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Chico Council approves one-time appropriations after midyear budget review; staff to monitor Engine 1 staffing costs
Summary
Council accepted a preliminary midyear financial report showing a modest available surplus and approved staff-recommended one-time appropriations for identified projects, while directing staff to monitor overtime costs tied to Fire Engine 1 staffing and return with audited figures.
The Chico City Council approved staff-recommended one-time appropriations after a midyear review of fiscal 2024–25 finances and debated how to balance infrastructure needs with public-safety staffing costs.
Barbara Martin, administrative services director, told the council the city ended fiscal 2024–25 with preliminary revenues of about $108,000,000 across the general and related funds and an ending cash balance of roughly $66,000,000—largely composed of rebudgets and designated reserves. After required set-asides and the Measure H and Fire Victims Trust designations, Martin said the portion of surplus available under city policy was about $4.3 million to $4.5 million. She listed proposed one-time uses in the staff report, including funding for alternative campsite security and staff work on red-light camera enforcement and municipal building remodels; the staff report included line-item requests to be appropriated if council approved the package.
Council members expressed competing priorities: several said they wanted to protect road maintenance and the North Cedar project, a grant-funded neighborhood infrastructure effort that serves student housing and disadvantaged residents; others said funding Engine 1 and public-safety capabilities is urgent. Martin noted Measure H revenues remain an important, constrained source for public-safety costs in coming years.
Chief Hack outlined options for staffing Engine 1. He said the council previously approved hiring three new firefighters and promotions that will enable Engine 1 staffing as of January 2026, with total initial costs for those positions presented as $516,000. An additional three “floater” positions to reduce overtime were estimated in the staff presentation at about $285,000 for the first six months and about $1.3 million on an ongoing basis. The chief recommended moving forward under the existing direction while monitoring overtime usage and returning with any recommended budget augmentations during the next budget cycle.
On a substitute motion to approve the staff-recommended one-time appropriations and defer decisions about the remaining surplus until audited numbers are available, the council voted in favor (roll-call recorded as 4–3). Council asked staff to bring back audited financials and any supplemental appropriation requests in January or February when closing the books.
The council also directed staff to prioritize timely advertisement of the North Cedar project so grant matching and construction can proceed if bids are favorable. Martin noted some proposed one-time projects are time sensitive and asked the council to act on those items now so staff can include them in supplemental appropriation paperwork after the audit.
Councilmember comments emphasized the trade-offs in one-time allocations and asked staff to present refined cost comparisons between adding permanent floater positions and relying on overtime before finalizing longer-term staffing choices. The council did not change budget policy tonight but authorized the specific appropriations in the staff packet and asked for more detailed follow-up once annual closes are complete.
