Agenda packet — Willows City Council, July 14, 2026 (part 2 of 2)

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ARTICLE IX. MISCELLANEOUS
Section 9.01. Records. The Escrow Agent shall keep complete and accurate records of all moneys received and disbursed under this Escrow Agreement, which shall be available for inspection by the Lessee, Lessor, or the agent of either of them, at any time during regular business hours.

Section 9.02. Notices. All written notice to be given under this Escrow Agreement shall be given by mail to the party entitled thereto at its address set forth below, or at such address as the party may provide to the other parties in writing from time to time. Any such notice shall be deemed to have been received 72 hours after deposit in the United States mail in registered or certified form, with postage fully prepaid.

Section 9.03. Governing Laws. This Escrow Agreement shall be construed and governed in accordance with the laws of the State of Kansas.

Section 9.04. Partial Invalidity. Any provision of this Escrow Agreement found to be prohibited by laws shall be ineffective only to the extent of such prohibition, and shall not invalidate the remainder of this Escrow Agreement.

Section 9.05. Binding Effect; Successors. This Escrow Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. Whenever in this Escrow Agreement any party hereto is named or referred to, such references shall be deemed to include permitted successors or assigns thereof, and all covenants and agreements contained in this Escrow Agreement by or on behalf of any party hereto shall bind and inure to the benefit of permitted successors and assigns thereof whether or not so expressed.

Section 9.06. Execution in Counterparts. This Escrow Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same agreement.

Section 9.07. Headings. The headings or titles of the several Articles and Sections hereof, and any tables of contents appended to copies hereof, shall be solely for convenience of reference and shall not affect the meaning, construction or effect of this Escrow Agreement. All references herein to "Articles", "Sections", and other subdivisions are to the corresponding Articles, Sections, or subdivisions of this Escrow Agreement; and the words "herein", "hereof", "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or subdivision hereof.

IN WITNESS WHEREOF, the parties have executed this Escrow Agreement as of the date and year first above written.

ESCROW AGENT:

Community First National Bank
215 S. Seth Child Road
Manhattan, KS 66502
Blake Kaus, SVP
LESSOR:

Community First National Bank
215 S. Seth Child Road
Manhattan, KS 66502
Blake Kaus, SVP
LESSEE:

City of Willows
201 North Lassen Street
Willows, CA95988
Marti Brown, City Manager

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EXHIBIT A

PAYMENT REQUEST FORM
Community First National Bank, Escrow Agent under an Escrow Agreement dated as of 7/15/2026, by and among the said Escrow Agent, Community First National Bank (Lessor), and the City of Willows, (Lessee) is hereby requested to pay, from the Equipment Acquisition Fund held under said Escrow Agreement, to the persons, firms or corporation designated below as payee, the amount set forth opposite each such person's firm's or corporation's name, in payment of the Acquisition Costs (as defined in said Escrow Agreement) of the Equipment described on the attached page(s) designated opposite such Payee's name and account.

Payee Equipment Amount
VOID

TO BE UTILIZED AS A SIGNATURE CARD ONLY
By executing this Payment Request Form the Lessee hereby represents that the Payee or Payees listed above who are requesting payment have delivered the Equipment or a portion of the Equipment or performed the services to the satisfaction of the Lessee and that the amounts requested above by the Payee or Payees are proportionate with the value of the Equipment delivered or services rendered by the Payee or Payees.

Partial Disbursement. The undersigned certifies that the following documents are attached to this Payment Request Form when there is a request for a partial release of funds from the Escrow Account to pay for a portion of the Equipment: (1) Invoice from the Vendor, (2) copy of the agreement between Lessee and Vendor (if requested by the Lessor or Escrow Agent), (3) front and back copy of the original MSO/Title (if payment from Escrow Account is for a chassis) listing Community First National Bank and/or its assigns as the first lien holder. By executing this Payment Request Form and attaching the documents as required above, the Lessee shall be deemed to have accepted this portion of the Equipment for all purposes under the Lease, including, without limitation, the obligation of Lessee to make the Rental Payments with respect thereto in a proportionate amount of the total Rental Payment. By executing this Payment Request Form Lessee agrees that Lessee is the title owner to this portion of the Equipment and that in the event that any third party makes a claim to such title that Lessee will take all measures necessary to secure title including, without limitation, the appropriation of additional funds to secure title to this portion of the Equipment and keep the Lease in full force and effect.

Final Disbursement. The undersigned certifies that the following documents are attached to this Payment Request Form when there is a final release of funds from the Escrow Account: (1) Final Vendor Invoice, (2) Signed Acceptance Certificate, (3) Insurance Certificate, (4) front and back copy of the original MSO/Title listing Community First National Bank and/or its assigns as first lien holder (if not already received). By executing this Payment Request Form and attaching the documents as required above, the Lessee shall be deemed to have accepted the Equipment for all purposes under the Lease, including, without limitation, the obligation of Lessee to make the Rental Payments with respect thereto. By executing this Payment Request Form Lessee certifies that Lessee is the title owner to the Equipment and that in the event that any third party makes a claim to such title that Lessee will take all measures necessary to secure title including, without limitation, the appropriation of additional funds to secure title to the Equipment and keep the Lease in full force and effect.

LESSEE:

City of Willows
Marti Brown, City Manager
Signature Signature of additional authorized individual (optional) Name and Title

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TAX COMPLIANCE AGREEMENT AND NO ARBITRAGE CERTIFICATE
This Tax Compliance Agreement and No Arbitrage Certificate is issued in connection with that certain Schedule of Equipment No. 01, dated 7/15/2026 to Master Equipment Lease Purchase Agreement dated as 7/15/2026 by and between Community First National Bank, ("Lessor") and City of Willows ("Lessee").

1. In General.

1.1. This Certificate is executed for the purpose of establishing the reasonable expectations of Lessee as to future events regarding the financing of certain equipment by Lessee as described in the Schedule of Equipment No. 01, dated 7/15/2026 to Master Equipment Lease Purchase Agreement dated as of 7/15/2026 (the "Lease") between Lessor and Lessee and all related documents executed pursuant thereto and contemporaneously herewith with respect to the financing of the acquisition of One (1) New Pierce Type 1 Fire Engine, Extrication Tools, One (1) Thermal Imaging Camera, and Rescue Struts of equipment (the "Equipment") by Lessor for Lessee (the Lease and such other documents are hereinafter collectively referred to as the "Financing Documents").

1.2. The individual executing this Certificate on behalf of Lessee is an officer of Lessee delegated with the responsibility of reviewing and executing the Financing Documents.

1.3. To the best of the undersigned's knowledge, information and belief, the expectations contained in this Certificate are reasonable.

1.4. Lessee has not been notified of any listing or proposed listing of it by the Internal Revenue Service as an issuer whose certifications as to arbitrage may not be relied upon.

1.5. The rental payments due under the Financing Documents will be made with monies retained in Lessee's general operating fund (or an account or sub account therein). No sinking, debt service, reserve or similar fund or account will be maintained for the payment of the rental payments due under the Financing Documents or pledged as security therefor.

1.6. If any other governmental obligations were or are being issued by or on behalf of Lessee within fifteen (15) days of the date of issuance of the Financing Documents, such obligations either (i) were not or are not being issued or sold pursuant to a common plan of financing with, or (ii) will not be paid out of substantially the same source of funds as, the financing pursuant to the Financing Documents.

2. Purpose of the Financing Documents. 2.1. The Financing Documents are being entered into for the purpose of providing funds for financing the cost of acquiring, equipping and installing the Equipment which is essential to the governmental functions of Lessee, which Equipment is described in the Equipment Description executed and delivered by Lessee pursuant to the Financing Documents. The principal amount represented by the Financing Documents, or $1,404,465.37 will be deposited in escrow by Lessor at closing and held by Community First National Bank the terms of that certain Escrow Agreement dated as of 7/15/2026 (the "Escrow Agreement"), by and among Lessor, Lessee and Escrow Agent.

2.2. No portion of the principal amount represented by the Financing Documents will be used as a substitute for other funds which were otherwise to be used as a source of financing for the Equipment, or will be used, directly or indirectly, to replace funds used by Lessee to acquire investments which produce a yield materially higher than the yield to Lessor under the Financing Documents.

2.3. Lessee does not expect to sell or otherwise dispose of the Equipment, in whole or in part, at a date which is earlier than the final rental payment due under the Financing Documents.

3. Source and Disbursement of Funds.

3.1. The principal amount represented by the Financing Documents does not exceed the amount necessary for the governmental purpose for which the Financing Documents were entered into. Such funds are expected to be needed and fully expended for payment of the costs of acquiring, equipping and installing the items of Equipment.

3.2. It is contemplated that the entire amount deposited in escrow will be used to pay the acquisition cost of Equipment to the vendors or manufacturers thereof, provided that a portion of the principal amount may be paid to Lessee within such period as reimbursement for Acquisition Costs already made by it so long as the conditions set forth in Section 3.3 below are satisfied.

3.3. Lessee shall not request that it be reimbursed for Equipment acquisition cost payments already made by it unless the following conditions have been satisfied:
(a) Lessee made a declaration of its reasonable intention to reimburse the acquisition cost payment sought to be reimbursed with the proceeds of a borrowing not later than sixty (60) days after the date on which it made the payment, which declaration satis -2;
(b) The reimbursement being requested will be made by written allocation before the later of eighteen (18) months after the acquisition cost payment was made or eighteen (18) months after the items of Equipment to which such payment relates were placed in service; (c) The entire payment with respect to which reimbursement is being sought is a capital expenditure, being a cost of type properly chargeable to a capital account under general federal income tax principles; and (d) Lessee will use any reimbursement payment for general operating expenses and not in a manner which could be construed as an artifice or device under Treas. Reg. Sec. 1. 148-10 by, virtue of, among other things, use to refund, or to create or increase a sinking, reserve or replacement fund with respect to, any other obligations issued by it.

4. Temporary Period.

4.1 The items of Equipment being acquired by Lessee will be delivered at various times.

4.2 Pursuant to the terms of Treasury Regulation l.148(2)(e)(2), the net sale proceeds and investment proceeds of an issue reasonably expected to be allocated to expenditures for capital projects qualify for a temporary period of 3 years beginning on the date of issuance of the Finance Documents (the 3- year temporary period). The 3-year temporary period applies only if the Lessee reasonably expects that at least 85 percent of the amount in escrow is allocated to expenditures on the Equipment by the end of the 3-year temporary period, the Lessee incurs within 6 months of the date of issuance of the Finance Documents a substantial binding obligation to a third party to expend at least 5 percent of the amount deposited in escrow on the Equipment, and completion of the Equipment and the allocation of the amount deposited in escrow to expenditures proceeds with due diligence. Lessee represents and covenants that it will comply with the arbitrage restrictions of the Code and Regulations and with the terms and conditions set forth in the Escrow Agreement.

4.3 The total acquisition cost of the Equipment is not required to be paid to the vendors or manufacturers thereof until the Equipment has been accepted by Lessee.

5. Escrow Account.

5.1. The Financing Documents provide that the monies deposited in escrow shall be invested until payments to the vendor(s) or manufacturer(s) of the Equipment are due. Lessee will ensure that such investment will not result in Lessee's obligations under the Financing Documents being treated as an "arbitrage bond" or a "federally guaranteed bond" within the meaning of Section 148(a) or Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"), respectively. Any monies which are earned from the investment of these funds shall be labeled as interest earned. All such monies will be disbursed on or promptly after the date that Lessee accepts the equipment.

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6. Exempt Use.

6.1. No part of the proceeds of the Financing Documents or the Equipment will be used in any "private business use" within the meaning of Section 141(b)(6) of the Internal Revenue Code of 1986, as amended.

6.2. No part of the proceeds of the Financing Documents will be used, directly or indirectly, to make or finance any loans to non-governmental entities or to any governmental agencies other than Lessee.

7. No Federal Guarantee.

7.1. Payment of the principal or interest due under the Financing Documents is not directly or indirectly guaranteed, in whole or in part, by the United States or an agency or instrumentality thereof.

7.2. No portion of the proceeds under the Financing Documents shall be (i) used in making loans, the payment of principal or interest of which are to be guaranteed, in whole or in part, by the United States or any agency or instrumentality thereof, or (ii) invested, directly or indirectly, in federally insured deposits or accounts if such investment would cause the financing under the Financing Documents to be federally guaranteed within the meaning of Section 149(b) of the Code.

8. Miscellaneous.

8.1. Lessee agrees to comply with the rebate requirement set forth in Section 148(f) of the Code in the event that for any reason it is applicable to the financing pursuant to Financing Documents.

