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Oxnard council votes to hire outside firm after heated debate over treasurer's role
Summary
After hours of public comment and testimony from the elected city treasurer and finance staff, Oxnard's City Council adopted a 2026-27 investment policy and directed staff to contract with an outside investment firm to manage city funds, citing the need for independent professional management and clarity around fiduciary procedures.
The Oxnard City Council voted 6-0 on July 7 to adopt the city's 2026-27 investment policy and to hire an outside, specially trained firm to invest city funds in strict accordance with that policy.
Council and staff framed the decision as a response to competing priorities for local government portfolios: protecting the safety of principal and maintaining liquidity while pursuing reasonable returns. Assistant City Manager Eric Sontagard told the council that staff had researched three options — (1) delegate investment authority to the elected treasurer, (2) delegate and also hire a firm to advise, or (3) instruct staff to contract directly with a professional firm to invest surplus funds — and recommended the third option to remove perceived conflicts and bring independent expertise to the $400 million portfolio.
The discussion was contentious. Elected City Treasurer Phil Molina defended his record and described steps he took to move cash into higher‑yield instruments after historically low rates, including placements in state and county pools and government bonds he said were selected for safety and liquidity. Molina noted that his approach grew invested balances and said he uses registered brokers and has not lost principal. Javier Chargo del Lazaro, the city's chief financial officer, and other staff stressed that, under the city's investment objectives, safety and liquidity come before yield and warned that some past practices raised concerns about meeting the prudent‑investor standard.
Public comment was strongly divided. Several callers and in‑person speakers urged the council to retain the treasurer's authority; others — including residents, neighborhood advocates and some councilmembers — urged hiring outside experts to avoid political friction and to improve returns net of fees. Assistant City Attorney Ken Roselle told council the city is in compliance with the Court of Appeal order and that the council retains discretion under state law to decide whether to delegate investment authority.
Mayor Luis MacArthur and several councilmembers framed their vote as a trust and governance decision: they said the public record and the competing accounts left the council more comfortable creating a transparent contract with a professional manager and explicit policy language. The motion the council approved combined adoption of the fiscal year 2026-27 investment policy and direction to staff to contract with a professionally trained investment firm to manage city investments in strict accordance with that policy.
The council did not provide the name of a selected firm at the meeting and required the firm to operate within the adopted policy and to report to council as required by law. The city will return with the proposed contract and oversight terms for council review.
What happens next: staff will prepare a request for proposals and return to council with a recommended contract and oversight terms, including reporting requirements tied to the council's adopted policy.
