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Chico council adopts FY 2025-26 budget after narrow vote to staff Engine 1; council delays road work to cover initial cost

3654395 · June 3, 2025
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Summary

The City Council adopted the fiscal year 2025–26 budget and, in a 4-3 vote, approved funding to staff Fire Engine 1 with three full-time firefighter positions by delaying certain Measure H road projects; council directed staff to revisit funding for additional firefighter hires in November.

The Chico City Council adopted the City’s fiscal year 2025–26 proposed budget on June 3 after a contentious discussion about staffing a downtown fire engine and the trade-offs for capital road projects funded by Measure H.

Mark Sorensen, the city manager, told council that the city’s revenue projections and Measure H allocations left a gap relative to previous assumptions and presented several offset options for funding additional firefighters, including delaying portions of the Measure H-funded road rehabilitation plan. Sorensen said final fiscal-year actuals will be clearer in October; council was asked for direction at the June 3 meeting.

Following public comment — including several speakers representing the Chico Fire Fighters Local 2734 and residents who described past house fires in neighborhoods served by Station 1 — Councilmember Sean O’Brien moved to adopt the budget with a funding amendment (Option 2 from staff) to add three new firefighter full-time equivalents (FTEs) and associated promotions. Councilmember Dale Van Overbeck seconded. The motion directed that the cost be covered by delaying certain Measure H road projects; staff was asked to return in November with updated revenue and to revisit whether the city could add three more firefighter FTEs to reach the full staffing option.

The motion passed 4-3. Voting in favor were Councilmembers O’Brien and Van Overbeck, Vice Mayor Bennett and Mayor Reynolds; Councilmembers Goldstein, Hawley and Winslow voted no. Opponents said they were reluctant to delay road projects and wanted more analysis of long-term funding and competing capital needs; supporters said downtown fire response capacity was an urgent public-safety priority.

Staff and speakers quantified impacts for council. City staff said the 10-year pavement program had earlier assumed a $10 million annual Measure H contribution but the proposed budget reduced that nearer to $8 million in the current year because several revenue sources — notably sales tax — trailed earlier expectations. Fire representatives and union leadership described staffing shortages, high daily call volumes, and the operational consequences of a missing engine in the downtown district.

The council adopted the remainder of the budget as presented, with the amended direction to delay certain road projects to free up funds for three firefighter positions and to report back on whether additional hires could be funded later in the fiscal year. City staff said the Measure H-funded commitments will still support roughly $100 million of roadway work over the next three years even with the recommended delay in schedule.

What’s next: Staff will implement the budget and begin recruiting to fill the three new firefighter positions. The council asked staff to return in November with updated revenue and a plan for possible further hires and any adjustments to the Capital Improvement Program schedule.