Willows Measure I so far used to stabilize city payroll; receipts near budgeted target
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Summary
Staff reported Measure I receipts of roughly $702,000 to date against a $2.1 million annual budget and said the tax largely filled a $1.314 million structural shortfall, preserving current staffing and services; a midyear budget review is planned for late winter.
Staff updated the Finance and Measure I Oversight Committee on Measure I revenue and its effect on the city's general fund. City staff reported approximately $702,000 in Measure I receipts over the first two quarters against a budgeted $2.1 million for the year and said sales-tax receipts vary seasonally rather than arriving as equal quarterly amounts. The committee was told staff expect to be "close to target" by the end of the fiscal year but that some receipts and reconciliations for October and later may still be pending.
In a related presentation staff said they used Measure I revenue primarily to cover salaries and benefits and to avert a projected $1.314 million structural deficit. The analysis shown to the committee indicated that, without Measure I, the city's staffing and services would have been sharply reduced: staff estimated a scenario in which the city would have retained five budgeted employees instead of about 20 and would have relied on much smaller contractor arrangements for public works, planning and code enforcement.
Staff explained the timing for formal budget adjustments: the midyear budget typically evaluates revenues through Dec. 31 and is presented to the council for approval in February (March if the city is using a consultant or if the finance director position is vacant). The committee heard that, because the finance director Joanne is temporarily unavailable, the midyear work will be handled by accounting staff and could slip toward March. The committee also discussed tradeoffs between hiring permanent staff and preserving cash for capital projects and one-time needs.
Vice Mayor Thomas and other members pressed staff on transparency and the need for continued public explanation of how Measure I dollars are allocated. Staff said the apparatus replacement reserve and a capital reserve created by Measure I represented tangible benefits that would not have existed without the sales tax.
Ending: Staff will return with midyear budget figures after the Dec. 31 close and perform any recommended adjustments per council direction.