SUNNYSIDE, Wash.-The City of Sunnyside is facing a potential $4 million budget deficit according to a recent investigation.
New City Manager Mike Gonzalez revealed the findings of the investigation with the Sunnyside City Council at a budget retreat on Aug. 24.
“Council, we have turned over every rock and we could be facing a nearly 4-million-dollar deficit heading into 2025,” said Gonzalez.
In a City of Sunnyside press release, Gonzalez said the potential deficit is due to inflation, high healthcare costs and increasing prices for supplies, as well as the sale of the Monson property.
“For us to operate is really, really, really expensive,” Gonzalez said. “Sales tax revenue hasn’t been as robust. The price of houses and interest rates have an indirect effect on cities also.”
According to Gonzalez, the Monson property was used as revenue in the 2024 budget, however, the sale fell through and became a $4 million expense and the property will not have investors in place until at least 2025.
ARPA spending on 6 permanent positions that were approved in 2022 is also having a big impact on the 2024 budget and how things are shaping financially for 2025.
A $950,000 payment to the Port of Sunnyside for the Midvale Road project also impacted the City’s general fund for 2024.
Gonzalez hired GMP Consulting to perform an audit of the 2024 books and assist with the 2025 budget, according to today’s press release.
“I have promised transparency and that’s what you will see from this administration,” said Gonzalez.