8.2. Lessee shall keep a complete and accurate record of all owners or assignees of the Financing Documents in form and substance satisfactory to comply with Section 149(a) of the Code unless Lessor or its assignee agrees to act as Lessee's agent for such purpose.

8.3. Lessee shall maintain complete and accurate records establishing the expenditure of the proceeds of the Financing Documents and interest earnings thereon for a period of five years after payment in full under the Financing Documents.

IN WITNESS WHEREOF, this Tax Compliance Agreement and No Arbitrage Certificate has been executed on behalf of Lessee as of the date set forth below.

LESSEE:

City of Willows
Marti Brown, City Manager
Date

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EXHIBIT A

Payee Amount Equipment
Golden State 100% Prepay for new Engine
By executing this Payment Request Form the Lessee hereby represents that the Payee or Payees listed above who are requesting payment have delivered the Equipment or a portion of the Equipment or performed the services to the satisfaction of the Lessee and that the amounts requested above by the Payee or Payees are proportionate with the value of the Equipment delivered or services rendered by the Payee or Payees.

LESSEE:

City of Willows
Marti Brown, City Manager
Date

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PUBLIC HEARING

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Agenda Item #9a
_____________________________________________________________________ Date: July 14, 2026
To: Honorable Mayor and Councilmembers
From: Joe Bettencourt, Community Development and Services Director Marti Brown, City Manager
Subject: Public Hearing: Proposition 218 Sewer Rate Increase Recommendation:

Conduct a public hearing, receive public comments and written protests regarding the proposed sewer rate adjustments, and upon conclusion of the public hearing, consider adoption of the Resolution approving sewer rates for the five-year period beginning August 1, 2026.

Rationale for Recommendation:

To complete the Proposition 218 public hearing process and allow the City Council to consider adopting the proposed sewer rate adjustments for the five-year period from August 1, 2026, to July 31, 2031.

Background:

At the April 28, 2026, City Council meeting, LT Municipal Consultants provided an initial presentation regarding the draft sewer rate study. The purpose of that meeting was to present the preliminary findings, review the financial condition of the Sewer Enterprise Fund, and allow the City Council to provide initial comments and direction prior to finalizing the study.

At the May 12, 2026, City Council meeting, LT Municipal Consultants presented the final sewer rate study. The final presentation incorporated Council feedback from the April 28 meeting and provided additional information regarding projected revenues, operating expenses, debt service, capital improvement needs, reserve levels, and the proposed rate structure for residential, multi-family, and non-residential customers. At the conclusion of the presentation, the City Council directed staff to initiate the Proposition 218 public hearing process.

Following that direction, the City prepared and mailed the required Proposition 218 notices to affected property owners and customers of record. The notice identified the proposed sewer rate adjustments, the reasons for the rate increases, the proposed implementation schedule, and the process for submitting written protests. The public hearing was scheduled for July 14, 2026, at 6:00 p.m. at Willows City Hall.

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Discussion & Analysis:

The City’s sewer system is critical public infrastructure that protects public health, supports existing development, and allows the City to continue providing safe and reliable wastewater service to residents and businesses. The system includes sewer collection mains, lift stations, service connections, equipment, and wastewater treatment plant facilities. Much of this infrastructure is aging, and the vast majority of the City’s main sewer system is approximately 100 years old.

As with any utility system, the longer major infrastructure repairs and replacements are deferred, the greater the risk of emergency failures, service interruptions, environmental impacts, and higher longterm costs. Sewer main failures, treatment plant failures, or major equipment failures can result in significant emergency repair costs, regulatory violations, fines, penalties, and potential impacts to public health and the environment.

The proposed rate adjustments are intended to allow the City to continue taking a proactive approach to sewer system maintenance and capital improvements rather than waiting for failures to occur.

Planned improvements include sewer pipeline replacements, rehabilitation of wastewater treatment plant components, continued system maintenance, and replacement of critical equipment, including the need for a new Vactor-vacuum truck. A Vactor truck is essential to maintaining the sewer collection system because it allows the City to clean sewer mains, remove debris, respond to blockages, and reduce the likelihood of sanitary sewer overflows.

If the City chooses not to increase rates at this time, it will not eliminate the need for sewer system improvements. Instead, it will likely defer those costs into future years, which could result in significantly larger rate increases later. Delaying necessary improvements also increases the risk of a catastrophic infrastructure failure, which could require immediate emergency expenditures and expose the City to substantial costs, fines, and penalties.

Staff do not anticipate the need for large rate increases in future cycles if the City continues to make regular, planned investments in the sewer system. Based on the current financial planning, staff have concluded that the City may continue to accomplish major sewer infrastructure projects while maintaining future capital improvement cycles at approximately $7 million over the five-year rate period.

Consistency with Council Priorities and Goals:

The proposed action is consistent with City Council Priority #4: Infrastructure Improvements, including Goal #2 to implement Capital Improvement Projects and Goal #4 to implement the Sewage Repair Plan.

Fiscal Impact:

The proposed sewer rate adjustments would provide the revenue necessary to support the Sewer Enterprise Fund over the next five-year rate period. The proposed rates are intended to fund operating costs, maintenance, debt service, capital improvements, equipment replacement, reserve requirements, and regulatory compliance obligations.

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Attachments:
 Attachment 1: Prop 218 Sewer Rate Resolution
 Attachment 2: Sewer Rate Study

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Attachment 1
City of Willows
Resolution XX-2026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLOWS ADOPTING

ADJUSTMENTS TO SEWER SERVICE RATES FOR THE FIVE-YEAR PERIOD BEGINNING AUGUST 1, 2026
WHEREAS, the City of Willows owns and operates a municipal sewer system that provides wastewater collection, treatment, and disposal services to properties within the City’s sewer service area; and
WHEREAS, the City’s sewer system is operated through the Sewer Enterprise Fund, which is intended to be self-supporting through sewer service charges and other sewer-related revenues; and
WHEREAS, the Sewer Enterprise Fund is responsible for funding the costs of operating, maintaining, repairing, replacing, and improving the City’s sewer collection system, lift stations, equipment, and wastewater treatment plant facilities; and WHEREAS, the City’s existing sewer rates were established through a 2021 sewer rate study and provided rate adjustments through Fiscal Year 2025-26; and WHEREAS, the City determined that an updated sewer rate study was necessary to evaluate the current and projected financial needs of the Sewer Enterprise Fund and to develop updated rates for future years; and
WHEREAS, LT Municipal Consultants prepared a sewer rate study evaluating the cost of providing sewer service, including operations and maintenance, debt service, capital improvements, equipment replacement, reserve requirements, and regulatory compliance obligations; and
WHEREAS, the rate study identified the need to fund sewer infrastructure improvements over the next five-year period, including sewer pipeline replacements, rehabilitation of wastewater treatment plant components, and the acquisition of a vactor/vacuum truck necessary for sewer system maintenance; and WHEREAS, the City Council received the final sewer rate study presentation on May 12, 2026, which incorporated Council feedback and provided additional information regarding projected revenues, operating expenses, debt service, capital improvement needs, reserve levels, and the proposed rate structure; and
WHEREAS, at the May 12, 2026 meeting, the City Council directed staff to initiate the Proposition 218 public hearing process; and

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WHEREAS, the City caused written notice of the proposed sewer rate adjustments and the public hearing to be mailed to affected property owners and customers of record in accordance with Proposition 218 and applicable law; and WHEREAS, the City Council held a duly noticed public hearing on July 14, 2026, at 6:00 p.m. at Willows City Hall, 201 North Lassen Street, Willows, California, to receive public testimony and written protests regarding the proposed sewer rate adjustments; and WHEREAS, all written protests received prior to the close of the public hearing were tabulated; and
WHEREAS, the City Council has determined that valid written protests were not submitted by a majority of the affected parcels, and therefore a majority protest does not exist under Proposition 218; and
WHEREAS, the City Council finds that the proposed sewer rates do not exceed the funds required to provide sewer service, do not exceed the proportional cost of service attributable to each parcel, and will be used only for the purposes for which the sewer service charges are imposed.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF WILLOWS RESOLVES AS FOLLOWS:

SECTION 1. RECITALS.

The foregoing recitals are true and correct and are incorporated herein by this reference.

SECTION 2. PUBLIC HEARING AND MAJORITY PROTEST.

The City Council finds that the City conducted the required public hearing on July 14, 2026, in accordance with Article XIII D, Section 6 of the California Constitution and applicable law. The City Council further finds that, following the tabulation of all valid written protests received prior to the close of the public hearing, a majority protest does not exist.

SECTION 3. ADOPTION OF SEWER RATE ADJUSTMENTS.

The City Council hereby adopts the sewer service rate adjustments set forth in Exhibit A, attached hereto and incorporated herein by this reference.

SECTION 4. EFFECTIVE DATES.

The sewer service rate adjustments adopted by this Resolution shall become effective as follows:

1. August 1, 2026;

2. July 1, 2027;

3. July 1, 2028;

4. July 1, 2029; and

5. July 1, 2030.

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SECTION 5. USE OF SEWER RATE REVENUES.

Revenues collected from the sewer service rates adopted by this Resolution shall be used only for sewer system purposes, including operations, maintenance, debt service, capital improvements, equipment replacement, reserve requirements, regulatory compliance, and other lawful costs associated with providing sewer service.

SECTION 6. IMPLEMENTATION AND ADMINISTRATION.

The City Manager or designee is authorized and directed to take all actions necessary to implement and administer the sewer rates adopted by this Resolution.

SECTION 7. SEVERABILITY.

If any section, subsection, sentence, clause, phrase, or portion of this Resolution is held invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof regardless of the fact that any one or more portions may be declared invalid or unconstitutional.

SECTION 8. EFFECTIVE DATE.

This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on this 14th day of July, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTESTED:
__________________________________ ____________________________________ Evan Hutson, Mayor Karleen Price, City Clerk

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EXHIBIT A
City of Willows Sewer Service Rates
Table 1: Current and Proposed Monthly Sewer Rates
Current Proposed
Customer Class
July 1,
2025 Customer Class
August 1,
2026
July 1,
2027
July 1,
2028
July 1,
2029
July 1,
2030
Residential Fixed Charge Residential Fixed Charge per dwelling unit Single Family $74.24 Single Family $75.13 $82.64 $90.90 $95.45 $100.22 Multi-Family [1] $42.93 Multi-Family $66.27 $72.90 $80.19 $84.20 $88.41 Commercial Fixed Charge Non-Residential Base Fee (includes up to 8 hcf of sewer flow) Commercial $87.62
Low Strength $70.81 $77.89 $85.68 $89.96 $94.46
Medium Strength $75.13 $82.64 $90.90 $95.45 $100.22
High Strength $93.13 $102.44 $112.68 $118.31 $124.23
Commercial Volumetric
Charge Volumetric Charge for Non-residential Flow Over Base ($/hcf above 8 hcf) [2] Car Wash $3.65 Low Strength $3.89 $4.28 $4.71 $4.95 $5.20 Laundry $4.07 Hospital & Rest
Home $4.37
Motel & Hotel $4.73 Medium Strength $4.43 $4.87 $5.36 $5.63 $5.91 Jail $5.50
Other Commercial $5.50
Market & Morgue $8.89
Restaurant & High Strength $6.68 $7.35 $8.09 $8.49 $8.91 Bakery $9.53
1 - Accessory dwelling units, apartments, condominiums, mobile homes, and RVs. 2 - Per hundred cubic feet (hcf). 1 hcf = 748 gallons. Applied to average monthly winter water use measured from December through February each year.

The categories above represent general land use designations. By its determination, the City may establish specialized rates for customers that are not categorized into the designations listed above or for customers that fall into multiple categories. Any specialized rates will be proportional to the cost of wastewater flow and pollutant disposal included in the sewer rates above such that the single family residential rate is based on the cost of service for 8 hcf of monthly domestic strength flow. If you are a commercial customer and would like additional information about your customer classification, please contact the City at (530) 934-7041.

