Willits City Council Grapples with Looming General Fund Deficit
Healthcare costs alone are jumping to $922,000—representing 19% of the general fund
Mayor Tom Allman called the regular meeting of the Willits City Council on June 24, 2026 to order following the Pledge of Allegiance, with all five council members present. The meeting is available for viewing on YouTube.
Public Comments on Non-Agenda Items
No speakers stepped forward.
Consent Calendar
Council members unanimously approved the minutes from the June 10 regular meeting and June 11 special meeting. A proposed three-year animal control contract was removed from the calendar for separate discussion.
Council Member Reports
Council member Matthew Alaniz reported that the Mendocino Transit Authority met in Willits to pass its budget and expects new electric buses by the end of summer.
Council member Bruce Burton requested monthly fund balances, which Administrative Services Manager Joseph Park could not yet provide due to pending bank account access.
Mayor Tom Allman reported that State Senator Mike McGuire and Congressman Jared Huffman’s staff reached out to offer earthquake assistance.
Item: County Animal Control Contract
Chief of Police Brian Fay presented a proposed three-year agreement with Mendocino County for animal control services, capped at $24,732 annually for a total of $74,196.
Burton opposed the contract, arguing the council should not approve a multi-year deal without staff exploring cheaper alternatives, and noted that the expenditure constitutes deficit spending.
Council member Larry Stranske cited past frustrations with the county responses to dogs running wild early in the morning when he was walking his dog.
Council member Gerardo Gonzalez supported the agreement, stating the county shelter in Redwood Valley will not pick up animals or file required bite reports without a contract.
Council member Matthew Alaniz said the costs were already structured into the budget.
The council voted 3-2 to adopt the agreement, with Burton and Stranske dissenting. The council directed Chief Fay to research alternative service options before the contract comes up for renewal.
Item: Chamber of Commerce Leadership and Emergency Response
Interim City Manager James Conner credited local first responders for managing the midday earthquake without direct oversight. He also reported that the local Chamber of Commerce has transitioned to new leadership.
No citizens spoke on the matter. No formal vote was taken. Council members expressed skepticism, noting they had heard negative feedback regarding the Chamber’s past operations.
Item: Looming General Fund Deficits and Measure K Depletion
Administrative Services Manager Joseph Park presented a budget analysis from financial consultant Andy Heath, outlining the city’s ongoing fiscal emergency declared in April 2025. While the current fiscal year expects a minor $36,740 surplus, the preliminary 2026-27 budget projects drawing $484,000 from reserves even after diverting the entirety of the city’s $1.2 million Measure K revenue into the general fund.
General fund expenses of $6.3 million outpace baseline revenues of $4.6 million, with healthcare costs alone jumping to $922,000—representing 19% of the general fund.
Burton pushed for more aggressive fiscal action. He suggested staff find 10% operating cuts and asked for a direct comparison of current spending to the city’s last balanced budget around 2019-20. Allman opposed the latter request calling it “academic,” saying “we need a budget for our citizens now.” Gonzalez said he agreed with Burton and attributed the deficit to payroll raises, rising costs, lower Measure K revenues, and nine positions added since Measure K passed. Alaniz characterized the requests as “micromanaging” financial experts. The council agreed unanimously to release the unadopted line-item budget to the public on Friday, ahead of a special budget adoption meeting scheduled for June 29 at 6:30 p.m.
No citizens spoke during public comment. No formal vote was taken.
Item: Earthquake Damage and Department Updates
Public Works Director Davey Bowles, Community Development Director Dusty Duley and Police Chief Brian Fay delivered reports detailing city infrastructure and emergency inspections following a midday earthquake. Bowles reported that municipal crews and the fire department inspected buildings city wide, declaring all bridges safe by 3:00 p.m. except the East Valley Bridge, which is moving forward with a $690,000 Caltrans-funded replacement design. Commercial inspections revealed structural damage at the vacant Rite Aid and closed Grocery Outlet and Safeway. Mariposa Market reopened quickly with minor stock loss.
Bowles advised residents with brown tap water to run outdoor spigots until clear. He said the earthquake caused a handful of leaks. He also announced that the municipal solar park has gone online to reduce energy costs.
Duley reported that the city and the Mendocino Council of Governments had obtained a $188,000 planning grant from Caltrans for a multimodal study. He also urged citizen to report earthquake damage at mendoready.org — this can help Mendocino County qualify for state or federal disaster relief funding. And he said the city will help connect citizens with volunteer organizations to help with earthquake cleanup.
Chief Fay noted that National Night Out is scheduled for August 4, and warned of parking enforcement on newly installed no-parking signs.
City Clerk Delores Pedersen announced candidate nomination packets will be available starting July 13.
Adjournment
Mayor Tom Allman adjourned the meeting.