Agenda packet — Finance & Governance Committee, May 14, 2024

Written materials relating to an item on this agenda that are distributed to the legislative bodies within 72 hours before the item is to be considered at its regularly scheduled meeting will be made available for public inspection at the City Clerk’s Office, 300 West Third Street 4th Floor during customary business hours. Agenda reports are also on the City of Oxnard web site at www.oxnard.org.

In compliance with the Americans with Disabilities Act, if you require special assistance to participate in a meeting, please contact the City Clerk’s Office at 385-7803. Notice at least 72 hours prior to the meeting will enable the City to reasonably arrange for your accessibility to the meeting.

Agenda Item Time Estimates include: (Minutes for Presentation + Council Discussion + Public Comment)

AGENDA

OXNARD CITY COUNCIL

FINANCE AND GOVERNANCE COMMITTEE
Council Chambers, 305 West Third Street
May 14, 2024
Regular Meeting - 5:00 to 6:30 PM

Zoom details to call-in for public comment during a meeting:

1. Dial Phone Number: (888) 475-4499

2. Enter Meeting ID: 854 8070 0864

3. Passcode: 007078

If you wish to speak during public comments or a particular item on the agenda, please sign-on by following the zoom call-in steps listed above. Once the presiding officer calls for public speakers, press *9 to raise your hand to inform the City Clerk you would like to speak during the public speaking section for that particular item on the agenda, while in the zoom waiting room. Press *6 when asked to unmute. Listen to the instructions provided virtually on the phone while on hold in the zoom waiting room. Please note that there is a slight time delay when viewing the meeting via television.

IN ACCORDANCE WITH ASSEMBLY BILL 2449, MEMBERS OF THE LEGISLATIVE BODY MAY MEET IN-PERSON OR REMOTELY. TO PARTICIPATE REMOTELY VISIT WWW.OXNARD.ORG.

To find out how you may provide public comment, please refer to the instructions below or at www.https://www.oxnard.org/city-meetings/.

The public may view the meeting from home on Spectrum channel 10, Frontier channel 35, or YouTube at Youtube.com/oxnardnews.

Video recordings of the meeting are typically available online following the meeting at the City’s website at www.oxnard.org/city- meetings.

*Please see the link for the Measure M pre-recorded presentation video for each item listed on this agenda.

YOU MAY PARTICIPATE IN THE MEETING IN THE FOLLOWING WAYS:

1. ATTEND THE MEETING AT THE LOCATION LISTED ABOVE: Submit a speaker card to the City Clerk.

2. EMAIL COMMENTS OR SIGN UP TO SPEAK REMOTELY BEFORE THE MEETING

a. Submit a request to speak remotely by 3 p.m. on the day of the meeting by using the form available at www.oxnard.org/citymeetings.
b. Submit an email to [email protected] by 3 p.m. on the day of the meeting (indicate the agenda item number in the subject line). All email correspondence will be forwarded to the legislative body prior to the start of the meeting and made part of the legislative record.
c. Contact the City Clerk’s Office at (805) 385-7803 to submit your request.

3. PROVIDING PUBLIC COMMENTS REMOTELY DURING THE MEETING

a. Follow Zoom details listed above.
1 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
May 14, 2024 - Page 2

b. Public comments on agenda items will be taken following the announcement of the item. After the item is announced, members of the public may register or otherwise be recognized for the purpose of providing public comment.

Please review the Zoom instructions on the registration page to help ensure there are no technical difficulties during your comments and help you understand public comment procedures using Zoom. Detailed participation instructions can be found at www.oxnard.org/city-meetings.

In the event of a disruption which prevents a legislative body of the City of Oxnard from broadcasting a meeting using a call-in option or internet- based service option, or in the event of a disruption within the City’s control which prevents members of the public from offering public comment using the call-in option or internet-based service option, the legislative body shall take no further action on items appearing on a meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. However, if any of the broadcast options are disrupted, but any of the other broadcast options is still available to the public, the legislative body may take further action on items appearing on a meeting agenda without waiting for the disrupted broadcast option(s) to be restored.

A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
Consideration of Teleconference Participation pursuant to Assembly Bill 2449.

B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA

A person may address the legislative body only on matters not appearing on the agenda and within the subject matter jurisdiction of the legislative body. Speaker requests shall be submitted as set forth on the first page of this agenda. Speakers are limited to three minutes. After 30 minutes, if all speakers have not had the opportunity to speak, the remaining speakers will be given an opportunity to speak prior to adjournment of the meeting. The legislative body cannot enter into a detailed discussion or take action on any items presented during public comments at this time. Such items may only be referred to the City Manager/Executive Director/Secretary for administrative action or scheduled on a subsequent agenda for discussion. Persons wishing to speak on public hearing items should do so at the time of the hearing.

C. CONSENT AGENDA

1. City Clerk Department
SUBJECT: Approval of Minutes.

RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the April 23, 2024 regular meeting as presented.

Contact: Rose Chaparro, (805) 385-7805
D. REPORTS

1. Public Works Department

SUBJECT: Fiscal Year (FY) 2024-25 Landscape Maintenance Districts Initiation of Proceedings to Levy Assessments, Approval of a Consolidated Engineers Report, and Declaration of Intention to Levy Assessments. (10 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommend that the City Council acting as the legislative body of the City of Oxnard Landscape Maintenance Districts (LMDs):

1. Adopt “A Resolution of the City Council of the City of Oxnard, California, initiating proceedings to levy assessments against real property for fiscal year 2024-25 in connection with the city’s landscape maintenance districts”;

2. Adopt “A Resolution of the City Council of the City of Oxnard, California, approving a consolidated engineer’s report regarding assessments against real property for fiscal year 2024-25 in connection with the city’s landscape maintenance districts”; and

3. Adopt “A Resolution of the City Council of the City of Oxnard, California, declaring its 2 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
May 14, 2024 - Page 3

intention to levy assessments against real property for fiscal year 2024-25 in connection with the city’s landscape maintenance districts” setting the Public Hearing for June 18, 2024.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/k44VRSx12pw
Contact: Michael Wolfe, (805) 385-8055

2. Public Works Department
SUBJECT: Fiscal Year (FY) 2024-25 Resolution to Levy Assessments in Mandalay Beach Maintenance District. (10 minutes)

RECOMMENDATION: That the Finance & Governance Committee recommend that the City Council, acting as the legislative body for the Mandalay Beach Maintenance District:

1. Hold a Public Hearing for June 4, 2024 a public hearing to receive public testimony regarding the proposed Fiscal Year 2024-25 assessments for the Mandalay Beach Maintenance District; and

2. Adopt a resolution to levy the special tax assessment for Fiscal Year 2024-25 within the Mandalay Beach Maintenance District for Fiscal Year 2024-25.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/RsoFfH_qoII
Contact: Michael Wolfe, (805) 385-8055

3. Finance Department
SUBJECT: Increase Appropriations in the FY2023-24 General Fund Operating Budget to Transfer Funds to the State Gas Tax Fund to Restore State Gas Tax Fund Balance. (5 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommend that City Council approve the transfer of funds from the FY 2023-24 General Fund (101) Operating Budget to the State Gas Tax Fund (181) in the amount of $3,300,000, to restore a fund balance deficit of the State Gas Tax for prior year activity, as well as projected budgetary deficits in FY 2023-24 and FY 2024-25.

Please click the following link to view the required Measure M pre-recorded presentation video titled General Fund Transfer to State Gas Tax Fund: https://youtu.be/yQZGBFe0tOQ Contact: Javier Chagoyen-Lazaro, (805) 200-5400

4. Finance Department
SUBJECT: FY 2024-25 Proposed Budget. (10 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommend that City Council and Housing Authority Board conduct a public hearing on the Fiscal Year (FY) 2024-25 proposed budget on June 4, 2024, for the City of Oxnard and Oxnard Housing Authority and provide staff direction regarding any adjustments to the proposed budget, in preparation for final budget adoption on June 18, 2024.

Please click the following link to view the required Measure M pre-recorded presentation video titled Fiscal Year 2024-2025 Budget Preview: https://youtu.be/XCXCnjxX62k

Please click the following link to view the required Measure M pre-recorded presentation video titled Additional Information on Fiscal Year 2024-25 Proposed Annual 3 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
May 14, 2024 - Page 4

Budget: https://youtu.be/HD51D-WY500
Contact: Javier Chagoyen-Lazaro, (805) 200-5400

5. Finance Department
SUBJECT: Annual Delegation of Investment Authority. (10 minutes) RECOMMENDATION: That the Finance and Governance Committee recommend the City Council Adopt a Resolution Delegating Investment Authority to the City Treasurer for FY 2024-25.

Contact: Javier Chagoyen-Lazaro, (805) 200-5400

6. Finance Department
SUBJECT: Public Safety Property Tax Assessment FY 2024-25. (10 minutes)

RECOMMENDATION: That the Finance and Governance Committee review and recommend to City Council the adoption of a resolution establishing the FY 2024-25 tax rates on property in the City of Oxnard for the payment of voter-approved obligations related to public safety personnel pension expenses.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/8LGh8C_esbA
Contact: Javier Chagoyen-Lazaro, (805) 200-5400
E. ITEMS FOR FUTURE AGENDAS

F. ADJOURNMENT

4 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

CONSENT AGENDA
AGENDA ITEM NO. C.1

DATE: May 14, 2024

TO: Finance & Governance Committee

FROM: Rose Chaparro, City Clerk, (805) 385-7805, [email protected]

SUBJECT: Approval of Minutes.

RECOMMENDATION

That the Finance & Governance Committee approve the minutes of the April 23, 2024 regular meeting as presented.

BACKGROUND

Approval of Minutes.

STRATEGIC PRIORITIES

This agenda item is a routine operational item.

FINANCIAL IMPACT

There is no financial impact.

Prepared by: Rose Chaparro, City Clerk

ATTACHMENTS

1. MINUTES 04 23 2024 Finance & Governance

5 MINUTES

OXNARD CITY COUNCIL

FINANCE AND GOVERNANCE COMMITTEE
Regular Meeting
April 23, 2024

A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
At 5:00 p.m., Chair John C. Zaragoza called to order the regular meeting of the Oxnard City Council Finance and Governance Committee in the City Hall Council Chambers at 305 W. Third Street, Oxnard, California. The City Clerk called the roll and announced the posting of the a genda. Chair John C. Zaragoza , Member Gabriela Basua, and Member Gabriel (Gabe) Teran were present in person.

