Willows holds first Finance and Measure I oversight meeting; officials outline revenue timing, budget gaps and a surprise $143,000 county charge

Willows — The newly formed Willows City Finance and Measure I Oversight Committee held its first meeting Tuesday, Jan. 21, hearing staff outline when the city typically receives major revenues, how the current budget is tracking against expenditures, and the timetable for Measure I sales-tax receipts.

The committee, created by a council vote in October 2024 to oversee city finances and the voter-approved Measure I 1.5% sales tax, heard that the city has received $1,565,958 so far this fiscal year against an adopted roughly $5.8 million general-fund budget, leaving about $4,281,000 expected in the second half of the fiscal year. Committee members and staff warned that large revenue inflows cluster in January and May, which creates recurring cash-flow pressure for the city.

The meeting also updated the public on Measure I: the new 1.5% sales tax takes effect April 1, 2025, and Willows will not receive its first state remittance until July. Staff said the committee’s July meeting will be the first opportunity to review actual Measure I collections; earlier monthly or quarterly estimates will be projections from HDL, the city’s forecasting firm, which projects a range of $1.8 million to $2.3 million in annual Measure I revenue.

Public commenter Meredith Bridal expressed concern that Measure I funds could be absorbed by existing budget shortfalls rather than restoring services she expected funded by the measure. "I adamantly supported this measure," Bridal said, and asked when residents would see measure proceeds used to support the library, fire department and other services.

City staff and committee members replied that the committee has oversight and will recommend allocations to the full council but does not itself appropriate funds. Staff said the current budget uses roughly $700,000 in reserves and that the formal budget process — workshops beginning in April and a new fiscal year starting July 1 — will be the venue to allocate Measure I proceeds and rebuild reserves.

Committee members reviewed several budget variances. Insurance costs were flagged as a major area of variance: the meeting packet showed insurance budgeted at $163,000 with actual payments totaling about $301,000 year to date. Staff also explained accounting classification issues tied to a recent conversion into the city’s Tyler accounting system, which has moved some costs (for example, solar-related spending) into unexpected line items such as professional services instead of utilities.

Staff noted that some apparent overspending is offset by reimbursements and donated revenues that do not always appear on the same line as the corresponding expense. The committee cited Strike Team reimbursements (state reimbursement for emergency response) and event donations — CityCrawl reimbursements and partner funding — as examples of revenues that can obscure expense-to-revenue reconciliation on a simple budget report. Staff said they will work to present reconciled views that show gross expenses and the corresponding reimbursements or donations so the public is not misled by single-line reports.

Members also asked for more detail about debt service. Staff identified the pension obligation bond and a remaining small loan with Umpqua Bank as the city’s primary general-fund debt items and agreed to return specific outstanding balances and payment schedules to the committee for review so members can consider recommending an earlier payoff if revenue allows.

A newly disclosed county repayment issue drew particular attention. Staff said the county’s use of a “Teeter plan” (where the county fronts delinquent property-tax revenue to taxing entities) was undercut by a Delaware bankruptcy-court ruling, producing a $6 million shortfall for entities across the county. Willows’s share is about $143,000, staff said. The county finance director has circulated a memorandum to affected entities; staff indicated the charge is likely to be an unanticipated expense that must be addressed in Willows’ budget planning.

Committee bylaws and the committee schedule were reviewed: meetings are quarterly (January, April, July, October). The April meeting is planned as a town-hall style session to gather public input on Measure I uses and the budget; July will review finance policies and Measure I first-quarter performance once remittances begin; October will compare year-over-year revenue performance. Staff also flagged planned reviews of segregation-of-duties controls, routine small contracts (copier, phone system) and other housekeeping items to reduce risk and improve oversight.

No formal council decisions or votes were taken; the committee emphasized its role as an oversight and recommendation body and directed staff to provide supplemental reports. Staff said answers to a previously submitted Q&A packet and follow-up materials would be attached to the meeting minutes and posted online.

The meeting closed with the committee scheduling follow-up items: returning debt-service details, inclusion of reimbursement-reconciled budget views in future packets, and preparing materials for the April town-hall meeting where residents can weigh in on Measure I spending priorities.