Gridley Adopts Budget Amid Revenue Gap
Jun 24, 2026 08:16AM ● By Susan Meeker
Logo courtesy of the City of Gridley
GRIDLEY, CA (MPG) – The Gridley City Council adopted a $27.5 million budget for fiscal year 2026-27 on June 15, approving a spending plan that maintains city services, funds major infrastructure projects and continues to address a projected gap between General Fund revenues and expenditures.
The budget projects approximately $25.6 million in citywide revenues and $27.5 million in expenditures across all funds. Within the General Fund, revenues are estimated at about $6.5 million while expenditures total roughly $9.7 million.
The budget maintains city services, funds ongoing projects and continues efforts to address long-term financial obligations.
Taxes and assessments remain the city's largest General Fund revenue source, generating approximately $3.6 million, or nearly 56 percent of General Fund revenue. Property tax, sales tax and other local revenues continue to provide the primary funding for city operations.
Personnel costs remain the largest General Fund expenditure. The category includes salaries and benefits as well as contracted services such as the city's agreement with CAL FIRE and engineering services provided through Bennett Engineering.
City officials also continue to address the city's unfunded accrued pension liability, which was discussed during budget workshops earlier this month.
The budget calls for continued monitoring of revenues, expenditures and fund balances throughout the fiscal year, with particular attention to the city's water and sewer funds.
Among major departments, the Public Works Department accounts for approximately $3.5 million in planned spending for the coming fiscal year. The department oversees the city's streets, water, sewer, storm drainage and parks systems while continuing infrastructure maintenance and improvement projects.
The Fire Department budget totals approximately $1.8 million and includes the city's contract fire protection services through CAL FIRE.
The Recreation Department is budgeted at approximately $415,000. Recreation programs include youth soccer and basketball leagues, senior activities, community events and seasonal programming.
The budget continues funding for the Gridley Sports Complex, a major city capital project, as well as ongoing improvements involving streets, parks, water, sewer and electric infrastructure.
The city also approved funding for equipment purchases, facility improvements and maintenance projects intended to support city operations and public services.
Final adjustments incorporated into the adopted budget included part-time administrative staffing, equipment purchases, corrections to the city's fire contract, water and sewer equipment, sports complex funding, a new parks maintenance mower and heating and air conditioning improvements at the Gridley Museum.
The budget and appropriations resolutions were approved unanimously. Quarterly budget reviews will continue throughout the fiscal year as city officials monitor revenues, expenditures and fund balances while working to maintain services and address long-term financial obligations.

