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Sewer Rate Study
City of Willows
Draft Report
May 5, 2026
909 Marina Village Parkway #135 ▪ Alameda, CA 94501 ▪ (510) 545-3182 ▪ www.LTmuniconsultants.com Attachment 2

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City of Willows
Sewer Rate Study 2026

TABLE OF CONTENTS
SECTION 1: INTRODUCTION AND EXECUTIVE SUMMARY .................................................................1

1.1 Background .......................................................................................................................1

1.2 Requirements of Proposition 218.....................................................................................1

1.3 Rate Study Process............................................................................................................2

1.4 Proposed Rates.................................................................................................................4 SECTION 2: CUSTOMER BASE AND CURRENT RATE REVENUES.........................................................8

2.1 Current Sewer Rates.........................................................................................................8

2.2 Current Sewer Rate Revenues ..........................................................................................8 SECTION 3: COST OF SERVICE ..........................................................................................................10

3.1 Sewer System Overview..................................................................................................10

3.2 Revenues.........................................................................................................................10

3.3 Expenses..........................................................................................................................10

3.4 Sewer Reserves...............................................................................................................15

3.5 Sewer Cash Flow Projection............................................................................................15 SECTION 4: SEWER COST ALLOCATION............................................................................................17

4.1 Methodology...................................................................................................................17

4.2 Proposed Sewer Cost Allocation.....................................................................................17 SECTION 5: SEWER RATE DESIGN.....................................................................................................19

5.1 Sewer Rate Design ..........................................................................................................19

5.2 Sewer Rate Derivation ....................................................................................................23

5.3 Proposed 5-Year Schedule of Sewer Rates.....................................................................25

5.4 Sewer Bill Impacts...........................................................................................................27

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City of Willows
Sewer Rate Study 2026

LIST OF TABLES
Table 1: Current and Proposed Monthly Sewer Rates..................................................................................5 Table 2: Current and Past Sewer Rates.........................................................................................................8 Table 3: Estimated Sewer Rate Revenues, FY2024/25 .................................................................................9 Table 4: Past Operating and Capital Expenses............................................................................................11 Table 5: Sewer Operating Expense Projection............................................................................................13 Table 6: Five-Year Capital Improvement Program......................................................................................14 Table 7: Cash Flow Projection.....................................................................................................................16 Table 8: Cost Allocation ..............................................................................................................................18 Table 9: Proposed Non-Residential Sewer Categories................................................................................19 Table 10: Number of Accounts and Dwelling Units....................................................................................21 Table 11: Sewer Flows & Loading Characteristics.......................................................................................22 Table 12: FY2026/27 Sewer Rate Revenue Requirement Allocation..........................................................23 Table 13: FY2026/27 Unit Cost Calculation.................................................................................................24 Table 14: FY2026/27 Flow Charge Derivation.............................................................................................24 Table 15: FY2026/27 Fixed Sewer Fee Derivation ......................................................................................25 Table 16: Proposed 5-Year Schedule of Monthly Sewer Rates...................................................................26 Table 17: Sample Low Strength Non-Residential Bill Impacts....................................................................29 Table 18: Sample Medium Strength Non-Residential Bill Impacts.............................................................30 Table 19: Sample High Strength Non-Residential Bill Impacts ...................................................................31

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City of Willows Page 1
Sewer Rate Study 2026
SECTION 1: INTRODUCTION AND EXECUTIVE SUMMARY

1.1 Background
The City of Willows (City) is located in and serves as the county seat of Glenn County, California, in the northern portion of the Central Valley about 85 miles north of Sacramento. There are about 6,000 residents in the City. The City owns a municipal wastewater (sewer) system that serves the City as well as the Northeast Willows Community Services District (CSD) in unincorporated Glenn County. The City provides routine maintenance and emergency response services for the City’s sewer infrastructure to help ensure safe collection and conveyance of wastewater to the treatment plant. The City’s treatment plant is managed by Inframark, an independent operator under contract with the City. The treatment plant processes wastewater collected through the sanitary sewer system and ensures sewer flow is properly treated before discharge.

The City last conducted a rate study pursuant to Proposition 218 requirements in 2021 which set rates for the five-year period ending July 1, 2025. The goal of this rate study is to determine a rate plan that covers the City’s cost of service for the next five years, spanning fiscal year (FY) 2026/27 through FY2030/31. Rate increases are needed to keep up with inflation, pay down debt, maintain adequate reserves, and fund capital improvements. In particular, the City’s capital improvement plan identifies about $7.8 million in sewer infrastructure improvements that must be financed through rates over the next five years to ensure the City can continue to provide safe and reliable sewer service. By proactively maintaining and improving the sewer system, the City hopes to avoid sewer leaks and costly emergency repairs.

A second goal of this rate study is to adjust the sewer rate structure to better align with industry standard practices and to recover costs in a manner that is more proportional to how customers use the system. The proposed rates are based on an updated analysis of the estimated wastewater flows (i.e., volume) and the concentration of wastewater pollutants (i.e., fats, oils, grease, etc.) discharged by each customer class to determine the relative cost to serve that class and ensure that the proposed rates do not exceed the proportional cost of service for each customer. It is also proposed that the nonresidential sewer rate structure be simplified such that the only customer classes are low pollutant strength, medium strength, and high strength.

1.2 Requirements of Proposition 218
The implementation of public agency utility rates in California is governed by the substantive and procedural requirements of Proposition 218 the “Right to Vote on Taxes Act” which is codified as Articles XIIIC and XIIID of the California Constitution. The City must follow the procedural requirements of Proposition 218 for all utility rate increases. These requirements include:

1. Noticing Requirement – The City must mail a notice of the proposed rate increases to all affected property owners or ratepayers. The notice must specify the amount of the fees, the basis upon which they were calculated, the reason for the fees, and the date/time/location of a

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public rate hearing at which the proposed rates will be considered/adopted.

2. Public Hearing – The City must hold a public hearing prior to adopting the proposed rate increases. The public hearing must be held not less than 45 days after the required notices are mailed.

3. Rate Increases Subject to Majority Protest – At the public hearing, the proposed rate increases are subject to majority protest. If more than 50% of affected property owners or ratepayers submit written protests against the proposed rate increases, the increases cannot be adopted.

Proposition 218 also established substantive requirements that apply to sewer rates and charges, including:

1. Cost of Service – Revenues derived from the fee or charge cannot exceed the funds required to provide the service. In essence, fees cannot exceed the “cost of service”.

2. Intended Purpose – Revenues derived from the fee or charge can only be used for the purpose for which the fee was imposed.

3. Proportional Cost Recovery – The amount of the fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of service attributable to that parcel.

4. Availability of Service – No fee or charge may be imposed for a service unless that service is used by, or immediately available to, the owner of the property.

5. General Government Services – No fee or charge may be imposed for general governmental services where the service is available to the public at large.

Charges for sewer service are exempt from additional voting requirements of Proposition 218, provided the charges do not exceed the cost of providing service and are adopted pursuant to the procedural requirements of Proposition 218.

1.3 Rate Study Process
A summary of the rate study process is provided in Figure 1 on the following page.

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Figure 1: Rate Study Process
The following is a brief description of the rate study process:
▪ Revenue Requirement – Revenue requirements are analyzed via cash flow projections based on the best information currently available such as historical operating results, budgets, audits, and input from City staff. The cash flows serve as a roadmap for funding future operating costs and capital expenditures while maintaining long-term fiscal stability, all of which is calculated in this study to produce rates that will be necessary to recover only the actual cost of the sewer service per parcel under these proposed rates.
▪ Cost of Service Allocation - The cost of service process builds on the revenue requirement analysis. Sewer costs are allocated based on sewage flow and pollutant strength. ▪ Rate Design - Rate design involves developing a rate structure that fairly recovers costs from customers but does not exceed the proportional cost of the service attributable to each parcel.

Final rate recommendations are designed to fund the City’s short- and long-term costs of providing service and fairly allocate costs to all customers.

The rates developed in this report are based on the best available information gathered from City budgets, audits, and input from staff. The cost allocations proposed herein are based on industry standard practice. The proposed rates are based on the reasonable cost of providing service and do not exceed the proportional cost of the service attributable to each parcel.

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1.4 Proposed Rates
Current and proposed sewer rates are provided in Table 1. It is proposed that all residential customers continue to pay a fixed charge that reflects the cost to serve the average flow of a typical customer. The average single family residential customer is estimated to discharge 8 hundred cubic feet (hcf) of wastewater flow per month, while the average multi-family residential customer discharges an estimated 6 hcf per month. Based on this flow analysis, the multi-family residential rate is proposed to increase by a greater degree than other customer classes.

Currently, all non-residential or commercial customers pay fixed base charges in addition to volumetric charges based on average monthly metered water consumption as measured from December through February each year. The volumetric charge is billed per one hundred cubic feet (hcf) of average winter water usage and is different for each of the City’s eight customer classes. One hundred cubic feet is equivalent to 748 gallons.

It is proposed that the non-residential categories be reduced from eight to three, consisting of low pollutant strength, medium strength, and high strength. It is proposed that the volumetric charges continue to be billed based on average winter water use. However, it is also proposed that the fixed charge for each of the three proposed customer classes include the first 8 hcf of monthly sewer flows. 8 hcf was determined to be an appropriate threshold for the fixed charge as that is the typical single family flow and represents a minimum amount of capacity that the City maintains in the sewer system for each customer. Non-residential flow over the first 8 hcf is proposed to be billed the volumetric rates shown in Table 1.

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Table 1: Current and Proposed Monthly Sewer Rates
Current Proposed
Customer Class July 1, 2025 Customer Class August 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 July 1, 2030 Residential Fixed Charge Residential Fixed Charge per dwelling unit Single Family $74.24 Single Family $75.13 $82.64 $90.90 $95.45 $100.22 Multi-Family (per unit) $42.93 Multi-Family $66.27 $72.90 $80.19 $84.20 $88.41 Commercial Fixed Charge Non-Residential Base Fee (includes up to 8 hcf of sewer flow) Commercial $87.62
Low Strength $70.81 $77.89 $85.68 $89.96 $94.46
Medium Strength $75.13 $82.64 $90.90 $95.45 $100.22
High Strength $93.13 $102.44 $112.68 $118.31 $124.23
Commercial Volumetric Charge Volumetric Charge for Non-residential Flow Over Base ($/hcf above 8 hcf) [1] Car Wash $3.65 Low Strength $3.89 $4.28 $4.71 $4.95 $5.20 Laundry $4.07
Hospital & Rest Home $4.37
Medium Strength $4.43 $4.87 $5.36 $5.63 $5.91 Motel & Hotel $4.73 Jail $5.50
Other Commercial $5.50
Market & Morgue $8.89 High Strength $6.68 $7.35 $8.09 $8.49 $8.91 Restaurant & Bakery $9.53
1 - Per hundred cubic feet (hcf). 1 hcf = 748 gallons. Applied to average monthly winter water use measured from December through February each year.

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Figure 2 provides a survey comparing the City’s current and proposed single family residential sewer bill with other local agencies. It should be noted that the agencies listed vary in size, complexity, and treatment standards. It is also likely that many of these agencies will implement rate increases over the next five years. The rates shown in the chart represent the most current available information at the time of writing this report, and the most recent adopted or proposed increase is denoted in parentheses for each agency included on the chart. The City’s current monthly sewer bill is $74.24 and the proposed August 1, 2026 bill is $75.13, an increase of $0.89.

Figure 2: Monthly Sewer Bill Survey
PUD – Public Utility District; WSD – Water and Sewer District

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SECTION 2: CUSTOMER BASE AND CURRENT RATE REVENUES
The City of Willows provides sewer service to a population of about 6,000 via approximately 2,600 active accounts representing about 3,300 dwelling units. About 3,000 of these units are within City limits, and the remaining 300 units are outside City limits in the Northeast Willows CSD unincorporated area. This section provides an overview of the City’s current sewer rates, customer base, and current rate revenues.

2.1 Current Sewer Rates
Table 2 presents the City’s current and past monthly sewer rates which were last adjusted July 1, 2025.

Single family residential and multi-family residential customers are billed a fixed monthly service charge per dwelling unit. Commercial customers are billed a fixed monthly service charge per unit and a volumetric charge per hcf based on average winter water usage measured from December through February of each year. Most customers are billed annually on the Glenn County property tax roll, with the exception of commercial customers who are billed monthly.

Table 2: Current and Past Sewer Rates
Sewer Rate Schedule FY2020/21 FY2021/22 FY2022/23 FY2023/24 FY2024/25 FY2025/26 Fixed Monthly Service Charge
Single Family Residential $40.19 $47.19 $52.85 $59.19 $66.29 $74.24 Multi-Family Residential (per unit) $40.19 $27.28 $30.55 $34.22 $38.33 $42.93 Commercial $40.19 $55.69 $62.37 $69.85 $78.23 $87.62
Volumetric Charge ($/hcf)
Commercial (Applied to Average Winter
Water Use)
Car Wash $3.05 $2.32 $2.60 $2.91 $3.26 $3.65
Hospital & Rest Home $3.17 $2.78 $3.11 $3.48 $3.90 $4.37 Jail $3.54 $3.49 $3.91 $4.38 $4.91 $5.50
Laundry $3.42 $2.58 $2.89 $3.24 $3.63 $4.07
Market & Morgue $3.94 $5.65 $6.33 $7.09 $7.94 $8.89
Motel & Hotel $3.22 $3.01 $3.37 $3.77 $4.22 $4.73
Restaurant & Bakery $4.18 $6.06 $6.79 $7.60 $8.51 $9.53 Other Commercial $3.01 $3.49 $3.91 $4.38 $4.91 $5.50
Note: The City's most recent rate study was completed in 2021 and proposed the rates for FY2021/22 through FY2025/26.

