importantly not compounded it is 5% measured by each year individually. As noted earlier this revenue is not as volatile and has a more predictable range of outcomes. Fiscal Year 5%Down Baseline 5%Up FY 2025 28,263 $29,751 31,239 FY2026 29,394 $30,941 32,488 FY 2027 30,276 $31,869 33,463 FY 2028 31,184 $32,825 34,467 FY 2029 32,120 $33,810 35,501 FY 2030 33,083 $34,824 36,566 FY 2031 34,076 $35,869 37,663 The value of a 1% miss in any given individual year is approximately$300K. As illustrated in the chart 5% is $1.5 million in the early years and $1.8 million by year 6.This is an important reminder to Council that inherently the risk of missing the property tax projection by only 5%, which means the forecast would be 95% accurate could result in an additional or less revenue by $1.5 Million. i� C � T Y � F :� Transien� C�c�upa� n�y T��c IN � . C A L I F Q R N I .'dk" �� l/ G ��G � Background & Information Transient Occupancy Tax(TOT) is charged through Chapter 4.12 of the Redding Municipal code to charge anyone who is occupying lodging for 30 consecutive calendar days or less. This means that a person can be a transient if they stay in a house, hotel, motel, campground, or RV Park to name a few. There are special regulations regarding Short Term Rentals of personal residence that have been adopted by Council under Redding Municipal Code (RMC) Chapter 18.43.180, Short Term Rentals are responsible to pay TOT. TOT is charged on the stays as outlined above at a rate of 10% based on the rent charged for the privilege of occupancy by a transient.There are select exemptions outlined in the RMC. Operators of the above are required to collect the tax from guests and remit it with the TOT tax form to the City's Finance Department within 20 days of the close of each month. Actua) Property Tax Results Fiscal Year 2015 thru 2025 Actual results and % increase/(decrease) are listed below. The Fiscal Year 2025 number was not known during the budget development process for FY 2026 & 2027. Fiscal Year Actual %Increase FY 2015 $4,358 FY 2016 $4,612 5.83% FY 2017 $4,794 3.95% FY 2018 $5,124 6.88% FY2019 $6,837 33.43% FY2020 $5,352 -21.72% FY2021 $5,916 10.54% FY 2022 $8,262 39.66% FY 2023 $7,243 -12.33% FY2024 $7,210 -0.46% FY 2025 $7,190 -0.28% 1z Below is a chart showing the actual TOT results in dollars year over year. ; S�,aoo �8,Q00 $7,000 �� " $6,000 $5,000 _ $4,000 $3,000 $2,000 ', �a,oaa �- FY 2015 FY 2026 FY 2017 FY 2(728 FY 2Q19 FY 202(7 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Below is a chart showing the change year over year as a percentage. 50.00`/U _ + 4a.f}Q°fa ; 3Q.OQ% ; zo.aaf> ; ao.oa�Q a�er°% FY 2d16 FY 2Q17 FY 2018 FY 2G}19 1'2Q20 FY 2021 FY 2Q22 � 2023 2024 FY 20�5 -1Q.Od% ; -za.oafa ; -�o.00a�o TOT has increased by an average 6.55%since 2015.As can be noted in the chart above this revenue is extremely volatile in the recent years.Given the size of this revenue the impacts of a miss are not as substantive as Property Tax or Sales Tax because the revenue is only approximately $7.2 million per year. The range of potential outcomes or standard deviation on this revenue is extremely high. Meaning that the projections and confidence 13 level are much lower and can have a wide range of results. While the City collects the revenue, it does not get data relative to the types of stays or why there can be such wild fluctuations but in 2018 & 2019 there was significant fire activity in the North State which drove significant increases to TOT. Followed by COVID in 2020 & 2021 and then the rebound after COVID. Adopted Budget Fisca) Year 2026 & 2027 The chart and graph below show the budgeted property tax forecast as adopted. Fisca)Year Budget %Increase FY2025 $7,279 FY2026 $7,570 4.00% FY2027 $7,873 4.00% FY 2028 $8,188 4.00% FY 2029 $8,515 4.00% FY 2030 $8,856 4.00% FY 2031 $9,210 4.00% The below is a graphical representation of the property tax forecast. ��o,aao ��,aoo �� ,aoo '�"' �a,000 ��,oaa ��,aoo _ �4,aoo �3,aao �z,oQo ��,000 _ s- FY 2025 �Y 2026 FY 2027 FY 202£3 FY 2029 FY 2(}30 FY 2031 Updated FY 2026 & 2027 Forecast & Sensitivity Thru November the actual revenue is $3,777,088 compared to a staff cash flow projection of $3,725,300. This shows that currently revenue is trending as anticipated.As outlined previously the long term growth assumption is 4%. This assumption has been used for over 15 years as part of the Genera) Fund 10-Year Plan Genera) Revenue growth assumption. Below are three potential scenarios for consideration. 14 Scenario 1 (Upside)— Scenario 1 presents an option of using the actual for FY 2025 and increasing it by 5%thereafter. This would be an upside scenario long term.This would increase risk while the historical average is 6.55%it is extremely volatile and has large swings up and down. Because of this wide swing it would be risky to use an assumption close to average for a long period of time. While the current year is exceeding forecast through November it does not mean that this will sustain for a long period of time. Fiscal Year Adopted Scenario 1 %Increase YoY $Change %Change Budget FY 2025 $ 7,279 $ 7,190 $ (89) FY 2026 $ 7,570 $ 7,550 5.00% $ (21) -0.27% FY 2027 $ 7,873 $ 7,927 5.00% $ 54 0.69% FY 2028 $ 8,188 $ 8,323 5.00% $ 135 1.65% FY 2029 $ 8,515 $ 8,739 5.00% $ 224 2.63% FY 2030 $ 8,856 $ 9,176 5.00% $ 320 3.62% FY 2031 $ 9,210 $ 9,635 5.00% $ 425 4.61% Scenario 2 (Middle)— Scenario 2 is the adopted budget amount. The actual results through November are in line with this activity. This utilizes a 4% long-term assumption as has been used for a long time within the long-term financial plans of the City.There is some positive reasons to believe this assumption in the short and long term could be viable as the City has a planned half Iron Man event, which should boost TOT in future years. While there is risk to this scenario as outlined below the consequences of a miss on this revenue are much smaller. A 95% accuracy plus or minus only means $364K whereas with Sales and Property Tax the ramifications were over$1.5 Million. Fiscal Year Adopted Scenario 2 %Increase YoY $Change %Change Budget FY 2025 $ 7,279 $ 7,279 $ - FY 2026 $ 