Agda Pkt 2026.07.27 Joint SA PFA

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xvii In FY 2024-25 property tax in-lieu of vehicle license fee grew a modest $599,669 to $10.9 million. Meanwhile, ERAF grew by $572,148 to $11.7 million in FY 2024-25. Utility Users’ Tax Redwood City collects a voter-approved Utilities Users’ Tax (UUT) on gas, electricity, cable, and telecommunications services. UUT revenue accounts for 5.6 percent of total General Fund revenues. UUT revenue increased modestly from $11.3 million in FY 2023-24 to $11.8 million in FY 2024-25. Relevant Financial Policies In FY 2016-17, the City Council updated the General Fund reserve policy, which states the unreserved portion of the General Fund’s fund balance shall be 15 percent of anticipated General Fund revenues. With the FY 2019-20 Adopted Budget, the City Council approved a strategy to utilize 80 percent of the excess balance, above the 15 percent reserve threshold, to pay down the City’s unfunded liabilities, including pension and retiree health liabilities, and to use 20 percent as one-time funding towards the City Council’s priorities in the areas of housing, transportation, and children and youth. Funding long-term liabilities avoids shifting cost burdens to future generations for services already provided. The excess balance above the 15 percent reserve threshold is reported under the category “Unassigned Fund Balances.” The City Council has adopted a Debt Disclosure Policy and an Investment Policy. The City reviews these policies regularly and uses them to maintain sound fiscal practices. The City has also established cash management, accounting, budgetary, and risk management policies and practices that are essential to the City’s long-term fiscal health. Such policies provide the resources to react to financial needs in a prudent manner. These financial policies and practices also promote public confidence and increase the City’s credibility for bond rating agencies and potential investors. 7.C. - Page 29 of 269 48