2.2 Current Sewer Rate Revenues
The City’s estimated FY2024/25 revenues from sewer service charges are calculated in Table 3 based on the City’s billing data and winter water usage data for the most recent year available. It is estimated that the City collected a total of $2.7 million in sewer service charge revenues. The majority of the City’s revenue, about 88.9%, comes from fixed charges, while the remaining 11.1% comes from volumetric

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charges. The City serves about 3,000 customers within the City limits and about 300 customers in the Northeast Willows CSD unincorporated area.

Table 3: Estimated Sewer Rate Revenues, FY2024/25

FIXED SERVICE CHARGES
Customer Class Number of Units
Monthly
Rate
Total
Revenues
% of
Total
City of Willows
Single Family Residential 2,029 $66.29 $1,614,029
Multi-Family Residential 740 $38.33 $340,370
Commercial 245 $78.23 $229,996
Subtotal City of Willows 3,014 $2,184,396
Northeast Willows
Single Family Residential 259 $66.29 $206,029
Multi-Family Residential 35 $38.33 $16,099
Commercial 4 $78.23 $3,755
Subtotal Northeast Willows 298 $225,883
Total Fixed Service Charges 3,312 $2,410,278

VOLUMETRIC CHARGES (COMMERCIAL CUSTOMERS ONLY)
Customer Class
Avg Monthly Winter
Water Use (hcf)
Rate per
hcf
Total
Revenues
% of
Total
City of Willows
Car Wash 105 $3.26 $4,112
Hospital & Rest Home 639 $3.90 $29,916
Jail 0 $4.91 $0
Laundry 75 $3.63 $3,250
Market & Morgue 682 $7.94 $64,956
Motel & Hotel 760 $4.22 $38,483
Restaurant & Bakery 639 $8.51 $65,207
Other Commercial 1,629 $4.91 $95,976
Total Volumetric Charges 4,528 $301,900

TOTAL SEWER SERVICE CHARGE REVENUES
Total
Revenues
% of
Total
Fixed Charges $2,410,278 88.9%
Volumetric Charges $301,900 11.1%
Total Sewer Service Charge Revenues (LTMC Calculation) $2,712,179 100.0% Estimated Actual Sewer Service Charge Revenues (From City Budget, p. 50) $2,524,293 $ Difference -$187,886
% Difference -7.4%

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SECTION 3: COST OF SERVICE
Proposition 218 requires that utility rates be based on the reasonable cost of providing service to customers. This section provides an analysis of sewer system revenues and expenses to determine the total cost of service to be recovered via rates. The cost of service is expressed in a cash flow table that illustrates revenue increases needed to keep up with expenses and maintain financial health. Over the five-year rate study period, rate increases are proposed so that the City can pay for operating costs, capital improvements, debt service costs, and maintain reasonable reserves, all of which are calculated in this study to produce rates that will be necessary to recover only the actual cost of the sewer service per parcel under the proposed rates. The cost of service was developed based on the FY2025/26 budget, the City’s capital improvement plan, and input from staff.

3.1 Sewer System Overview
The sewer utility’s purpose is to collect, treat, and dispose of residential and commercial wastewater in an environmentally safe manner. This process is closely monitored by several State of California regulatory agencies to guarantee compliance with Federal and State mandates. The City’s wastewater treatment plant (WWTP) provides tertiary treatment of all wastewater flows and is operated on a dayto-day basis under contract by the independent operator Inframark. The City’s Public Works Department supervises the operation and maintenance of the system and the construction of capital projects. The WWTP average dry weather flow capacity permitted by the Central Valley Regional Water Quality Control Board is 1.2 million gallons per day (MGD).

3.2 Revenues
The City’s revenues consist of sewer service charges and interest income. In FY2026/27 it is projected that sewer service charges of $3.09 million will make up almost 97% of total revenues. It is projected that interest income will make up the remaining 3% of revenues in FY2026/27 and remain at $100,000 annually for the duration of the rate study period. August 1, 2026, a rate revenue increase of 10% is proposed to go into effect. Further increases of 10% are proposed to take effect July 1, 2027 and 2028, and 5% increases are proposed to take effect July 1, 2029 and 2030 to fund the costs described below.

3.3 Expenses

3.3.1 Past Operating Expenses and Capital Costs
Table 4 details operating and capital expenses based on past actuals from FY2022/23 through FY2024/25 and the FY2025/26 budget. In FY2025/26 the City expects to incur $4.9 million in expenses to operate and maintain the sewer system. This represents an increase compared to the previous year’s operating and maintenance expenses of $2.2 million. The reason for this large increase is due to a larger number of capital improvement projects expected to be completed this fiscal year (FY2025/26). Prior to FY2025/26, the City spent only about $230,000 over the previous three years on capital projects.

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Table 4: Past Operating and Capital Expenses

ESTIMATED PROPOSED

ACTUAL ACTUAL ACTUAL BUDGET
Salaries & Benefits FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 40000 - Salaries 6,365 - - -
40002 - Overtime 405 - - -
40010 - Salaries - PT 0 - - -
40004 - CalPERS 2,445 - - -
40006 - Health Insurance 1,728 - - -
40007 - FICA/ Medicare 507 - - -
40020 - Life Insurance 62 - - -
40900 - Overhead - General Fund 78,173 261,622 255,357 261,175 Total Personnel Services: 89,685 261,622 255,357 261,175 Operations & Maintenance
40500 - Dues & Memberships 0 2,000 0 0
40602 - Insurance 310 25,000 72,182 75,000
40999 - Special Department 26,191 212,000 150,000 0
41000 - Office Expense 29 100 0 0
41100 - Clothing 2,529 1,000 7,124 7,500
41200 - Fuel 5,700 5,000 11,000 12,000
41300 - Professional Services 26,554 35,000 20,000 70,000 41340 - Discharge Permit 13,676 14,500 18,277 19,000
41500 - Small Tools 0 500 0 0
43000 - Vehicle Maintenance 2,064 1,500 200 2,000
43100 - Equipment Maintenance 1,116 6,000 334 30,000
45100 - PG&E 293,978 10,000 320,000 300,000
45101 - Water & Sewer 3,184 3,000 4,000 4,000
Total Operations & Maintenance: 465,254 315,600 603,117 519,500 Contract Operations - Plant Facility
44000 - Contractual Services 720,787 737,000 650,000 700,000 Total Contract Operations: 720,787 737,000 650,000 700,000 Debt Service
48000/48001 - Principal / Interest on Debt 394,448 534,564 501,519 536,019 Total Debt Service: 394,448 534,564 501,519 536,019
Capital Projects
61130 - Sycamore Street Lift Station - - - 189,750
61130 - Pacific Avenue Lift Station - - - 178,250
61130 - Lassen St Sewer Rehab - - - 201,250
61130 - Road 57 Sewer Lift Station - - - 103,500
61130 - Cherry Street Lift Station - - - 139,165
61130 - Update Municipal Code - 15,000 - -
61130 - WWTP Safety Impvmts - - - 30,000
61130 - Annual Sewer Replct Project - - 95,038 2,057,250 61130 - WWTP Upgrades - - 119,048 -
61130 - HVAC Air Ducts Cleaning - 1,500 - -
66021 - Tyler Utility Billing - - - 17,500
Total Capital Projects: - 16,500 214,086 2,916,665
Total Sewer Enterprise: 1,670,174 1,865,286 2,224,078 4,933,359

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3.3.2 Operating Costs
Operating costs include salaries & benefits, insurance, clothing allowance, fuel, professional services, discharge permits, supplies, and materials, vehicle maintenance, equipment maintenance, electricity, and contract operations. The largest operating expense is contractual services which represents the cost of the outside operator of the City’s WWTP. In FY2025/26, the City expects to incur about $1.5 million in expenses to operate and maintain the sewer system.

Operating costs for the next five years are estimated in Table 5 based on projected cost escalation of

3.0% per year. In addition to inflationary adjustments, the City expects to hire a new staff member in FY2026/27 for a cost of $80,000 per year. Insurance costs are expected to increase by $10,000 in FY2026/27 and then increase by 3% each year thereafter. Professional services are expected to decrease by $40,000 in FY2026/27 and then increase 3% each year thereafter due to inflation. Supplies & materials is a new expense category being introduced in FY2026/27, with expected costs being $10,000 in FY2026/27. Additionally, the City expects to complete construction of a solar plant during the rate study period which will offset electricity costs paid to PG&E. Construction is expected to be completed in FY2027/28 and the completed plant is expected to decrease costs by $109,000 initially.

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Table 5: Sewer Operating Expense Projection
Budget Escalation Projected
FY2025/26 Factor FY2026/27 FY2027/28 FY2028/29 FY2029/30 FY2030/31 Salaries & Benefits
Overhead - General Fund $261,175 3.0% $269,000 $277,100 $285,400 $294,000 $302,800 New Staff Member [1] 3.0% $80,000 $82,400 $84,900 $87,400 $90,000 Subtotal Salaries & Benefits $261,175 $349,000 $359,500 $370,300 $381,400 $392,800 Operations & Maintenance
Dues & Memberships $0 3.0% $0 $0 $0 $0 $0
Insurance [2] $75,000 3.0% $85,000 $87,600 $90,200 $92,900 $95,700 Special Department $0 3.0% $0 $0 $0 $0 $0
Office Expense $0 3.0% $0 $0 $0 $0 $0
Clothing $7,500 3.0% $7,700 $7,900 $8,100 $8,300 $8,500 Fuel $12,000 3.0% $12,400 $12,800 $13,200 $13,600 $14,000 Professional Services [3] $70,000 3.0% $30,000 $30,900 $31,800 $32,800 $33,800 Discharge Permit $19,000 3.0% $19,600 $20,200 $20,800 $21,400 $22,000 Small Tools $0 3.0% $0 $0 $0 $0 $0
Supplies & Materials [4] 3.0% $10,000 $10,300 $10,600 $10,900 $11,200 Vehicle Maintenance $2,000 3.0% $2,100 $2,200 $2,300 $2,400 $2,500 Equipment Maintenance $30,000 3.0% $30,900 $31,800 $32,800 $33,800 $34,800 PG&E [5] $300,000 3.0% $309,000 $200,000 $206,000 $212,200 $218,600 Water & Sewer $4,000 3.0% $4,100 $4,200 $4,300 $4,400 $4,500 Subtotal O & M $519,500 $510,800 $407,900 $420,100 $432,700 $445,600 Contract Operations - Plant
Facility $700,000 3.0% $721,000 $742,600 $764,900 $787,800 $811,400 Total Operating Expenses $1,480,675 $1,580,800 $1,510,000 $1,555,300 $1,601,900 $1,649,800 1 - It is expected that the City will hire a new staff member for the Sewer Fund in FY2026/27. The fully burdened cost of this employee is expected to begin at $80,000 per year per City staff. 2 - Insurance is anticipated to increase to $85,000 in FY2026/27 and is then escalated by 3.0% annually thereafter. 3 - Professional Services are expected to decrease to $30,000 in FY2026/27 and are then escalated by 3.0% annually thereafter.
4 - Supplies & Materials is a new category that will be budgeted beginning in FY2026/27, per direction from City staff. 5 - FY2027/28, the City is expected to complete construction of a solar plant that will offset electricity costs of PG&E. City staff calculated that estimated electricity costs once the plant is completed will decrease to $200,000 per year.

3.3.3 Sewer Capital Improvement Plan
The City adopted a five year capital improvement plan which was developed by the City Engineer and spans FY2024/25 to FY2028/29. Based on estimates provided by the City Engineer and other City staff, the recommended projects from that plan which are yet to be completed were spread over the rate study period as detailed in Table 6. Project costs total about $7.8 million over the five-year period. Of this total, the largest share will go towards the annual sewer replacement project. The annual sewer replacement project was adopted to replace aging and failing sewer collection system infrastructure.

This is meant to reduce maintenance as well as inflow and infiltration into the sewer collection system.