7,570 $ 7,570 4.00% $ - 0.00% FY 2027 $ 7,873 $ 7,873 4.00% $ - 0.00% FY 2028 $ 8,188 $ 8,188 4.00% $ - 0.00% FY 2029 $ 8,515 $ 8,515 4.00% $ - 0.00% FY 2030 $ 8,856 $ 8,856 4.00% $ - 0.00% FY 2031 $ 9,210 $ 9,210 4.00% $ - 0.00% Scenario 3 (Downside)— Scenario 3 presents a flat from FY 2025 to FY 2026 and then lowers the long-term growth assumption to 3%. The current trends through November would suggest that this is an extremely conservative assumption for FY 2026. The lowering of the long-term assumption would be more than half the historical growth rate but as previously discussed this growth rate while high is highly unreliable because of the large fluctuations. Fiscal Year Adopted Scenario 3 %Increase YoY $Change %Change Budget FY 2025 $ 7,279 $ 7,190 $ (89) FY 2026 $ 7,570 $ 7,190 0.00% $ (380) -5.02% FY 2027 $ 7,873 $ 7,406 3.00% $ (467) -5.94% FY 2028 $ 8,188 $ 7,628 3.00% $ (560) -6.84% FY 2029 $ 8,515 $ 7,857 3.00% $ (659) -7.74% FY 2030 $ 8,856 $ 8,092 3.00% $ (764) -8.62% FY 2031 $ 9,210 $ 8,335 3.00% $ (875) -9.50% is Additional Information— Below is a table of a standard 5% up & down from Scenario 2. This gives Council a sense of the impact but this is importantly not compounded it is 5% measured by each year individually. As noted earlier this revenue is not as volatile and has a more predictable range of outcomes. Fiscal Year 5%Down Baseline 5%Up FY 2025 6,915 $ 7,279 7,643 FY 2026 7,192 $ 7,570 7,949 FY 2027 7,479 $ 7,873 8,267 FY 2028 7,778 $ 8,188 8,597 FY 2029 8,090 $ 8,515 8,941 FY 2030 8,413 $ 8,856 9,299 FY 2031 8,750 $ 9,210 9,671 The value of a 1% miss in any given individual year is approximately $75K. As illustrated in the chart 5% is $364,000 in the early years and $461,000 by year 6.This is an important reminder to Council that inherently the risk of missing the TOT projection by only 5%, which means the forecast would be 95% accurate could result in an additional or less revenue by $461,000. This is less impactful then the level of risk present in missing the Property Tax or Sales Tax projection. 16 C � T Y � F � �ar� �� bis &, ��he�r Ta� Rever��e C A L I F Q R N 1 dk' � Background & Information Cannabis Tax was approved by the voters in 2018. It is codified under Redding Municipal Code section 4.10.This sets the rates and ranges of rates for the different approved Cannabis uses within the City. This tax is collected by the City Finance Division in coordination with the Treasurer's Division. In March of 2025 Council approved an increase to the Cannabis Tax rates on the different types of approved activities. Other Taxes includes Business Licenses, Franchise Taxes, and Real Property Taxes. These are collected through a variety of different forms and currently the City receives approximately$2.5 Million per year from all of these sources. Actua) Cannabis Tax Results Fisca) Year 2015 thru 2025 Actual results and % increase/(decrease) are listed below. The Fiscal Year 2025 number was not known during the budget development process for FY 2026 & 2027. Fiscal Year Other Taxes %Change Cannabis Taxes %Change FY 2020 2,426 797 FY 2021 2,610 7.58% 1,961 146.05% FY 2022 2,747 5.25% 2,197 12.03% FY 2023 2,678 -2.51% 1,809 -17.66% FY 2024 2,600 -2.91% 1,630 -9.89% FY 2025 2,486 -4.38% 1,504 -7.73% Below is a chart showing the actual Cannabis Tax & Other results in dollars year over year. i� 3,OQQ 2,500 ��i 2,Q00 i 1,SOC9 1,000 500 ' FY 202Q �Y 2021 FY 2022 FY 2023 FY 20?4 FY 2025 .--- Other Taxes �annabis Taxes Below is a chart showing the change year over year as a percentage. a�a.00�;�a i z�o.�ap�a '; a�o.oan.�o _ ; izo.00�i� i 1QQ.OQ% '.', ��.d�}�fo ..... ._. . ..... ..... ..... ..... ..... ..... ..... _... ..... ..... .'.; �d.�}�°lo ..... ..... ...... .... .... .... .... .... ...... ...... ...... .... .... 40.00°!m 20.CPCP°fa _ 0.00°fp ; -20.C}0°!�, FY 2021 FY 2022 2Q23 _ _ 25 '; _4d.OQ�f Other Taxes Cannabis Taxes Adopted Budget Fisca) Year 2026 & 2027 Cannabis was increased to reflect the increases to the Cannabis Tax rates approved by Council on March 4, 2025. The new tax rates increased as follows: • Square Footage on Cultivation - $3 per square foot -> $5 per square foot. Representing a 67% increase of cultivation revenue. • Cannabis Retail—5%of gross retail sales-> 6%of gross retail sales. Representing a 20%increase of retail revenue. is • Other Commercial —3% of other commercial cannabis sales -> 4% of other commercial cannabis sales. Representing a 25% increase of other commercial revenue. Cultivation makes up 20.39% of the total cannabis tax revenue. Retail Cannabis tax revenue makes up 79.07% of the total cannabis tax revenue. Commercial makes up .54% of the total cannabis tax revenue. Staff used these increases to estimate the impact to the tax revenues. It is important to note that this was based on historical averages of revenue performance and growing by this impact. The chart and graph below show the budgeted cannabis and other tax forecast as adopted. Fiscal Year OtherTaxes %Change CannabisTaxes %Change FY 2025 $ 2,600 $ 1,504 FY 2026 $ 2,750 5.77% $ 1,939 28.92% FY 2027 $ 2,750 0.00% $ 2,016 3.97% FY 202$ $ 2,860 4.00% $ 2,097 4.00% FY 2029 $ 2,974 4.00% $ 2,181 4.00% FY 2030 $ 3,093 4.00% $ 2,268 4.00% FY 2031 $ 3,217 4.00% $ 2,358 4.00% The below is a graphical representation of the cannabis and other tax forecast. ��,soa � ��,oaa s�� ,�oo ; Sz,00a _ ; Sz,�oo �i,o�o ��oo S- FY 2025 FY 2026 FY 2027 FY 2028 FY 2f�29 FY 2030 FY 2Q31 Other Taxes Cannabis Taxes Updated FY 2026 & 2027 Forecast & Sensitivity These revenue sources have underperformed relative to expectations thru the first five months but this is somewhat due to the implementation of the Cannabis Tax increase. While Cannabis Tax has seen steady decreases the increases to the tax rate were forecasted to increase revenue based on the prior year performance. Staff is presenting three scenarios for consideration. 