BIGGS, CA (MPG) - Finance Director Martin Pineda walked the Gridley City Council through a sweeping midyear budget review earlier this month, outlining more than $1 million in adjustments across city departments and explaining how grants, contract reimbursements and updated cost projections are shaping the city’s financial outlook for the remainder of the fiscal year.

The revisions reflect salary obligations tied to recently approved labor agreements, shifts in capital project timelines and operational needs in both general fund and enterprise departments. Administration accounted for one of the larger adjustments, driven by higher personnel costs, attorney receivership expenses and mandated contributions for state programs. The department also added funding for compliance with SB 1383 and groundwater sustainability requirements.

The Gridley Police Department saw one of the most significant increases. Pineda said the city added funding for two additional officers, part-time staffing, body-worn camera payments and a new patrol vehicle. Pineda told the council that the overall increase to the department is about $292,000.

“I know it’s a big number but about $190,000 of that is being covered through the City of Biggs contract,” Pineda said.

Other departments experienced reductions. Pineda said Finance cut $50,000 in professional services after the city stopped using outside accounting consultants. Animal Control reduced salaries and retirement costs. Streets lowered salary and extra-help expenses after reallocating part-time staffing to Parks. The Fire Department decreased equipment maintenance because a new fire truck is expected to reduce repair needs and shifted funds to properly account for principal and interest payments on the truck loan.

Enterprise funds also shifted. Electric added funding for a new lineman but reduced projected power purchase costs. Water increased spending on chlorine and meter equipment. Sewer added funds for fuel, credit card processing fees and the replacement of a failed grinder that must be completed this fiscal year. Pineda told the council the grinder is a vital piece of equipment and needs to be replaced immediately.

Several major capital projects remain fully grant-funded. Pineda said the Feather River sewer crossing project is covered entirely by state funding. The Outdoor Equity Program will continue through 2026 with remaining grant dollars. The Gridley Sports Complex is reimbursable up to $3 million. Although the project is projected to exceed that amount in future years, the current fiscal year remains within the reimbursable threshold. Pineda said the project is currently projected to be about $900,000 over budget but that overage is expected to affect next year’s budget rather than the current one.

When council members asked for clarity on how much of the $1.1 million increase remains unfunded, Pineda explained that most of the adjustments tied to grants and the Biggs police contract are fully covered this year. He also said the city is pursuing additional grants and noted that staff is actively working on several applications.

The council took no action during the study session but approved the midyear budget adjustment during its regular meeting that followed, raising the city’s approximate $25 million spending plan by $1.16 million, including $503,298 in grant reimbursements, $306,031 in RDA passthrough revenue and $187,357 from the Biggs police contract.