Parlier City projects $871,000 deficit for 2026–27; attorney fees and rising benefits cited

Myra, a city finance staff member, presented the draft budget and told the Parlier City Council that the general fund faces multi‑year deficits. “We are looking at a 871,000 deficit for 26–27,” she said, and added that a 5% cost increase would push the shortfall to roughly $915,000.

The presentation laid out the drivers of the shortfall: salaries and benefits (with benefits rising about 11–15% annually), increased workers’ compensation and, notably, attorney fees that have risen from roughly $100,000–$150,000 in prior years to about $758,000 this fiscal year. Myra said the attorney fees figure does not include potential future settlements.

Staff proposed to reduce total city positions from 91 to 85.5 in the coming year, including a net reduction of 4.5 positions in the police department (1.5 jailer FTE and three vacant officer posts not to be filled). Myra said those reductions are expected to limit hiring costs while avoiding immediate cuts that would reduce service levels.

Councilmembers asked staff to return comparative tax-base and audit information dating to 2020 to show how pandemic-era grants and other funds affected the city’s revenue and reserves. “If we go back to 2020 and pull the tax-base history, that will tell us where the losses are,” a councilmember said, asking staff to prepare that analysis.

To raise revenue and control costs, staff flagged several near-term actions: updating fee schedules, pursuing grant-funded capital projects rather than general‑fund projects where possible, conducting a new fee study for enterprise funds (water/wastewater) and moving some Measure Q expenditures to align with voters’ intent. Myra also recommended a targeted review of consultant, overtime and other nonpersonnel costs.

Next steps: staff will bring the draft budget back for approval at the council’s next meeting; council also asked for additional back‑up materials (tax‑base trends, audit reconciliations and a clearer breakdown of legal fees) before final action.