19 Cannabis Tax thru November is$714,235 compared to a projection of$807,830 or 11.6% below projection. It is important to note that this only includes one quarter of the increased tax revenue. Other Taxes thru November received is $708,483 compared to a projection of$1,145,835 or 38.17% below projection. This is largely due to one of the Franchise fees that is not paid until the last quarter being spread evenly.This revenue still has some slight downward trends presented in the data thru November but some will be cleared up by fiscal year end. Scenario 1 (Higher)- This scenario shows the adopted budget amounts for FY 2026 and thereafter. Fiscal Year Adopted Scenario 1 %Increase YoY $Change %Change Budget FY 2025 $ 4,104 $ 4,104 $ - FY 2026 $ 4,689 $ 4,689 14.25% $ - 0.00% FY 2027 $ 4,766 $ 4,766 1.64% $ - 0.00% FY 2028 $ 4,957 $ 4,957 4.00% $ - 0.00% FY 2029 $ 5,155 $ 5,155 4.00% $ - 0.00% FY 2030 $ 5,361 $ 5,361 4.00% $ - 0.00% FY 2031 $ 5,576 $ 5,576 4.00% $ - 0.00% Scenario 2 (Middle)— This scenario provides a more modest growth from FY 2025 to FY 2026. This would try to account for some of the downward trends present in Other Taxes, while acknowledging there is some growth potential present in Cannabis Taxes due to the increases in rates adopted by Council in March of 2025. Fiscal Year Adopted Scenario 2 %Increase YoY $Change %Change Budget FY 2025 $ 4,104 $ 4,104 $ - FY 2026 $ 4,689 $ 4,254 3.66% $ (435) -9.27% FY 2027 $ 4,766 $ 4,425 4.00% $ (341) -7.16% FY 2028 $ 4,957 $ 4,602 4.00% $ (355) -7.16% FY 2029 $ 5,155 $ 4,786 4.00% $ (369) -7.16% FY 2030 $ 5,361 $ 4,977 4.00% $ (384) -7.16% FY 2031 $ 5,576 $ 5,176 4.00% $ (399) -7.16% Scenario 3 (tower)— This scenario presented a downside where in FY 2026 there is no upside realized from the changes approved by Council, where Cannabis and Other Taxes come in at the same level of FY 2025. Fiscal Year Adopted Scenario 3 %Increase YoY $Change %Change Budget FY 2025 $ 4,104 $ 4,104 $ - FY 2026 $ 4,689 $ 4,104 0.00% $ (585) -12.48% FY 2027 $ 4,766 $ 4,268 4.00% $ (498) -10.45% FY 2028 $ 4,957 $ 4,439 4.00% $ (518) -10.45% FY 2029 $ 5,155 $ 4,616 4.00% $ (538) -10.45% FY 2030 $ 5,361 $ 4,801 4.00% $ (560) -10.45% FY 2031 $ 5,576 $ 4,993 4.00% $ (582) -10.45% 20 Additional Information— Below is a table of a standard 5% up & down from Scenario 1. This gives Council a sense of the impact but this is importantly not compounded it is 5% measured by each year individually. As noted earlier this revenue is not as volatile and has a more predictable range of outcomes. Fiscal Year 5%Down Baseline 5%Up FY 2025 3,899 $ 4,104 4,309 FY 2026 4,455 $ 4,689 4,923 FY 2027 4,528 $ 4,766 5,004 FY 2028 4,709 $ 4,957 5,204 FY 2029 4,897 $ 5,155 5,413 FY 2030 5,093 $ 5,361 S,629 FY 2031 5,297 $ 5,576 5,854 The value of a 1% miss in any given individual year is approximately $41K. As illustrated in the chart 5% is $205,000 in the early years and $279,000 by year 6.This is an important reminder to Council that inherently the risk of missing the Cannabis & other tax projection. Doing so by only 5%, which means the forecast would be 95% accurate could result in an additional or less revenue by$205,000. z� C I T Y � F :� In�ernal C�e�artnnen�s & ,. IN . C ,A L I F Q R N I".'dk" �� '��' �GYG � �G Background & Information The internal departments and transfers revenue includes a variety of different revenue sources. This includes: • Cost Allocation Plan revenues • National Pollutant Discharge Elimination System (NPDES) allocation revenues • Public Works Administration allocation revenues • Payment In-�ieu of Taxes (PILOT) revenue • Gas tax transfers • Utility road impact transfers • Transfer from Airport for partial Fire support reimbursement • Transfer for dedicated public safety funds • Transfers out for Rolling Stock and equipment replacement • Transfer out for Library • Transfer out for Visit Redding and Convention Center • Transfer out for Parking • Repayment of advances. The amounts outlined in this dashboard are denoted in thousands. Cost Allocation Plan The cost allocation plan revenue is a revenue that is received in the general fund for services provided across the entire City operations for the general government operations which are housed within the General Fund. The way the allocation process works is dependent by department and is similar to an internal service fund allocation, however,the charges that would impact the General Fund are not charged as to not create a circular cash movement within the General Fund. General Government is composed of City Manger, City Clerk, City Attorney, Finance, City Treasurer, Purchasing, and Personnel. Each of these departments has different measurements utilized to derive the cost allocation breakdown. Please see the individual department dashboard for more specifics on methodology and amounts measured. The cost allocation plan looks back in order to set the future allocation amounts for both expenditure level and allocation methodology.This revenue is derived through a complex detailed calculation done by the Financial Services Department. Below is a breakdown of the Cost Allocation Plan Revenues. zz Actual Revenues: Fiscal Year Actual FY 2021 3,716 FY 2022 3,649 FY 2023 3,758 FY 2024 4,037 FY 2025 4,152 Budgeted Revenues: Fiscal Year Budget FY 2026 4,463 FY 2027 4,597 Nationa) Pollutant Discharge Elimination System (NPDES) Allocation The NPDES revenue is collected to reimburse the Public Works' Engineering Division for the impacts of the required monitoring across a variety of City departments. This is a permit and monitoring program that was created by the Clean Water Act to regulate pollutants into U.S. waters.The engineering department obtains the permits and performs the monitoring in a centralized place for all of thea ctivities that require the functionality. This reimburses the Engineering department within the General Fund for the budgeted expenses. Actual Revenues: Fiscal Year Actual FY 2021 405 FY 2022 450 FY 2023 466 FY 2024 517 FY 2025 543 Budgeted Revenues: Fiscal Year Budget FY 2026 592 FY 2027 612 Public Works Administration Allocation Revenues The Public Works' Engineering Division recieves revenue from the Enterprise Funds (Water, Waste Water, Solid Waste, Storm Drain, ET/USA) within Public Works as a whole and the Public Works — Streets and Fleet Departments. In general, the Public Works Administration allocation is intended to simplify management's direct charges to the Enterprise Funds within Public Works that are overseen by the Director of Public Works/City Engineer. 