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City of Redwood City <br />Management’s Discussion and Analysis (Unaudited) (Continued) <br />For the Year Ended June 30, 2025 <br /> <br /> <br />12 <br />Governmental Activities <br /> <br />During the fiscal year ended June 30, 2025, net position in governmental activities increased by $13.1 million from the <br />prior fiscal year for an ending balance of $340.4 million. Major year-over-year changes include: <br /> <br /> Total revenues increased by $16.6 million, with gains driven primarily by increased investment earnings, which <br />were up $12.4 million. Charges for services, capital grants, and taxes were all down year-over-year, with those <br />reductions offset by increases in operating grants, particularly those related to public safety and general government. <br /> <br /> Charges for services decreased $642 thousand, with public safety revenues down significantly due to a reduction <br />in reimbursements from the State for wildfire-related events and a one-time payment related to fire services <br />provided to San Carlos from the prior fiscal year. Reductions in public safety revenues were largely offset by <br />increases in service charges related to public ways and facilities. <br /> <br /> Tax revenues decreased by $5.2 million, with $2.2 million of that amount being a reduction in property taxes. Sales <br />taxes were down $0.9 million year-over-year, with franchises ($2.0 million) and business license taxes ($0.7 <br />million) also down. <br /> <br /> Investment earnings were up $12.4 million year-over-year, which is the result of a more favorable interest rate <br />environment, the duration of the City’s investments, and an increased cash position. <br /> <br /> Operating expenses increased $6.3 million in fiscal year 2024-25 over fiscal year 2023-24. This increase was driven <br />by leisure, cultural, and information services as well as general government operations. The following table depicts <br />the expenses and program revenues (charges for services, operating grants and contributions, and capital grants and <br />contributions) for governmental activities for the fiscal year ended June 30, 2025. <br /> <br />(Amounts in thousands) Expenses Program <br />Revenues <br /> Net (Expense)/ <br />Revenue <br /> $ $ $ <br />General Government 26,035 20,404 (5,631) <br />Public Safety 114,939 13,601 (101,338) <br />Public Ways and Facilities 34,029 20,261 (13,768) <br />Community Development 15,517 17,100 1,583 <br />Culture and Leisure 43,762 5,520 (38,242) <br />General Revenues - 175,360 175,360 <br />Interest on long term debt 1,758 - (1,758) <br />Total 236,040 252,246 16,206 <br />7.C. - Page 44 of 269 <br />63