REU’s proposed rate hike is off the table after a surprise announcement from the new city manager regarding the city’s finances.
At a press conference, city manager William Tarbox announced his plan to hire an external consulting firm to review all of the city’s operating expenses, identify duplicative processes and optimize efficiency through the implementation of modern technologies. Tarbox said the proposed review will ensure that costs are minimized before being passed on to the citizens of Redding. Tarbox said the public hearing for REU’s proposed rate increase, originally scheduled for March 17, will be canceled.
Flanked by four members of the Redding City Council, Tarbox announced the cancellation of REU’s public hearing in the council chambers last Friday, March 13.
“We made that decision for a straightforward reason: before asking our community to pay more, we must ensure that city hall is operating as efficiently as possible,” said Tarbox.
Tarbox said the rate increase as proposed is “off the table” at this time, but future proposals by REU will “be addressed at a later date.”
In a press release, REU director Nicholas Zettel said he is “hopeful (REU) can identify additional savings,” but maintained that increased costs due to wildfire mitigation efforts, aging infrastructure and regulatory requirements will likely require “some level of rate increase.”
The cancellation has yet to be confirmed by the council, which will vote on the matter at its March 17 meeting.
Tarbox then introduced his plan for a comprehensive review of all city departments, emphasizing that the people of Redding can expect transparency, action and accountability throughout the process.
According to a city staff report, the external review will be conducted by the consulting firm Circle 6. The firm has worked with clients that span the gamut from large companies like Heinz and Sony to government agencies such as the U.S. Army and U.S. Veteran’s Affairs, Circle 6 says on its website.
The staff report states that the city’s contract with Circle 6 will begin in “late March or early April,” and work will be completed no later than Sept. 30.
Also included in the staff report is a five-phase plan detailing the steps that will be taken to analyze city processes and implement changes.
In an interview with the Record Searchlight, Mayor Pro Tempore Erin Resner said she supports the initiative.
“This is an opportunity for us to say, ‘How we’ve done things in the past isn’t going to continue to work for the next 20, 30 years.’ So how do we continue to become a modern city and how do we best function while doing that in 2026?” said Resner.
Councilmember Jack Munns told the Record Searchlight he feels similarly, saying this review is something the city “needs.”
Munns did express concerns about the cost of hiring Circle 6, but believes the “pros outweigh the cons.”
The cost of the contract would be $300,000. About $235,000 would come from internal service funds, enterprise funds and special revenue funds, and about $65,000 would be sourced from general fund departments.
Vice Mayor Dr. Paul Dhanuka told the Record Searchlight he is in support of Tarbox’s proposal, saying there is a “structural problem” in Redding’s budget that needs to be fixed.
Dhanuka said he hopes to involve Redding’s financial advisory committee in the process. The committee was created by the council in January, and will comprise of two councilmembers and five community members appointed by the council. Committee members have not yet been selected by the council.
Resner emphasized that the review is not budget specific, but rather designed to evaluate efficiency “across all departments.”
All three councilmembers said city budget workshops would move forward throughout the review process, though Resner was “not sure that there will be any decisions made.”
Tarbox, Mayor Mike Littau and Councilmember Tenessa Audette were not able to be reached before deadline.
Drew Askeland covers Redding and Shasta County government issues, as well as anything else that needs reporting for the Record Searchlight and USA Today Network. Reach him at drew.askeland@redding.com or (530) 225-8247. Please subscribe today to support our newsroom’s commitment to public service journalism.
This article originally appeared on Redding Record Searchlight: Redding city manager halts utility rate hike, orders financial review
Reporting by Drew Askeland, Redding Record Searchlight / Redding Record Searchlight
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