The city of Arvin is in a fiscal crisis after mid-year budget reviews found that Arvin is $40,000 in deficit.

The Arvin City Council discussed the issue during a meeting Tuesday night. The city is projected to be facing a $100,000 deficit by the end of the fiscal year in July. That amount is about one percent of the city's budget.

This year, the city tried changing to a less expensive health insurance plan for its workers, which would have saved $90,000. However, the unions shot that idea down. The city also asked the unions for a one-time $60,000 concession, which unions also refused.

As a result, Arvin is now down $40,000 in legal fees for these union negotiations. And because the cheaper healthcare was denied, the cost of the current healthcare plan is going up by eight percent.