Port Hueneme trims FY27 shortfall with staff attrition, grants and spending cuts, finance director says

The Port Hueneme City Council reviewed a revised FY26–27 budget on June 1 that narrows a previously projected $622,000 shortfall to roughly $200,000, Finance Director Ashley Chaparo said.

“The proposed revised budget now anticipates estimated revenues at 29 million with 29.2 in personnel and operating appropriations, therefore decreasing that deficit down closer to the $200,000 range,” Chaparo told the joint meeting of the city council, housing authority and surplus property authority. She said the change reflects attrition, cost-saving measures and additional grant revenue.

City staff presented several specific steps that produced the improvement: three vacant positions (an administrative services coordinator, a facilities maintenance worker and a part‑time custodian) are proposed to be unfunded rather than filled; departments identified about $630,000 in reductions; and some $230,000 in new costs (for example, contract increases and higher fuel projections) were absorbed. Chaparo also said part of the expense increase reflects moving housing‑authority staff costs into the general fund after the creation of a housing nonprofit called HHI.

Council members pressed staff for more detail about revenue assumptions and personnel costs. Council Member Lopez noted that personnel represents roughly 70% of the city’s expenditures and asked for greater clarity on which departments consume the largest shares. Staff said the police department accounts for about $12.6 million of the roughly $28 million general fund budget — “a little less than 50%,” the finance director said.

Several council members requested additional study sessions to examine line‑item changes and to test alternative staffing and service models before final adoption. Council Member Perez urged a broad review of overtime and department operational models; Chaparo and the city manager said workshops will be scheduled in coming months to dive deeper into departmental budgets and CIP priorities.

The budget presentation also outlined a revised five‑year CIP schedule, a $222,188 capital fund allocation for housing authority operations, and continued use of designated CIP reserves to fund general fund projects. Staff said the city is awaiting FY25 audited financials and will provide updated fund‑balance estimates when those audits are complete.

What happens next: staff will return with the formal budget adoption item and continue department‑level workshops. The council signaled support for balancing service preservation with fiscal restraint and asked staff to explore efficiency gains and grant opportunities before considering service reductions or new assessments.

(Reporting note: quotes and figures are drawn from the June 1 staff presentation by Finance Director Ashley Chaparo and council discussion.)