23 Actual Revenues: Fiscal Year Actual FY 2021 766 FY 2022 891 FY 2023 833 FY 2024 1,009 FY 2025 904 Budgeted Revenues: Fiscal Year Budget FY 2026 756 FY 2027 794 Payment In-Lieu of Taxes (PI�OT) The General Fund receives a PI�OT payment from the Electric Utility Department. This revenue has been calculated by Finance for many years following effectively the same methodology updating for the assets held. This methodology aligns closely with the calculation of property taxes. Actual Revenues: Fiscal Year Actual FY 2021 6,098 FY 2022 5,464 FY 2023 6,247 FY 2024 7,271 FY 2025 6,614 Budgeted Revenues: Fiscal Year Budget FY 2026 5,997 FY 2027 6,894 Gas Tax Transfers The City of Redding receives multiple sources of gas taxes that are held in two different funds until they are expended and then transferred to the General Fund. The General Fund incurs all expenses for Streets Maintenance and Capital and then is reimbursed to the allowable amount from the Gas Taxes as appropriate through and internal transfer. The budgeted transfer is based on the budgeted expenses. This offsets the allowable costs that are budgeted within the department.The actual revenues will vary based on completion of the projects and actual expenditures incurred. Carryovers will increase gas tax transfers after the budget has been adopted to the amount of carryovers and ultimately the amount incurred as actual expenses. 24 Actual Revenues: Fiscal Year Actual FY 2021 4,635 FY 2022 8,281 FY 2023 9,689 FY 2024 9,737 FY 2025 8,028 Budgeted Revenues: Fisca)Year Budget FY 2026 10,086 FY 2027 10,151 Utility Road Impact Transfers The Water, Waste Water, and Solid Waste funds reimburse the General Gund for the impacts on the roadway facilities of the vehicles used by the different departments.These have been in place since the early 2000's and are updated during the development of every budget to reflect increases to costs realized. Actual Revenues: Fiscal Year Actua) FY 2021 1,199 FY 2022 1,282 FY 2023 1,303 FY 2024 1,414 FY 2025 1,462 Budgeted Revenues: Fiscal Year Budget FY 2026 1,510 FY 2027 1,560 Airport Transfer The Airport Fund transfers money to the General Fund to offset the cost of the Aircraft Rescue and Firefighting (ARFF).The General Fund employees three captains to serve as constant coverage for Redding Regional Airport to staff the ARFF capabilities for the Airport. This requires special training and equipment to perform the operations. The Airport transfer is analyzed during every budget to determine the amount that can be covered by the Airport Fund. The total cost of the captains incurred by the General Fund is approximately$864,400 Actual Revenues: zs Fiscal Year Actual FY 2021 225 FY 2022 235 FY 2023 245 FY 2024 250 FY 2025 250 Budgeted Revenues: Fiscal Year Budget FY 2026 250 FY 2027 250 Dedicated Public Safety Tax The City receives annually $272,520 from the County for the dedicated public safety tax that is paid to the County as part of the Sales Tax. This was approved in 1993 and the City has received the same amount since its inception. This money is received in a Special Revenue Fund and then transferred to the General Fund to cover the amount received within the General Fund Police and Fire expenses. Actual Revenues: Fiscal Year Actua) FY 2021 273 FY 2022 273 FY 2023 273 FY 2024 273 FY 2025 273 Budgeted Revenues: Fisca)Year Budget FY 2026 273 FY 2027 273 Rolling Stock & Equipment Replacement Transfers Out The City maintains a rolling stock and equipment replacement fund to help save money to mitigate the long term planning for major vehicle and equipment purchases. The money is budgeted as a transfer out of the General Fund based on a Rolling Stock or Equipment Replacement plan. Then Counci) Policy 416 and 422 allow for the administrative use of these funds at the time when purchases are necessary. When the funds are used there will be an appropriation transfer done to recognize a transfer in from the Rolling Stock or Equipment Replacement fund as appropriate and allow for the budget authority to purchase the item. z� Actual Rolling Stock Revenues: Fiscal Year Police Fire Streets Parks Recreation Dev Svcs FY 2021 (450) (193) (34) (20) (1) (4) FY 2022 (686) (700) (210) (20) (1) (16) FY 2023 (500) (750) (250) (10) (1) (16) FY 2024 (225) (225) (250) (250) (5) (50) FY 2025 (300) (350) (250) (100) (5) (25) Budget Rolling Stock Revenues: Fiscal Year Police Fire Streets Parks Recreation Dev Svcs FY 2026 (200) (200) (425) (55) (5) FY 2027 (200) (200) (425) (55) (5) Actual Equipment Replacement Revenues: Fiscal Year Police Fire Parks Recreation FY 2021 (22) (81) (15) FY 2022 (22) (305) (10) FY 2023 (22) (85) (5) FY 2024 (147) (235) (100) (10) FY 2025 (50) (235) (100) (10) Budget Equipment Replacement Revenues: Fiscal Year Police Fire Parks Recreation FY 2026 (50) (150) (55) (3) FY 2027 (50) (150) (55) (3) Library Transfers Out The City entered into a joint agreement for funding for the Redding Library. As part of that agreement the City acts as the fiduciary for the accounting and administrative work for the Redding, Burney, and Anderson Library. The Library Transfer Out is per the funding terms of the agreement with Shasta County for the Redding Library. Actual Library Transfers Out: Fiscal Year Actual FY 2021 (893) FY 2022 (937) FY 2023 (965) FY 2024 (994) FY 2025 (1,024) z� Budget Library Transfers Out: Fisca)Year Budget FY 2026 (1,055) FY 2027 (1,086) Convention Center & Visit Redding Transfers Out The City has routinely paid the Visit Redding contract from the Convention Center fund since it moved to a contract as opposed to City operations. This is because prior to this this fund is where the employees worked who did this work.The General Fund provides a transfer for the contract with Visit Redding and any Convention Center expenses that cannot be covered by the rents received from Advance Redding. Actual Convention Center &Visit Redding Transfer Out: Fiscal Year Actual FY 2021 (818) FY 2022 (918) FY 2023 (1,380) FY 2024 (1,038) FY 2025 (925) Budgeted Convention