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Parlier staff reports $698,166 projected general-fund shortfall; council schedules budget workshop
Summary
Finance staff told Parlier City Council that the general fund is projected to move from an expected surplus to a combined shortfall approaching $1 million next year; council scheduled a public budget workshop for July 8 and debated using ARPA funds and attorney expenditures.
Finance Director Myra (presenting) told the Parlier City Council on July 3 that the city’s general fund is moving from a projected surplus this year to a significantly larger shortfall next fiscal year.
“Our general fund is projected to be at a deficit,” Myra said, adding: “last year, we were projected to be at a surplus of 72,224. This year, we're projected to be at a deficit of 698,166.” She also said the city expects to finish the current year in a deficit of about $304,000, making the combined shortfall “about a total of an million.”
Why it matters: Council members said the shortfall will force choices about one-time federal funds and planned projects. Council set a public budget workshop to review details and alternatives before a final vote scheduled for the July 17 meeting.
Nut graf: City staff presented an informational budget snapshot showing revenue largely flat since 2018, rising costs in legal services and pool maintenance, and several enterprise funds showing mixed results. Council members pressed staff to bring alternatives to using American Rescue Plan Act (ARPA) funds for recurring shortfalls and to provide more detail at the workshop scheduled for Tuesday, July 8 at 3:00 p.m.
Key details and discussion
- Attorney fees and maintenance costs: Myra said attorney fees for the fiscal year that ended June 30 totaled $799,405. She said pool maintenance normally runs about $45,000 per year but will rise to about $122,000 next year because of roughly $77,000 in additional repairs. She described ARPA as a possible short-term tool to keep the general fund healthy but noted ARPA is a one-time source.
- Revenue trends: Myra said general revenues have been broadly flat since February 2018 aside from usual property-tax growth; service revenues have not increased materially.
- Enterprise funds: Myra said the water and wastewater enterprise funds are projected in surplus for the coming year; the solid-waste fund showed a current-year deficit and a fund-balance deficit of about $236,000 as of June 30. Mid Valley Disposal is raising rates 3% starting July 1, 2025.
Council concerns and public comment
Council member Janie Molina pressed staff and colleagues not to use ARPA funds to cover recurring shortfalls, saying those funds were earmarked for community projects such as downtown rehabilitation and a planned indoor/outdoor sports park. Molina said, “this is a 1 time, 1 fund that we receive from the federal government, that can be utilized for anything that's for the community,” and urged the council to “figure out a different way to fix this.”
A member of the public, Fernando Banuelos, asked for a breakdown of the roughly $800,000 in attorney fees and whether the city could use a single attorney rather than multiple outside counsel. He requested a 10‑year breakdown be provided at the budget workshop.
Next steps and workshop
Council agreed to hold a public budget workshop Tuesday, July 8 at 3:00 p.m.; the session is open to the public and will be agendized and posted on the city website. Staff said they will bring revenue and expenditure detail and alternatives for addressing the deficit.
Ending: At the workshop staff will provide more line‑item detail and council members said they expect options that do not rely solely on ARPA. The council plans final budget action at the July 17 meeting.
