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City of Chico presents conservative proposed 2025–26 budget as revenues flatten
Summary
City staff presented a cautious proposed fiscal 2025–26 budget on May 20, outlining flat projected revenues, growing pension and community services obligations, and limited new staff additions. Council directed staff to return with follow-ups during the budget process.
City Manager Mark Sorensen and Administrative Services Director Barbara Martin presented the city’s proposed fiscal 2025–26 budget, telling the City Council that overall revenues are expected to be nearly flat and the draft plan is intentionally conservative. The budget message describes a difficult revenue outlook driven primarily by slowed sales tax growth, rising benefits costs and the phaseout of temporary grants that had supported community services.
Martin said sales tax — the city’s largest single discretionary revenue stream — remains volatile and that consultant HDL’s most recent statewide data through December 2024 show about a 1% statewide decline for the current year; local projections include a decline in the Bradley-Burns tax from prior expectations. She said the draft budget shows a net change of roughly 0% for the general fund…
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