Parlier budget review shows projected surplus; academy director warns enrollment below capacity

City finance staff presented a two-phase preliminary budget update on Jan. 18 showing projected total general fund revenue near $5.6 million and expenses about $4.8 million, leaving a projected general fund surplus of roughly $739,000 for FY 2023-24. Sales tax was listed as the largest revenue source (about 40% of general fund revenue). Enterprise funds (water, sewer, solid waste) were presented separately with a combined projected enterprise surplus of roughly $236,000.

Kathleen (finance staff) said the presentation was an overview and that detailed account-level information, grant listings and a workshop will follow. Council asked staff to provide account-year earnings for cannabis/dispenser-related revenue and to schedule a budget workshop before adopting final figures.

Parlier Academy Director Debbie Cardenas reported the academy currently has 40 enrolled students against a capacity of 87. She said the program remains on a state "hold-harmless" contract with the California Department of Education that preserves funding through the current hold-harmless period; the director listed planned spending including a vehicle, playground canopy, retention funds and facility improvements but stressed the council's priority should be boosting enrollment to protect future funding.

Council discussion focused on outreach to increase enrollment, potential conversion of classrooms to infant care if preschool enrollment remains low, and ensuring grant spending is programmatic and defensible to the Department of Education. Staff committed to follow-up with detailed account reports and to schedule a budget workshop for council and the public.

Next steps: Finance to provide detailed account reports (including cannabis-related revenue) to council; schedule a budget workshop and a follow-up agenda item on academy enrollment strategies and possible classroom conversion if enrollment does not improve.