Council adopts preliminary budget; members press staff for clearer financial reports

Redding City Council approved a preliminary general fund and internal service fund budget and received presentations on enterprise fund budgets for Redding Electric Utility, public works (water, wastewater, storm drain and solid waste) and the airport. Council members pressed finance staff to produce clearer actuals and the historic reports they said are needed to judge budget trade-offs.

City finance staff presented the preliminary general fund budget and a 10-year projection. The staff presentation said the recommended adjustments to revenue growth (reducing assumed revenue growth from 2.5% to 2.0% in the near years) and reductions to some police and capital spending produce a preliminary surplus of about $1.9 million in the first year and roughly $61,000 in the second year. Staff noted the city’s starting cash is estimated at about $9.0 million and warned that reserves dip in later years of the 10‑year forecast — hitting about 8.8% at the lowest point — and that projections are subject to change.

The staff presentation also said four police positions currently funded with American Rescue Plan Act (ARPA) money would not be funded by the general fund after the ARPA dollars are exhausted at the end of 2026, and staff recommended removing the ARPA-funded positions from the base budget starting Jan. 1, 2027. Staff also reported some capital purchases in the police and parks budgets were deferred or staggered to reduce near-term expenditures.

Why it matters: The preliminary budget sets the city’s spending plan that will be refined before the final adoption in June. Council members said they need detailed, timely actuals to make informed decisions about where to trim or preserve services.

Council debate and requests for data Council discussion focused less on the headline numbers than on whether council members and the public have access to sufficiently detailed actuals to evaluate the budget. One council member said they had specifically requested a single consolidated actuals report at an earlier meeting and instead received seven separate reports late the previous evening. That member said receiving fragmented reports less than 24 hours before a vote made it difficult to assess whether proposed reductions targeted the right places.

City Manager Greg Robinette and finance staff responded that the city recently replaced an older AS/400 financial system and the new system does not yet produce the same historic report in the same format. Robinette said staff will try to build the consolidated report in-house first; if they cannot reproduce it to the council’s satisfaction, the city may consider a consultant but would incur additional cost. Robinette said, “we are dedicated to continuing to improve financial reporting,” and asked for the council’s patience while staff work through the new systems and competing priorities such as audits and payroll.

Votes at a glance - Preliminary general fund and internal service fund budgets (preliminary adoption): Motion by Vice Mayor Littel to approve the preliminary draft general fund and internal service fund budgets as written; seconded (second speaker not identified in the audio). Outcome: passed unanimously. - Redding Electric Utility (REU) budget presentation: Motion to accept the presentation and encourage staff to continue in the same direction (mover: Council Member Resner); seconded. Outcome: passed unanimously. - Public Works enterprise funds budget presentation: Motion to accept the report and recommend staff continue on the presented path; seconded. Outcome: passed unanimously. - Airport budget presentation: Motion to accept and encourage staff to proceed with the presented budget direction; seconded. Outcome: passed (vote recorded as in favor; one council member absent for parts of the meeting).

Other enterprise-budget highlights presented to council - Redding Electric Utility: Director Michael Webb told the council REU is projecting retail sales growth driven by load growth (electric vehicles, new construction), rising power supply and wildfire mitigation costs, and significant capital investment to “catch up” on distribution system replacements. REU’s five-year plan assumes multi-year rate adjustments (the presentation referred to a 4% increase already in effect and a planned 5% forecast in later years) and a target days-of-cash range with a $25 million line of credit preserved for liquidity. Webb said there are no new REU positions requested in the FY26–27 budget and that the utility is focused on wildfire mitigation, distribution upgrades and readiness for future grid needs.

- Public Works enterprise funds (water, wastewater, storm drain, solid waste): The public works director presented proposed budgets that include multiple capital projects and some new positions tied to operations and regulatory compliance: one water‑system valve/hydrant maintenance position; three wastewater positions (including a lab technician and a lead worker) tied to the new pyrolysis/biochar system and laboratory needs; and an additional electrical technician in internal service funds to support SCADA/controls and cybersecurity at treatment facilities. Solid waste leaders said the commercial organic-waste program is taking longer to reach expected compliance and that reserves may be drawn down modestly while compliance ramps up.

- Airport: Airports Manager Andrew Solsvig presented a balanced airport budget that uses conservative revenue forecasts and identified capital priorities including a federally funded runway project and a $1.5 million parking-lot replacement the airport plans to finance with a 10‑year loan to be paid from parking revenues. Solsvig said staff will pursue fee adjustments (for parking, landing fees, tie-downs and fuel flow fees) and continue work on hangar and lease development as revenue opportunities. He said most runway work will be federally funded and the airport is seeking to minimize local fund exposure.

Next steps Staff will finalize the draft budget materials and aim to post the budget book and supporting reports before the final adoption hearing. Council will consider the final budget adoption in June; staff said they will continue to develop the consolidated actuals report requested by council and post available reports to the city website.

Ending Council members thanked staff across departments for the work of assembling the budget and the large capital program. Several members reiterated the request for clearer, consolidated actuals and a single agreed-to report format the council and public can use when evaluating the final budget in June.