PARLIER – Facing a deficit in the general fund, the city of Parlier has landed on a plan to move forward with the budget using funds it received under the American Rescue Plan Act.
Although a vote was not required, Mayor Alma Beltran said she wanted it on the record that she was the only member of the Parlier City Council who was not in favor of using the ARPA funds to cover the deficit. At a budget workshop on July 8, the council — minus Beltran — directed city staff to bring forward a final budget that transferred the ARPA money away from the city’s indoor/outdoor sports complex project and into the general fund.
“My concern is that we went through an extensive process with the kids; the kids keep asking for that project,” Beltran said. “And just to be honest, I don’t believe that we should use our funds for deficits, especially if it’s something for the community.”
According to a draft budget for fiscal year 2025-26, which began on July 1, the city will have a general fund deficit of about $1.2 million, due to $7.3 million in estimated expenses and just $6.1 million in estimated revenues. Combined with a projected deficit of $572,000 to end fiscal year 2024-25, the city has a total deficit of approximately $1.8 million that the council wants to address straightaway.
As requested by Beltran, Finance Director Mayra Escobedo proposed alternative options to covering the deficit that did not include reallocating the ARPA funds. In one option, the city could cut costs across the board by 20% to bring expenses in line with revenues. The other option would be for the city to cut expenses by 10% and loan itself money from its enterprise funds to cover the remaining deficit.
Although cities are allowed to use ARPA funds to cover revenue shortfalls, Beltran said the purpose of the funds was to help businesses and community members bring things, like amenities and infrastructure, to the city that they otherwise would not have.
“Having a deficit does not help the community,” she said.
Beltran added that there is no other way for the complex to get done, as the other grant funding the city has received for the project covers only part of it. However, City Manager Aaron Palmer said city staff do not believe that they will be able to put the money into the sports park by the deadline. Any remaining ARPA funds not spent by December 2026 must be returned to the federal government.
The sports park project is currently tied up in a legal conflict over who the rightful owner of the land is. City Engineer Javier Andrade said the court date — a jury trial — is set for August of next year. Even when assuming that the case outcome falls in the city’s favor, the project would not be able to be completed between August and December, he said.
By reallocating the ARPA funds, the city is not giving up on the sports park, but will continue to look for other funding sources to get it completed. Mayor pro tem Sabrina Rodriguez said she understood that not having the sports park completed as soon as the council wanted to will be a disappointment for the community, but being able to put that money toward the deficit will help the city out.
Beltran also raised concerns about what the city will do in the event that the deficit grows as a result of legal action. Parlier is currently fighting multiple lawsuits made against the city that, if the city loses, are likely to require settlement payments not covered by insurance. She said that even if they use the ARPA funds for the deficit now, they will still be in a deficit if they lose those cases.
“We’re damned if you do, damned if you don’t, and that’s pretty much what it is,” Rodriguez said in response.
With the majority of the council agreeing to use the ARPA funds, city staff will bring back a budget that allocates $1.9 million of ARPA money into the general fund. The city still plans to use approximately $19,000 for ARPA funds to pay for homeless assistance and $424,000 to support downtown facade improvements.
