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Page 1 of 8 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />DATE: July 27, 2026 <br />SUBJECT <br />Annual Comprehensive Financial Report (ACFR) for Fiscal Year (FY) ended June 30, 2025 <br />SUMMARY <br />The Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025 provides a <br />comprehensive overview of the City’s financial position and operating results. Prepared in accordance <br />with Governmental Accounting Standards Board (GASB) requirements and Government Finance Officers <br />Association (GFOA) guidelines, the ACFR reflects the City’s continued commitment to transparency and <br />high standards in financial reporting. The City has received the GFOA Certificate of Achievement for <br />Excellence in Financial Reporting for 37 consecutive years and anticipates receiving this recognition again <br />for FY 2024-25. <br />The City’s independent auditor, The Pun Group, issued an unmodified opinion on the financial statements, <br />indicating they are fairly presented in all material respects. The City’s net position totaled $741.2 million <br />as of June 30, 2025, representing an increase of $32.7 million (4.6 percent) from the prior year. General <br />Fund revenues increased by $6.5 million, driven primarily by growth in property taxes and other revenues, <br />while expenditures increased by $13.7 million, largely attributable to public safety and recreation-related <br />services. <br />The audit identified one significant deficiency related to delays in financial reporting and one material <br />weakness associated with internal controls over financial reporting. The City has already initiated <br />corrective actions, including staffing enhancements and strengthened year-end closing procedures, to <br />improve the timeliness and accuracy of financial reporting moving forward. <br />Overall, the ACFR demonstrates the City’s stable financial condition, adherence to sound fiscal practices, <br />and proactive efforts to address audit findings and enhance financial operations. <br />7.C. - Page 1 of 269 <br />20