Chico Bleeds in Red, But Bankruptcy Not Likely

Sep 18, 2013 5:32 PM

City of Chico employees are on the chopping block once again.

City Manager Brian Nakamura spoke to Action News Now over the phone stating about ten to twelve employees from the public works and community development department will be receiving layoff notices on October.

"Further non-safety staffing reduction will be needed to address current and future shortfalls," Nakamura said during Tuesday night's Chico City Council meeting.

The council may not have had all the facts and information necessary to make effective budget policy decisions, he said.

Accounting Manager Frank Fields gave the presentation detailing the new cost in the capital projects fund deficit known as Fund 400. Fund 400 pays for road work, buildings and major equipment. Fields stated the early projection was $2.5 million dollars but findings from the second floor rose the deficit to a total of 3.2 million dollars.

The total budget deficit to the general fund is $15.2 million dollars, Assistant City Manager Mark Orme said.

Action News Now asked Nakamura if the city will follow in the footsteps of other California cities like Stockton in filing bankruptcy to give the city some breathing room.

The city isn't considering that step, Nakamura said.

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