The Parlier City Council received a preliminary budget overview Thursday that projects the city’s general fund moving from a prior forecasted surplus to a combined deficit approaching $1 million over two years.

Finance presenter Erin told the council that the general fund was projected to finish the just-ended year with a roughly $304,000 shortfall and that next fiscal year’s projection shows an additional deficit of $698,166. “This year, we’re projected to be at a deficit of 698,166,” Erin said.

The shortfall reflects multiple cost pressures, the presenter said, including $799,405 in attorney fees for the fiscal year that ended June 30 and elevated pool maintenance costs expected to rise to about $122,000 next year because of a $77,000 repair bill. Solid-waste and other enterprise funds show mixed results, staff said: the water and wastewater funds are forecasted to be in surplus, while solid waste posted a year-end deficit (the presenter said the solid-waste fund balance was about $236,000 in deficit as of June 30).

City Manager Aaron Palmer and several council members urged the council to hold options open rather than immediately committing one solution. Mayor Grama Beltran and Council member Janie Molina both emphasized finishing ongoing capital projects, including downtown rehabilitation and an indoor-outdoor sports park, and questioned whether one-time American Rescue Plan Act (ARPA) funds should be used to plug structural shortfalls. “Our deficit does not benefit our community. It helps the city, but it doesn't really bring anything for the community to see,” Molina said, urging alternatives before using one-time funds.

The council set a public budget workshop for Tuesday, July 8, at 3 p.m. to go over the details and gather questions from members of the public and councilors. Erin said the workshop will be agendized and posted on the city website.

Nut graf: The presentation flagged a sustained revenue plateau since early 2018 and identified attorney fees and deferred maintenance as major drivers of the projected deficits. Councilors asked staff to bring alternatives to the workshop, including potential cost savings, one-time revenue uses, and funding priorities for projects already under way.

In the body: staff outlined the city’s broader fund picture: special funds such as landscape and lighting need review, some settlement funds (TCP and OIPOH) are earmarked for plant maintenance and wastewater improvements, and grant-funded projects are largely reimbursement-based. The presenter described an active projects list that includes a state appropriation for a sports park and phase 1 of a new police station; staff said those dedicated funds will be spent this year.

Council members also asked for more operational detail ahead of the workshop. Questions raised during the meeting included: head counts and enrollment trends at the Academy of Excellence preschool program (council asked staff to bring quarterly enrollment numbers to the special meeting), the composition of attorney spending, and whether contract consolidation could reduce legal costs. In public comment, a resident asked the city to provide a breakdown of attorney spending and a 10-year comparison at the workshop.

Ending: Councilors said the workshop on July 8 will be the venue to press staff for alternatives and more detailed line-item information. Staff recommended bringing written questions to the workshop so staff can prepare targeted responses and materials.