Finance director: Measure I has eased Willows City budget strain, but expenses still outpace revenue

Willows City Finance Director Joey Harrison told the Finance and Measure I Oversight Committee on April 21 that Measure I sales-tax collections have eased the city’s budget pressures but do not eliminate underlying structural gaps.

"Actual year to date, we collected about $1.3 million of Measure I revenue," Harrison said, adding that timing differences between collections and expenditures leave the city with a roughly $123,000 year-to-date shortfall but an expected $34,000 increase to the reserve fund by fiscal-year end under current assumptions.

The presentation focused on Measure I dollars only and used conservative forecasting assumptions while a new law-enforcement contract is negotiated. "The current contract expires June 30, 2026," Marty, a staff member, said, noting the budget model temporarily assumes a 2.5% increase until a new contract is finalized.

Harrison walked the committee through how Measure I funds are allocated, listing public safety, fire and emergency medical services, the city attorney’s office, administration, finance, library services, public works, planning and building permits, recreation and pool programs, and a mix of staffing adjustments such as a filled mechanic position and new temporary seasonal public-works staff.

The five-year forecast presented by staff projects modest revenue growth (about 2% annually) and similar baseline expenditure increases. With Measure I in place, Harrison said the measure would contribute to improving the general-fund reserve (projected at about $172,000 toward reserves in FY 2027–28). Without Measure I, staff displayed a scenario showing larger shortfalls over time, including a projected multimillion-dollar deficit in later years.

Council members and a public commenter pressed on cost trends that threaten the gains. A council member noted law-enforcement expenditures under the Glen County Sheriff’s Office contract have risen "nearly 50% over the last four fiscal years," a factor staff and members said helped produce the structural deficit Measure I was designed to address. Resident Mr. Lusby said the city’s revenue growth is projected at about 2% while expenses are modeled to grow by 2.5%, and warned that insurance and other costs could widen the gap.

Staff also highlighted non-obvious budget effects: state payments for strike-team fire deployments previously flowed into the general fund, but with Measure I covering general operations the reimbursements can be directed to capital replacements. One council member said Measure I accounted for increases in library funding ("almost $200,000"), community development staffing and deferred maintenance work.

On long-term liabilities, staff told the committee the city’s unfunded pension liability has begun growing again after a prior pension-obligation bond; the increase was described in the presentation as "probably over $100,000," driven by CalPERS investment performance and outside the city’s direct control.

Cannabis-related sales-tax revenue was noted as a separate stream and not included in the Measure I presentation; staff said the first monthly check from a newly opened dispensary was about $1,000 and that more complete figures would appear in forthcoming updates.

Procedural actions at the meeting included approval of the minutes from Nov. 4 and Jan. 20 by voice vote. The committee adjourned at 6:02 p.m.

What’s next: staff will continue contract negotiations with the Glen County Sheriff’s Office and update the council as new revenue receipts arrive and when third-quarter state remittances clear, typically 30–45 days after the reporting period.