Consideration of Teleconference Participation pursuant to Assembly Bill 2449.

B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA (None received.)

C. CONSENT AGENDA

1. City Clerk Department
SUBJECT: Approval of Minutes.

RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the April 9, 2024 regular meeting as presented.

It was moved by Member Teran, seconded by Member Basua , to approve the Information/Consent item as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion passed 3-0.

D. REPORTS

1. Finance Department
SUBJECT: Presentation of Single Audit Report.

RECOMMENDATION: That the Finance and Governance Committee receive the 2023 Single Audit Report from the audit firm Eadie + Payne and recommend staff to forward presentation to the City Council.

(Eadie + Payne Presentation will be live upon consultant's request).

Javier Chagoyen Lazaro, Chief Financial Officer introduced Eden Casareno, Partner In - Charge of Attest Services with Eadie+Payne. Ms. Casareno int roduced Panida Kongpetch, Audit Manager with Eadie + Payne LLP . Ms. Casareno and Ms. Kongpetch presented and answered the Committees questions. No public comments were received. Discussion ensued among the Committee and staff.

6 April 23, 2024 OXNARD CITY COUNCIL PAGE 2

FINANCE & GOVERNANCE COMMITTEE

It was move d by Member Teran, seconded by Member Basua, to approve the r ecommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. 2. Finance Department
SUBJECT: Update on the Financial Corrective Action Plan (FCAP) for Closing Past Audit Findings.

RECOMMENDATION: That the Finance and Governance Committee receive an update on the Financial Corrective Action Plan (FCAP) for closing past audit findings and recommend staff forward the presentation to City Council.

Javier Chagoyen Lazaro, Chief Financial Officer presented and answered the Committees questions. No public comments were received. Discussion ensued among the Committee and staff.

It was move d by Member Basua, seconded by Member Teran, to approve the r ecommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. E. ITEMS FOR FUTURE AGENDAS (No requests were made.)

F. ADJOURNMENT
There be ing no further business on the agenda, and without objection, Chair Zaragoza adjourned the meeting at 5:31 p.m.

ROSE CHAPARRO JOHN C. ZARAGOZA
City Clerk Chair

7 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.1

DATE: May 14, 2024

TO: Finance & Governance Committee

FROM: Michael Wolfe, Public Works Director, (805) 385-8055, [email protected]

RECOMMENDATION

That the Finance and Governance Committee recommend that the City Council acting as the legislative body of the City of Oxnard Landscape Maintenance Districts (LMDs):

3. Adopt “A Resolution of the City Council of the City of Oxnard, California, declaring its intention to levy assessments against real property for fiscal year 2024-25 in connection with the city’s landscape maintenance districts” setting the Public Hearing for June 18, 2024.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/k44VRSx12pw

BACKGROUND

Special Districts is a Division of the Public Works Department and manages a total of 48 special financing districts which includes 36 Landscape Maintenance Districts (“LMDs”). Through the process of developing property, special financing districts (e.g. LMDs) were authorized to be used by property owners (i.e. developers) to fund the annual cost of maintaining certain public improvements that have a special benefit to the properties within the district. Typically, the developer installed the public improvements at the time of development and benefiting property owners pay for the cost of maintaining the improvements (i.e., special benefit) through a special assessment included on the property’s annual property tax bill. Revenue received from the assessment funds the cost to provide the Special Benefit, as outlined in the Consolidated Engineer’s Report attached hereto as Attachment 1 (“Report”).

Assessments are levied annually and collected on the property tax roll. Each year, the City Council must conduct proceedings before making a decision, to levy the assessments. Revenue received from the assessments partially funds the ongoing maintenance of public improvements provided by each district and, in some cases, 8 is collected for future work that is conducted on a less than annual basis.

If the Committee approves the recommendation in this report, a Public Hearing will be set for June 18, 2024, during which the City Council will consider three resolutions. If adopted by Council, the Resolutions will: 1) initiate proceedings to levy the annual assessments; 2) approve the Consolidated Engineer’s Report for the districts; and 3) declare the intent to levy assessments on the FY 2024-25 property tax roll. This is a process that is required each year.

DISCUSSION

The Landscaping and Lighting Act of 1972 (Streets & Highways Code Section 22500 et seq.) (“Act”) requires the City Council to annually Initiate Proceedings by Resolution (Attachment 2), approve the Consolidated Engineers Report through a Resolution (Attachment 3), and state the Council’s Intent to Levy the annual assessment through a Resolution (Attachment 4) by holding a public hearing.

In compliance with the Act, an annual review and evaluation of each district’s revenues and expenditures, contained in the Report, is conducted. This Report consolidates the City’s 36 LMDs into a single report but evaluates each district individually. The Report includes a description of the improvements, the projected estimated annual maintenance costs, and funding to be collected for projects done on a less than annual basis, if any, the method of assessment apportionment for each lot or parcel within each district’s boundaries, and a diagram showing the parcels within that district. The Report also provides an analysis of each district’s annual financial status. It separates and apportions the cost of General Benefit, as defined in the Report, other costs funded by a non-assessment fund (e.g. the General Fund), and the cost of Special Benefit to the benefiting properties, which is funded by the applied assessment rate. The actual services provided to each district varies from district to district and are based upon the property owner approved services and funding.

The applied assessment rate is the amount needed to fund the services of each district and is the amount actually levied on the property tax roll. It cannot exceed the maximum assessment rate that was approved by the property owners, through prior proceedings, for each district. After completing an individual analysis of each district’s current level of service, anticipated estimated expenditures, fund balance, assigned reserve levels, and future work that is conducted on a less than annual basis, it is recommended to set the applied rates as set forth in the Report. Parcel specific detail of the proposed maximum and applied assessment is included in the Report as attached, is available from the City Clerk’s office, and is accessible from the City’s website (www.oxnard.org).

Costs considered to be of General Benefit are not allowed to be assessed to the properties and therefore are apportioned as a non-assessment fund (e.g. General Fund) expense. In addition to the required General Benefit contribution, the General Fund is proposed to cover additional costs, which are outlined in the Fiscal Impact section of this Report. The FY 2024-25 Proposed Operating Budget includes funds necessary to cover these costs.

Funds received for the benefit of each district are restricted and can only be used within the district and for the purposes for which they were collected. Some of the district’s applied assessment rates are proposed to increase from last year. This is to account for services such as landscape maintenance, sidewalk grinding, removal and replacement of displaced sidewalks, irrigation repair, electrical systems repair, and lighting repair and replacement. In some instances, increases are due to an increase in annual service costs, to increase fund balances after their use in prior fiscal years consistent with the Act, or to meet a district’s obligation for staff and overhead expenses. The assessment is levied at a rate that is no higher than the maximum assessment rate approved by the property owners.

The deadline for delivering the Assessment information to Ventura County for inclusion on the FY 2024-25 property tax roll is July 8, 2024.
9 It should be noted that in unique situations in which a district may be unable to fully fund its improvements and obligations (e.g. overhead costs) and has or is expected to have a negative fund balance, staff intends to bring to Council a policy item which will outline options for said districts into the future. These options may include, but are not limited to, placing the district in question on a defined payment plan to bring its negative fund balance back to a whole position, altering the quantity of the district’s authorized improvements or services, balloting property owners within the district to increase their assessment, or potentially dissolving the district.

STRATEGIC PRIORITIES

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

For FY 2024-25, the proposed assessment calculation are as follows: real property assessments $2,073,515.79 (see Engineer’s Report Table 6.7), LMD fund balances $1,742,882.34 (Table 6.6), interest income $95,251.00 (Table 6.5), a general benefit contribution from the General Fund $226,915.35 (Table 6.5), and a subsidy from the General Fund for utility overages $52,397.91 (Table 6.5).

Prepared by: Anthony Miller, Interim Special Districts Manager

ATTACHMENTS

1. FY 2024-25 Consolidated Engineer’s Report

2. Resolution Initiating

3. Resolution Approving Consolidated ER

4. Resolution Intent to Levy

5. City of Oxnard Special Districts Map

6. City of Oxnard Special Districts List

7. Presentation

10 URL link to the FY 2024-25 Consolidated Engineer’s Report:
https://www.oxnard.gov/wp-content/uploads/FY24-25-LMD-Engineers-Report-Intent.pdf 11 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 1 ends

CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD, CALIFORNIA,

INITIATING PROCEEDINGS TO LEVY ASSESSMENTS AGAINST REAL PROPERTY FOR FISCAL YEAR 2024- 25 IN CONNECTION WITH THE CITY’S LANDSCAPE

MAINTENANCE DISTRICTS

WHEREAS, the City Council of the City of Oxnard has, by prior resolutions, established a number of Landscape Maintenance Districts (collectively the “Assessment Districts”) pursuant to the Landscaping and Lighting Act of 1972 (Streets & Highways Code Section 22500 et seq. ) (the “Act”); and
WHEREAS, a complete list of the Assessment Districts is attached hereto as Exhibit A and incorporated herein by reference as though fully set forth; and WHEREAS, for each of the Assessment Districts, the City levies an annual assessment against real prop erty to fund public improvements that specially benefits the parcels located in that Assessment District; and
WHEREAS, the City has engaged NBS (the “Assessment Engineer”) to provide assessment engineering services in connection with the Assessment Districts; and WHEREAS, the City Council desires to initiate proceedings to levy assessments in connection with the Assessment Districts for Fiscal Year (FY) 2024-25.

NOW, THEREFORE, the City Council of the City of Oxnard resolves:

1. Recitals. The above recitals are all true and correct.

2. Initiation of Proceedings. Pursuant to Section 22622 of the Act, the City Council hereby initiates proceedings in connection with the Assessment Districts for the levy of assessments for FY 2024-25.

3. O
rder to Engineer . The Assessment Engineer is hereby ordered to prepare and file reports pursuant to Section 22565 et seq. of the Act with respect to the FY 2024- 25 levy of assessments in connection with each of the Assessment Districts. These reports may be consolidated into a single document for administrative convenience.

4. I mprovements . The improvements associated with each of the Assessment Districts are substantially the same improvements as in FY 2023-24.

