From the PHP documentation for reset:
mixed reset ( array &$array )
reset() rewinds array's internal pointer to the first element and returns the value of the first array element.
The PHP reset() function accepts a reference to an array.
The strict warning is raised because you're directly passing the result of parse_users to reset, without a way to access that array in your other function.
If you're trying to return the full array (and not just the first value) after it's been reset, you should use:
$users = $this->parse_users($records);
reset($users);
return $users;
Alternatively, if you just want the first value from parse_users, you could just use:
$users = $this->parse_users($records);
return $users[0];
The reset function is only needed when you're iterating over the array and want to make sure you start from the beginning.