The new $25 million budget includes funding for three part time police officers and a replacement dispatcher. Additional money will pay for street sweeping and recreation services.
Officials say it's a dramatic difference from January 2011 when the city defaulted on a bond payment and faced a $1 million deficit.
"When we furloughed and laid off employees the council cut its pay 100 percent, and we didn't take a pay check until we ended furloughs, which we did last year. So right now we have no one on furlough and everyone's getting paid," said Dennis Haworth, Chowchilla Mayor.
"The unions came together, the employees with the unions came together, the community came together," said Mark Lewis, Chowchilla City Administrator.
The city also adopted higher utility rates in the last fiscal year to increase revenue. Officials say they have added new oversight steps to keep Chowchilla on the right track.