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Table 6: Five-Year Capital Improvement Program
Project
Number Project Name
FY
2026-27
FY
2027-28
FY
2028-29
FY
2029-30
FY
2030-31 Total
SS-002-232 Annual Sewer Replacement Project 412,500 - - - - 412,500 SS-002-233 Annual Sewer Replacement Project - - 191,700 2,204,200 - 2,395,900 SS-003 Annual Sewer Replacement Project - - - 50,000 1,150,000 1,200,000 SS-023 WWTP - Clarifier Improvements - 10,000 95,000 200,000 - 305,000 SS-024 Chlorine Contact Chamber Improvements 120,000 - 60,000 - - 180,000 SS-025 Chemical Storage and Pipelines - 140,000 60,000 - - 200,000 SS-026 Sodium Bisulfite injection System Housing Structure - 85,000 - - - 85,000 SS-027 Wastewater Treatment Plan Safety Improvements 30,000 - - - - 30,000 SS-029 WWTP Upgrades 125,000 122,000 117,000 - - 364,000 SS-030 Blower Building Improvements 40,000 - - - - 40,000 SS-031 Clarifier Improvements - 200,000 - - - 200,000
SS-032 Tertiary Filtration Structure Repairs 50,000 - - - - 50,000 SS-033 WWTP Pond Liners - 850,000 600,000 - - 1,450,000 SS-034 WWTP SCADA and Admin Bldg Upgrade 45,000 - - - - 45,000 Annual Vehicle Replacement 165,000 165,000 165,000 165,000 165,000 825,000 Total Sewer Projects 987,500 1,572,000 1,288,700 2,619,200 1,315,000 7,782,400 Source: City of Willows Five Year Capital Improvement Program Fiscal Years 2025-2029

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3.3.4 Debt Service
In addition to operating and capital costs, the Sewer Fund is responsible for existing annual debt service costs. The City’s one existing debt obligation totals about $540,000 per year. The City’s existing debt was obtained in 2021 through certificates of participation for the 2021 Sewer System Financing Project. The final payment is expected in 2046. The 2021 certificates of participation provided funds to refinance improvements at the WWTP and, in particular, to provide for the refunding of certificates of participation that the City obtained in 2007 to upgrade the WWTP’s treatment process from secondary to tertiary.

A chief covenant for the City to secure debt financing is to maintain a specific debt service coverage ratio. A debt service coverage ratio is a financial measure of an agency’s ability to repay outstanding debt. For the Sewer Fund, the debt service coverage ratio means that annual sewer net revenues (gross revenues less operating and maintenance expenses) must be at least 1.25 times the combined annual debt service payments on all parity obligations. Failure to meet the debt service coverage ratio on an annual basis is considered to be technical default, thereby making the debt callable or payable upon demand. Thus, rates and fees must be set to meet this legal requirement. It is projected that the Sewer Fund will have sufficient debt coverage over each of the next five years.

3.4 Sewer Reserves
The current Sewer Fund cash reserve balance is estimated at about $1.6 million by City staff. It is recommended that the Sewer Fund maintain a balance equal to 50% of operating costs plus annual debt service costs plus $300,000 for an emergency capital reserve. Based on these calculations, the target reserve balance for FY2026/27 is $1.63 million. The projected ending fund balance for FY2026/27 is $1.59 million, which falls just under the target. It is projected that the City will spend down reserves in FY2027/28 and FY2029/30 as these are years with higher projected capital improvement costs identified in Table 6. By the end of FY2030/31, it is projected that the Sewer Fund will have a reserve balance of about $2.1 million, exceeding the target of about $1.7 million.

3.5 Sewer Cash Flow Projection
Table 7 provides the five-year cash flow spanning from FY2026/27 to FY2030/31. Over the five-year rate study period, a series of annual rate revenue increases are proposed to fund operating costs, capital costs, debt service costs, and maintain adequate reserves. The first three years of the rate plan, 10% annual increase are proposed. 5% annual increases are proposed in the last two years of the rate study period. The first rate increase is proposed to take effect August 1, 2026 with subsequent increases each July 1 from 2027 to 2030. The revenue increases shown in the cash flow projection reflect the percentage at which total annual revenues will increase.

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Table 7: Cash Flow Projection
Projected: Proposition 218 Period
FY2026/27 FY2027/28 FY2028/29 FY2029/30 FY2030/31
Rate Increase % 10.0% 10.0% 10.0% 5.0% 5.0%
Rate Increase Effective Date Aug 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 July 1, 2030 Rate Revenues over 12 months 3,109,900 3,420,900 3,763,000 3,951,200 4,148,800 BEGINNING FUND BALANCE [1] $1,616,300 $1,694,000 $1,589,400 $2,067,300 $1,354,100

REVENUES
Sewer Service Fees [2] 3,086,300 3,420,900 3,763,000 3,951,200 4,148,800 Interest Income 100,000 100,000 100,000 100,000 100,000 Subtotal Revenues 3,186,300 3,520,900 3,863,000 4,051,200 4,248,800

EXPENSES
Operating Expenses
Salaries & Benefits 349,000 359,500 370,300 381,400 392,800 Operations & Maintenance 510,800 407,900 420,100 432,700 445,600 Contract Operations 721,000 742,600 764,900 787,800 811,400 Subtotal Operating 1,580,800 1,510,000 1,555,300 1,601,900 1,649,800 Net Operating Revenues 1,605,500 2,010,900 2,307,700 2,449,300 2,599,000 Non-Operating Expenses
CIP Projects 987,500 1,572,000 1,288,700 2,619,200 1,315,000 Existing Debt Service 540,300 543,500 541,100 543,300 539,900 Subtotal Non-Operating 1,527,800 2,115,500 1,829,800 3,162,500 1,854,900 Total Expenses 3,108,600 3,625,500 3,385,100 4,764,400 3,504,700 Total Net Revenues 77,700 (104,600) 477,900 (713,200) 744,100 ENDING FUND BALANCE $1,694,000 $1,589,400 $2,067,300 $1,354,100 $2,098,200 Target Reserve Balance [3] 1,630,700 1,598,500 1,618,800 1,644,300 1,664,800 Target Met? yes no yes no yes
Debt Service Coverage [4] 2.97 3.70 4.26 4.51 4.81
1 - Beginning Fund Balance provided by City Staff reflects estimated cash reserves in Sewer Enterprise Fund accounts. 2 - Projected sewer service fee earnings for FY2026/27 are prorated based on the August 1 implementation date. It is expected that the City will collect one month of revenues at the existing FY2025/26 rates, and 11 months of revenues at the proposed FY2026/27 rates.
3 - Annual target is 50% of operating expenses + total annual debt service + $300,000 for emergency capital reserve 4 - Net operating revenues divided by total debt service. Annual target is > 1.25

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SECTION 4: SEWER COST ALLOCATION
The prior section determined the total cost of providing sewer service to customers. In this section, the cost of service is allocated to rates to fairly recover costs based on how customers use the system, and in any event not to exceed the proportional cost of the sewer service attributable to each parcel. The revenue requirements are collected from each class based on their estimated impact on the sewer system.

4.1 Methodology
The revenue requirements of the Sewer Fund and the determination of the sewer flows and loadings of the wastewater utility provide the basis for performing the cost of service analysis. The concept of proportionate allocation to each customer class indicates that allocations should take into consideration the quantity of effluent a customer contributes in addition to the strength of that sewer effluent.

The key factors used to assign sewer utility costs are estimated effluent (flow) going to the wastewater treatment plant and effluent strengths, measured in biochemical oxygen demand (BOD) and total suspended solids (TSS). Higher levels of BOD or TSS equate to increased treatment costs. The total revenue requirement shown in the sewer cash flow projection (Table 7) is the net cost of providing service and is allocated to the following categories: (1) customer service, (2) flow, (3) BOD and (4) TSS.

These allocations are then used as the basis to develop unit rates for each of the four parameters and to assign costs to each customer class in proportion to the sewer services rendered.

4.2 Proposed Sewer Cost Allocation
Table 8 provides the results of the cost allocation analysis. Projected sewer operating expenses are allocated to the customer service, flow, BOD, and TSS parameters based on how the City incurs each cost with FY2026/27 serving as the test year. The customer service category is intended to recover costs associated with general utility management and administration that do not vary significantly with the amount of wastewater discharged into the sewer system. As a result, expenses such as staffing and insurance are allocated 100% to the customer service category. It is proposed that about $1.6 million of total costs be recovered through the customer service charge. Of the remaining costs, 68.42% of costs are allocated to flow, 15.79% to BOD, and 15.79% to TSS based on industry-typical methodology.

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Table 8: Cost Allocation
Projected
FY2026/27
Customer
Service Flow BOD TSS
Operating Expenses
Salaries & Benefits
Overhead - General Fund $269,000 100.0% 0.0% 0.0% 0.0%
New Staff Member $80,000 100.0% 0.0% 0.0% 0.0%
Subtotal Salaries & Benefits $349,000 $349,000 $0 $0 $0 Allocation % 100.0% 0.0% 0.0% 0.0%
Operations & Maintenance
Insurance $85,000 100.0% 0.0% 0.0% 0.0%
Clothing $7,700 0.0% 60.0% 20.0% 20.0%
Fuel $12,400 0.0% 60.0% 20.0% 20.0%
Professional Services $30,000 40.0% 40.0% 10.0% 10.0%
Discharge Permit $19,600 0.0% 60.0% 20.0% 20.0%
Supplies & Materials $10,000 40.0% 40.0% 10.0% 10.0%
Vehicle Maintenance $2,100 0.0% 60.0% 20.0% 20.0%
Equipment Maintenance $30,900 0.0% 60.0% 20.0% 20.0%
PG&E $309,000 0.0% 80.0% 10.0% 10.0%
Water & Sewer $4,100 0.0% 80.0% 10.0% 10.0%
Subtotal O & M $510,800 $101,000 $310,100 $49,900 $49,900 Allocation % 19.8% 60.7% 9.8% 9.8%
Contract Operations
Plant Facility $721,000 40.0% 40.0% 10.0% 10.0%
Subtotal Contract $721,000 $288,400 $288,400 $72,100 $72,100 Allocation % 40.0% 40.0% 10.0% 10.0%
Non-Operating Expenses [1]
Capital Projects $1,556,500 40.0% 40.0% 10.0% 10.0%
Existing Debt Service $541,600 40.0% 40.0% 10.0% 10.0%
Subtotal Non-Operating $2,098,100 $839,200 $839,200 $209,800 $209,800 Allocation % 40.0% 40.0% 10.0% 10.0%
TOTAL EXPENSES $3,678,900 $1,577,600 $1,437,700 $331,800 $331,800 Proposed Allocation % 68.42% 15.79% 15.79%
1 - Average 5-year costs

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SECTION 5: SEWER RATE DESIGN
The cost of service allocation calculated the revenue requirements for the cost parameters of customer service, flow, BOD, and TSS. The next step is rate design which determines how those revenue requirements are collected from each class based on their estimated impact on the sewer system.

5.1 Sewer Rate Design
As part of the rate study process, the City reviewed its current rate structure. Sewer rates in California are typically charged as either a fixed rate per equivalent dwelling unit (EDU), a volume rate charged per unit of wastewater flow, or as a combination of both fixed and volume rates. The City’s current rate structure includes fixed charges per dwelling unit for single family and multi-family residential customers. All non-residential customers are billed a uniform fixed charge per account. In addition, nonresidential customers are billed a volumetric charge based on customer class as determined by land use.

The volumetric charge is applied to average monthly winter water use measured from December through February of each year.

It is proposed that residential customers continue to be billed fixed monthly charges. However, it is proposed that estimated sewer flows be updated based on more recent data. As a result, multi-family fixed charges are proposed to increase to a greater degree compared to other customer classes. It is proposed that the non-residential categories be reduced from eight to three, consisting of low pollutant strength, medium strength, and high strength. Proposed non-residential customer classifications are detailed in Table 9.

Table 9: Proposed Non-Residential Sewer Categories
Proposed Category Current Customer Class
Low Car washes, Laundries
Medium Hospitals, Rest Homes, Jails, Motels & Hotels, & Other Commercial customers High Markets, Morgues, Restaurants & Bakeries
It is proposed that the non-residential volumetric charges continue to be billed based on average winter water use. However, it is also proposed that the fixed charge for each of the three proposed customer classes include the first 8 hcf of monthly sewer flows. 8 hcf was determined to be an appropriate threshold for the fixed charge as that is the typical single family flow and represents a minimum amount of capacity that the City maintains in the sewer system for each customer. Non-residential flow over the first 8 hcf is proposed to be billed the volumetric rates.

