Measure U oversight committee approves midyear budget; staff flags storage tank cost overrun

The Measure U Citizens Oversight Committee of Port Hueneme City voted to approve and file the midyear budget-to-actual report for the current fiscal period after a staff presentation on revenue and spending trends.

City staff told the committee the adopted revenue budget for fiscal year 2026 is just over $3,000,000 and that fiscal year-to-date revenue recorded is about $1.2 million, representing five months of receipts. "We are pretty much trending on track as far as our revenue projections go," staff said, noting that revenues lag because businesses remit to the CDTFA before the city receives payments.

Staff summarized Measure U expenditures across three categories: public safety (budgeted at about $1.9 million), streets and maintenance (about $1,000,000), and parks and recreation (just under $100,000). Year-to-date spending reported by staff included roughly $1,000,000 on public safety, about $143,000 on street staff and maintenance, and just under $50,000 for parks and recreation.

In a notable capital project update, staff said the underground fuel storage tank replacement was prioritized to meet an environmental state requirement and that the project has required $152,000 in Measure U funds and is running above the projected budget. "We could have been subjected to the state having the ability to fine up to $10,000 per day had we not got this done," staff said, explaining why that project took precedence over the Pearson Road storm drain repair. Staff added the Pearson Road project is still being specified and will go out to bid; if the tank project exceeds its budget, staff said they would consider shifting Measure U funds from the storm drain project and report back at the next meeting when bids are in.

Staff also reviewed other line items paid from Measure U, including police positions (a sergeant, two full-time officers and a part-time officer share), computer-aided dispatch maintenance and upgrade costs, body-camera and taser replacement contracts, the city's share of a crossing guard contract, lifeguard vehicle lease payments, museum event costs and recreation programming.

After questions from committee members about timing and fund balance policy, a motion to approve and file the midyear budget-to-actual report was made, seconded and approved by voice vote with no oppositions recorded. Staff said it will return with updated projections and any recommended reallocations if the tank project continues to exceed the current allocation.

The committee concluded that the midyear figures generally track with expectations but asked staff to provide updated estimates for the tank replacement and the Pearson Road storm drain project at the next meeting.