Gridley City Council reviews FY 2025–26 draft budget, flags shortfall and utility assistance options

Gridley City Council on June 2 reviewed a draft fiscal year 2025–26 budget that projects $23.6 million in total revenue and $25.2 million in total expenditures, leaving an apparent gap staff said is driven largely by fund consolidations and planned capital set‑asides.

The draft, presented by Finance Director Martin (presenter name given in meeting), lays out the general fund, special revenue funds and enterprise funds and details a number of one‑time and ongoing costs. “This is just a draft, and the plan for this to be approved at the council meeting,” Martin said, noting staff brought the document to solicit council questions before formal adoption.

Why it matters: The draft shows the city putting money into reserves for planned capital projects while the general fund faces year‑to‑year pressure from higher retirement obligations, insurance and service contracts. Council members pushed staff to clarify how the city will protect low‑income or medically vulnerable residents if federal or county assistance shrinks.

Key budget figures and drivers

- Total projected revenue (all funds): $23,600,000; total projected expenditures (all funds): $25,200,000. Staff noted the difference reflects transfers into reserve accounts and capital set‑asides rather than immediate cash outflows.

- General fund: staff described a roughly $303,100 decrease in general fund revenue compared with the most recent figures; revenues from licenses, permits and fees rose while property tax projections are effectively flat.

- Fund consolidation: planning and recreation funds formerly shown as Fund 495 and Fund 500 have been consolidated into Fund 010 (the general fund); that consolidation increases the general fund’s expense lines compared with prior presentation formats.

- Retirement and benefits: CalPERS unfunded actuarial liability contributions (UAL) and health…