Sep 18, 2013 5:40 PM
The City of Chico’s budget deficit is larger than thought.
City officials recently revealed Chico is facing a $15.2 million budget deficit.
City manager Brian Nakamura says Chico has hit bottom and will soon start rebuilding.
That rebuilding process also means the termination of a dozen city employees—mostly from public works and community development.
The city is currently working with a $41 million general fund budget, which Nakamura says is way too small to resolve this deficit quickly. He says the only way out of the red is long-term economic development.
“Increase property taxes, increase sales taxes which are business related opportunities,” Nakamura said. “If we strengthen our job base, people will buy homes, people will shop and it will help our economy from the levity side.”
Despite the huge budget deficit, Nakamura says bankruptcy in not an option for Chico.
2 days ago