MCFARLAND, Calif. — The City of McFarland and the Kern County Fire Department have come to an agreement on a contract for fire services in McFarland.

Interim Assistant City Manager Janet Davis confirmed to 23ABC News that the two sides last week agreed to a "mutually beneficial" contract. Davis added that the two sides communicated well and they were happy with the finalized contract.

The contract was set to expire on July 1.

Davis said the fire station in McFarland will remain open and functioning as normal.

The County argued that McFarland owed around $800,000 for the two previous years of fire service, but McFarland officials said the payments were not written into the finalized agreement and therefore didn't actually owe the money.

In June, a Kern County Grand Jury released findings on the situation, ultimately recommending McFarland pass a utility tax by the next general election to fund the City's own fire department.