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Willows City adopts FY 2026–27 budget amid debate over sewer billing and stipend increases
Summary
Willows City Council approved a $7.6M spending plan that projects $7.86M in general fund revenue and a $239,000 surplus for FY 2026–27. Debate focused on placing stipend increases in the budget and whether to begin in‑house monthly sewer billing or keep billing on property tax statements.
Willows City Council on June 9 adopted the operating budget for fiscal year 2026–27, approving a plan that projects roughly $7.86 million in general fund revenues, about $7.6 million in expenditures and an anticipated operating surplus of approximately $239,000 for the coming year.
Joey Harrison, the city's finance director, told the council the forecast shows the city ending the current fiscal year with an estimated $890,000 surplus and projecting general fund reserves of about $2.16 million now and roughly $2.4 million by the end of FY 2026–27 if assumptions hold. "The city's current base level of revenue remains sufficient to support its current base level of services," Harrison said during his presentation.
The most contested budget items were modest increases to council and planning‑commission stipends and the city's plan to transition sewer billing in‑house. Council Member Lori Pride objected to including stipend increases in the adopted budget without a separate ordinance or prior agenda discussion. "I am not comfortable with that," Pride said, urging a separate review rather than inserting the change into the budget for adoption.
Several council members and members of the public raised concerns about moving sewer utility billing from the semi‑annual property tax cycle to monthly municipal billing. One resident voiced worry that monthly bills would create confusion and negative reactions; staff said they plan town‑hall outreach and postcards. City Manager Marty Brown told the council staff plans a town hall in July and additional outreach before a planned September rollout. "We're planning to do a public town hall meeting in July," Brown said, adding that the first municipal bills would likely issue in November and could be retroactive to July if implemented.
Council members also discussed operational trade‑offs, including whether the city can meet the county's Aug. 10 deadline to include utility charges on property tax bills; staff said meeting that timetable may be difficult and that county submission requirements would require resubmitting property data each year.
After discussion and public comment, Council Member Gary Hansen moved to adopt the FY 2026–27 operating budget; the motion was seconded and passed 5–0.
What happens next: staff will continue to implement the outreach plan around utility billing, return any ordinance language for stipend changes before January implementation, and monitor budget items noted as intentionally excluded from the current proposal for midyear consideration.
