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Chico City Council Puts Extra Funds Toward Debt, Approves Private Management Of Airport

You’d think that getting nearly $5 million to spend would be cause for celebration, but not if you’re nearly $8 million in the hole. That was essence of most of the discussions last night before the Chico City Council, where officials met to decide how to spend a windfall that was hard to imagine a year ago. 

Are we out of the woods yet just because we have this $4.8 million? Absolutely not! But are we headed in the right direction? Absolutely. - Chico City Manager Mark Orme

 “Are we out of the woods yet just because we have this $4.8 million?” Chico City Manager Mark Orme said at the meeting. “Absolutely not! But are we headed in the right direction? Absolutely.”

Without much prodding from Orme and his team, the council abided by the old saw of “if you’re in a hole, stop digging.” With the exception of granting $25,000 to the county to cover the cost of maintaining extended hours at the Chico branch of the Butte County Public Library, there was little discussion of any new initiatives or restoring programs and services hacked away during the post-housing bubble recession. 

Orme presented the council with three recommendations for the money, but each was aimed at the same goal, cutting internal deficits created in part by years of creative accounting.

“It’s just a question of which deficits we’re funding,” said Chico Mayor Mark Sorensen. “I mean, I look at all these things and they’re either internal funds that have been abused over the course of years that we’re trying to repair, and the same is true of virtually all of the other items — they are areas that have been let go further than they should have.”

After brief debate, the council adopted a motion devoting about four-fifths of the money to erasing red ink, with the remainder held in reserve for next year. Officials said they are now on course to retire the city’s debts in three or four years, about half the amount of time anticipated.

In other action, the council voted unanimously, over a few objections by airport commissioners, to farm out management of the municipal airport to a private company. Officials said outside expertise is needed to operate the airport well and comply with federal regulations. Citing industry changes and market challenges, doubts were raised as to whether commercial flights would ever return. The last passenger plane departed Dec. 2.

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