GRIDLEY CITY COUNCIL AGENDA: Special Meeting of 6-4-2026 Page 1 of 1 “Our purpose isto continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, andmeaningful objectives.”
The Public is encouraged to attend and participate in person. Comments from the public on agenda items will be accepted until 4 pm on Thursday, June 4, 2026, via email to [email protected] or via the payment/document drop box at Gridley City Hall and will be conveyed to the Council for consideration.
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CALL TO ORDER
ROLL CALL
COMMUNITY PARTICIPATION FORUM - Members of the public may address the City Council on matters not listed on the agenda. The City Council may not discuss nor act on any community participation item brought forward by a member of the community. Comments are requested to be limited to three (3) minutes.
CONSENT AGENDA - None
ITEMS FOR COUNCIL CONSIDERATION
1. FY 2026/2027 Draft Budget – Study Session
City Council to conduct a budget study session
Recommended Action(s):
a. Provide feedback on the FY 2026/2027 Draft Budget
CLOSED SESSION – None
Gridley City Council – Special City Council Meeting Agenda Thursday, June 4th, 2026; 5:3 0 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL AGENDA: Special Meeting of 6-4-2026 Page 1 of 1 ADJOURNMENT – adjourning to a regular meeting on June 15th, 2026.
NOTE 1: POSTING OF AGENDA- This agenda was posted on the public bulletin board at City Hall at or before 5:30 p.m., June 3rd. This agenda along with all attachments is available for public viewing online at www.gridley.ca.us and at the Administration Counter in City Hall, 685 Kentucky Street, Gridley, CA.
NOTE 2: REGARDING UNSCHEDULED MATTERS – In accordance with state law, it shall be the policy of this Council that no action shall be taken on any item presented during the public forum or on unscheduled matters unless the Council, by majority vote, determines that an emergency situation exists, or, unless the Council by a two-thirds vote finds that the need to take action arose subsequent to the posting of this agenda.
City Council Agenda Item #1
Staff Report
Date: June 4, 2026
To: Mayor and City Council
From: Martin Pineda, Finance Director
Subject: FY 2026/2027 Draft Budget – Study Session
Recommendation
Informational study session for the first overview of the budget for FY 2026-2027.
Background
The Finance department has met with all directors and City Administrator over a series of meetings to discuss and prepare FY 2026-2027 budget.
These study sessions allow the council and public to review and ask questions for next year’s budget. A summary of the major changes to overall funds and each department is listed below:
OVERVIEW:
General Fund:
• General fund expenditures for FY2027 are set at $9 million representing a decrease from FY2026 of $9.5 million.
o Personnel costs remain the highest cost in the GF which includes employees and third-party contractors such as Bennett Engineering and Cal-Fire which are increasing.
o General Fund expenses are decreasing by ~$655k.
• General Fund revenue for FY2027 is set at $6.5 million, not a major change from FY2026. o Taxes and assessments remain the biggest revenue source for the General Fund.
General Fund expenditure exceeds revenue projections by ~$3 million. Now is the time to focus on the General Fund revenues and develop a plan to increase revenue and decrease expenses where possible. We must review the expenditure as well. The UAL continues to be a difficult expense to manage. For FY2027, the city will be looking to fund a Section 115 Fund, while exploring alternatives. We need to be mindful moving forward when approving supplemental appropriations or contributions/donations that are charged out of general fund.
Special Revenue:
X Regular
Special
Closed
Emergency
• Special Revenue’s expenditures for FY2027 are set at $2.6 million, a decrease from FY2026 of $3.7 million.
o Expenditures include grants expense that are usually reimbursable. The city will be starting the pavement projects in FY 2026-2027, so SB1 fund has $407k expenses allocated to it.
• Special Revenue’s revenue for FY2027 is set at $4 million, a decrease from FY2026 of $4.7 million.
o Majority of the revenue is reimbursements from grants, such as the Sports complex. At the time the city was expecting $2.1 million in reimbursement. We have received $1.97 million to date, leaving $1.02 million available for reimbursement for the grant, this will be updated in the FY 2026-2027 budget.
Other revenue sources include SB1, TDA, Gas Tax, Carbon Credit, etc.).
Special Revenue funds expenses and revenues will fluctuate every year depending on what active grants the City has been awarded and CIP projects that are covered such as SB1, Senior Taxi, and Gas Tax.
Enterprise Funds:
• Enterprise Fund Revenue is set at $15.1 million, an increase from FY2026 of $14.7 million.
o Electric Fund remains the largest source of revenue at $10.6 million which includes, utility billing, City of Biggs Electric Contract, Joint Pole Reimbursements, and miscellaneous revenue.
• Enterprise Fund Expenses are set at $13.7 million and increase from FY 2026 of $12.1 million.
o The increase is mainly due to CIP projects for Electric and setting money aside its reserves for future CIP projects. Water fund is set to decrease from $1.10 million in FY2027 compared to $1.17million in FY 2026. Sewer will see a slight increase of $50k in FY2027.
Enterprise funds CIP projects continue to be a priority, either budget for projects or set money aside in reserves for future budgets.
DEPARTMENTS:
Council:
• FY2027 is projected a decrease of $35k. The decrease is mainly from actual expenses on personnel costs and departmental expenses. This will increase if council approves any contributions/donations.
Administration:
• FY2027 is projected a decrease of $163k. The decrease is mainly driven by personnel costs, FY 2026 resulted in approved supplemental appropriation for IT that increased expenses to $123k. FY 2027 IT account will be $40k, a decrease of $83k. • UAL – CALPERS accounts show a trend of increases, this is true for all funds across all accounts.
