Agda Pkt 2026.07.27 Joint SA PFA

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City of Redwood City Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025 16 Port Fund – The Port of Redwood City fund realized operating income of $2.5 million in the current fiscal year, $0.7 million lower than the operating income of $3.2 million in the prior fiscal year. This decrease in operating income is the result of increased expenses ($2.2 million) in comparison to fiscal year 2023-24. Increased maintenance services costs, up $1.7 million, was the primary driver of the year-over-year increase. GENERAL FUND BUDGETARY HIGHLIGHTS Overall, revenues were $18.1 million higher than budget primarily due to better-than-projected performance for investment income, charges for services, and other revenues. Property taxes were slightly below, $0.6 million, the budgeted amount of $83.3 million. Better-than-expected results in the Educational Revenue Augmentation Fund rebate and Property Tax in lieu of Vehicle License Fee revenues were offset by secured, unsecured, and former redevelopment agency taxes not meeting expectations. Overall, the variance in property tax revenue budget-to-actuals was minimal and reflected accurate projections. Sales taxes were below budgeted amounts by $0.6 million and reflected the continued slightly downward trend in taxable sales. Utility users taxes exceeded budget by $1.4 million, reflecting an increase in utility rates, and other taxes exceeded budgeted amounts by $0.5 million, primarily due to stronger than expected business license tax revenue. Licenses and permits exceeded budgeted amounts by $0.8 million, which was largely a function of fire permit revenues that were $0.5 million above expected amounts. Fines, forfeitures, and penalties finished the year slightly below budget at $0.38 million, and investment income was $4.0 million above budget, finishing at $6.2 million. The latter was the result of better-than-expected returns on the City’s investment portfolio attributable to the general fund, as well as a $2.4 million unrealized gain on investments. Intergovernmental revenue finished at $8.1 million, $2.0 million better than the final budgeted amount. This was predominantly the result of increased grant funding and program reimbursements. Charges for current services revenue was higher than budget by $7.5 million and was primarily due to better-then- expected amounts for planning and building services, fire services, and recreation services. Overall, operating expenditures were $0.2 million lower than the final budget appropriation. While there were budget- to-actual variances amongst the various operating departments, these variances were generally modest. Worth noting is that most departments slightly exceeded their final budget appropriations, with this overage being offset by a $3.1 million positive variance in general government activities. 7.C. - Page 48 of 269 67