Agda Pkt 2026.07.27 Joint SA PFA

Browse Search

City of Redwood City Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025 15 Intergovernmental revenues decreased by $0.5 million primarily due to a decrease in federal, state and county grants, which by nature will fluctuate annually. Charges for current services decreased by $0.7 million. This decrease was largely due to charges for fire services decreasing year-over-year due to timing issues with billing for services provided to San Carlos in fiscal year 2022-23 that were corrected in 2023-24. This decrease was partially offset with increases in recreation and planning service charges. General fund expenditures increased by $13.7 million over the prior fiscal year. Public safety ($5.1 million) and leisure, cultural and information services ($7.2 million) increased year-over-year. These increases were partially offset by a reduction in expenditures of $3.4 million in community development activities. Transfers out of the general fund increased by $12.0 million, to $28.5 million, in fiscal year 2024-25. Transportation Special Revenue Fund – This fund accounts for grant-related resources provided to fund transportation projects. In fiscal year 2024-25, this fund received a total of $5.6 million in revenue, with $4.8 million of that amount being grant-related. $4.2 million was expended on capital outlay. Capital Outlay Fund – This fund accounts for resources provided to finance general governmental capital projects. In fiscal year 2024-25, the capital outlay fund generated $1.6 million in revenue, which was almost entirely from investment income. This fund was also the recipient of transfers totaling $19.2 million from the general fund, which predominantly comes from utility users’ tax that has been allocated to support the City’s infrastructure. Transfers out of this fund totaled $1.4 million. Total expenditures were $25.8 million, of which $18.9 million met the criteria for capitalization. The remaining balance was expended on non-capitalized projects (capital-type projects that cost less than $100,000) to support various initiatives throughout the City, including $6.1 million on transportation and other public facility-related projects. Proprietary Funds Enterprise fund net position totaled $400.7 million at the end of the fiscal year, an increase of $19.5 million, or 5.1 percent, over the prior fiscal year’s restated balance of $381.2 million. Enterprise operating revenues were $116.1 million this fiscal year, an increase of $8.5 million over last fiscal year, while net non-operating revenues were $10.8 million compared to $4.5 million the prior fiscal year. The most significant non-operating revenue is net investment income. Enterprise fund operating expenses were $112.8 million this fiscal year, an increase of $13.1 million, or 13.1 percent, from the prior fiscal year. This was mainly due to increased spending on contractual services and supplies ($10.4 million), purchased water ($2.4 million), and employees ($2.3 million). Water Utility – The water utility fund realized operating income of $3.5 million in the current fiscal year, $0.2 million lower than the operating income of $3.7 million in the prior fiscal year. This slight decrease is the result of both operating revenues, which consist of service charges, and operating expenses increasing year-over-year, with operating expenses increasing at a higher rate. The most significant increase in operating expenses was due to the purchase of water. Sewer Utility – The sewer utility fund realized operating income of $1.1 million in the current fiscal year, $3.7 million lower than the operating income of $4.8 million in the prior fiscal year. Operating revenues and operating expenses were both up year-over-year, with the increase in contractual services driving the increase in operating expenses. 7.C. - Page 47 of 269 66