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Parlier City staff present budget showing $1.2 million projected general-fund shortfall for next year
Summary
Finance staff told the council the proposed FY 2025-26 budget projects $6.1 million in general-fund revenues and $7.3 million in expenditures, yielding a $1.2 million operating deficit; staff outlined options including using ARPA revenue-replacement funds, 20% across-the-board cuts, or loans from enterprise funds.
Parlier City leaders on July 8 reviewed a proposed budget that projects a $1.2 million general-fund deficit for fiscal year 2025-26.
Finance Director Myra Escobedo presented the packet and told the council the city expects about $6.1 million in general-fund revenues for 2025-26 and about $7.3 million in general-fund expenditures. Escobedo said the current year is projecting a $572,000 deficit; combined with next year’s projected gap, she said the total shortfall between the two years is about $1.718 million.
The presentation broke revenues and expenditures down by department. Escobedo said nondepartmental revenues are roughly $4.8 million, finance department revenues about $217,000, police revenues about $476,000, and community development revenues about $312,000. On the expense side she reported the police department budget at roughly $3.8 million, administration $925,500, the fire department $848,900 and community development $528,000. Escobedo also gave line items for parks, the senior center and other programs.
City staff presented several options to close the gap: shifting ARPA revenue-replacement funds into the general fund, instituting roughly 20% cuts across departments, or taking a loan of about 10% from enterprise funds and combining that with cuts. Escobedo described those as potential approaches and recommended staff pursue solutions and bring a revised proposal back to council.
Council members pressed for detail on specific funds that are drawing on the general fund, including the senior center and cooling-center operations. Escobedo said the senior center typically records about $6,500 in annual revenue while its expenses are about $85,200, and that the general fund covers the difference. She said cooling-center expenses come from the general fund and that the one-time grant that had previously funded the cooling-center project is no longer available.
Escobedo also reviewed enterprise funds: she said the water fund is projected to show about a $295,000 surplus next year (revenues about $2.7 million; expenses about $2.4 million), the wastewater fund a projected $366,500 surplus (revenues about $2.4 million; expenses just over $2.0 million), and the garbage fund roughly break-even with a small surplus projected for next year that will help offset current-year deficits.
The paper packet included staff recommendations and identified follow-up items for council direction, including additional review of grants, special funds and legal/contracts that affect operating costs.