5. P rojects . In accordance with Streets and Highways Code Section 22660(a), the Ci ty Council hereby determines that the estimated cost of certain proposed improvements are 12 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 2 ends

greater than can conveniently be raised from a single assessment and, as a result, will be collected in installments. General descriptions of these improvements, as w ell as the estimated costs thereof, the number of annual installments and years during which they are to be collected, and the maximum amount of each annual installment, are described in the Exhibit B attached hereto and incorporated herein by reference as though fully set forth.

Moneys collected from the annual installments shall be accumulated in the improvement fund until there are sufficient moneys to pay all or part of the cost of the improvements.

6. Severability. If any provision of this Resolution or the application of any such provision is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable and that the City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

7. E
ffective Date. This Resolution shall be effective immediately upon adoption.

8. Certification. The City Clerk shall certify to the adoption of this Resolution, and shall maintain on file as a public record this Resolution.

PASSED, APPROVED AND ADOPTED on this ____ day of JUNE, 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________________
John C. Zaragoza, Mayor
ATTEST:
___________________________________
Rose Chaparro, City Clerk
APPROVED AS TO FORM:

___________________________________
Stephen M. Fischer, City Attorney
13 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 3 ends

EXHIBIT A

CITY OF OXNARD

LANDSCAPE MAINTENANCE DISTRICTS

District Name Formation
Date Resolution No.

Landscape Maintenance District No. 3
(River Ridge) March 18, 1986 8983
Landscape Maintenance District No. 10
(Country Club Estates) December 13, 1988 9587
Landscape Maintenance District No. 11
(St. Tropez) January 3, 1989 9603
Landscape Maintenance District No. 12
(Standard Pacific) March 28, 1989 9665
Landscape Maintenance District No. 13
(Le Village) March 20, 1990 9894
Landscape Maintenance District No. 14
(California Cove) June 5, 1990 9972
Landscape Maintenance District No. 16
(California Lighthouse) July 9, 1991 10206
Landscape Maintenance District No. 23
(Greystone) June 18, 1996 11071
Landscape Maintenance District No. 24
(Vineyards) June 18, 1996 11072
Landscape Maintenance District No. 25
(The Pointe) June 18, 1996 11073
Landscape Maintenance District No. 27
(Rose Island) June 24, 1997 11259
Landscape Maintenance District No. 28
(Harborside) June 24, 1997 11260
Landscape Maintenance District No. 30
(Haas Automation) June 24, 1997 11261
Landscape Maintenance District No. 31
(Rancho De La Rosa) June 23, 1998 11415

14 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 4 ends

District Name Formation
Date Resolution No.

Landscape Maintenance District No. 32
(Oak Park) February 23, 1999 11505
Landscape Maintenance District No. 33
(El Paseo) October 19, 1999 11653
Landscape Maintenance District No. 34
(Sunrise Pointe & Sunset Cove) October 19, 1999 11654
Landscape Maintenance District No. 36
(Villa Santa Cruz & Villa Carmel) January 25, 2000 11684 Landscape Maintenance District No. 37
(Pacific Breeze) January 25, 2000 11685
Landscape Maintenance District No. 38
(Aldea Del Mar) November 28, 2000 11863
Landscape Maintenance District No. 39
(Promesa/Sueno & DR Horton/Seawinds) March 6, 2001 11905 Landscape Maintenance District No. 40
(Cantada) January 8, 2002 12078
Landscape Maintenance District No. 41
(Pacific Cove) January 8, 2002 12079
Landscape Maintenance District No. 42
(Cantabria & Coronado) May 14, 2002 12144
Landscape Maintenance District No. 43
(Greenbelt) January 7, 2003 12295
Landscape Maintenance District No. 46
(Daily Ranch) June 24, 2003 12440
Landscape Maintenance District No. 47
(Sycamore Place) April 22, 2003 12355
Landscape Maintenance District No. 49
(Cameron Ranch) June 3, 2003 12394
Landscape Maintenance District No. 50
(Pleasant Valley Senior Housing) June 10, 2003 12404
Landscape Maintenance District No. 51
(Pfeiler) April 19, 2005 12799
Landscape Maintenance District No. 52
(Wingfield) February 1, 2005 12768
Landscape Maintenance District No. 53
(Huff Court) June 7, 2005 12879
Landscape Maintenance District No. 54
(Meadowcrest) March 28, 2006 13024
Landscape Maintenance District No. 55
(Wingfield West) March 28, 2006 13025
Landscape Maintenance District No. 58
(Westwind) June 6, 2006 13069
Landscape Maintenance District No. 60
(Artisan) March 3, 2009 13604

15 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 5 ends

EXHIBIT B

CITY OF OXNARD

LANDSCAPE MAINTENANCE DISTRICT PROJECTS
16 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 6 ends

EXHIBIT B
17 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 7 ends

EXHIBIT B

18 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 8 ends

EXHIBIT B

19 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 9 ends

EXHIBIT B

20 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 10 ends

EXHIBIT B

21 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 11 ends

EXHIBIT B

22 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 12 ends

EXHIBIT B

23 Resolution No.

Resolution Initiate Proceedings LMDs FY2024-2025

Page 13 ends

EXHIBIT B

24 CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD, CALIFORNIA, APPROVING A CONSOLIDATED ENGINEER’S REPORT REGARDING ASSESSMENTS AGAINST REAL PROPERTY FOR FISCAL YEAR 2024-25 IN CONNECTION WITH THE CITY’S LANDSCAPE MAINTENANCE DISTRICTS
WHEREAS, the City Council of the City of Oxnard has, by prior resolutions, established a number of Landscape Maintenance Districts (collectively the “Assessment Districts”) pursuant to the Landscaping and Lighting Act of 1972 (Streets & Highways Code Section 22500 et seq.) (the “Act”); and
WHEREAS, a complete list of the Assessment Districts is attached hereto as Exhibit A and incorporated herein by reference as though fully set forth; and WHEREAS, in connection with each of the Assessment Districts, the City levies an annual assessment against real property to fund public improvements that specially benefit the parcels located in that Assessment District; and
WHEREAS, the City has engaged NBS (the “Assessment Engineer”) to provide assessment engineering services in connection with the Assessment Districts; and WHEREAS, by prior resolution the City Council ordered the Assessment Engineer to prepare and file reports pursuant to Section 22565 et seq. of the Act with respect to the FY 2024-25 levy of assessments for each of the Assessment Districts; and
WHEREAS, the Assessment Engineer has prepared and filed a consolidated report entitled “City of Oxnard Fiscal Year 2024-25 Consolidated Engineer’s Report for Landscape Maintenance Districts,” (the “Report”) which is on file in the Office of the City Clerk, available for public inspection, and the Report is incorporated herein by this reference; and WHEREAS, the City Council now desires to approve the Report NOW, THEREFORE, the City Council of the City of Oxnard resolves:

1. Recitals. The above recitals are all true and correct and incorporated herein by this reference.

2. Approval of Report. The City Council hereby approves the Report as filed.

3. Severability. If any provision of this Resolution or the application of any such provision is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable and that the City Council declares that 25 Resolution No.

Resolution Approving Consolidated Engineers Report FY 2024-2025

Page 2 ends

it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

6. Effective Date. This Resolution shall be effective immediately upon adoption.

7. Certification. The City Clerk shall certify to the adoption of this Resolution, and shall maintain on file as a public record this Resolution.

PASSED, APPROVED AND ADOPTED on this ____ day of JUNE, 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________________
John C. Zaragoza, Mayor
ATTEST:
___________________________________
Rose Chaparro, City Clerk
APPROVED AS TO FORM:
___________________________________
Stephen M. Fischer, City Attorney
26 Resolution No.

Resolution Approving Consolidated Engineers Report FY 2024-2025

Page 3 ends

EXHIBIT A

CITY OF OXNARD

LANDSCAPE MAINTENANCE DISTRICTS
FormationDistrict Name Date Resolution No.

Resolution Approving Consolidated Engineers Report FY 2024-2025

Page 4 ends

FormationDistrict Name Date Resolution No.

Landscape Maintenance District No. 33
(El Paseo) October 19, 1999 11653
Landscape Maintenance District No. 34
(Sunrise Pointe & Sunset Cove) October 19, 1999 11654
Landscape Maintenance District No. 36
(Villa Santa Cruz & Villa Carmel) January 25, 2000 11684 Landscape Maintenance District No. 37
(Pacific Breeze) January 25, 2000 11685
Landscape Maintenance District No. 38
(Aldea Del Mar) November 28, 2000 11863
Landscape Maintenance District No. 39
(Promesa/Sueno & DR Horton/Seawinds) March 6, 2001 11905 Landscape Maintenance District No. 40
(Cantada) January 8, 2002 12078
Landscape Maintenance District No. 41
(Pacific Cove) January 8, 2002 12079
Landscape Maintenance District No. 42
(Cantabria & Coronado) May 14, 2002 12144
Landscape Maintenance District No. 43
(Greenbelt) January 7, 2003 12295
Landscape Maintenance District No. 46
(Daily Ranch) June 24, 2003 12440
Landscape Maintenance District No. 47
(Sycamore Place) April 22, 2003 12355
Landscape Maintenance District No. 49
(Cameron Ranch) June 3, 2003 12394
Landscape Maintenance District No. 50
(Pleasant Valley Senior Housing) June 10, 2003 12404
Landscape Maintenance District No. 51
(Pfeiler) April 19, 2005 12799
Landscape Maintenance District No. 52
(Wingfield) February 1, 2005 12768
Landscape Maintenance District No. 53
(Huff Court) June 7, 2005 12879
Landscape Maintenance District No. 54
(Meadowcrest) March 28, 2006 13024
Landscape Maintenance District No. 55
(Wingfield West) March 28, 2006 13025
Landscape Maintenance District No. 58
(Westwind) June 6, 2006 13069
Landscape Maintenance District No. 60
(Artisan) March 3, 2009 13604
28 CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD, CALIFORNIA,

DECLARING ITS INTENTION TO LEVY ASSESSMENTS AGAINST REAL PROPERTY FOR FISCAL YEAR 2024-25 IN CONNECTION WITH THE CITY’S LANDSCAPE

MAINTENANCE DISTRICTS
WHEREAS, the City Council of the City of Oxnard has, by prior resolutions, established a number of Landscape Maintenance Districts (collectively the “Assessment Districts” and each an “Assessment District”) pursuant to the Landscaping and Lighting Act of 1972 (Streets & Highways Code Section 22500 et seq.) (the “Act”); and
WHEREAS, a complete list of the Assessment Districts is attached hereto as Exhibit A and incorporated herein by reference; and
WHEREAS, in connection with each of the Assessment Districts, the City levies an annual assessment against real property to fund landscape maintenance that specially benefits the parcels located in that Assessment District; and
WHEREAS, the City has engaged NBS (the “Assessment Engineer”) to provide assessment engineering services in connection with the Assessment Districts; and WHEREAS, by prior resolution the City Council ordered the Engineer to prepare and file reports pursuant to Section 22565 et seq. of the Act with respect to the FY 2024-25 levy of assessments in connection with each of the Assessment Districts; and WHEREAS, by prior resolution the City Council approved as filed a consolidated report of the Assessment Engineer entitled “City of Oxnard Fiscal Year 2024-25 Consolidated Engineer’s Report for Landscape Maintenance Districts” (the “Report”), which is on file in the Office of the City Clerk, available for public inspection, and incorporated herein by reference; and WHEREAS, the City Council desires to declare its intention to levy the assessments for FY 2024- 25 as described in the Report.

