The Port Hueneme City Transaction and Use Tax Citizens Oversight Committee received a clean, unmodified audit opinion for the city's 2024 fiscal year and reviewed preliminary fiscal year 2025 results that staff said show about a $500,000 decline in Measure U sales tax revenue compared with earlier figures.

Committee members voted unanimously to approve the meeting consent calendar, accept the staff report on Measure U finances, and forward the committee's annual report to the City Council as a consent item.

Staff told the committee the FY24 audit included citywide funds and Measure U and that auditors confirmed the previously presented FY24 figures, including roughly $3.3 million in Measure U revenue and related expenditures. For FY25, staff presented preliminary, budget-to-actual estimates and said the city must still collect lagging June sales-tax receipts from the state before figures are final. Staff estimated Measure U receipts at about $3.1 million for FY25 versus $3.6 million previously projected; the staff attributed the decline in part to lower cannabis tax receipts that have also affected general sales-tax collections.

The committee reviewed carryovers and re-prioritizations of projects. Staff said the Pleasant Valley storm drain rehab did not proceed in FY25 and was replaced by the Pearson Road storm drain repair (Pearson to Bard), which began in FY25 with only minor spending recorded and will continue in FY26 with a revised, higher cost estimate. An underground storage tank replacement began but was not completed in FY25; staff said the project is an environmental state requirement and will be completed in FY26. Staff reported the underground tank is used in fleet maintenance to separate oil and water and that the project was multiyear. When asked about fines or penalties if the tank were not replaced, staff said the city has not received a fine to date and agreed to follow up with specifics.

Public-safety and police spending changes were summarized: staff said the computer-aided dispatch software purchase required new computers and that the department shifted some planned purchases among line items (for example, buying a new evidence freezer in FY25 and postponing a full freezer replacement in subsequent years while funding upkeep). The police department also deferred a third dispatch console and instead prioritized additional body cameras and updated tasers. Parks and recreation changes included making beach swings ADA-compliant at the Guanyumi Beach project, higher costs for a lifeguard vehicle lease and outfitting, and postponement of one swing set at Waianae Beach pending grant opportunities.

For FY26 and FY27, staff said the adopted Measure U revenue assumptions were set closer to the FY25 preliminary figure (about $3.1 million) rather than the lower HDL forecast previously shared (HDL projections previously used $2.8 million and $2.9 million for the two-year budget). Staff explained the city deliberately avoided deeper cuts recommended by a conservative forecast so it could preserve programs that would be difficult to restore if cut. To maintain a balanced budget with the revised revenue assumption, staff re-added or repurposed some Measure U expenditures, including storm-drain maintenance, underground storage tank work, street landscape and facility maintenance, lifeguard vehicle costs, and certain facility repairs.

Committee members asked clarifying questions about deferred work and cost variances. Staff said several projects were multiyear, noted which items were carried into FY26, and agreed to provide follow-up details on revised cost estimates (for example, the tank project and Pearson Road cost increases). The committee also discussed presentation of the annual report to the City Council; after review, members chose to forward the Measure U report and staff attachments as a consent item to council rather than prepare a separate member presentation.

Votes at a glance:
- Consent calendar (one-motion approval): passed (unanimous). Notes: standard consent approval of listed items.
- Motion to accept staff's Measure U report (FY24 audited figures and FY25 preliminary estimates): passed (unanimous).
- Motion to present the Measure U annual report to City Council as a consent item with staff-provided data and a summary of this meeting (Option 2): passed (unanimous).

Committee members closed by noting the city is in a tighter fiscal position and reaffirmed that staff should continue transparent reporting and follow up with requested cost and compliance details. The committee set its next meeting for Oct. 22 at 5 p.m., noting the later start time is due to room use by the Port through 4:30 p.m.