GRIDLEY, CA (MPG) – After a lengthy budget presentation at the June 2 City Council meeting, Gridley Finance Director Martin Pineda assured the council that the 2025-26 city budget is in good shape.

Some deficits will be offset by reserve funds as well as incoming grant money for the Gridley Sports Complex and the Highway 99 Rehabilitation project, according to Pineda.             

“I think we’re good. If this budget were passed today, I don’t think we would be in any kind of danger,” Pineda said. 

Pineda outlined the General Fund, Special Revenue Funds, Enterprise Funds and a summary of all the departments.

Revenue for the General Fund (that includes police, fire, and streets) increased by about $300,000, while expenses increased due to added staffing and rising contributions for California Public Employee Retirement System (CalPERS)/Unfunded Accrued Liability (UAL).               

Continuing with Special Revenue Funds, Pineda said that this included items such as the gas tax and the sports complex grant. 

“We expect to get $2.87 million from that,” Pineda said. 

The $300,000 needed for the Feather River Sewer Project will be reimbursed by a grant as well, according to the finance director.               

Enterprise Funds include electric, water, sewer, public works and transit. Utility rates will have a projected increase to $9.4 million, based on the usage study conducted in 2023, Pineda said. 

Councilman Angel Calderon raised concerns for the seniors and disabled who need assistance with utilities.

City Administrator Elisa Arteaga pointed out that there have been programs Gridley has utilized through the Community Action Agency (CAA). Aside from the Community Action Agency, the Public Benefit program listed as a portion of Gridley utility bills provides funding for community needs, such as utility bill assistance, energy-efficient air conditioners and refrigerators, and energy-use education.                

In summary, the total projected revenue for the coming year is $23.6 million, with total expenses projected at $25.2 million. The largest share of the expenses falls within the General Fund.

“It’s not so much a true deficit,” due to funds that are held in reserve, the finance director said. 

To simplify the information, Arteaga said, “Water is its own business. Sewer is its own business. Electric is its own business. Those are small micro-businesses. General Fund is everything else that does not touch water, electric and sewer.”

Some surplus funds are transferred to the General Fund.             

Councilman Calderon pointed out that some of the city departments went over budget. Arteaga responded by saying the software that the city uses precludes any department heads from making a purchase order that is over budget, without prior approval from the finance department.               

Councilwoman Catalina Sanchez suggested the Feather Flyer as a possible source of revenue. She also had questions about the animal shelter and money that could be saved there.               

Pineda said that the police budget has increased by $200,000 and the fire budget has increased by $550,000.               

In anticipation of the coming hot weather, there was discussion about adjusting the hours of operation for the Splash Pad at Vierra Park.

Councilman Calderon asked if there should be a charge for using it and City Administrator Arteaga said that charging a fee would be problematic.

“I think it would be better for us to get the costs (for repairs and operation) and keep it free.” Arteaga said.               

As per the county and state laws, the water is chlorinated and it recycles through the system.        

The entire preliminary fiscal report can be viewed on the city website at gridley.ca.us or at City Hall, 685 Kentucky St., Gridley, where individual copies can be purchased.             

Committee and department reports concluded the meeting. Councilman Calderon expressed concerns that the city has been behind on audits from the Butte County Association of Governments.