Center&Visit Redding Transfer Out: Fiscal Year Budget FY 2026 (750) FY 2027 (756) Parking Transfer Out The City General Fund could have to cover any shortfalls for the Parking fund.This means that if expenses exceed revenues and there is no available cash balance at the end of the year there must be money transferred from the General Fund to cover the shortfall. From 2020 to 2025 there were no transfers necessary due to available cash. The budgeted transfer for Parking is $38,310. Repayment of Advances The City General Fund has two outstanding internal loans with Redding Electric Utility (REU). The first is the repayment of the Soccer Park Turf Loan. This loan was set to begin being repaid when Shasta Regional Soccer Association (SRSA) began making their monthly rent payments to the City. Those funds are now being received and have been repaid since FY 2024. The other loan is the radio loan from REU to Police. This loan has had one payment made and during the January 23, 2025 budget workshop it was decided to postpone loan repayments until FY 2028. The General Fund 10-Year Plan currently accounts for the repayments to begin in FY 2028. zs Actual Repayments of Advances: Fiscal Year Actual FY 2021 FY 2022 FY 2023 FY 2024 (533) FY 2025 (72) Budgeted Repayments of Advances: Fiscal Year Budget FY 2026 (72) FY 2027 (72) 29 C I T Y O F REDDIN� r P� �Iic ��f�t� R�v�r� �e C A L I F Q �.�R N I=-zk"" �� Background & Information This dashboard presents Police and Fire revenues as a combined Public Safety category, while maintaining separation from other General Fund revenue sources. Public Safety revenues are derived from a variety of departmental activities, including fines and fees, permits, reimbursements, and miscellaneous sources. The categories outlined below provide additional detail on the primary sources and characteristics of Police and Fire revenues reflected in the dashboard. Fines & Fees Fines & Fees revenues are generated primarily from the Police department and include revenues related to fingerprinting fees, massage parlor fees, cardroom fees, pawn fees, concealed weapon fees, report fees, inspection fees, repossession release fees and proof of correction fees. Fines that can be assessed for the following: towing cost recovery, red light camera violations, vehicle code violtions, traffic violations and VCF violations. Red Light Camera fines directly fund the cost of one Officer that is dedicated to the program.The Fire department collects plan check fees, permit fees and inspection fees. Actual results and % increase/(decrease) are listed below for safety fines &fees over the last 5 years. Fiscal Year Actual % Increase FY 2021 2,700,914.59 FY 2022 2,813,917.44 4.02% FY 2023 1,775,994.00 -58.44% FY 2024 1,209,848.00 -46.79% FY 2025 1,456,386.06 16.93% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. Budget for this category is lower than actuals particulary due to not budgeting for the Red Light Camera program at the time of budget. Other fines and fees in the fire department are also not budgeted at the time of budget. Fiscal Year Budget % Increase FY 2025 738,600.00 FY 2026 758,520.00 2.63% FY 2027 770,740.00 1.59% Contributions & Reimbursements Contributions & Reimbursements — Police and Fire have various contributions and reimbursements primarily including school contributions for School Resource Officers and DUI reimbursements. 30 Actual results and % increase/(decrease) are listed below for all safety contribution/reimbursement revenue over the last 5 years. The increase from FY 2023 through FY 2025 is due to the reimbursement of Fire overtime from state agencies. This revenue is not budgeted, therefore budgeted revenue appears lower than acutal for this cateogry. Fiscal Year Actual %Increase FY 2021 672,091.96 FY 2022 863,062.24 28.41% FY 2023 638,690.00 -26.00% FY 2024 1,762,043.00 175.88% FY 2025 3,600,405.03 104.33% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. Budget increase between 2025 and 2026 is related to School Contribution revenue not being budgeted in 2025. This revenue is budgeted in 2026. Fiscal Year Budget % Increase FY 2025 410,530.00 FY 2026 1,327,760.00 223.43% FY 2027 1,350,150.00 1.69% Miscellaneous Miscellaneous Safety revenues include sale of property, loss & property damage, and miscellaneous revenue. Actual results and % increase/(decrease) are listed below for miscellaneous safety revenue over the last 5 years. Fisca)Year Actual %Increase FY 2021 309,227.58 FY 2022 376,985.46 17.97% FY 2023 442,836.00 14.87% FY 2024 244,485.00 -81.13% FY 2025 253,330.23 3.49% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases.The budget below represents budget only for miscellaneous revenue, which presented a drop in actuals in previous years. The table above includes actuals from sale of property, loss & property damage, and sale of rolling stock—which are not budgeted revenues. Fiscal Year Budget % Increase FY 2025 150,000.00 FY 2026 133,500.00 -12.36% FY 2027 133,500.00 0.00% 3] Bad Debt Bad Debt—Some revenues are uncollectible and therefore written off as bad debt. Actual results and % increase/(decrease) are listed below for safety bad-debt over the last 5 years. Fiscal Year Actual %Increase FY 2021 (13,761.79) FY 2022 (119,551.25) 88.49% FY 2023 (99,480.00) -20.18% FY 2024 (38,899.00) -155.74% FY 2025 (99,629.43) 60.96% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. Fisca)Year Budget %Increase FY 2025 (55,000.00) FY 2026 (55,000.00) 0.00% FY 2027 (55,000.00) 0.00% Grant Shown below is Safety related grants over the last five years. General Fund Grants are now recorded in a separate fund and not in the General Fund.The tables below represent the SAFER grant,which originated in the General fund, and therefore has been kept there since its inception. in the General Fund due to.... All other General Fund grants, are recored in the General Fund Grants Fund. Actual results and % increase/(decrease) are listed below for safety bad-debt over the last 5 years. Fisca)Year Actual %Increase FY 2021 - FY 2022 51,800.00 #DIV/0! FY 2023 S,687,998.00 10880.69% FY 2024 341,395.00 -94.00% FY 2025 6,684.00 -98.04% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. Fisca)Year Budget % Increase FY 2025 FY 2026 2,066,720.00 #DIV/0! FY 2027 860,330.00 -58.37% 32 C I T Y O F r REDDIN� [��vel�►�r��nt .