• Communications account and Special Department expense accounts will need to be increased. Communications will need to be $3,000 budget and Special Department will need to be increased to $20,000.
Code Enforcement:
• Slight increase in FY2027 was driven by professional expenses and the UAL account.
Professional expenses are the account used when Butte County assists with a Code Enforcement issue.
City Hall Maintenance:
• No major changes to this department. Reminder that this account is now used for both City Hall and Police Department maintenance.
Finance:
• FY2027 is projected a decrease of $85k. The decrease is mainly driven by personnel costs, specifically the professional account. Finance has not utilized 3rd party accounting consultants for several months, the contract expires 06/30/2026 and will not be renewed. Finance staff is fully trained to complete all accounting functions for the city.
Recreation:
• FY2027 is projected an increase of $104k. The increase in mainly due to the addition of the Recreation Manager position.
Police
o FY2027 is projected an increase of $305k. The increase is mainly driven by personnel costs, specifically the UAL which is increasing by $130k. Overtime costs are covered by COPS fund, and two positions will be covered by using Public Safety Fund.
o The Equipment vehicle for $110k is a carry over from FY2026 for a vehicle purchased that is projected to be delivered next FY.
o Information Technology will see an increase, but special department expense will see a decrease. This is to accurately charge IT related expenses to the correct account such as the RIMS, CodeRed, Tyler Tech payments. • BINTF:
o BINTF officer to fill a patrol officer position. For now, the BINTF position will remain unfilled.
• Animal Control:
o No major changes to this department, the UAL is the largest increase. • COPS Grant:
o As mentioned above, $130k will cover Overtime pay and $110k will be used to purchase a police vehicle to include outfitting.
• School Resource Officer:
o FY2027 is projected an increase of $67k. The increase is mainly due to the UAL and health insurance costs.
Fire Department:
• FY2027 is projected a decrease of $89k. Although the fire contract is increasing by $83k, the outfitting of the new fire truck was a one-time expense.
Planning:
• FY2027 is projected a decrease of $87k. The decrease is mainly due to professional and engineering account being decreased. UAL account will see an increase as well as health insurance expenses.
Engineering:
• FY2027 is projected a decrease of $200k. Please note General Fund (010) and Special Revenue Fund (933) are included in this page. Both funds are being decreased for engineering.
Flood Maintenance Districts:
• Richins Maintenance District #1:
o No change significant change
• Eagle Meadows District #2:
o Minimal decrease to cover staff costs for maintenance. • Heron Landing District #3:
o Minimal decrease to cover staff costs for maintenance. • Scroggins District #6:
o No budgeted amounts.
• Parkland Estates District #7:
o Establish expenses to cover staff costs
Public Works:
• Streets:
o FY2027 is projected a decrease of $622k. This is mainly because of the one-time payment contribution for the Highway 99 project of $400k, which the city was reimbursed by a grant.
o Salaries is also decreasing by $78k as staff is reallocated every year for different projects. PW also has 3 open vacancies that are projected to be entry level positions. Salaries are also decreased due to street pavement project and staff being eligible to be charged to SB1.
o Professional and Engineering costs have also decreased. • Corp yard:
o FY2027 is projected a decrease of $39k. The decrease is mainly due to insurance costs being reallocated across all departments. The insurance account changed for some funds/departments depending on assets that are insured. • Parks:
o FY2027 is projected a decrease of $79k. The decrease is mainly salaries and similar reason as the streets department.
• Gas Tax:
o No major change overall from FY2026, slight increase of $4k. • Water Fund:
o FY2027 is projected an increase of $124k. The increase is mainly driven by Salaries, UAL, and Chemicals account. Engineering and special department expense have been decreased.
• Sewer Fund:
o FY2027 is projected an increase of $50k. UAL is set to increase for the sewer and slight increases to salaries and benefits. Overall budgeted amounts are like FY2026.
• SB1:
o To start pavement project again and allocating staff costs, equipment rental, and supplies needed.
o FY2025 shows an amount of $675k. This was due to the clean up of accounts that affected multiple funds to accurately charge expenses to correct accounts and, in some cases, certain funds were cleaned up and closed.
Electric Department:
• FY2027 is projected an increase of $1.41 million. There is a significant increase to the salaries account, this is due to the 3 open vacant positions in Electric. • Funds are also being set aside for CIP projects and to save for future CIP projects.
Public Benefits:
• FY2027 is projected an increase of $59k. This is mainly due to the new rebate and utility assistance program approved by council. The amounts on there are estimates on what city staff expect. FY 2028 will have more accurate amounts when we have a year’s worth of data.
Transit:
• FY2027 is projected a decrease of $63k. This is mainly due to the retirement of the fulltime driver and replaced with Part time drivers to meet transit needs. This also eliminates most benefits such as health insurance.
FISCAL IMPACT:
Budget Study Sessions provide budgetary information by staff to the City Council and the public.
The financial impact is staff time to prepare and organize the information. The proposed budgets reflect all projected revenues and expenses for the FY 26-27, appropriations, and may change based on findings and recommendations during sessions.
ATTACHMENTS:
A link to the draft budget is attached to this staff report, the agenda, and will be posted on the City Website.
Digital Interactive Version: https://city-gridley-ca-cleardoc.cleargov.com/24510/964319/d PDF Version: https://tinyurl.com/mrywz58d
Compliance with City Council Strategic Plan or Budget Goals The City Council and City staff are committed to providing the best possible financial practices and the highest possible transparency regarding all financial transactions. This presentation is consistent with our ongoing effort to be responsive and transparent regarding all financial matters, as well as being congruent with best financial practices.