Redding City Council Grapples with Major Funding Pressures

Redding, CA — At the February 17, 2026, Redding City Council meeting, two significant items dominated discussion around new or increased financial commitments: city support for the upcoming Ironman 70.3 triathlon and proposed multi-year rate increases for Redding Electric Utility (REU). In both cases, Councilmember Tenessa Audette emerged as the strongest advocate for fiscal restraint, repeatedly emphasizing that the council has a duty to protect taxpayers’ money during a time of structural budget deficits and reserve pressures.

Ironman 70.3 Northern California: $53,000 Annual City Contribution

Management Assistant Jason Jablisko presented an updated Memorandum of Understanding (MOU) outlining the city’s role in hosting the Ironman 70.3 event, set for August 2026 and expected to recur annually. After earlier council direction to reduce costs, departments absorbed most expenses internally, bringing the remaining city obligation down to $53,000 per year (covering additional police and fire staffing, shuttle services, resident notifications, and potential economic impact studies).

Staff initially recommended covering the amount from general fund reserves. Audette pushed back forcefully, arguing against using deficit-era reserves or general funds when the city faces ongoing shortfalls. She proposed redirecting the cost to the existing contract with Visit Redding / Redding Tourism Marketing Group, funded by Transient Occupancy Tax (TOT) dollars specifically earmarked for tourism promotion.

During the extended debate, Audette articulated her core concern clearly:

“I think this is more so an administration issue. Are we going to spend money we don't have, or are we going to creatively find the place where we can appropriately put funding towards it? … I think we should do it. I think it's obviously worthwhile. Unfortunately, because we've spent so much, we don't have money for the things that we want now, which is why fiscal responsibility is so important, and so because we didn't do the hard work before, we're going to have to start doing hard work now…”

She insisted the city should explore all alternatives—particularly negotiating with Visit Redding—rather than defaulting to reserves needed to help close the roughly $4 million structural gap.

After discussion on timing, expected revenue gains, and the need to signal strong support to Ironman, the council approved the MOU (4-1, Audette

 voted No) but deferred the final funding source. Staff was directed to return with multiple options, explicitly including Audette’s suggested tourism contract route.

Redding Electric Utility Rate Increases: 4.5% Annual Hikes for Four Years

REU Director Nick Settle reviewed positive second-quarter financials before requesting that the council set a public hearing to consider a 4.5% retail rate increase each year for 4 years, effective April 1, 2026. The hikes address surging power supply costs (projected ~$20 million annual increase by 2030), infrastructure debt service, regulatory mandates, wildfire mitigation, and inflation on materials (transformers +100%, trucks +75%).

The increases would raise an average residential bill by roughly $7–$8 per month initially, with enhanced discounts for income-qualified customers.

Audette again led the charge for fiscal accountability, criticizing the thin staff report and the lack of detailed breakdowns—particularly on personnel costs, which she said had risen sharply (to approximately $8.9 million in one recent budget cycle, after multiple MOUs and position growth). 

She questioned why Operations and Maintenance (O&M) costs appeared to be down while rates were proposed to rise, and pressed for full transparency on all cost escalators.

Audette argued strongly that the utility must demonstrate internal cost control before burdening ratepayers:

“Did you fix your own issues and drive down your own personnel costs before you came to us with this? … We work for the people… it is actually important that we talk about those things so that people can then give us feedback and say, actually what I wanted to know…”

She strongly suggested that the public hearing should be delayed until residents receive clear, side-by-side comparisons of capital, operations & maintenance, and especially, personnel (25% of the utility budget) increases, allowing meaningful public input. 

The council voted 4-1 (Audette voted no) to set the public hearing for March 3, 2026 (with public workshops on February 26). Still, Audette’s detailed objections underscored her principle: the city must show responsible stewardship before seeking additional revenue from citizens.

Audette’s Steadfast Stance on Fiscal Responsibility

Across both items, Councilmember Tenessa Audette consistently framed her position around one guiding duty: the council must act as careful stewards of citizens’ hard-earned money, especially amid deficits and rising costs for residents. Her pointed questions and insistence on exploring alternatives before new commitments highlighted a central tension: balancing community goals against limited resources and the need for rigorous fiscal discipline.

Redding Electric Utility (REU) will host two public workshops at Redding City Hall on Thursday, February 26, 2026, at noon and 5 p.m., to discuss proposed 4.5% annual residential rate hikes over four years, starting in April 2026. The Public Hearing/City Council Consideration will be on Monday, March 3, 2026. 

For up-to-date information on the proposed rate changes and public workshops: https://www.cityofredding.gov/government/departments/redding_electric_utility/rate_information/proposed_electric_utility_rate_changes.php