Oxnard presents balanced preliminary FY2025–26 budget; warns Measure O sunset could cut $20 million

Assistant City Manager Eric Sonstegard presented the City of Oxnard’s preliminary recommended budget for fiscal year 2025–26 in a nearly 50‑minute presentation, and said staff will present the proposals to the City Council during a public hearing on June 3 and return on June 17 for adoption consideration.

Sonstegard said the proposed general fund is balanced at $243.7 million in revenues and the same amount in expenditures, and that across all funds staff estimate $593.3 million in revenue against $660.0 million in proposed expenditures. “We are proposing a conservative budget,” Sonstegard said, describing roughly a 3.3% increase in both revenues and expenses and an approximately $8 million change in the general fund year‑over‑year.

Why it matters: city leaders said the budget maintains service levels and the council’s reserve goal while warning of future risks that could reduce revenues substantially. The largest near‑term risk identified is the scheduled sunset of Measure O, the half‑cent sales tax voters approved in February 2008; Sonstegard said its expiration on March 31, 2029, could reduce annual general‑fund revenue by about $20 million.

Key revenue and spending details - Revenue mix: Sonstegard said property tax accounts for roughly 31% of city revenues and the city receives…