Oxnard staff preview structurally balanced $247 million FY2026'2027 budget and warn of Measure O sunset

Assistant City Manager Eric Sonstagard previewed the City of Oxnard's proposed fiscal year 2026'2027 budget in a recorded presentation, saying staff will present a "structurally balanced general fund budget with approximately $247 million in projected general fund revenues" while preserving the council's 16.6% reserve policy.

Sonstagard said the proposed budget focuses available funding largely on one-time expenses to avoid creating ongoing obligations that could become unsustainable after Measure O, a one-half cent voter-approved sales tax, sunsets at the end of 2028. "Measure O one half cent sales tax is set to sunset at the end of 2028," he said, and staff projects that change could represent a loss of approximately $21 million a year for the general fund.

To bridge near-term needs without committing to ongoing spending, staff reported roughly $12.7 million in available general fund one-time balance this year, about $14 million available in Measure O funds, and a separate recession protection fund of about $14.9 million that staff is not recommending to use at this time. Sonstagard said departments submitted roughly $16 million in supplemental requests; staff recommended about $1.95 million of those as priorities and proposed directing additional available balances toward one-time capital and equipment items.

On specific Measure O spending, staff estimated Measure O revenue for FY2026'2027 at about $20.2 million, with continuing operational costs of roughly $5.5 million; "staff is recommending the city council approve approximately $14 million in one-time expenses for Measure O," Sonstagard said. The recommended one-time uses include roughly $8.2 million for capital improvement projects, purchase of a fire department ladder truck and funding for a basic fire academy to recruit and train up to 21 new firefighters.

The presentation also outlined broader capital and infrastructure needs: the proposed CIP contains over 250 projects with a near-$1.3 billion proposed value and, according to staff, a large funding gap. Sonstagard said enterprise utility needs total about $750 million, transportation and drainage projects exceed $300 million, and IT and building backlogs add materially to the long-term funding shortfall. He warned the city requires more than $20 million annually merely to maintain current street conditions.

Sonstagard highlighted improvements in the city's fiscal position since a multi-million-dollar structural deficit earlier in the decade, noting the city's issuer credit rating rose to double-A minus after multiple upgrades. He also cited external risks to local sales tax revenues, including the opening of a Costco in a neighboring city and possible statewide changes to how online sales tax from the local Amazon distribution center is apportioned.

Why it matters: staff framed the budget to protect core services and avoid ongoing spending that relies on a soon-to-expire sales tax. The council will consider staff's recommendations at a June 1 public hearing and is scheduled to vote on adoption of the FY2026'2027 operating and CIP budgets at the June 16 City Council meeting.

Quotes in context: the article uses direct quotations and attributions to Assistant City Manager Eric Sonstagard as presented in the staff video. Where transcript wording was inconsistent or unclear, the article uses the spelling and institutional names as verified (City of Oxnard, Measure O, Measure E, Carnegie Art Museum). If a numerical or proper-name detail was not stated clearly in the presentation, the article marks it as not specified or reports the figure as presented by staff.

What happens next: staff will present formal budget recommendations at the June 1 public hearing at Oxnard City Council chambers; council direction at that hearing will determine which items move into the adopted budget for the June 16 adoption vote.