For residential customers, fixed sewer charges provide revenue stability, are easy for customers to understand, and are straightforward to bill. Moreover, residential customers are a relatively homogeneous group with no significant variations in sewage strength between different types of

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homes, and peak water usage by residential customers tends not to affect sewer discharge because it occurs in summer months for irrigation needs. By contrast, non-residential sewer flow varies widely based on the type and size of business and strength characteristics vary significantly between different types of businesses (i.e., an office versus a restaurant). Thus, including a variable component per unit of water used is an appropriate rate structure for non-residential customers.

5.1.1 Number of Billing Units
The number of billing units for rate design purposes is estimated in Table 10 on the following page based on the City’s most recent billing data available for each customer class. The City provides service to about 2,600 accounts or about 3,300 units. The number of units is larger than the number of accounts because the multi-family residential customer class is billed per dwelling unit rather than per account.

For example, one duplex would be counted as one account but two units for the purposes of billing and rate design. To be conservative, it is estimated that no new customers will connect to the system over the next five years.

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Table 10: Number of Accounts and Dwelling Units
Customer Class
No. of
Accounts [1]
% of
Total
No. of
Units [1]
% of
Total
Residential Customers
Single Family Residential 2,029 77.1% 2,029 61.3%
Multi-Family Residential 78 3.0% 740 22.3%
Subtotal Residential 2,107 80.1% 2,769 83.6%
Non-residential Customers
Car Wash 2 0.1% 2 0.1%
Hospital & Rest Home 7 0.3% 7 0.2%
Jail 0 0.0% 0 0.0%
Laundry 1 0.0% 1 0.0%
Market & Morgue 16 0.6% 16 0.5%
Motel & Hotel 8 0.3% 8 0.2%
Restaurant & Bakery 20 0.8% 20 0.6%
Other Commercial 191 7.3% 191 5.8%
Subtotal Commercial 245 9.3% 245 7.4%
Northeast Willows
Single Family Residential 259 9.8% 259 7.8%
Multi-Family Residential 16 0.6% 35 1.1%
Commercial 4 0.2% 4 0.1%
Subtotal Northeast Willows 279 10.6% 298 9.0%
Total 2,631 100.0% 3,312 100.0%
1 - The number of accounts and units is taken from the City's residential tax roll data from FY2024/25, commercial billing data from FY2025/26, and Northeast Willows tax roll data from FY2025/26.

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5.1.2 Sewer Flow & Loading Estimates
The sewer flows and strength and loading characteristics for each type of customer are estimated in Table 11. Annual wastewater flow is expressed in hundred cubic feet (hcf) and gallons per year and pollutant strength is expressed in terms of milligrams per liter (mg/L) of biochemical oxygen demand (BOD) and total suspended solids (TSS). The City does not directly meter the sewer flow of individual utility accounts. However, winter water use can be used as a proxy for sewer flow. Total estimated flow is based on estimated flows of 8 hcf for single family residential customers and 6 hcf for multi-family residential customers based on water usage patterns in the region. Non-residential flows are based on average winter water use from December to February as measured in the City’s recent billing records.

The concentrations of BOD and TSS for each customer class are based on industry standard estimates.

Table 11: Sewer Flows & Loading Characteristics
Customer Class Annual Flow
(hcf) [1]
Wastewater Strength Wastewater Loadings
BOD
(mg/L)
TSS
(mg/L)
Flow
(gal/yr)
BOD
(lbs/yr) TSS (lbs/yr)
Residential Customers
Single Family Residential 194,784 250 250 145,698,432 303,781 303,781 Multi-Family Residential 53,280 250 250 39,853,440 83,094 83,094 Non-residential Customers (with 8 hcf minimum) [2]
Low Strength 2,049 150 150 1,532,652 1,917 1,917
Medium Strength 44,583 250 250 33,348,084 69,531 69,531 High Strength 16,009 800 550 11,974,732 79,895 54,928
Northeast Willows
Single Family Residential 24,864 250 250 18,598,272 38,777 38,777 Multi-Family Residential 2,520 250 250 1,884,960 3,930 3,930 Other Commercial 480 250 250 359,040 749 749
Total 338,569 253,249,612 581,675 556,708
1 - Total estimated flow is based on estimated flows of 8 hcf per month for single family residential, 6 hcf per month for multi-family residential. Non-residential flows are based on billed flows from FY2025/26, adjusted to account for proposed 8 hcf minimum charge. Reflects estimated conservation + some delinquency. 2 - Non-residential customers are classified as follows:

Low Strength = existing Car Wash and Laundry customers
Medium Strength = existing Hospital & Rest Home, Jail, Motel & Hotel, & Other Commercial customers High Strength = existing Market & Morgue, Restaurant & Bakery customers

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5.2 Sewer Rate Derivation
As noted in the cost allocation, sewer rates are determined based on customer service costs as well as the amount of wastewater flow and pollutants discharged into the sewer system. Table 12 calculates the total FY2026/27 revenue requirement for each cost category based on the allocations developed in Table 8. The total amount of proposed rate revenue for one full year under the proposed rates (taken from Table 7) is divided between the categories based on the total customer service revenue requirement and the remaining percentages required for the flow, BOD, and TSS categories (all taken from Table 8).

Table 12: FY2026/27 Sewer Rate Revenue Requirement Allocation Cost
Allocation
%
FY2026/27
Revenue
Requirement
Total Revenue Requirement [1] $3,109,900
Customer Service $1,577,600
Flow and Strength [2] $1,532,300
Flow and Strength Allocation
Flow 68.42% $1,048,393
BOD 15.79% $241,954
TSS 15.79% $241,954
Total Flow and Strength $1,532,301
1 - From Cash Flow; Revenues over 12 months
2 - Calculated as the Total Revenue Requirement less the Customer Service Requirement (from Table 8)
The revenue requirements from Table 12 are used in Table 13 to calculate the unit cost for the customer service, flow, BOD, and TSS cost categories. The revenue requirement for each category is then divided by the appropriate billing units to calculate a unit charge. The number of billing units for flow, BOD, and TSS is taken from Table 11. The number of billing units for the customer service category is taken from Table 10.

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Table 13: FY2026/27 Unit Cost Calculation
Cost Allocation Cust. Serv. Flow BOD TSS
FY2026/27 Revenue Requirement $1,577,600 $1,048,393 $241,954 $241,954 Billing Units 3,312 338,569 581,675 556,708
# of units hcf/year lbs/year lbs/year
Rate $39.69 $3.10 $0.42 $0.43
$/unit $/hcf $/lb $/lb
The sewer flow charges for each class are derived in Table 14 based on the flow, BOD, and TSS unit costs shown in Table 13. The cost per hcf for flow is the same for all customer classes regardless of sewage strength, but the costs per hcf for BOD and TSS increase as sewage strength increases. The strength characteristics shown in Table 11 for each customer class are applied to the BOD and TSS unit costs from Table 13 to calculate a strength charge per hcf. The total proposed flow charge is the sum of the flow, BOD, and TSS rate for each strength category.

Table 14: FY2026/27 Flow Charge Derivation
Flow (hcf) BOD (lbs) TSS (lbs) Total Flow
Charge ($/hcf)
Unit Cost $3.10 $0.42 $0.43
Low Strength $3.10 $0.39 $0.40 $3.89
Medium Strength $3.10 $0.66 $0.67 $4.43
High Strength $3.10 $2.10 $1.48 $6.68
Commercial customers are classified as follows:

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The fixed fee or base fee is derived by multiplying the flow rates shown in Table 14 by the amount of flow included in the fixed or base fee for each customer type. The customer service charge per month is then added to derive the total monthly rate or base fee. Single family residential customers are estimated to have 8 hcf of monthly sewer flow while multifamily customers are estimated to have 6 hcf of monthly sewer flow. All residential customers are proposed to be billed fixed fees only. The base fees for all non-residential customer classes are proposed to include the first 8 hcf.

Table 15: FY2026/27 Fixed Sewer Fee Derivation
Customer Class
Customer
Service Charge
($/mo)
Flow
(hcf)
Flow
Charge
($/hcf)
Total
Monthly Rate
or Base Fee
Single Family Residential $39.69 + 8 x $4.43 = $75.13
Multi-Family Residential $39.69 + 6 x $4.43 = $66.27
Low Strength Non-Residential $39.69 + 8 x $3.89 = $70.81 Medium Strength Non-Residential $39.69 + 8 x $4.43 = $75.13 High Strength Non-Residential $39.69 + 8 x $6.68 = $93.13

5.3 Proposed 5-Year Schedule of Sewer Rates
The proposed five-year rate plan is summarized in Table 16. All customers are proposed to be charged according to the proposed rate schedule shown. As described in the previous sections of this report, the rates have been calculated in this study to produce rates that will be necessary to recover only the actual cost of the sewer service per parcel under the proposed sewer rates. The first rate change is proposed to take effect on August 1, 2026, with subsequent increases each July 1 from 2027 through 2030. For any additional connections built out in the City, the sewer service fees in Table 16 will also apply to them.

August 1, 2026, although the proposed revenue increase is 10%, the rate impacts to each customer will not exactly equal 10% due to the revised flow estimates and proposed rate design changes including the consolidation of the non-residential customer categories and the proposed minimum flow included in the non-residential base fee. Sewer bill impacts are described in more detail in the following section.

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Table 16: Proposed 5-Year Schedule of Monthly Sewer Rates Current Proposed
Customer Class July 1, 2025 Customer Class August 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 July 1, 2030 Residential Fixed Charge Residential Fixed Charge per dwelling unit Single Family $74.24 Single Family $75.13 $82.64 $90.90 $95.45 $100.22 Multi-Family (per unit) $42.93 Multi-Family $66.27 $72.90 $80.19 $84.20 $88.41 Commercial Fixed Charge Non-Residential Base Fee (includes up to 8 hcf of sewer flow) Commercial $87.62
Low Strength $70.81 $77.89 $85.68 $89.96 $94.46
Medium Strength $75.13 $82.64 $90.90 $95.45 $100.22
High Strength $93.13 $102.44 $112.68 $118.31 $124.23
Commercial Volumetric Charge Volumetric Charge for Non-residential Flow Over Base ($/hcf above 8 hcf) [1] Car Wash $3.65 Low Strength $3.89 $4.28 $4.71 $4.95 $5.20 Laundry $4.07
Hospital & Rest Home $4.37
Medium Strength $4.43 $4.87 $5.36 $5.63 $5.91 Motel & Hotel $4.73 Jail $5.50
Other Commercial $5.50
Market & Morgue $8.89 High Strength $6.68 $7.35 $8.09 $8.49 $8.91 Restaurant & Bakery $9.53
1 - Per hundred cubic feet (hcf). 1 hcf = 748 gallons. Applied to average monthly winter water use measured from December through February each year.

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5.4 Sewer Bill Impacts
For FY2026/27, the proposed 10% revenue adjustment in the cash flow will not directly correlate with a 10% increase in the monthly bill for each customer due to revised flow estimates and the proposed rate structure changes. The City’s total annual revenue collected from rates is proposed to increase by 10%, but the bill impact to each customer will vary based on customer class.

5.4.1 Residential Bill Impacts
Under the proposed August 1, 2026 rates, the monthly sewer bill for each single family residential customer will increase from $74.24 to $75.13, an increase of $0.89. Figure 3 provides a rate survey illustrating how the current and proposed monthly bills compare to the corresponding bills for other local agencies. After the proposed bill increase, the City’s monthly bill would remain on the high end of the surveyed agencies. The rates shown for other local agencies are based on the most current publicly available information at the time of writing this report. The date of the most recently adopted or proposed rate increase is denoted in parentheses for each agency. It is likely that many of these agencies will implement rate increases over the next five years.

Figure 3: Monthly Sewer Bill Survey
PUD – Public Utility District; WSD – Water and Sewer District

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5.4.2 Non-Residential Bill Impacts
The tables on the following pages provide sample bill impacts for non-residential customers. Table 17 provides sample bill impacts for low strength customers, Table 18 provides sample bill impacts for medium strength customers, and Table 19 provides sample bill impacts for high strength customer categories. It should be noted that sample bills are based on estimated flows or average usage, and actual customer bills will vary based on actual flows.

The City’s most common non-residential customer is currently served by the Other Commercial category and discharges 15 hcf of sewer flow. Under current rates, the monthly bill for this customer is $170.12.

After the proposed August 1, 2026 rate changes, this customer will be served by the Medium Strength Non-Residential category and will be billed $106.14 per month, a reduction of $63.98 per month from current rates, see Table 18.