�ervices Rever� ue C A L I F Q R N I-dk � Background & Information The major revenues generated in the Development Services Department come primarily from permits,fees and fines across the Permit Center, Building, Planning and Code Enforcement Divisions. Development Services revenues, specifically permits, fees, cannabis-related revenues, and code enforcement fines, are directly tied to departmental expenditures. As service levels increase or decrease, departmental revenues are impacted accordingly. Net Development Services Budgeted Subsidy with General Fund —Fiscal Year 2026-$1,335,203 This is the amount of costs that are budgeted that are not being recovered through fee revenues. Not all this cost can be recovered because the Planning Division and Code Enforcement Division routinely do work for general government purposes that cannot be charged to a customer. This is explained in more detail in those division's dashboards. Staff estimates that $200,000-$300,000 is not recoverable, meaning the maximum level of savings to the General Fund would likely be around $1,000,000. This level of savings to the General Fund could occur through decreases in expenses and/or increasing revenues through cost recovery. This amount has been analyzed with all four Development Services divisions combined due to the nature of revenues and expenditures recorded across divisions. Permit Revenue Permit revenue across all Development Services Divisions comprises fees generated from building, electrical, plumbing, mechanical, transportation, engineering encroachment, and planning permits, in addition to plan check fees. Actual results and % increase/(decrease) are listed below for all permit revenue over the last 5 years. Fiscal Year Actual % Increase FY 2021 2,987,896.55 FY 2022 2,875,623.78 -3.90% FY 2023 3,059,281.00 6.00% FY 2024 2,639,734.00 -15.89% FY 2025 3,126,189.89 15.56% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. The increase from FY 2025 to 2026 is equivalent to a 10% increase in building permit fee structure based on Council direction at the March 13t" budget workshop.Additional increase to this revenue catetory is $100,000 for Engingeering Encroachment Permits, which was budgeted at $0 in FY 2025. 33 Fisca) Year Budget % Increase FY 2025 3,022,850.00 FY 2026 3,425,130.00 11.74% FY 2027 3,591,380.00 4.63% Fee Revenue Fee revenue is received within both the Building and Planning Divisions. In the Building Division, fee revenue is derived from building plan-recording services. In the Planning Division, fee revenue is generated from land use and zoning activities, as well as short-term rental planning services. Actual results and % increase/(decrease) are listed below for all cee revenue over the last 5 years. Fiscal Year Actual % Increase FY 2021 382,901.63 FY 2022 552,068.11 30.64% FY 2023 625,538.00 11.75% FY 2024 475,157.00 -31.65% FY 2025 501,433.00 5.24% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. The increase from FY 2025 to 2026 is equivalent to a 10%o increase in planning fee structure based on Council direction at the March 13t" budget workshop. The revenues impacted by this 10% increase include Land Use & Zoning Fees and Building Plan Recording Fees. Additional revenue in this category includes Short Term Rental Planning fees,which was not increased in FY 2026 but rather decreased $100,000 from FY 2025 due to historical trends. Fiscal Year Budget %Increase FY 2025 511,010.00 FY 2026 417,110.00 -22.51% FY 2027 437,970.00 4.76% Cannabis Permit Fees Cannabis permit revenue is recorded in the Code Enforcement Division and generated from the issuance of permits related to commercial and residential cannabis permits. Actual results and % increase/(decrease) are listed below for all cannabis permit revenue over the last 5 years. Fiscal Year Actual % Increase FY 2021 495,057.30 FY 2022 545,863.50 9.31% FY 2023 770,570.00 29.16% FY 2024 819,558.00 5.98% FY 2025 859,250.50 4.62% 34 The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. Cannabis Permit revenue was increased to $800,000 based on prior year actuals as this revenue has surpassed $700,000 since FY 2023. Revenue was budgeted lower than FY 2025 to be conservative. Fiscal Year Budget % Increase FY 2025 458,600.00 FY 2026 800,000.00 42.68% FY 2027 800,000.00 0.00% Code Enforcement Fines Code Enforcement Fine revenue is recorded in the Code Enforcement Division and is generated from fines related to enforcement of Code violations across the city.Additionally, code enforcement fine revenue includes fines specifically related to cannabis code violations. Included in this category is bad-debt write offs, which reduce revenue if the fine is uncollectible. Actual results and % increase/(decrease) are listed below for all code enforcement fine revenue over the last 5 years. Fiscal Year Actual % Increase FY 2021 180,802.48 FY 2022 197,998.27 9.51% FY 2023 407,150.00 105.63% FY 2024 382,314.00 -6.10% FY 2025 182,121.30 -52.36% Budgeted amounts are listed below: The FY 2026 Budget was set by analyzing the code enforcement fine revenue net of uncollectible and uncollected fines. Fiscal Year Budget % Increase FY 2025 124,000.00 FY 2026 14S,600.00 17.42% FY 2027 153,630.00 5.52% Miscellaneous/Other Miscellaneous/other revenue includes sale of property, rolling stock or publications & maps. Additionally, this category includes a technology surcharge. Grant revenue is also included in here, which corresponds to a spike in historical revenue in FY 2024 and 2025, with no grant revenue budgeted in 2026 or 2027. Actual results and % increase/(decrease} are listed below for all miscellaneous/other revenue over the last 5 years. 