Port Hueneme warns of ‘economic uncertainty,’ seeks direction to close budget gaps

Port Hueneme city staff told the City Council on May 5 that the city has narrowed a previously larger budget shortfall but faces a second phase of “economic uncertainty” that will require ongoing adjustments to keep the next two‑year budget balanced.

City Manager Charles Perrettes opened the council’s biannual budget workshop with a high‑level assessment: "the new word of the day that we've heard really consistently ... is economic uncertainty," and staff should expect to "make adjustments throughout the year." He said personnel costs make up the large share of the budget: "personnel costs are about 70% of our general fund budget. Personnel costs ... are about $20,000,000 of our $27,000,000 budget."

The workshop summarized decisions staff already has taken and options under consideration. Staff reported it has reduced operating costs since an earlier, larger gap: the operating budget had been trending up toward about $29.5 million but staff cut it to roughly $28.17 million when the report was prepared, narrowing a previously reported $2.4 million gap to roughly $400,000–$500,000. Revenues, by contrast, are essentially flat — staff projected general fund revenues in the high‑$27 million range — while costs continue to rise because of inflation and…