NOW, THEREFORE, the City Council of the City of Oxnard resolves:

1. Recitals. The above recitals are all true and correct.

2. Declaration of Intent. The City Council hereby declares its intention to levy and collect assessments for FY 2024-25 within each Assessment District.

3. Name and Location of Assessment Districts. The name of each Assessment District is set forth in Exhibit A. The locations of each Assessment District are generally described in the name of the Assessment District and more specifically described in the Report. 29 Resolution No.

Resolution Declaring the Intent to Levy FY 2024-2025 (ROI)

Page 2 ends

4. Description of Improvements. Each Assessment District will fund landscape improvements, including associated hardscape, ornamental improvements, benches, lighting and other appurtenances. No substantial change to the improvements is proposed to be made for FY 2024-25.

5. Reference to Report. Reference is made to the Report for a full and detailed description of (i) the landscape improvements; (ii) the boundaries of the Assessment Districts; and (iii) the proposed assessments upon assessable lots and parcels of land within the Assessment Districts. The Report describes, among other things, each affected parcel of real property and the amount of the assessment for each such affected parcel for FY 2024-25.

6. Inflation Adjustment. As set forth in more detail in the Report, the assessments in connection with most of the Assessment Districts will be higher than in FY 2023-24. In no case will the rates for an Assessment District be higher than the maximum assessment rate previously approved for the Assessment District, as adjusted by a previously approved CPI adjustment.

7. Public Hearing. On June 18, 2024 at 6:00 p.m. or as soon thereafter as practical, in the City Council Chambers, at 305 West Third Street, Oxnard, California, the City Council will hold a full and fair public hearing on the question of the levy of the proposed assessments for FY 2024-25 (the “Hearing”). At the Hearing, the City Council will also hear and consider any objections or protests to the Report.

8. Notice. Notice of the Hearing shall be given in the manner set forth in Section 22626(a) of the Act.

9. Protest. Pursuant to Section 22628 of the Act, any interested person may, prior to the conclusion of the Hearing, file a written protest with the City Clerk of the City of Oxnard or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection. A protest by a property owner shall contain a description sufficient to identify the property owned by the property owner.

10. Severability. If any provision of this Resolution or the application of any such provision is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable and that the City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

11. Effective Date. This Resolution shall be effective immediately upon adoption.

12. Certification. The City Clerk shall certify to the adoption of this Resolution, and shall maintain on file as a public record this Resolution.
30 Resolution No.

Resolution Declaring the Intent to Levy FY 2024-2025 (ROI)

Page 3 ends

PASSED, APPROVED AND ADOPTED on this ____ day of JUNE, 2024 by the following vote:

AYES:

NOES:

ABSENT:

Resolution Declaring the Intent to Levy FY 2024-2025 (ROI)

Page 4 ends

EXHIBIT A

CITY OF OXNARD

LANDSCAPE MAINTENANCE DISTRICTS
FormationDistrict Name Date Resolution No.

Resolution Declaring the Intent to Levy FY 2024-2025 (ROI)

Page 5 ends

FormationDistrict Name Date Resolution No.

Landscape Maintenance District No. 33
(El Paseo) October 19, 1999 11653
Landscape Maintenance District No. 34
(Sunrise Pointe & Sunset Cove) October 19, 1999 11654
Landscape Maintenance District No. 36
(Villa Santa Cruz & Villa Carmel) January 25, 2000 11684 Landscape Maintenance District No. 37
(Pacific Breeze) January 25, 2000 11685
Landscape Maintenance District No. 38
(Aldea Del Mar) November 28, 2000 11863
Landscape Maintenance District No. 39
(Promesa/Sueno & DR Horton/Seawinds) March 6, 2001 11905 Landscape Maintenance District No. 40
(Cantada) January 8, 2002 12078
Landscape Maintenance District No. 41
(Pacific Cove) January 8, 2002 12079
Landscape Maintenance District No. 42
(Cantabria & Coronado) May 14, 2002 12144
Landscape Maintenance District No. 43
(Greenbelt) January 7, 2003 12295
Landscape Maintenance District No. 46
(Daily Ranch) June 24, 2003 12440
Landscape Maintenance District No. 47
(Sycamore Place) April 22, 2003 12355
Landscape Maintenance District No. 49
(Cameron Ranch) June 3, 2003 12394
Landscape Maintenance District No. 50
(Pleasant Valley Senior Housing) June 10, 2003 12404
Landscape Maintenance District No. 51
(Pfeiler) April 19, 2005 12799
Landscape Maintenance District No. 52
(Wingfield) February 1, 2005 12768
Landscape Maintenance District No. 53
(Huff Court) June 7, 2005 12879
Landscape Maintenance District No. 54
(Meadowcrest) March 28, 2006 13024
Landscape Maintenance District No. 55
(Wingfield West) March 28, 2006 13025
Landscape Maintenance District No. 58
(Westwind) June 6, 2006 13069
Landscape Maintenance District No. 60
(Artisan) March 3, 2009 13604
33 4
9 5
34 7
8 1
2 3 & 4
1 &
2 03
30 14
12 36
43 28
38 31
46 39
13 25
51 52
10 16
47 37
34 42
24 58
41 23
33 11
40 60
27 55
50 4954
32 53
This map is compiled by the City of Oxnard GIS Division, which is developed and operated solely for the convenience of the City. The City does not make any representations or warranties regarding the use, accuracy, reliability, and/or completeness of this map and no decision involving a risk of economic loss or physical injury should be made in reliance thereon. µ Maintenance Assessment District (District No.)
Waterway Assessment District (Zone No.)
Community Facilities District (District No.)
Landscape Maintenance District (District No.)

CITY OF OXNARD SPECIAL DISTRICTS
3,000 0 3,000 6,000
Feet
Created by:

Geographic Information Systems Division
March 2023
Data Source:

City of Oxnard GIS Division
County of Ventura GIS Program
34 1 & 2 – Westport at Mandalay Bay 7 – Wagon Wheel
3 & 4 – Seabridge at Mandalay Bay 8 – Sakioka Farms
5 – Riverpark 9 – Northshore at Mandalay Bay
3 – Riverridge 37 – Pacific Cove
10 – Country Club 38 – Aldea Del Mar
11 – St Tropez 39 – El Sueno Promesa
12 – Standard Pacific 40 – Cantada
13 – Le Village 41 – Pacific Cove
14 – California Cove 42 – Cantabria/Coronado
16 – California Lighthouse 43 – Greenbelt
23 – Greystone 46 – Daily Ranch
24 – Vineyards 47 – Sycamore Place
25 – The Pointe 49 – Cameron Ranch
27 – Rose Island 50 – PV Senior Housing
28 – Harborside 51 – Pfeiler
30 – Haas Automation 52 – Wingfield
31 – Rancho De La Rosa 53 – Huff Court
32 – Oak Park 54 – Meadowcrest
33 – El Paseo 55 – Wingfield West
34 – Sunrise Pt/Sunset Cove 58 – Westwind
36 – Villa Santa Cruz 60 – Artisan
Zone 1 – Mandalay Bay Zone 2 – Harbour Island

MAINTENANCE ASSESSMENT DISTRICT

WATERWAYS ASSESSEMENT DISTRICTS
4 – Mandalay Beach/Colony

LANDSCAPE MAINTENANCE DISTRICTS
CITY OF OXNARD – SPECIAL DISTRICTS
LANDSCAPE MAINTENANCE DISTRICT * COMMUNITY FACILITIES DISTRICTS WATERWAYS ASSESSMENT DISTRICTS * MAINTENANCE ASSESSMENT DISTRICTS

COMMUNITY FACILITIES DISTRICTS
35 Fiscal Year 2024-25 Landscape Maintenance
Districts Initiation of Proceedings to Levy
Assessments, Approval of a Consolidated
Engineers Report and Declaration of Intention
to Levy Assessments.

Finance & Governance Committee
May 14, 2024
City Council
June 4, 2024
Anthony Miller
Interim Special Districts Manager
36 That the Finance and Governance Committee recommend that the City Council acting as the legislative body of the City of Oxnard Landscape Maintenance Districts (LMDs):

RECOMMENDATION 2
37 That the City Council acting as the legislative body of the City of Oxnard Landscape Maintenance Districts (LMDs):

RECOMMENDATION 3
38 MAP OF SPECIAL DISTRICTS IN THE CITY OF OXNARD 4
More information can be
found at:
oxnard.org/city-departm
ent/finance/special-asse
ssment-districts/
39 • The Special Districts Division of the Public Works Department manages 48 Assessment Districts which includes 36 LMDs. • The City has allowed property owners (i.e. developers) to use special financing districts (e.g. LMDs) to fund the annual cost of maintaining certain public improvements that benefit the properties within the district.
• Typically, the developer installed the public improvements at the time of development and benefiting property owners pay for the cost of maintaining the improvements (i.e., special benefit) through a special assessment included on the property’s annual property tax bill.

BACKGROUND 5
40 • Revenue received from the assessment funds the cost to provide the Special Benefit, as outlined in the Consolidated Engineer’s Report
• Assessments are levied annually and collected on the property tax roll. Each year, the City Council must conduct proceedings to levy the assessments.
• Revenue received from the assessments partially funds the ongoing maintenance of public improvements provided by each district and, in some cases, is collected for future work that is conducted on a less than annual basis.

