By Katy Sweeny
Chico Enterprise-Record
CHICO, Calif. — Police officers will lose jobs, nonprofit funding will be cut and road construction projects will be delayed if the Chico City Council approves the preliminary budget Tuesday afternoon with no adjustments.
City Manager Dave Burkland outlined potential budget cuts in a report to the City Council, but councilors will have the final say at Tuesday’s preliminary budget meeting.
Community organization funding will be addressed at 2 p.m., and the council will review library funding at 3 p.m. Afterward, the council may move to approve the preliminary budget with any adjustments.
As tax revenue drops, the city aims to reduce spending an additional 3 percent, amounting to 15-percent annual reductions equaling almost $7 million less in spending.
This is the second consecutive year of budget cuts.
“It’s the downturn in the economy affecting sales tax revenue, which is our biggest source of income,” said Jennifer Hennessy, city finance director who oversees the budget.
All city departments will be expected to make operating cost reductions of about 7 percent to 10 percent, as well as wait for replacement equipment, Hennessy said.
Ten police officers and four other police employees would be laid off during this and next fiscal year’s budget cuts under the staff recommendations to the council, Hennessy said.
Fire departments would continue to have one less person on call than they did two years ago. Unfilled department positions will remain open, while some jobs may be cut.
Departments will try to maintain the same level of service despite cuts, Hennessy said.
Library service would be cut from 25 hours funded by the city to 18, Hennessy said.
Community service programs such as ARC of Butte County, Catalyst Women’s Advocates and Legal Services of Northern California would receive less funding than last year and what they requested from the city.
“The nonprofit agencies rely traditionally on fundraising and government grants,” said Cris Carroll, city community development manager. “In an economic climate when people are hurting, not only does fundraising go down, but so does government funding.”
With budget deficits, the city will cut funds for groups in need, such as children, seniors and homeless people, Carroll said. Chico Cabaret and Friends of the Chico Community Ballet will also receive less money than this year as art organizations.
Although it’s difficult making cuts, Mayor Ann Schwab says the city will run smoothly with the proposed budget.
“We have to make the decision to fund public safety or something that is important but may not be essential for every citizen in Chico,” Schwab said.
Federal stimulus funds will also help pay for road projects, and a grant may fund five police officers’ pay, she said.
Schwab encouraged residents to attend the meeting.
“This is money that citizens have paid through taxes and we want to make sure we’re spending it the way the public wants us to spend it,” Schwab said.
Burkland’s report to the council showed that the city looks to recoup some revenue by recruiting an information technology call center, an international cosmetics manufacturer and an international frozen sushi manufacturer.
More cuts may be needed as the state has proposed taking local government monies to balance its budget, Hennessy said.
“There are definite clouds looming that could potentially make us have to cut more,” Hennessy said.
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