Oxnard City staff recommend 3.3018¢ per $100 tax rate to fund public-safety pensions for FY 2026–27

Jim Costello, an administrative services analyst in the City of Oxnard Finance Department, told the City Council staff recommends adopting a resolution to set the fiscal year 2026–27 property tax rate that will fund voter‑approved public‑safety pension obligations. "This presentation provides information on the proposed public safety pension property tax assessment for fiscal year 2026-27," he said.

Costello said the actuarial and budget figures show total estimated public safety retirement costs of $31,262,117 for FY 2026–27, of which $22,492,856 are eligible for funding under the voter‑approved assessment. The proposed budget counts about 158 fire positions and 242 police positions toward those totals.

"The tax rate required to raise the required revenue is 3.3018 cents per 100 dollars of assessed property value, or about 33 dollars for every 100,000 dollars of assessed value," Costello said. Staff reported the presentation lists the projected assessed property value for FY 2026–27 as $28,995,612,697. Using that base and projected offsets, staff calculated the city would need to raise approximately $9,573,734 from assessed parcels after other revenue.

Staff identified available offsets that reduce the levy: an expected fund balance of $4,284,365 at the end of the current fiscal year and a one‑pay‑period cash‑flow reserve of $865,110. In addition, the city's property‑tax consultant, HDL Coren & Cone, projects unitary property tax revenue of $9,499,867; those unitary receipts are allocated statewide and returned to the city to offset assessed‑parcel levies.

Costello noted the proposed 3.3018¢ rate is a drop of roughly 34% from the current year's tax rate and remains well below the maximum rate the city may levy under the governing rules (7.6637¢ per $100). He explained the legal and historical framework for the levy: Oxnard voters enrolled fire and police employees in the state retirement system in 1951, creating the property‑tax obligation; the California Supreme Court decision in Carman v. Alvord and subsequent law (AB 13) shape how those voter‑approved indebtedness rates are treated and capped.

Staff said the city engaged Foster & Foster for the actuarial analysis that determines eligible pension expense and that HDL Coren & Cone served as property‑tax consultant on unitary revenue projections. Costello concluded the presentation by reiterating that staff recommends the City Council adopt a resolution establishing the FY 2026–27 tax rates on property to pay voter‑approved public‑safety pension obligations and said staff would be available at the meeting to answer questions.

The presentation in the transcript did not record a council motion or vote; the City Council is being asked to consider adopting the resolution at its meeting.