Chico will soon remodel its government, reducing the number of departments from 10 to five as part of their goal of bringing deficits under control. The City has a structural deficit of $3.9 million and the estimated $1 million savings from the reorganization provides some relief for future budgets.
“The team is only as strong as its weakest link and optimization of core leaders and line staff insures that the City as an organization will function in an efficient and effective manner,” reads the staff report.
Some of the salaries will increase for department heads, as they assume greater responsibilities. Even still, the reduction of the number of directors will result in a $180,000 per year savings. Additional savings will be realized through optimizing efficiency and additional “rightsizing” will save another $500,000 to $750,000 per year.
As outlined in an organizational chart, reducing the number of departments will also clarify roles and chains of command in the City.