Ventura’s finance team proposes $516.2M FY2027 budget prioritizing water projects and maintenance

City budget staff presented a $516.2 million proposed operating and capital improvement budget for fiscal year 2027 and asked the Finance, Audit and Budget Committee to receive the proposal and direct next steps toward a May 19 workshop and a June 9 public hearing.

Finance officials said the proposed budget shows a roughly $121.1 million decrease in current year spending compared with FY2026 largely because the timing of major capital projects (the ocean outfall, membrane bioreactor and advanced water purification work) shifted significant construction appropriations into prior years. The proposed citywide total is $516.2 million, with capital funds the largest category (about $186.6 million or 36% of the total) and the general fund proposed at $153 million.

Deputy finance staff and the budget team — identified in the presentation as Greg Moley (chief financial staff) and senior financial analyst Connie — led the review. "You will see that there was a significant decrease to the current year budget of about $121.1 million largely due to the timing of major capital improvements," the presentation said. Staff also reported 715 full‑time equivalent positions proposed for FY2027, an increase of one FTE for a human resources technician.

Measure O, the half‑percent transaction and use tax approved by voters in 2016, remains an important funding source for the CIP and city services. Staff said 70.9% of Measure O FY2027 resources (about $17.8 million) are projected to come from the half‑percent tax, with prior‑year carryovers and other revenues supporting multi‑year capital work. Staff highlighted that $41 million has been dedicated to maintaining local streets and essential city services in recent years.

Water and wastewater enterprises will account for much of the capital program. Staff said FY2027 will be the first year that utility rate increases go into effect and that appropriations will support construction phases of large projects, including the ocean outfall, membrane bioreactor (MBR) design/construction and an advanced water purification facility; staff projected major multi‑year timelines extending toward the early 2030s for some elements. They also noted an accounting sweep in FY2024 that shifted surplus cash onto capital funds and explained how prior appropriations carry forward.

Committee members pressed staff on specific items during a lengthy Q&A. When a council member asked whether street maintenance funds could be used to purchase a wider paving machine (estimated between $660,000–$880,000), staff said "it could be used to purchase something like that" only if offsets or new revenue were identified because fleet reserves and current budget priorities are dedicated to other replacements and contracted paving activity. On a smaller item, staff reported they had identified funding to purchase 94 downtown flags this year and authorized that purchase from current funds.

The committee moved to receive and file the proposed FY2027 budget; staff outlined next steps including a May 19 budget workshop, an FAB meeting the week of June 1 to prepare for the public hearing, and a charter‑mandated public hearing on June 9 prior to adoption before June 30.

Next steps: staff will return with the budget workshop materials May 19, hold additional review with committee members the week of June 1, and bring the budget to the council public hearing on June 9.