35 Fiscal Year Actual %Increase FY 2021 238,179.84 FY 2022 284,256.64 16.21% FY 2023 283,331.00 -0.33% FY 2024 796,823.00 64.44% FY 2025 679,265.10 -17.31% The table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over- year percentage increases. Fiscal Year Budget % Increase FY 2025 216,760.00 FY 2026 275,360.00 21.28% FY 2027 287,280.00 4.15% Subdivisions — Planning Permits Actual results and % increase/(decrease} are listed below for all miscellaneous/other revenue over the last 5 years. Fiscal Year Actua) %Increase FY 2021 102,714.02 FY 2022 36,671.40 -64.30% FY 2023 - -100.00% FY 2024 (7,724.00) #DIV/0! FY 2025 16,679.40 -315.94% The table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over- year percentage increases. Fiscal Year Budget % Increase FY 2025 FY 2026 100,000.00 #DIV/0! FY 2027 100,000.00 0.00% 36 C I T Y O F : REDDIN� �c�mm �ni�y S�rvic�s Rev�n �� C A L I F Q �R N I=-bk" � Background & Information The major revenues generated in the Community Service Department come from the Aquatic Center, Recreation Programs and the Redding Sports Park. Community Services revenues, specifically Aquatic Center revenues and Recreation fees, are directly tied to departmental expenditures. As service levels increase or decrease, departmental revenues are impacted accordingly. Aquatic Center Aquatic Center revenues include swim, admissions, concessions/sales and other miscellaneous revenues. Swim revenues are generated from fees related to swim lessons,swim teams, swim meets and lane rentals.Admission fees are for admission to the Aquatic Center. The cost of admission is between $5.00 and $7.00 based on age and weekday (Sun-Th) or weekend (F-S) admission. Concession/Sales revenues include merchandise and food concessions within the Aquatic Center. Miscellaneous revenues include other programs offered and aquatic facility rentals Actual results and % increase/(decrease) are listed below for all Aquatic Center revenues over the last 5 years. Fiscal Year Actual % Increase FY 2021 161,321.72 FY 2022 194,168.14 16.92% FY 2023 292,395.00 33.59% FY 2024 306,604.00 4.63% FY 2025 326,674.64 6.14% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. FY 2025 budget shows Aquatic Center and Recreation combined as they were one department prior to FY 2026 budget cycle. Fiscal Year Budget %Increase FY 2025 1,080,520.00 FY 2026 336,690.00 -220.92% FY 2027 348,520.00 3.39% 37 The Aquatic Center subsidy from the General Fund is shown below for FY2025 actuals, and FY 2026 and 2027 budget. This is the amount of costs that are not being recovered through fee revenues. Actual Fiscal Year Revenue Expense Subsidy FY 2025 326,674.64 389,425.23 62,750.59 Budget Fisca)Year Revenue Expense Subsidy FY 2026 336,690.00 603,580.00 266,890.00 FY 2027 348,520.00 603,590.00 255,070.00 Recreation Programs Recreation Program revenues include fees collected for youth programs, adult programs, other programs, and facility rentals.Youth program revenues include fees for youth and teen sports, day camps and after school care camps. These fees are imposed by Council Policy 806, which states that any youth class or program fee is set to target a 90% recovery of the direct costs associated with the program. Adult program revenues include fees for adult sports and fitness classes. Council Policy 806 states that adult fees are set to target a 105%recovery of the direct costs associated with the program. Direct costs are defined as materials, supplies, and part-time personnel costs required to conduct the specific class or program. Administration personnel, overhead costs and facilities are not included. Other program revenues include community event revenue, bridge lighting fee and Halloween event.The Recreation Division also receives revenue related to the rental of community facilities and parks, such as, Caldwell Recreation Center and Enterprise Park. Actual results and % increase/(decrease) are listed below for all recreation program revenues over the last 5 years. Fiscal Year Actual % Increase FY 2021 273,998.87 FY 2022 477,515.58 42.62% FY 2023 595,381.00 19.80% FY 2024 701,029.00 15.07% FY 2025 947,076.78 25.98% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. FY 2025 budget shows Aquatic Center and Recreation combined as they were one department prior to FY 2026 budget cycle. Fiscal Year Budget %Increase FY 2025 1,080,520.00 FY 2026 781,700.00 -38.23% FY 2027 780,710.00 -0.13% 38 The Recreation subsidy from the General Fund is shown below for FY2025 actuals, and FY 2026 and 2027 budget. This is the amount of costs that are not being recovered through fee revenues. Actual Fisca)Year Revenue Expense Subsidy FY 2025 944,237.88 2,393,303.15 1,449,065.27 Budget Fiscal Year Revenue Expense Subsidy FY 2026 781,700.00 2,230,560.00 1,448,860.00 FY 2027 780,710.00 2,377,480.00 1,596,770.00 Redding Sports Park Redding Sports Park generated revenues include Park Use Fees and Gate Entry Fees. Staff is currently working to open the restaurant and snack bar at the Redding Sports Park, which generate additional revenue. Actual results and % increase/(decrease) are listed below for Sports Park revenues over the last 5 years. Fiscal Year Actual % Increase _ ......__ .._.._..-- FY 2021 - FY 2022 - FY 2023 - FY 2024 - FY 2025 473,618.98 100.00% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. Sports park revenues equal expenses and therefore there is no general fund subsidy of this deparment. Fiscal Year Budget %Increase FY 2025 - FY 2026 871,680.00 100.00% FY 2027 888,980.00 1.95% The Redding Sports Park subsidy from the General Fund is shown below for FY2025 actuals, and FY 2026 and 2027 budget. This is the amount of costs that are not being recovered through fee revenues. Actual Fiscal Year Revenue Expense Subsidy FY 2025 473,368.98 348,592.71 (124,776.27) Budget Fiscal Year Revenue Expense Subsidy FY 2026 871,680.00 871,680.00 - FY 2027 888,980.00 888,980.00 - 39 Parks — Lease/Rentals The Parks Division receives some revenue from leases of City property for use, specifically for placement of cell towers and for the California Soccer Park. Cell tower revenue is typically used for miscellaneous capital improvements, or unforeseen maintenance and repairs within the Parks Division. Actual results and % increase/(decrease) are listed below for Parks lease/rental revenues over the last 5 years. Fiscal Year Actual % Increase FY 2021 70,119.39 FY 2022 77,103.02 9.06% FY 2023 99,144.00 22.23% FY 2024 155,119.00 36.09% FY 2025 175,741.11 