McFarland council asks LAFCO to study city takeover of Recreation and Parks District

McFarland City Council on Monday, June 16, voted unanimously to ask the Kern Local Agency Formation Commission (LAFCO) to start a feasibility study on creating a subsidiary district that the city would manage to provide recreation and parks services.

City Manager Diego Villamontes told the council the move is aimed at “enhancing recreation and park services in McFarland” and responding to what staff call an urgent financial situation in the McFarland Recreation and Parks District. The council approved Resolution No. 2025-78 by a 5-0 vote; the motion was made by Vice Mayor O'Connell and seconded by Council Member Perez.

The measure triggers a LAFCO feasibility review, not an immediate transfer of authority. Blair Knox, executive officer of Kern LAFCO, told the council the feasibility study will examine multiple options, including the city taking over the district, reorganizing the district board, or forming a joint powers agreement. “It could be reorganizing the board of the district. It could be creating a JPA between the district and the city. There's multiple multiple ways that a project like this could be handled,” Knox said.

Why it matters: council and staff said the current park district is operating with recurring deficits and large unfunded liabilities that limit its ability to maintain facilities or fund capital projects that residents have long requested. Villamontes summarized available audited financials for the year ended June 30, 2023: district revenues of about $1,200,000, expenditures “almost $1,400,000,” and a reported deficit of $144,438, with an ending fund balance of about $409,938. He added that annual property tax revenue to the district is roughly $882,000 and that salaries and benefits for fiscal 2023 were about $845,000 — roughly 96% of that property-tax revenue.

Staff and council also cited a reported CalPERS unfunded pension liability of about $1,700,000, which Villamontes said equates to roughly $130,000 in additional annual payments. Major capital needs the presentation identified included a swimming pool renovation estimated between $9 million and $12 million, and reconstruction of Lions Park estimated at roughly $2.5 million to $3 million; an initial phase for that park was noted at about $1.2 million. Deferred-maintenance costs for existing facilities were described as unknown.

The staff proposal presented an organizational model in which recreation program administration would move under Community Development (led by Community Development Director Megan Snyder) while grounds and facilities maintenance would be absorbed by Public Works (presented by Public Works Director Julius Hernandez). Villamontes said administrative functions — human resources, finance, grant management and communications — would be absorbed into existing city departments.

Villamontes told the council the city is not proposing service cuts. “This is not a cut. We're not going — we're not proposing a cut to any services. It's a reorganization to better serve the community,” he said, and staff committed that frontline operational employees would be “retained or reassigned” and given first consideration for existing city vacancies.

Public comment at the meeting included residents who urged the council to act to restore services such as the pool and youth programs. Anthony Blanco asked whether the district’s reserves would offset liabilities and sought clarification about whether the $1.7 million CalPERS amount would become a city obligation; Villamontes and Knox answered that the CalPERS liability would, at least in part, be inherited and that the unfunded liability figure is subject to actuarial recalculation.

Council members pressed for more detail before full implementation but expressed general support for initiating the LAFCO process. Vice Mayor O'Connell said the city does not want the liability but “we have to” act to stop the district’s financial decline. Councilor Gonzales and others emphasized the benefits to youth and older residents from restored programs.

Next steps outlined by staff: council approval of the resolution will prompt the city to file an application with Kern LAFCO to begin a feasibility study; LAFCO staff will then evaluate options and return recommendations to the commission. Knox noted the LAFCO commission — not staff alone — will make the final decision on any reorganization. Villamontes said the city will keep the community updated and seek public engagement as the LAFCO process proceeds.

The council’s resolution therefore starts a multi-step review rather than effecting an immediate transfer of assets or operations; any ultimate change would depend on LAFCO findings and follow-up local approvals.