"Unfortunately, fireworks have gotten exceedingly expensive," said Robert Slusser, event coordinator for the Peninsula Celebration Association, the nonprofit that hosts the event.
Slusser said costs include materials, transportation and liability insurance, all of which have gotten pricier over the years.
"We've had to increase our budget by about 10 to 12 percent each year for the past five years just to maintain the same level of the fireworks show," Slusser said.
In the past, the cost of putting on the fireworks show has been more than $50,000, he said.
"Last year after the Fourth of July we told the City Council flat out we're not going to have the funds to do it," he said.
Despite the lack of fireworks, Slusser said he believes Redwood City residents will have just as much fun at this year's event.
For information about the parade and festival, visit this Web page.