BACKGROUND 6
41 • If the Committee approves the recommendation in this report a Public Hearing will be set for June 18, 2024, during which the City Council will consider three resolutions.
• If adopted by Council, the Resolutions will:
• 1) initiate proceedings to levy the annual assessments; • 2) approve the Consolidated Engineer’s Report for the districts; and
• 3) declare the intent to levy assessments on the FY
2024-25 property tax roll.
• This is a process that is required each year.

BACKGROUND 7
42 • The Landscaping and Lighting Assessment Act of 1972 requires the City Council to annually Initiate Proceedings by Resolution, approve the Consolidated Engineers Report
through a Resolution, and state the Council’s Intent to Levy the annual assessment through a Resolution
• In compliance with the Act, an annual review and evaluation of each district’s revenues and expenditures, contained in the Consolidated Engineer’s Report, is conducted.
• This Report consolidates the City’s 36 LMDs into a single report, but evaluates each district individually.

DISCUSSION 8
43 • The Report includes a description of the improvements, the projected annual maintenance costs, and funding to be
collected for projects done on a less than annual basis, if any, the method of assessment apportionment for each lot or
parcel within each district’s boundaries, and a diagram showing the parcels within that district.
• The Report also provides an analysis of each district’s annual financial status.
• It separates and apportions the cost of General Benefit, other costs funded by a non-assessment fund, and the cost of
Special Benefit to the benefiting properties is funded by the applied assessment rate.

DISCUSSION 9
44 • The actual services provided to each district varies from district to district and are based upon the property owner approved services and funding.
• The applied assessment rate is the amount needed to fund the services of each district and is the amount actually levied on the property tax roll.
• It cannot exceed the maximum assessment rate that was originally approved for each district.
• After completing an individual analysis of each district’s current level of service, anticipated expenditures, fund balance, assigned reserve levels, and future work, it is recommended to set the applied rates as set forth in the Report.

DISCUSSION 10
45 • Parcel specific detail of the proposed maximum and applied assessment is included in the Report as attached and is also available from the City Clerk’s office and accessible from the City’s website (www.oxnard.org).
• Costs considered to be of General Benefit, as defined in the Report, are not allowed to be assessed to the properties and therefore are apportioned as a non-assessment fund expense. • The General Fund is proposed to cover additional costs, which are outlined in the Fiscal Impact section of this Report. • The FY 2024-25 Proposed Operating Budget includes funds necessary to cover these costs.

DISCUSSION 11
46 • Funds received for the benefit of each district are restricted and can only be used within the district and for the purposes for which they were collected.
• Some of the District’s applied assessment rates are proposed to increase from last year. This is to account for services such as district-wide tree trimming, sidewalk grinding, removal and replacement of displaced sidewalks, irrigation repair, electrical systems repair, and lighting repair and replacement.
• The assessment is levied at a rate that is no higher than the maximum assessment.
• The deadline for delivering the Assessment information to Ventura County is July 8, 2024.

DISCUSSION 12
47 • For FY 2024-25, the proposed assessment calculation are as follows:
• $2,073,515.79 in real property assessments;
• $1,742,882.34 from LMD fund balances
• $95,251.00 from interest income;
• a general benefit contribution of $226,915.35 from the General Fund; and
• a subsidy from the General Fund of $52,397.91 for utility overages.

FINANCIAL IMPACT 13
48 QUESTIONS
14 49

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.2

DATE: May 14, 2024

TO: Finance & Governance Committee

FROM: Michael Wolfe, Public Works Director, (805) 385-8055, [email protected]

SUBJECT: Fiscal Year (FY) 2024-25 Resolution to Levy Assessments in Mandalay Beach Maintenance District. (10 minutes)

RECOMMENDATION

That the Finance & Governance Committee recommend that the City Council, acting as the legislative body for the Mandalay Beach Maintenance District:

1. Hold a Public Hearing for June 4, 2024 a public hearing to receive public testimony regarding the proposed Fiscal Year 2024-25 assessments for the Mandalay Beach Maintenance District; and

2. Adopt a resolution to levy the special tax assessment for Fiscal Year 2024-25 within the Mandalay Beach Maintenance District for Fiscal Year 2024-25.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/RsoFfH_qoII

BACKGROUND

Special Districts is a Division of the Public Works Department and manages a total of 48 special financing districts, which includes one Maintenance Assessment District (the “District”). On November 22, 1983, the Mandalay Beach Maintenance District (“District” or “MAD 4”) was formed, pursuant to the Improvement Act of 1911, to recover the cost of the City’s maintenance of the 36-acre beach area, plus landscaping on public rights-of-way within Tract No. 2923. The formation of the District was required as a condition to development imposed by the Coastal Commission and as a provision of a development agreement with the City. The assessments are exempt from Article XIII D of the California Constitution by reason of Section 5 thereof. The City’s responsibility to maintain the above-mentioned areas became effective on July 1, 1986. On July 5, 1988, City Council adopted Resolution No. 9500, which shifted the bulk of the District’s beach maintenance costs from the residents of The Colony to the Mandalay Beach Resort Hotel (Zachari Dunes).

DISCUSSION

The total assessment levy for Fiscal Year 2024-25 is unchanged from Fiscal Year 2023-24 at $39,446, and is computed as follows:

1. LANDSCAPE MAINTENANCE - $21,346

The City’s Special Districts Division maintains the landscape areas along Falkirk Avenue, Harbor Boulevard, 50 Mandalay Beach Road, Costa del Oro, and the bikeway/greenbelt along the southerly property line. The District’s budget for landscaping maintenance costs for FY 2024-25 is $21,346, of which $16,095 is paid by The Colony residential development and $5,251 paid by the Embassy Suites hotel. This shared cost is outlined in Resolution 9500 (75% to the Colony; 25% to the Embassy Suites hotel).

2. BEACH MAINTENANCE - $18,100 (MAD 4 share split between the Colony and Hotel)

The agreements between the City and the developers of MAD 4 assign the responsibility of beach maintenance based on the relative length of beach area that fronts both the hotel and the public beach property (park). The total assessment of beach maintenance is $30,092, with the assessed County Collection Fee the total cost is $30,137. Resolution No. 9500 divides the 60 percent ($18,100) obligation of the District into two parts. 75.4 percent ($13,647) is paid by the Embassy Suites hotel and 24.6 percent ($4,453) is paid by The Colony residents. The remaining 40 percent ($12,037) of the beach maintenance is borne by the City as part of the total operating cost of the Oxnard Beach Park. The annual beach maintenance cost is as follows:

Annual Costs = $30,092 District City
Percent Share of $30,092 x 60% x 40%
FY 2024-25 Shared Costs $18,055 $12,037
County Collection Fee $45 $0
Total Beach Maintenance Cost $18,100 $12,037

Embassy Suites' Share (75.4%) $13,647 $0
Colony's Share (24.6%) $4,453 $0

The total cost to the District for both the landscaping ($21,346) and the beach maintenance ($18,100) is $39,446. The Embassy Suites pay $18,898 ($5,251 for landscaping + $13,647 for beach maintenance) and The Colony residents pay $20,548 ($16,095 + $4,453). The County assessment fee is estimated to be $55.

Therefore, the difference will be paid from the General Fund.

STRATEGIC PRIORITIES

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

Property owners pay the assessments as a part of their annual property tax bill. The assessment has been approved by the property owners through prior proceedings. Funds received for the benefit of the District are restricted and can only be used to fund the services of the District. Property owners in the District pay the assessments as part of their annual property tax bill.

For FY 2024-25, the estimated Special Districts budget for MAD 4 is $47,931. The City will assess the property owners within the District $39,446 in FY 2024-25 to pay landscape maintenance costs and 60 percent of beach maintenance costs. The City’s portion of the beach maintenance is 40 percent ($12,037) and will be included in the Proposed Budget for FY 2024-25 as a transfer out contribution to MAD 4 from the General Fund.

51 Prepared by: Anthony Miller, Interim Special Districts Manager

ATTACHMENTS

1. Resolution Approving Levy of MAD 4 2024

2. Oxnard MAD 4 Assessment Roll 24-25

3. City of Oxnard Special Districts Map

4. City of Oxnard Special Districts List

5. MAD4 Proposed Map of Authorized Improvements

6. CityOfOxnardResolution9500

7. Presentation

52 Resolution No.

Special Tax for Mandalay Beach Maintenance District

Page 1 ends

CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD LEVYING A SPECIAL ASSESSMENT TAX FOR FISCAL YEAR 2024-25 WITHIN THE MANDALAY

BEACH MAINTENANCE DISTRICT
WHEREAS, by Resolution No. 8586, adopted November 22, 1983, the City Council formed the Mandalay Beach Maintenance District ("the District") pursuant to the maintenance district provisions of the Improvement Act of 1911 (Streets and Highways Code section 5820 et. seq.); and;
WHEREAS, formation of the District was required as a condition to development imposed by the California Coastal Commission and also as part of a development agreement between the City and the developer owning all of the parcels subject to assessment at the time assessments were initially imposed; and
WHEREAS, the City Council is required by Streets and Highways Code section 5830 to estimate the cost of maintaining and operating the improvements within the District, to decide whether the cost of such maintenance and operation shall be borne wholly or partially by the District, and to levy a special assessment tax within the District sufficient to raise the money to pay for such cost; and
WHEREAS, the City Council wishes to levy such assessments for FY 2024-25 in an amount sufficient to cover all of the expense of maintaining the landscaping and to cover 60% of the expense of maintaining the beach area, with the City paying the remaining 40% of the latter expense; and
WHEREAS, assessments were levied in the District in Fiscal Year 2023-24, and such assessments are not proposed to increase in Fiscal Year 2024-25; and WHEREAS, the assessments are imposed exclusively to finance the capital costs and maintenance and operation expenses for sidewalks, streets, water, flood control, drainage systems and vector control, inasmuch as the beach is public right of way that serves much as a street, manages water and is part of the flood control and drainage systems in the District, and the landscaping is located in or adjacent to sidewalks, streets and other public rights of way and maintenance of the landscaping involves irrigation and vector control; and 53 Resolution No.