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Table 17: Sample Low Strength Non-Residential Bill Impacts Current Bill Rate Count
Total
Monthly
Bill Proposed Bill Rate Count
Total
Monthly
Bill
Car Wash (8 hcf)
Customer Service Charge $39.69 x 1 $39.69
Flow and Strength Minimum $3.89 x 8 $31.12
Fixed Charge $87.62 x 1 $87.62 Subtotal Base Fee $70.81 Volumetric Charge $3.65 x 8 $29.20 Flow Above Minimum $3.89 x 0 $0.00 Total Monthly Bill $116.82 Total Monthly Bill $70.81
$ Change -$46.01
% Change -39.4%
Laundry (8 hcf)
Customer Service Charge $39.69 x 1 $39.69
Flow and Strength Minimum $3.89 x 8 $31.12
Fixed Charge $87.62 x 1 $87.62 Subtotal Base Fee $70.81 Volumetric Charge $4.07 x 8 $32.56 Flow Above Minimum $3.89 x 0 $0.00 Total Monthly Bill $120.18 Total Monthly Bill $70.81
$ Change -$49.37
% Change -41.1%
Car Wash (52 hcf - average use)
Customer Service Charge $39.69 x 1 $39.69
Flow and Strength Minimum $3.89 x 8 $31.12
Fixed Charge $87.62 x 1 $87.62 Subtotal Base Fee $70.81 Volumetric Charge $3.65 x 52 $189.80 Flow Above Minimum $3.89 x 44 $171.16 Total Monthly Bill $277.42 Total Monthly Bill $241.97
$ Change -$35.45
% Change -12.8%
Laundry (75 hcf - average use)
Customer Service Charge $39.69 x 1 $39.69
Flow and Strength Minimum $3.89 x 8 $31.12
Fixed Charge $87.62 x 1 $87.62 Subtotal Base Fee $70.81 Volumetric Charge $4.07 x 75 $305.25 Flow Above Minimum $3.89 x 67 $260.63 Total Monthly Bill $392.87 Total Monthly Bill $331.44
$ Change -$61.43
% Change -15.6%

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Table 18: Sample Medium Strength Non-Residential Bill Impacts Current Bill Rate Count
Total
Monthly
Bill Proposed Bill Rate Count
Total
Monthly
Bill
Rest Home (8 hcf)
Customer Service Charge $39.69 x 1 $39.69
Flow and Strength Minimum $4.43 x 8 $35.44
Fixed Charge $87.62 x 1 $87.62 Subtotal Base Fee $75.13 Volumetric Charge $4.37 x 8 $34.96 Flow Above Minimum $4.43 x 0 $0.00 Total Monthly Bill $122.58 Total Monthly Bill $75.13
$ Change -$47.45
% Change -38.7%
Other Commercial (8 hcf)
Customer Service Charge $39.69 x 1 $39.69
Flow and Strength Minimum $4.43 x 8 $35.44
Fixed Charge $87.62 x 1 $87.62 Subtotal Base Fee $75.13 Volumetric Charge $5.50 x 8 $44.00 Flow Above Minimum $4.43 x 0 $0.00 Total Monthly Bill $131.62 Total Monthly Bill $75.13
$ Change -$56.49
% Change -42.9%
Other Commercial (15 hcf - average use)
Customer Service Charge $39.69 x 1 $39.69
Flow and Strength Minimum $4.43 x 8 $35.44
Fixed Charge $87.62 x 1 $87.62 Subtotal Base Fee $75.13 Volumetric Charge $5.50 x 15 $82.50 Flow Above Minimum $4.43 x 7 $31.01 Total Monthly Bill $170.12 Total Monthly Bill $106.14
$ Change -$63.98
% Change -37.6%
Other Commercial (38 hcf)
Customer Service Charge $39.69 x 1 $39.69
Flow and Strength Minimum $4.43 x 8 $35.44
Fixed Charge $87.62 x 1 $87.62 Subtotal Base Fee $75.13 Volumetric Charge $5.50 x 38 $209.00 Flow Above Minimum $4.43 x 30 $132.90 Total Monthly Bill $296.62 Total Monthly Bill $208.03
$ Change -$88.59
% Change -29.9%

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Table 19: Sample High Strength Non-Residential Bill Impacts Current Bill Rate Count
Total
Monthly
Bill Proposed Bill Rate Count
Total
Monthly
Bill
Restaurant (8 hcf)
Customer Service Charge $39.69 x 1 $39.69
Flow and Strength Minimum $6.68 x 8 $53.44
Fixed Charge $87.62 x 1 $87.62 Subtotal Base Fee $93.13 Volumetric Charge $9.53 x 8 $76.24 Flow Above Minimum $6.68 x 0 $0.00 Total Monthly Bill $163.86 Total Monthly Bill $93.13
$ Change -$70.73
% Change -43.2%
Market (8 hcf)
Customer Service Charge $39.69 x 1 $39.69
Flow and Strength Minimum $6.68 x 8 $53.44
Fixed Charge $87.62 x 1 $87.62 Subtotal Base Fee $93.13 Volumetric Charge $8.89 x 8 $71.12 Flow Above Minimum $6.68 x 0 $0.00 Total Monthly Bill $158.74 Total Monthly Bill $93.13
$ Change -$65.61
% Change -41.3%
Restaurant (32 hcf - average use)
Customer Service Charge $39.69 x 1 $39.69
Flow and Strength Minimum $6.68 x 8 $53.44
Fixed Charge $87.62 x 1 $87.62 Subtotal Base Fee $93.13 Volumetric Charge $9.53 x 32 $304.96 Flow Above Minimum $6.68 x 24 $160.32 Total Monthly Bill $392.58 Total Monthly Bill $253.45
$ Change -$139.13
% Change -35.4%
Market (42 hcf - average use)
Customer Service Charge $39.69 x 1 $39.69
Flow and Strength Minimum $6.68 x 8 $53.44
Fixed Charge $87.62 x 1 $87.62 Subtotal Base Fee $93.13 Volumetric Charge $8.89 x 42 $373.38 Flow Above Minimum $6.68 x 34 $227.12 Total Monthly Bill $461.00 Total Monthly Bill $320.25
$ Change -$140.75
% Change -30.5%

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Agenda Item #9b
_____________________________________________________________________ Date: July 14, 2026
To: Honorable Mayor and Councilmembers
From: Joe Bettencourt, Community Development and Services Director Marti Brown, City Manager
Subject: Mobile Food Truck Moratorium – Interim Urgency Ordinance Recommendation:

Hold a public hearing and adopt an interim urgency ordinance extending Ordinance No. 765-2025, which established a temporary moratorium on new mobile food truck applications in all zoning districts within the City of Willows.

Rationale for Recommendation:

To maintain the status quo while the City continues reviewing and updating Chapter 18 of the Willows Municipal Code to clarify definitions, zoning requirements, operating standards, and appropriate locations for mobile food truck operations.

Background:

On May 6, 2025, the Planning Commission held a public hearing and adopted a resolution recommending that the City Council modify and approve the proposed moratorium ordinance. The Planning Commission recommended adding language providing that the moratorium would remain in effect for 12 months or until adoption of the revised Chapter 18 of the Willows Municipal Code, whichever occurs first.

On May 27, 2025, the City Council conducted the first reading of the ordinance by title only and directed staff to return with the ordinance for second reading and adoption. On June 17, 2025, the City Council adopted Ordinance No. 765-2025 establishing a temporary moratorium on new mobile food truck applications in all zoning districts within the City.

Discussion & Analysis:

The City continues to work on clarifying how mobile food truck operations are defined, reviewed, and regulated. The Willows Municipal Code currently includes language related to outside sales and transient or mobile business operations, but the existing provisions do not clearly address the range of modern mobile food truck operations, including mobile food facilities, single operating site mobile food facilities, and compact mobile food operations. This has created uncertainty regarding where these

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uses should be allowed, what entitlement process should apply, and what operational standards should be required.

Additional mobile food truck approvals before completion of the code update could result in inconsistent land use decisions and may create or worsen concerns related to public health, safety, traffic circulation, pedestrian access, parking, sanitation, aesthetics, and compatibility with surrounding uses. The interim urgency ordinance is intended to prevent new entitlements from being accepted, processed, approved, or issued while the City completes its review and prepares appropriate zoning regulations.

The proposed urgency ordinance does not prohibit existing mobile food trucks from continuing operations under valid City permits or entitlements, provided they remain in compliance with all applicable requirements. The ordinance is limited to new applications, permits, licenses, use permits, or other entitlements for mobile food truck operations during the 45-day period.

Consistency with Council Priorities and Goals:

This action aligns with City Council Priority #2: Economic Development, Goal #3: Complete a code update to promote business opportunities.

Fiscal Impact:

There is no direct fiscal impact associated with adoption of the interim urgency ordinance.

Attachment:
 Attachment 1: Mobile Food Truck Moratorium - Interim Urgency Ordinance

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purpose
City of Willows
Ordinance XX-2026
AN URGENCY INTERIM ORDINANCE OF THE WILLOWS CITY COUNCIL IMPOSING A 45-DAY

TEMPORARY MORATORIUM ON NEW MOBILE FOOD TRUCK APPLICATIONS IN THE CITY OF WILLOWS WHEREAS, the City Council previously adopted Ordinance No. 765-2025 establishing a temporary moratorium on new mobile food truck applications while the City studied appropriate zoning requirements; and
WHEREAS, the City continues to study and prepare amendments to Chapter 18 of the Willows Municipal Code to clarify the definition, permitted locations, entitlement process, and operating standards for mobile food truck operations; and
WHEREAS, the City Council finds that the approval of additional permits, licenses, use permits, building permits, business licenses, or other entitlements for new mobile food truck operations before completion of the City's study and zoning update may conflict with the contemplated zoning proposal and may result in inconsistent land use decisions; and
WHEREAS, the City Council further finds that additional approvals during the study period would create a current and immediate threat to the public health, safety, and welfare by potentially increasing unresolved impacts related to traffic circulation, parking, pedestrian access, sanitation, aesthetics, and compatibility with surrounding uses; and
WHEREAS, Government Code Section 65858 authorizes the City Council, by a four-fifths vote and without following the procedures otherwise required before adoption of a zoning ordinance, to adopt an urgency interim ordinance prohibiting uses that may be in conflict with a contemplated zoning proposal that the City is considering or studying or intends to study within a reasonable time; and WHEREAS, the City Council held a duly noticed public hearing on July 14, 2026, to consider this urgency interim ordinance; and
WHEREAS, the City Council finds that this urgency interim ordinance is necessary to protect the public health, safety, and welfare while the City continues to evaluate and prepare appropriate zoning regulations for mobile food truck operations.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILLOWS DOES ORDAIN AS FOLLOWS:

Attachment 1

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SECTION 1. FINDINGS.

The City Council finds and determines that the foregoing recitals are true and correct and are incorporated herein by this reference.

The City Council further finds that there is a current and immediate threat to the public health, safety, and welfare, and that the acceptance, processing, approval, or issuance of additional permits, licenses, use permits, building permits, business licenses, or other entitlements for new mobile food truck operations before completion of the City's study and zoning update would result in that threat to public health, safety, and welfare.

SECTION 2. TEMPORARY MORATORIUM.

A temporary moratorium is hereby imposed on the acceptance, processing, approval, or issuance of new applications, permits, licenses, use permits, building permits, business licenses, or other entitlements for new mobile food truck operations in all zoning districts within the City of Willows.

During the effective period of this ordinance, no City officer, employee, department, commission, or body shall accept, process, approve, or issue any new application, permit, license, use permit, building permit, business license, or other entitlement for a new mobile food truck operation within the City of Willows.

SECTION 3. EXISTING MOBILE FOOD TRUCKS.

This ordinance shall not prohibit existing mobile food trucks operating under valid City permits, licenses, or entitlements from continuing to operate, provided such operations remain in compliance with all applicable federal, state, county, and City requirements and all conditions of approval or permit requirements applicable to the operation.

Nothing in this ordinance shall be construed to legalize any existing operation that is operating without required permits, licenses, approvals, or entitlements.

SECTION 4. STUDY AND ZONING UPDATE.

During the effective period of this ordinance, the City shall continue to study and prepare appropriate amendments to Chapter 18 of the Willows Municipal Code, including but not limited to definitions, zoning districts, entitlement requirements, development standards, operating standards, and other regulations applicable to mobile food truck operations.

SECTION 5. DURATION.

This urgency interim ordinance shall take effect immediately upon adoption by a four-fifths vote of the City Council and shall remain in effect for 45 days from the date of adoption, through August 27, 2026, unless extended in accordance with Government Code Section 65858. This ordinance shall be of no further force or effect after that date unless lawfully extended.

SECTION 6. WRITTEN REPORT.

