Oxnard holds public hearing on FY 2025–26 budget; staff presents balanced plan and flags future risks

The Oxnard City Council conducted a public hearing June 3 on the proposed fiscal year 2025–26 city budget, during which staff described a balanced general-fund plan, restored reserves and steps to contain new spending while warning of looming revenue pressures.

Staff presentation and numbers: Assistant City Manager Eric Sonstegard and Chief Financial Officer Javier Chagoyen Lazaro presented the proposal. Sonstegard said the city’s multi‑year restoration efforts moved Oxnard from a roughly $9.2 million structural deficit in 2019 to a position of fiscal sustainability in 2025. He noted the council previously used nearly $20 million to pay down long‑term pension and OPEB liabilities and restored reserves to 16.6% of operating expenses, roughly two months of operating costs.

The proposed budget: Staff said city departments requested nearly $20 million in additional funding for FY 2025–26 but recommended approving roughly $2.8 million of those requests so the general fund remains balanced. Chagoyen Lazaro reported small rounding and technical corrections to the published staff report and noted two updates to be included with the June 17 adoption: an increase of about $300,000 in certain gas-tax revenues and an approximately $1 million appropriation to Assessment District 2001 to pay down outstanding bonds.

Fiscal context and risks: City Manager Paul Wynne urged caution, telling the council that while the city is in a stronger position than several jurisdictions it should plan for a possible downturn. Sonstegard and Wynne pointed to several risks: flattening sales tax growth statewide, the scheduled sunset of a Metro sales tax in 2029, potential state proposals affecting sales-tax allocations from large e-commerce facilities, competitive local labor markets and pending litigation.

Treasurer and staffing dispute: The hearing included an extended exchange about the elected city treasurer’s request for a standalone Treasurer’s Office budget and staffing. Treasurer Philip Molina told the council he filed a proposed budget that he said would separate treasurer functions and pay for deputies and monthly reporting duties; he said prior operating budgets were larger when collections were part of the treasurer’s office and argued the office helps generate net interest income. City staff and the city attorney, however, said the city had filed briefing in court describing the staffing and funding it believes are necessary to allow the treasurer to perform his remaining statutory duties. City Attorney Fisher and staff said Molina’s written proposal sought substantially more funding and staff than the city believes is required and that some proposed appointments cannot be made until the council adopts a compensation schedule. The council did not adopt a separate treasurer budget at the hearing; staff and counsel said the matter is the subject of ongoing court filings and stated they would provide further information to the council and the judge as required.

Public comment and next steps: Two callers addressed the hearing. Staff noted the budget preview presentations already posted online and said the council would accept public testimony during the hearing. The council closed the public hearing and directed staff to return with a final budget to adopt on June 17. No adoption took place June 3.

Ending: Staff and the council emphasized planning conservatively for near‑term revenue uncertainty while preserving core services; the council will consider adoption on June 17 after staff updates and published corrections.