Special Tax for Mandalay Beach Maintenance District

Page 2 ends

WHEREAS, for the foregoing reasons, the assessments are exempt from Article XIII D of the California Constitution, by reason of section 5 thereof; and WHEREAS, a description of the improvements and the proposed special assessment taxes on real property in the district is contained in the agenda report dated June 4, 2024 on file with the City Clerk ("the agenda report").

NOW, THEREFORE, the City Council of the City of Oxnard resolves:

1. The City Council estimates the cost of maintaining and operating the improvements within the District for Fiscal Year 2024-25 at $47,931, with $39,446 to be paid from assessments and $12,037 to be paid by the City, as more particularly set out in the agenda report. The $39,446 is allocated as follows:
100% of landscape maintenance costs $21,346
60% of beach maintenance costs $18,100
Total $39,446

2. The $39,446 is apportioned among the property owners within the District, as follows:

24.6% of landscape maintenance costs to hotel parcel (APN #191-0-380-105)

75.4% of landscape maintenance costs to Colony condominium parcels (440 APNs)

24.6% of beach maintenance costs to Colony condominium parcels (440 APNs)

75.4% of beach maintenance costs to hotel parcel (APN #191-0-380-105)

3. The City Council levies a special assessment tax for FY 2024-25 on the real property in the District as follows and attached herein:

APN #191-0-380-105 ........................................................................... $18,898 $46.70 on each of 440 Colony APNs ................................................... $20,548

4. In accordance with Government Code section 36936.1, the City Clerk is instructed to cause this resolution to be published one time in a newspaper of general circulation within the City within 15 days after adoption.

5. In accordance with Government Code section 53901, the City Clerk is instructed to file with the Ventura County Auditor within 60 days from July 1, 2024, a certified copy of this resolution.

PASSED, APPROVED AND ADOPTED on this ____ day of June 2024 by the following vote:
54 Resolution No.

Special Tax for Mandalay Beach Maintenance District

Page 3 ends

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________________
John C. Zaragoza, Mayor
ATTEST:
___________________________________
Rose Chaparro, City Clerk
APPROVED AS TO FORM:
___________________________________
Stephen M. Fischer, City Attorney
55 APN Assessment Total
191-0-380-105 $18,898.00
191-0-390-015 46.70
191-0-390-025 46.70
191-0-390-035 46.70
191-0-390-045 46.70
191-0-390-055 46.70
191-0-390-065 46.70
191-0-390-075 46.70
191-0-390-085 46.70
191-0-390-095 46.70
191-0-390-105 46.70
191-0-390-115 46.70
191-0-390-125 46.70
191-0-390-135 46.70
191-0-390-145 46.70
191-0-390-155 46.70
191-0-390-165 46.70
191-0-390-175 46.70
191-0-390-185 46.70
191-0-390-195 46.70
191-0-390-205 46.70
191-0-390-215 46.70
191-0-390-225 46.70
191-0-390-235 46.70
191-0-390-245 46.70
191-0-390-255 46.70
191-0-390-265 46.70
191-0-390-275 46.70
191-0-390-285 46.70
191-0-390-295 46.70
191-0-390-305 46.70
191-0-390-315 46.70
2226 MARTINIQUE LN
2230 MARTINIQUE LN
2232 MARTINIQUE LN
2234 MARTINIQUE LN
2240 MARTINIQUE LN
2242 MARTINIQUE LN
2220 MARTINIQUE LN
2222 MARTINIQUE LN
2224 MARTINIQUE LN
2246 MARTINIQUE LN
2250 MARTINIQUE LN
2252 MARTINIQUE LN
2254 MARTINIQUE LN
2256 MARTINIQUE LN
2260 MARTINIQUE LN
2262 MARTINIQUE LN
2264 MARTINIQUE LN
2266 MARTINIQUE LN
2244 MARTINIQUE LN
2204 MARTINIQUE LN
2270 MARTINIQUE LN
2272 MARTINIQUE LN
2274 MARTINIQUE LN
2276 MARTINIQUE LN
2216 MARTINIQUE LN
2214 MARTINIQUE LN
2212 MARTINIQUE LN
2210 MARTINIQUE LN
2206 MARTINIQUE LN
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
2101 MANDALAY BEACH RD
2202 MARTINIQUE LN
2200 MARTINIQUE LN

Page 1 of 14 ends

56 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-390-325 46.70
191-0-390-335 46.70
191-0-390-345 46.70
191-0-390-355 46.70
191-0-390-365 46.70
191-0-390-375 46.70
191-0-390-385 46.70
191-0-390-395 46.70
191-0-390-405 46.70
191-0-390-415 46.70
191-0-390-425
191-0-390-435
191-0-390-445
191-0-390-455
191-0-390-465
191-0-390-475
191-0-390-485
191-0-390-495
191-0-390-505
191-0-390-515
191-0-390-525
191-0-390-535
191-0-390-545
191-0-390-555
191-0-390-565
191-0-390-575
191-0-390-585
191-0-390-595
191-0-390-605
191-0-390-615
191-0-390-625
191-0-390-635
2372 VINA DEL MAR 46.70
2370 VINA DEL MAR 46.70
2386 MARTINIQUE LN 46.70
2380 VINA DEL MAR 46.70
2376 VINA DEL MAR 46.70
2374 VINA DEL MAR 46.70
2383 MARTINIQUE LN 46.70
2381 MARTINIQUE LN 46.70
2382 VINA DEL MAR 46.70
2371 MARTINIQUE LN 46.70
2387 MARTINIQUE LN 46.70
2385 MARTINIQUE LN 46.70
2377 MARTINIQUE LN 46.70
2375 MARTINIQUE LN 46.70
2373 MARTINIQUE LN 46.70
2365 MARTINIQUE LN 46.70
2363 MARTINIQUE LN 46.70
2361 MARTINIQUE LN 46.70
2353 MARTINIQUE LN 46.70
2351 MARTINIQUE LN 46.70
2367 MARTINIQUE LN 46.70
2355 MARTINIQUE LN 46.70
2343 MARTINIQUE LN
2347 MARTINIQUE LN
2345 MARTINIQUE LN
2357 MARTINIQUE LN
2327 MARTINIQUE LN
2325 MARTINIQUE LN
2321 MARTINIQUE LN
2323 MARTINIQUE LN
2341 MARTINIQUE LN
2236 MARTINIQUE LN

Page 2 of 14 ends

57 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-390-645
191-0-390-655
191-0-390-665
191-0-390-675
191-0-390-685
191-0-390-695
191-0-390-705
191-0-390-715
191-0-390-725
191-0-390-735
191-0-390-745
191-0-390-755
191-0-390-765
191-0-390-775
191-0-390-785
191-0-390-795
191-0-390-805
191-0-390-815
191-0-390-825
191-0-390-835
191-0-390-845
191-0-390-855
191-0-390-865
191-0-390-875
191-0-390-885
191-0-390-895
191-0-390-905
191-0-390-915
191-0-390-925
191-0-390-935
191-0-390-945
191-0-390-955
2263 MARTINIQUE LN 46.70
2267 MARTINIQUE LN 46.70
2257 MARTINIQUE LN 46.70
2255 MARTINIQUE LN 46.70
2261 MARTINIQUE LN 46.70
2237 MARTINIQUE LN 46.70
2243 MARTINIQUE LN 46.70
2241 MARTINIQUE LN 46.70
2231 MARTINIQUE LN 46.70
2233 MARTINIQUE LN 46.70
2235 MARTINIQUE LN 46.70
2227 MARTINIQUE LN 46.70
2223 MARTINIQUE LN 46.70
2225 MARTINIQUE LN 46.70
2303 MARTINIQUE LN 46.70
2301 MARTINIQUE LN 46.70
2221 MARTINIQUE LN 46.70
2311 MARTINIQUE LN 46.70
2307 MARTINIQUE LN 46.70
2305 MARTINIQUE LN 46.70
2317 MARTINIQUE LN 46.70
2315 MARTINIQUE LN 46.70
2313 MARTINIQUE LN 46.70
2287 MARTINIQUE LN 46.70
2271 MARTINIQUE LN 46.70
2273 MARTINIQUE LN 46.70
2281 MARTINIQUE LN 46.70
2283 MARTINIQUE LN 46.70
2285 MARTINIQUE LN 46.70
2384 MARTINIQUE LN 46.70
2275 MARTINIQUE LN 46.70
2277 MARTINIQUE LN 46.70

Page 3 of 14 ends

58 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-390-965
191-0-390-975
191-0-390-985
191-0-400-015
191-0-400-025
191-0-400-035
191-0-400-045
191-0-400-055
191-0-400-065
191-0-400-075
191-0-400-085
191-0-400-095
191-0-400-105
191-0-400-115
191-0-400-125
191-0-400-135
191-0-400-145
191-0-400-155
191-0-400-165
191-0-400-175
191-0-400-185
191-0-400-195
191-0-400-205
191-0-400-215
191-0-400-225
191-0-400-235
191-0-400-245
191-0-400-255
191-0-400-265
191-0-400-275
191-0-400-285
191-0-400-295 2200 VINA DEL MAR 46.70
2203 VINA DEL MAR 46.70
2211 VINA DEL MAR 46.70
2205 VINA DEL MAR 46.70
2221 VINA DEL MAR 46.70
2215 VINA DEL MAR 46.70
2213 VINA DEL MAR 46.70
2227 VINA DEL MAR 46.70
2225 VINA DEL MAR 46.70
2223 VINA DEL MAR 46.70
2305 VINA DEL MAR 46.70
2303 VINA DEL MAR 46.70
2301 VINA DEL MAR 46.70
2315 VINA DEL MAR 46.70
2313 VINA DEL MAR 46.70
2311 VINA DEL MAR 46.70
2323 VINA DEL MAR 46.70
2321 VINA DEL MAR 46.70
2317 VINA DEL MAR 46.70
2333 VINA DEL MAR 46.70
2331 VINA DEL MAR 46.70
2325 VINA DEL MAR 46.70
2339 VINA DEL MAR 46.70
2337 VINA DEL MAR 46.70
2335 VINA DEL MAR 46.70
2345 VINA DEL MAR 46.70
2343 VINA DEL MAR 46.70
2341 VINA DEL MAR 46.70
2355 VINA DEL MAR 46.70
2353 VINA DEL MAR 46.70
2351 VINA DEL MAR 46.70
2265 MARTINIQUE LN 46.70

