The city of Chico is cautiously clawing its way back to financial health. Revenue is up, long-term debts are shrinking and the days of uncertainty and layoffs appear over.
Though prosperity may be a bit further than "just around the corner," a draft annual budget submitted to the City Council last night envisions paying off debts, beginning to restore financial reserves and even some hiring.
It’s a far cry from the situation less than two years ago when local gadflies foresaw insolvency and bankruptcy within months.
Under the conceptual framework, eight positions will return to the Community Development department as engineering and planning workloads increase with the improving economy. The department will still have 12 fewer staffers than it did three years ago.
The proposal, crafted by the city manager’s office, also envisions hiring six more police officers, bringing the department’s strength to 91 officers. The move would bring staffing close to the level in 2012 when the full weight of the 2008 Wall Street reached Chico’s municipal budget.
The proposal also sets aside funding for dozens of projects, including extending city sewer service, road rehab and new trails and preparing a down payment for eventually widening Highway 99 between Highway 32 and 20th street.
The City Council is expected to debate, amend and approve a finalized budget in June.
Also last night, officials approved a contract agreement with the city’s police union, raising salaries by 10 percent over the next three years and lifting starting pay for new hires by 5 percent over the same period.