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Oxnard council adopts allocation of last year—s surplus, splits vote on street maintenance fee
Summary
City Council approved staff recommendations on how to apply an approximately $35 million general-fund surplus, moved cash to cover higher liability claims and separated a contested infrastructure use fee item for a separate vote, which passed 6-1.
The Oxnard City Council on Wednesday approved a set of budget allocations tied to an approximately $35 million general-fund surplus and moved additional cash to cover large liability claims, while splitting out two infrastructure-fee items for a separate vote.
City staff told council members the fiscal-year surplus allowed the city to accelerate its reserve policy and make a one-time payment toward long-term pension liabilities. "The first is to accelerate the building the operating reserves," said Javier, a finance staff member, adding the surplus would let the city meet its reserve target earlier. Javier also described a staff recommendation to apply $20,000,000 toward CalPERS and related trust funding to reduce pension liabilities.
The council also voted to transfer cash to cover an increase in claims against the city. "I would attribute the request for additional funds to a number of very large claims that have settled during this fiscal year," said Michael Moore, a staff member who handles claims matters, saying the claims had been reserved and the cash move would pay them in the current year.
Why it matters: Council members said the moves stabilize the city—s long-term finances by meeting reserve targets and reducing pension liabilities, while the claims payments protect the city—s cash position as several large settlements were paid.
Councilman Starr asked that two line items be split out for separate consideration: changes to Fund 105 (street maintenance infrastructure use fee revenue) and Fund 631 (Environmental Resources operating fund). He said he intended to vote no on that pair even as he supported the rest of the package. After a roll call, the council approved the main motion for the remainder of the package 7-0. On the separate vote, the two funds were approved 6-1, with Councilman Starr voting no.
Council members also asked staff to provide the finalized financial statements and supplemental detail on the reserve and pension payments when the audited figures are available. Javier said the city would publish the financial statements in the coming weeks.
The council—s votes on the package were procedural approvals of staff—s recommended allocations; no new taxes or fee increases were approved as part of this item.