Page 4 of 14 ends

59 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-400-305
191-0-400-315
191-0-400-325
191-0-400-335
191-0-400-345
191-0-400-355
191-0-400-365
191-0-400-375
191-0-400-385
191-0-400-395
191-0-400-405
191-0-400-415
191-0-400-425
191-0-400-435
191-0-400-445
191-0-400-455
191-0-400-465
191-0-400-475
191-0-400-485
191-0-400-495
191-0-400-505
191-0-400-515
191-0-400-525
191-0-400-535
191-0-400-545
191-0-400-555
191-0-400-565
191-0-400-575
191-0-400-585
191-0-400-595
191-0-400-605
191-0-400-615
2245 MARTINIQUE LN 46.70
2247 MARTINIQUE LN 46.70
2251 MARTINIQUE LN 46.70
2214 CANNES SQ 46.70
2212 CANNES SQ 46.70
2210 CANNES SQ 46.70
2244 CANNES SQ 46.70
2242 CANNES SQ 46.70
2240 CANNES SQ 46.70
2332 VINA DEL MAR 46.70
2330 VINA DEL MAR 46.70
2246 CANNES SQ 46.70
2350 VINA DEL MAR 46.70
2336 VINA DEL MAR 46.70
2334 VINA DEL MAR 46.70
2360 VINA DEL MAR 46.70
2354 VINA DEL MAR 46.70
2352 VINA DEL MAR 46.70
2236 CANNES SQ 46.70
2364 VINA DEL MAR 46.70
2362 VINA DEL MAR 46.70
2230 CANNES SQ 46.70
2232 CANNES SQ 46.70
2234 CANNES SQ 46.70
2222 CANNES SQ 46.70
2224 CANNES SQ 46.70
2226 CANNES SQ 46.70
2206 VINA DEL MAR 46.70
2208 VINA DEL MAR 46.70
2220 CANNES SQ 46.70
2202 VINA DEL MAR 46.70
2204 VINA DEL MAR 46.70

Page 5 of 14 ends

60 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-400-625
191-0-410-015
191-0-410-025
191-0-410-035
191-0-410-045
191-0-410-055
191-0-410-065
191-0-410-075
191-0-410-085
191-0-410-095
191-0-410-105
191-0-410-115
191-0-410-125
191-0-410-135
191-0-410-145
191-0-410-155
191-0-410-165
191-0-410-175
191-0-410-185
191-0-410-195
191-0-410-205
191-0-410-215
191-0-410-225
191-0-410-235
191-0-410-245
191-0-410-255
191-0-410-265
191-0-410-275
191-0-410-285
191-0-410-295
191-0-410-305
191-0-410-315
2155 MARTINIQUE LN 46.70
2157 MARTINIQUE LN 46.70
2167 MARTINIQUE LN 46.70
2151 MARTINIQUE LN 46.70
2153 MARTINIQUE LN 46.70
2145 MARTINIQUE LN 46.70
2147 MARTINIQUE LN 46.70
2165 MARTINIQUE LN 46.70
2137 MARTINIQUE LN 46.70
2141 MARTINIQUE LN 46.70
2143 MARTINIQUE LN 46.70
2131 MARTINIQUE LN 46.70
2133 MARTINIQUE LN 46.70
2135 MARTINIQUE LN 46.70
2123 MARTINIQUE LN 46.70
2127 MARTINIQUE LN 46.70
2125 MARTINIQUE LN 46.70
2173 MARTINIQUE LN 46.70
2171 MARTINIQUE LN 46.70
2121 MARTINIQUE LN 46.70
2185 MARTINIQUE LN 46.70
2175 MARTINIQUE LN 46.70
2177 MARTINIQUE LN 46.70
2187 MARTINIQUE LN 46.70
2183 MARTINIQUE LN 46.70
2181 MARTINIQUE LN 46.70
2125 VINA DEL MAR 46.70
2127 VINA DEL MAR 46.70
2201 VINA DEL MAR 46.70
2253 MARTINIQUE LN 46.70
2121 VINA DEL MAR 46.70
2123 VINA DEL MAR 46.70

Page 6 of 14 ends

61 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-410-325
191-0-410-335
191-0-410-345
191-0-410-355
191-0-410-365
191-0-410-375
191-0-410-385
191-0-410-395
191-0-410-405
191-0-410-415
191-0-410-425
191-0-410-435
191-0-410-445
191-0-410-455
191-0-410-465
191-0-410-475
191-0-410-485
191-0-430-015
191-0-430-025
191-0-430-035
191-0-430-045
191-0-430-055
191-0-430-065
191-0-430-075
191-0-430-085
191-0-430-095
191-0-430-105
191-0-430-115
191-0-430-125
191-0-430-135
191-0-430-145
191-0-430-155 4482 ANTIGUA WAY 46.70
4490 ANTIGUA WAY 46.70
4486 ANTIGUA WAY 46.70
4484 ANTIGUA WAY 46.70
4496 ANTIGUA WAY 46.70
4494 ANTIGUA WAY 46.70
4492 ANTIGUA WAY 46.70
4516 ANTIGUA WAY 46.70
4500 ANTIGUA WAY 46.70
4502 ANTIGUA WAY 46.70
4510 ANTIGUA WAY 46.70
4512 ANTIGUA WAY 46.70
4514 ANTIGUA WAY 46.70
4506 ANTIGUA WAY 46.70
2124 VINA DEL MAR ST 46.70
4504 ANTIGUA WAY 46.70
2116 VINA DEL MAR ST 46.70
2120 VINA DEL MAR ST 46.70
2122 VINA DEL MAR ST 46.70
2110 VINA DEL MAR ST 46.70
2112 VINA DEL MAR ST 46.70
2114 VINA DEL MAR ST 46.70
2113 MARTINIQUE ST 46.70
2115 MARTINIQUE LN 46.70
2117 MARTINIQUE LN 46.70
2105 MARTINIQUE ST 46.70
2107 MARTINIQUE ST 46.70
2111 MARTINIQUE ST 46.70
2163 MARTINIQUE LN 46.70
2101 MARTINIQUE ST 46.70
2103 MARTINIQUE LN 46.70
2161 MARTINIQUE LN 46.70

Page 7 of 14 ends

62 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-430-165
191-0-430-175
191-0-430-185
191-0-430-195
191-0-430-205
191-0-430-215
191-0-430-225
191-0-430-235
191-0-430-245
191-0-430-255
191-0-430-265
191-0-430-275
191-0-430-285
191-0-430-295
191-0-430-305
191-0-430-315
191-0-430-325
191-0-430-335
191-0-430-345
191-0-430-355
191-0-430-365
191-0-430-375
191-0-430-385
191-0-430-395
191-0-430-405
191-0-430-415
191-0-430-425
191-0-430-435
191-0-430-445
191-0-430-455
191-0-430-465
191-0-430-475
4465 ANTIGUA WAY 46.70
4467 ANTIGUA WAY 46.70
4451 ANTIGUA WAY 46.70
4463 ANTIGUA WAY 46.70
4457 ANTIGUA WAY 46.70
4461 ANTIGUA WAY 46.70
4432 ANTIGUA WAY 46.70
4430 ANTIGUA WAY 46.70
4455 ANTIGUA WAY 46.70
4442 ANTIGUA WAY 46.70
4434 ANTIGUA WAY 46.70
4436 ANTIGUA WAY 46.70
4454 ANTIGUA WAY 46.70
4456 ANTIGUA WAY 46.70
4440 ANTIGUA WAY 46.70
4446 ANTIGUA WAY 46.70
4450 ANTIGUA WAY 46.70
4452 ANTIGUA WAY 46.70
4462 ANTIGUA WAY 46.70
4460 ANTIGUA WAY 46.70
4444 ANTIGUA WAY 46.70
4470 ANTIGUA WAY 46.70
4466 ANTIGUA WAY 46.70
4464 ANTIGUA WAY 46.70
4476 ANTIGUA WAY 46.70
4474 ANTIGUA WAY 46.70
4472 ANTIGUA WAY 46.70
4477 ANTIGUA WAY 46.70
4471 ANTIGUA WAY 46.70
4473 ANTIGUA WAY 46.70
4480 ANTIGUA WAY 46.70
4475 ANTIGUA WAY 46.70

Page 8 of 14 ends

63 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-430-485
191-0-430-495
191-0-430-505
191-0-430-515
191-0-430-525
191-0-430-535
191-0-430-545
191-0-430-555
191-0-430-565
191-0-430-575
191-0-430-585
191-0-430-595
191-0-430-605
191-0-430-615
191-0-430-625
191-0-430-635
191-0-430-645
191-0-430-655
191-0-430-665
191-0-430-675
191-0-430-685
191-0-430-695
191-0-430-705
191-0-430-715
191-0-430-725
191-0-440-015
191-0-440-025
191-0-440-035
191-0-440-045
191-0-440-055
191-0-440-065
191-0-440-075
2057 MAJORCA DR 46.70
2053 MAJORCA DR 46.70
2063 MAJORCA DR 46.70
2061 MAJORCA DR 46.70
2055 MAJORCA DR 46.70
4485 ANTIGUA WAY 46.70
2065 MAJORCA DR 46.70
2067 MAJORCA DR 46.70
4481 ANTIGUA WAY 46.70
4487 ANTIGUA WAY 46.70
4483 ANTIGUA WAY 46.70
4401 ANTIGUA WAY 46.70
4417 ANTIGUA WAY 46.70
4415 ANTIGUA WAY 46.70
4407 ANTIGUA WAY 46.70
4405 ANTIGUA WAY 46.70
4403 ANTIGUA WAY 46.70
4435 ANTIGUA WAY 46.70
4413 ANTIGUA WAY 46.70
4411 ANTIGUA WAY 46.70
4423 ANTIGUA WAY 46.70
4421 ANTIGUA WAY 46.70
4437 ANTIGUA WAY 46.70
4431 ANTIGUA WAY 46.70
4427 ANTIGUA WAY 46.70
4425 ANTIGUA WAY 46.70
4443 ANTIGUA WAY 46.70
4441 ANTIGUA WAY 46.70
4433 ANTIGUA WAY 46.70
4453 ANTIGUA WAY 46.70
4445 ANTIGUA WAY 46.70
4447 ANTIGUA WAY 46.70