11.73% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. Fiscal Year Budget %Increase FY 2025 107,520.00 FY 2026 176,270.00 39.00% FY 2027 179,260.00 1.67% 40 C I T Y O F � REDDIN� � isc�N� �e��s,/C��I�er� F��r�� u� C A L I F Q :�R N I'bk' � � Background & Information The following revenues summarized below represent General Fund revenue sources that do not fall within the other major revenue dashboards presented: Sales Tax, Property Tax, Other Taxes, Development Services, Community Services, Public Safety and Transfers. These revenues are generated from a variety of activities including investment earnings, fees, leases and rentals and other miscellaneous sources. The following categories provide additional detail below. I nvestment I ncome Investment income relates to interest earnings generated from investments held by the City. Shown below is only the General Fund and General Fund grants portion of investment income—as the Grants portion is allocated to the General Fund. Investment income is allocated to each fund, relative to their cash balance at the end of each month. Actual results and % increase/(decrease) are listed below for all investment revenue over the last 5 years. Investment rate of return over the last 5 years has gone from 0.78% in 2021 to 2.72%o in 2025—with a peak in return during FY 2024. Fiscal Year Actual % Increase FY 2021 130,094.44 FY 2022 102,248.78 -27.23% FY 2023 379,729.00 73.07% FY 2024 670,514.00 43.37% FY 2025 294,244.65 -127.88% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. Fiscal Year Budget % Increase FY 2025 125,210.00 FY 2026 100,000.00 -25.21% FY 2027 100,000.00 0.00% Lease/Renta) Revenue Lease and rental revenues include leases of the following: Rodeo Grounds, Carter House, Clover Creek, and the City Hall Coffee Kiosk. Rental revenue includes rental of the following: Council Chamber & Community Room, Property Rental, Diestelhorst, United Way building, CVB building and SHASCOM rent. Actual results and % increase/(decrease) are listed below for all lease/rental revenue across all General Fund departments over the last 5 years. Decrease in revenue from FY 2024 to FY 2025 is attributable to the loss in revenue from SHASCOM and Big League Dreams. 41 Fiscal Year Actual % Increase FY 2021 354,776.32 FY 2022 361,564.13 1.88% FY 2023 558,999.00 35.32% FY 2024 614,872.00 9.09% FY 2025 400,978.68 -53.34% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. Increase to budget in FY 2026 is attributable to the addition of CalFire rent. Fisca)Year Budget %Increase FY 2025 501,080.00 FY 2026 548,400.00 8.63% FY 2027 549,710.00 0.24% Fees Miscellaneous fees, that are unrelated to recreation, development services and safety fees include late fees, return check fees, animal shelter fees, copy fees and charter PEG fees. Actual results and % increase/(decrease) are listed below for all miscellaneous fee revenue across all General Fund departments over the last 5 years. Fiscal Year Actual % Increase FY 2021 249,723.69 FY 2022 1,699,185.32 85.30% FY 2023 1,895,231.00 10.34% FY 2024 1,909,301.00 0.74% FY 2025 1,967,207.05 2.94% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. FY 2026 revenues were forcasted relative to actuals at the time of budget as well as FY 2025 budget. This minor decrease accounts for a reduction to other fines &fees in the aniaml control division due to prior year actuals of zero revenue. Budgeted revenues are lower than actual revenues from FY 2025, which is attribuable to Charter PEG fees not being budgeted, as well as late fees and return check fees being higher than budgeted. Fiscal Year Budget % Increase FY 2025 1,756,000.00 FY 2026 1,742,000.00 -0.80% FY 2027 1,742,000.00 0.00% 42 Animal Licenses Animal License revenue is collected for the issuance of animal licenses by the Haven Humane Society and remitted to the City of Redding. Actual results and % increase/(decrease) are listed below for animal license revenue across all General Gund departments over the last 5 years. Fiscal Year Actual % Increase FY 2021 44,066.75 FY 2022 49,345.25 10.70% FY 2023 59,261.00 16.73% FY 2024 56,232.00 -5.39% FY 2025 49,912.00 -12.66% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. Fiscal Year Budget %Increase FY 2025 50,000.00 FY 2026 50,000.00 0.00% FY 2027 50,000.00 0.00% Bad Debt Bad Debt is related to any revenue that is written off and uncollectible Actual results and % increase/(decrease) are listed below for bad-debt across all General Fund departments over the last 5 years. Fiscal Year Budget %Increase FY 2025 (2,825.85) FY 2026 (31,773.97) 17.42% FY 2027 (19,145.00) 5.52% FY 2024 (23,116.00) 20.74% FY 2025 (30,869.92) 33.54% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. Fiscal Year Budget % Increase FY 2025 (20,300.00) FY 2026 (20,300.00) 0.00% FY 2027 (20,300.00) 0.00% 43 Public Works — �and Development Engineering land development revenue is pursuant to the requirements of Redding Municipal Codes (RMC) 16.12.070 & 17.74.050, and the most recent adopted Resolution 2025-048, which establish a fee deposit schedule intended to cover the City's costs incurred as a result of private land development projects. Revenue in this division is budgeted to match the expenses associated with completing development projects. As a result, the division has a net-zero impact on the General Fund. Budgeted revenue totals $630,000 for FY 2026 and $650,000 for FY 2025. Other Other Revenues include revenues related to business license reprints, animal citations, franchise revenue, court fines, state mandated programs, miscellaneous revenue, cal-card rebates, contributions and reimbursement for damages. Actual results and %o increase/(decrease) are listed below for other revenue across all General Fund departments over the last 5 years. Fiscal Year Actual %Increase FY 2021 661,533.81 FY 2022 692,189.71 4.63% FY 2023 1,098,618.00 58.72% FY 2024 1,504,772.00 36.97% FY 2025 1,008,184.42 -33.00% The following table presents the annual budget amounts for Fiscal Years 2025 through 2027, along with the year-over-year percentage increases. Fiscal Year Budget % Increase FY 2025 639,820.00 FY 2026 705,640.00 10.29% FY 2027 708,230.00 0.37% 44