Is the City of Chico slipping, slowly but surely, toward bankruptcy as is one of California cities; Vallejo, California.

Bankruptcy being discussed by the City of Vallejo was mentioned by Chico’s Director of Finance, during the recent update of the City’s financial status. Many of Vallejo’s problems, relating to police and fire salaries and benefits as well other employee contracts, are the same problems of the City of Chico. The City recently enter into a new contract with its Firefighter, giving them a 5% salary increase for the first year of the contract and 4% for next 5 years. And the Police union has a “me too” contract that provides them with the same increases as was given to the Firefighters. I don’t write this to place blame on the Firefighters for the City’s structural deficit problem, since other employee contracts are a portion of the employee’s costs that are major contributors to the City’s fiscal problem.

All blame for the City’s financial problem belongs to the City Council that has the final authority on all fiscal matters of the City.

Although there has been much discussion and many meetings about actions that may save the City from bankruptcy, I have not heard of any real leadership by the City Council attempting to resolve the financial disaster that faces the City.

Without City Council leadership, the “ship” may well sink into bankruptcy.