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Willows City Council reviews options for spending roughly $1.96 million in CDBG program income
Summary
City staff told the council that Romano Cheese’s payoff brought CDBG program income to $1,961,004.82; councilors discussed using funds for sidewalks, park upgrades, a fire engine share, targeted blight abatement or small parks and requested staff to return with options and feasibility details.
Willows City Council heard a staff briefing on options for spending roughly $1.96 million in Community Development Block Grant (CDBG) program income during its February meeting. Joe Betancourt, Community Development Services director, told the council the Romano Cheese loan payoff and accrued interest brought the account to $1,961,004.82 and that an ADA door project is estimated at about $188,000.
The presentation outlined two primary eligibility tracks under federal rules: low-/moderate-income area (LMA) projects — where the city qualifies as roughly 51.3% low/mod — and limited-clientele projects that serve defined vulnerable groups and require an ongoing program operator. "We are low mod eligible," Betancourt said. He emphasized limits on uses, noting that "we can't just build the building and hope for it to come" for facilities that serve a targeted population, because a program operator must be identified to meet national objectives.
Staff highlighted candidate uses that could be structured to qualify under LMA: sidewalk rehabilitation, curb ramps, drainage, sewer or water mains where appropriate, and public facility improvements such as parks, lighting and accessibility upgrades. Betancourt said the city previously applied for $3.3 million in sidewalk funding for 2025 and that program income could be used to supplement or cover sidewalk work if that grant is not awarded.
The council discussed a possible contribution toward a new fire engine. Betancourt said the quoted price for a fire truck is about $1.4 million and that Congressman LaMalfa provided an expected $660,000 allocation, leaving an estimated city share of roughly $740,000 before considering fire department reserves. He cautioned that some items — notably certain vehicles — require HCD review before funds are committed.
Councilors raised other options: targeted blight-abatement projects (one-time code-enforcement efforts tied to a defined scope), pocket parks or a fenced dog park at Sycamore Park or a small city-owned lot at French and Yew, and targeted improvements that are visibly public. Betancourt noted additional potential funding sources (development impact fees, RSTP) and background costs such as engineering and design fees for park projects. He also reported approximately $300,000 in a development-impact-fee pool that might be available if not otherwise obligated.
Council members asked about timing and fund management; Betancourt said there is no hard statutory deadline but warned the city should demonstrate progress and not indefinitely ‘bank’ the funds. He recommended staff return with concrete project proposals, cost estimates and confirmation of federal/HCD eligibility for candidate projects.
What happens next: staff will research options (including HCD sign-offs where needed), check account investment/interest details, and return with feasibility analyses and proposed next steps for council consideration.