If staff determines that an extension of this urgency interim ordinance is necessary, the City Council shall issue, at least 10 days prior to the expiration of this ordinance, a written report describing the

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measures taken to alleviate the condition that led to the adoption of this ordinance, as required by Government Code Section 65858.

SECTION 7. CEQA.

The City Council finds that this urgency interim ordinance is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3), the common sense exemption, because it can be determined with certainty that the temporary moratorium will not have a significant effect on the environment.

SECTION 8. REPEAL. For the duration of this Ordinance, all ordinances, resolutions, policies, regulations, or portions thereof that conflict with this Ordinance are hereby suspended or superseded to the extent of such conflict. Except as expressly provided herein, all other provisions of the Willows Municipal Code shall remain in full force and effect.

SECTION 9. SEVERABILITY.

If any section, subsection, sentence, clause, phrase, or portion of this ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof regardless of whether any one or more portions may be declared invalid or unconstitutional.

SECTION 10. EFFECTIVE DATE
This urgency interim ordinance is adopted pursuant to Government Code Section 65858 and shall take effect immediately upon adoption by at least a four-fifths vote of the City Council.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Willows this 14 day of July 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTESTED:
______________________________ _____________________________ Evan Hutson, Mayor Karleen Price, City Clerk

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DISCUSSION & ACTION

CALENDAR

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Agenda Item #10a
_____________________________________________________________________ Date: July 14, 2026
To: Honorable Mayor and Councilmembers
From: Nathan Monck, Fire Chief
Marti Brown, City Manager
Subject: Surplus Police Equipment Purchase
Recommendation:

Authorize the City Manager, or her designee, to purchase and accept transfer of three surplus police vehicles and other assorted police equipment from the City of Orland for a cost not to exceed $5,003.

Rationale for Recommendation:

Since the City plans to re-establish its municipal police department, the City will need to procure essential law enforcement equipment. Purchasing functional surplus equipment at a substantially reduced cost provides an opportunity to reduce startup expenses, avoid lengthy procurement timelines, and ensure critical equipment is available for immediate deployment.

Background:

Many of the items required for a police department to function have both a significant cost to procure and lengthy timelines for delivery. The City of Orland has offered to transfer three surplus Crown Victoria patrol vehicles to the City of Willows for nominal consideration of $1.00 per vehicle and has also offered to sell its surplus inventory of TASER X26P conducted energy weapons and related equipment at a substantially discounted price. This unique opportunity to acquire operational equipment at a fraction of its replacement cost while preserving flexibility will expedite the City’s ability to re-establish its municipal police department.

Discussion & Analysis:

The three surplus patrol vehicles allow the city to bypass costly procurement and delivery timelines for patrol vehicles in the interim and provide the City with an economical foundation for establishing an initial patrol fleet. These vehicles would also serve as reserve patrol vehicles as the City begins to expand its patrol fleet. The City of Orland has also offered to include surplus equipment designed for vehicles such as spare light bars, emergency systems and parts. The patrol vehicles will require agency graphics (e.g., paint, vinyl wrap), installation of prisoner transport partitions (e.g., cages), patrol rifle locking systems, and other agency-specific equipment. These vehicles have functioning light bars, sirens and radio equipment. The City of Willows’ mechanic has inspected the vehicles and states that

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they are of sufficient mechanical soundness to be incorporated back into a police patrol capacity. The replacement cost of these vehicles and equipment with comparable new or currently marketed equipment would exceed $70,000, representing significant cost savings to the City.

The tasers being offered are a model which is still supported and sold by the manufacturer. Items included are: 12-X26P Tasers (Attachment 1), holsters, training cartridges, live cartridges, programing cable and needed software. This equipment is conservatively valued at $25,000 - $30,000.

Procurement of these items will help streamline the work that needs to be done by the City of Willows in order to start the police department. Both proposed procurements represent significant cost savings to the City of Willows. These items are not intended to be the only equipment that the police department will need; however, they will fill part of the immediate need when a Police Chief is hired.

Consistency with Council Priorities and Goals:

The proposed purchase of the surplus police department equipment is consistent with the Councils stated goal of fiscal stability and public safety.

Fiscal Impact:

The total purchase price for the three surplus patrol vehicles is $3.00 (e.g., $1.00 per vehicle). The purchase price for the TASER X26P equipment package is $5,000 for a total of $5,003.

Staff estimates approximately $25,000 will be required to prepare the vehicles for patrol service, including installation of agency graphics, prisoner transport partitions (e.g., cages), patrol rifle locking systems, and other agency-specific equipment.

Attachments:
• Attachment 1: Taser Product Information

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THE ORIGINAL X26E MADE BETTER
All-Digital Platform | Lightweight and Easy to Carry
Produced with superior quality and reliability in mind, the TASER X26P is a dependable piece of law enforcement equipment that’s been improved inside and out. Our Smart Weapon platform enables advanced capabilities like charge metering and self-diagnostics, making our devices safer and more effective than ever.
[email protected] ca.axon.com/X26P
THE X26P: SMART IMPROVEMENTS

FOR A SMART CHOICE
X26P
Enhanced features in
a compact size
Attachment 1

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X26P FEATURES

AND BENEFITS
COMPACT SIZE: Comparable in size and weight
to the original X26E device.

CROSS-FUNCTIONAL PERFORMANCE:

Compatible with the TASER X2’s firmware,
batteries, TASER CAM HD & Data Download.

CHARGE METERING: Designed to optimize the
amount of current delivered.

PERFORMANCE POWER MAGAZINE: Offers 350
more firings than the original X26E DPM.

APPM*: Provides an audible alert and shuts off
the discharge cycle automatically after 5 seconds.

WEATHER RESISTANCE: Holds up better to rain,
humidity and other elements.

SELF-DIAGNOSTICS: Complex analysis of the
weapon’s internal systems.

INTERNET UPDATES: Firmware updates over the
internet (no need to take units off the streets).

EVIDENCE.COM INTEGRATION: Manage weapon
data for free with Evidence Lite.

WEATHER RESISTANCE IPX2-MIL-STD 810F method 506.4 procedure 1 (rain & blowing) HOUSING High-impact polymer
POWER ACTIVATION Ambidextrous safety switch
OPERATING TEMPERATURE - 4° F to 122° F [-20° C to 50° C] STORAGE TEMPERATURE - 4° F to 122° F [-20° C to 50° C]
DROP TEST 6 feet
HUMIDITY 80% non-condensing
WARRANTY 1 year from date of receipt
ESTIMATED USEFUL LIFE Approximately 5 years
X26P

SPECIFICATIONS
*APPM - Automatic shut-down Performance Power Magazine
Evidence.com, Evidence Lite, TASER CAM, X2, X26E and X26P are trademarks of TASER International, Inc. and TASER and ø are trademarks of TASER International, Inc. registered in the U.S. and in other countries. © 2015 TASER International, Inc. All rights reserved.

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Agenda Item #10b
_____________________________________________________________________ Date: July 14, 2026
To: Honorable Mayor and Councilmembers
From: Marti Brown, City Manager
Karleen Price, City Clerk/Assistant to the City Manager Subject: City Council Vacancy and Appointment Process
Recommendation:

Receive the staff report, consider the available options for filling the City Council vacancy, and direct staff to proceed with the appointment process.

Rationale for Recommendation:

On Wednesday, July 1, 2026, former Councilmember Matt Busby resigned from Willows City Council leaving a vacancy on the Council.

Background:

On July 1, 2026, former Councilmember Matt Busby notified the City Council and staff that he was resigning from the City Council effective immediately.

According to Government Code section 36512(b), if a vacancy occurs in an elective office, the City Council must, within 60 days of the commencement of the vacancy, either fill the vacancy by appointment or call a special election. Because the statutory deadline to call the November 3, 2026, election has already passed, the next available regularly established election date for a special election is March 2, 2027.

Because the vacancy occurred during the second half of the current term of office, if appointed, an appointee would serve the remainder of the unexpired term pursuant to Government Code section 36512(b)(2)(B).

Staff recommend filling the vacancy by appointment to restore the City Council to its full fivemember Council as soon as practicable. Filling the vacancy by appointment will ensure the Council has full representation to conduct City business during the remainder of the term. In contrast, calling a special election would leave the Council with a vacant seat for several months and require the City to conduct a standalone special election at an additional cost of

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approximately $10,000 to $20,000. The exact cost of a special election cannot be determined in advance of the election.

Discussion & Analysis:

Consistent with Government Code Section 36512(b), the City Council has 60 days from the commencement of the vacancy on July 1, 2026, to complete one of the following courses of action:

1. Appoint someone to fill the vacancy; or

2. Call a special election to fill the vacancy on the next available regularly established election date of March 2, 2027 and leave the position vacant for the next eight months.

Council Appointment Process:

Should the Council wish to appoint someone to the City Council, there is broad discretion to determine the process for making an appointment, provided it is completed within the statutory 60-day period. Options available to the City Council include, but are not limited to, the following:
 Accept nominations and appoint a nominee.
 Consider appointing the highest non-elected vote-getter from the November 2024 General Municipal Election.
 Invite applications from individuals who participated in the November 2024 General Municipal Election or the City's most recent appointment process.  Initiate an open call for applications to all eligible and interested parties and appoint an applicant.

In the event of a call for applications and to adhere to the timeline established in Government Code Section 36512(b) for filling council vacancies, the proposed timeline for the appointment process is as follows:

1. July 15 – August 7, 2026: Accept applications.

2. August 18, 2026 (Special Meeting): Conduct interviews, deliberate, and appoint the successful applicant.

3. August 25, 2026 (Regular Meeting) – Administer the oath of office and seat the newly appointed Councilmember.

Fiscal Impact:

There is no significant fiscal impact associated with conducting an appointment process. Should the City Council call a special election, the City would incur election costs. The Glenn County Elections Office does not provide advanced cost estimates for special elections. The actual cost

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will depend on the timing of the election and the final allocation of election expenses by the Glenn County Elections Office.

Attachment:
 Attachment 1: Proposed Draft City Council Application

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Attachment 1
Willows City Council
Application For Appointment to the
Unexpired Term ending November 2028
Application Requirements:

Applicants must submit:
• Completed Application
• Current Resume
• Two documents establishing residency within the City of Willows (examples include a California driver's license or identification card, utility bill, cable or internet bill, lease agreement, voter registration confirmation or other official documentation).

Applicants must be registered voters of the City of Willows and otherwise qualified to hold elective office pursuant to Government Code section 36502 and Elections Code section 201.

Name: ________________________________________________________________________ Full Address: _________________________________________________________________ E-mail Address: _______________________________________________________________ Primary Phone Number: ________________________________________________________ Secondary Phone Number: ______________________________________________________ Are you currently a registered voter of the City of Willows? ☐ Yes ☐ No Have you previously attended or watched a City Council meeting? ☐ Yes ☐ No Are you able to attend regular City Council meetings, special meetings, and any related committee meetings as required? ☐ Yes ☐ No Present Employer: _____________________________________________________________ Job Title: _____________________________________________________________________ Brief Description of Current Occupation or Professional Experience:
______________________________________________________________________________ ______________________________________________________________________________

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Previous Governmental Bodies, Boards, Commissions, Committees, Task Forces, or Elective Offices Served:

Position(s)/ Office Held: Dates:

College, Professional, Vocational Schools attended:

School Field of Study Degree/Certificate Date
Civic or Charitable Organizations to which Applicant has belonged:

Position(s)/ Office Held: Dates:

Special Interests, Hobbies or Talents:
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

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Please explain why you wish to serve on the Willows City Council and describe the goals, priorities, or perspectives you would bring if appointed. (Add additional, numbered pages as needed.)
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Please state any other information which you feel would be useful to the City Council in reviewing your application:
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Do you have any employment, business interests, financial interests, or organizational affiliations that could create an actual or potential conflict of interest if appointed to the City Council?
☐ Yes ☐ No ☐ Unsure If yes or unsure, please explain: ___________________________ ______________________________________________________________________________ ______________________________________________________________________________ City policy and state law direct all Council members not to vote on matters where there exists a potential conflict of interest. Would you be willing to abstain from voting if such a conflict arises?
☐ Yes ☐ No
I certify under penalty of perjury that the information contained in this application and all attachments is true and correct to the best of my knowledge.

Signature: _____________________________________________ Date: _________________ Completed application packets must be received by the City Clerk's Office no later than 5:00 p.m. on Friday, August 7, 2026.

Applications and supporting materials submitted to the City are public records and may be subject to disclosure under the California Public Records Act.

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COMMENTS AND

REPORTS

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CLOSED SESSION

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Willows City CouncilJuly 14, 2026

Willows City Council
July 14, 2026