The City of Arvin is facing a $1.4 million structural deficit as city officials work to finalize a new budget amid what City Manager Jeff Jones is calling a "triple shock" to the local economy.
Jones says three converging forces are driving the crisis.
"The first shock is what's happened with the government's up stance on immigration... The second shock is the impact of tariffs... The third shock is the Iran War gas prices are going up."
Jones says the uncertainty is prompting some residents to hold onto their money, slowing economic growth in the city of close to 20,000 people.
"And what I've seen happen is that 1% local sales tax for the last two quarters now has dropped by like 30% compared to the prior year."
Local businesses are also feeling the effects. At Chepe's Mexican Restaurant, waitress Cecilia Pantoja says customer traffic has dropped sharply compared to previous years.
"We had a lot of people coming in with families, even from outside of Arvin. We had people from California City to Tatchapee, Delano come by. As of right now, it's been very, very slow. So compared to the other years, it was better. It was better, but people are afraid."
Pantoja says fear tied to immigration enforcement is keeping people at home, and the restaurant is adapting to reach them.
"A lot of people are afraid to come out of their homes due to immigration. So we're trying to come out with delivery to your home. So if you guys want to order from us, we'll see take you to your home."
Pantoja says the slowdown extends well beyond one restaurant.
"I've seen it everywhere. I see across the street as well. It's basically empty. It's like a ghost town because people don't want to come out."
With economic growth falling short of projections, the city may ask voters to approve another sales tax increase on the November ballot. In the meantime, the city will not fill positions left vacant by departing employees.
"We're going through what's called a period of attrition. So if if people leave the city where we're not hiring those positions back. So we're having our staff have to do a little bit more with less people. That's called a trition."
The City Council has not yet made any final budget decisions. The next budget presentation is scheduled for May 12.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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