Efficiency study is progressing, Redding officials say

The city of Redding’s efficiency study has been in progress for about a month, and it’s already identified hundreds of thousands of dollars that may be able to be moved to the city’s general fund to address budget woes.

So far, those funds have only been highlighted, using a set of qualifiers indicating that they may have the potential to be reallocated. Ongoing assessment is in progress.  

Interim Assistant City Manager and Public Works Director Michael Webb updated the Redding City Council last night on Circle 6 Consulting’s efficiency study progress. 

Circle 6 was hired in March at the request of new City Manager William Tarbox to help identify areas to cut costs and increase optimization. Tarbox told Shasta Scout in a recent interview that the study will likely be completed in September or October. Finance and audit committees will then review the results before the city may implement departmental reorganization.

During Webb’s presentation on Tuesday night, he explained that Circle 6 has identified between $300,000 to $500,000 in “aged encumbrances,” or older funding designations. While the funds still need to be assessed, he said, some may be able to be moved to augment the general fund reserves. About $250,000 worth of Capital Improvement Project funds may also be freed up for use if those projects are found to be “idle,” or not in use, he said. Evaluation of the funds that have been identified is expected to take less than 30 days.

News of possible funding reallocations to benefit the general fund comes as the city continues to face major budget shortfalls that threaten the city’s reserves. Tarbox did not answer questions about where current finances stand. 

Mayor Mike Littau told Shasta Scout after the meeting that the efficiency study update is a “good start.” He said the areas identified might be good one-time fixes but that ongoing cuts need to be identified to save more money in the general fund.

“I’m anxious to see some of the work done to help with our long-term needs,” he said.

Webb explained during Tuesday’s meeting that Circle 6 has conducted more than 70 interviews of city employees and residents, visited 10 city sites and reviewed more than 300 documents. The firm will continue to analyze areas for efficiency as it decides how to effectively implement changes, he said. 

“The first four weeks have shown that Redding has a credible path to regain control, create capacity, and improve long-term resilience,” Webb’s presentation read. “The opportunity now is to capture the quick wins while carefully evaluating, prioritizing, and sequencing the larger structural moves that can deliver the most durable impact.” 

After Webb’s presentation, Littau suggested the city create a website to update the public about the efficiency study’s progress and to increase transparency with Circle 6’s progress. Webb said he’s currently working with a communications team to achieve a similar goal. 

Do you have a correction to share? Email us: editor@shastascout.org.