Page 9 of 14 ends

64 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-440-085
191-0-440-095
191-0-440-105
191-0-440-115
191-0-440-125
191-0-440-135
191-0-440-145
191-0-440-155
191-0-440-165
191-0-440-175
191-0-440-185
191-0-440-195
191-0-440-205
191-0-440-215
191-0-440-225
191-0-440-235
191-0-440-245
191-0-440-255
191-0-440-265
191-0-440-275
191-0-440-285
191-0-440-295
191-0-440-305
191-0-440-315
191-0-440-325
191-0-440-335
191-0-440-345
191-0-440-355
191-0-440-365
191-0-440-375
191-0-440-385
191-0-440-395 1953 MAJORCA DR 46.70
1961 MAJORCA DR 46.70
1955 MAJORCA DR 46.70
1957 MAJORCA DR 46.70
1975 MAJORCA DR 46.70
1977 MAJORCA DR 46.70
1963 MAJORCA DR 46.70
1967 MAJORCA DR 46.70
1973 MAJORCA DR 46.70
1971 MAJORCA DR 46.70
2047 MAJORCA DR 46.70
2045 MAJORCA DR 46.70
1965 MAJORCA DR 46.70
2037 MAJORCA DR 46.70
2043 MAJORCA DR 46.70
2041 MAJORCA DR 46.70
2033 MAJORCA DR 46.70
2031 MAJORCA DR 46.70
2035 MAJORCA DR 46.70
2021 MAJORCA DR 46.70
2025 MAJORCA DR 46.70
2027 MAJORCA DR 46.70
2015 MAJORCA DR 46.70
2017 MAJORCA DR 46.70
2023 MAJORCA DR 46.70
2001 MAJORCA DR 46.70
2007 MAJORCA DR 46.70
2003 MAJORCA DR 46.70
2013 MAJORCA DR 46.70
2011 MAJORCA DR 46.70
2005 MAJORCA DR 46.70
2051 MAJORCA DR 46.70

Page 10 of 14 ends

65 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-440-405
191-0-440-415
191-0-440-425
191-0-440-435
191-0-440-445
191-0-440-455
191-0-440-465
191-0-440-475
191-0-440-485
191-0-440-495
191-0-440-505
191-0-440-515
191-0-440-525
191-0-440-535
191-0-440-545
191-0-440-555
191-0-440-565
191-0-440-575
191-0-440-585
191-0-440-595
191-0-440-605
191-0-440-615
191-0-440-625
191-0-440-635
191-0-440-645
191-0-440-655
191-0-440-665
191-0-440-675
191-0-440-685
191-0-450-015
191-0-450-025
191-0-450-035
1983 SAN SEBASTIAN DR 46.70
1981 SAN SEBASTIAN DR 46.70
1985 SAN SEBASTIAN DR 46.70
1910 MAJORCA 46.70
1914 MAJORCA DR 46.70
1916 MAJORCA DR 46.70
1912 MAJORCA DR 46.70
1900 MAJORCA DR 46.70
1904 MAJORCA DR 46.70
1907 MAJORCA DR 46.70
1902 MAJORCA DR 46.70
1906 MAJORCA DR 46.70
1903 MAJORCA DR 46.70
1901 MAJORCA DR 46.70
1905 MAJORCA DR 46.70
1917 MAJORCA DR 46.70
1911 MAJORCA DR 46.70
1915 MAJORCA DR 46.70
1927 MAJORCA DR 46.70
1925 MAJORCA DR 46.70
1913 MAJORCA DR 46.70
1935 MAJORCA DR 46.70
1923 MAJORCA 46.70
1921 MAJORCA DR 46.70
1933 MAJORCA DR 46.70
1931 MAJORCA DR 46.70
1937 MAJORCA DR 46.70
1947 MAJORCA DR 46.70
1943 MAJORCA DR 46.70
1941 MAJORCA DR 46.70
1951 MAJORCA DR 46.70
1945 MAJORCA DR 46.70

Page 11 of 14 ends

66 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-450-045
191-0-450-055
191-0-450-065
191-0-450-075
191-0-450-085
191-0-450-095
191-0-450-105
191-0-450-115
191-0-450-125
191-0-450-135
191-0-450-145
191-0-450-155
191-0-450-165
191-0-450-175
191-0-450-185
191-0-450-195
191-0-450-205
191-0-460-015
191-0-460-025
191-0-460-035
191-0-460-045
191-0-460-055
191-0-460-065
191-0-460-075
191-0-460-085
191-0-460-095
191-0-460-105
191-0-460-115
191-0-460-125
191-0-460-135
191-0-460-145
191-0-460-155
4724 SAN SEBASTIAN DR 46.70
4720 SAN SEBASTIAN DR 46.70
4740 SAN SEBASTIAN DR 46.70
4742 SAN SEBASTIAN DR 46.70
4726 SAN SEBASTIAN DR 46.70
4744 SAN SEBASTIAN DR 46.70
4762 SAN SEBASTIAN DR 46.70
4746 SAN SEBASTIAN DR 46.70
4766 SAN SEBASTIAN DR 46.70
4764 SAN SEBASTIAN DR 46.70
4760 SAN SEBASTIAN DR 46.70
1965 SAN SEBASTIAN DR 46.70
1961 SAN SEBASTIAN DR 46.70
1963 SAN SEBASTIAN DR 46.70
2065 SAN SEBASTIAN DR 46.70
2067 SAN SEBASTIAN DR 46.70
1967 SAN SEBASTIAN DR 46.70
2047 SAN SEBASTIAN DR 46.70
2063 SAN SEBASTIAN DR 46.70
2061 SAN SEBASTIAN DR 46.70
2043 SAN SEBASTIAN DR 46.70
2041 SAN SEBASTIAN DR 46.70
2045 SAN SEBASTIAN DR 46.70
2021 SAN SEBASTIAN DR 46.70
2025 SAN SEBASTIAN DR 46.70
2027 SAN SEBASTIAN DR 46.70
2015 SAN SEBASTIAN DR 46.70
2017 SAN SEBASTIAN DR 46.70
2023 SAN SEBASTIAN DR 46.70
1987 SAN SEBASTIAN DR 46.70
2013 SAN SEBASTIAN DR 46.70
2011 SAN SEBASTIAN DR 46.70

Page 12 of 14 ends

67 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-460-165
191-0-460-175
191-0-460-185
191-0-460-195
191-0-460-205
191-0-460-215
191-0-460-225
191-0-460-235
191-0-460-245
191-0-460-265
191-0-460-275
191-0-460-285
191-0-460-295
191-0-460-305
191-0-460-315
191-0-460-325
191-0-460-335
191-0-460-345
191-0-460-355
191-0-460-365
191-0-460-375
191-0-460-385
191-0-460-395
191-0-460-405
191-0-460-415
191-0-460-425
191-0-460-435
191-0-460-445
191-0-460-455
191-0-460-465
191-0-460-475
191-0-460-485 2001 SAN TROPEZ CIR 46.70
1986 SAN TROPEZ CIR 46.70
2007 SAN TROPEZ CIR 46.70
2005 SAN TROPEZ CIR 46.70
1982 SAN TROPEZ CIR 46.70
1980 SAN TROPEZ CIR 46.70
1984 SAN TROPEZ CIR 46.70
1972 SAN TROPEZ CIR 46.70
1974 SAN TROPEZ CIR 46.70
1976 SAN TROPEZ CIR 46.70
1964 SAN TROPEZ CIR 46.70
1966 SAN TROPEZ CIR 46.70
1970 SAN TROPEZ CIR 46.70
1956 SAN TROPEZ CIR 46.70
1960 SAN TROPEZ CIR 46.70
1962 SAN TROPEZ CIR 46.70
1952 SAN TROPEZ CIR 46.70
1950 SAN TROPEZ CIR 46.70
1954 SAN TROPEZ CIR 46.70
1930 SAN TROPEZ CIR 46.70
1934 SAN TROPEZ CIR 46.70
1936 SAN TROPEZ CIR 46.70
4670 SAN SEBASTIAN DR 46.70
4672 SAN SEBASTIAN DR 46.70
1932 SAN TROPEZ CIR 46.70
4702 SAN SEBASTIAN DR 46.70
4676 SAN SEBASTIAN DR 46.70
4674 SAN SEBASTIAN DR 46.70
4706 SAN SEBASTIAN DR 46.70
4704 SAN SEBASTIAN DR 46.70
4700 SAN SEBASTIAN DR 46.70
4722 SAN SEBASTIAN DR 46.70

Page 13 of 14 ends

68 APN Assessment Total
City of Oxnard
MAD No. 4 (Mandalay Beach)
Assessment Detail Report for Fiscal Year 2024/25
Site Address
191-0-460-495
191-0-460-505
191-0-460-515
191-0-460-525
191-0-460-535
191-0-460-545
191-0-460-555
191-0-460-565
191-0-460-575
191-0-460-585
191-0-460-595
191-0-460-605
191-0-460-615
191-0-460-625
191-0-460-635
191-0-460-645
191-0-460-655
191-0-460-665
191-0-460-675
191-0-460-685
191-0-460-695
191-0-460-705
191-0-460-715
191-0-460-725
191-0-460-735
441 Accounts $39,446.00

46.70 46.70
1996 SAN TROPEZ CIR
1994 SAN TROPEZ CIR

46.70 46.70
1990 SAN TROPEZ CIR
1992 SAN TROPEZ CIR

46.70 46.70
1945 SAN TROPEZ CIR
1947 SAN TROPEZ CIR

46.70 46.70
1943 SAN TROPEZ CIR
1941 SAN TROPEZ CIR

46.70 46.70
4685 SAN SEBASTIAN DR
4687 SAN SEBASTIAN DR

46.70 46.70
4681 SAN SEBASTIAN DR
4683 SAN SEBASTIAN DR

46.70 46.70
4695 SAN SEBASTIAN DR
4697 SAN SEBASTIAN DR

46.70 46.70
4691 SAN SEBASTIAN DR
4693 SAN SEBASTIAN DR

46.70 46.70
4711 SAN SEBASTIAN DR
4713 SAN SEBASTIAN DR

46.70 46.70
4717 SAN SEBASTIAN DR
4715 SAN SEBASTIAN DR

46.704733 SAN SEBASTIAN DR
4735 SAN SEBASTIAN DR 46.70
4731 SAN SEBASTIAN DR 46.70
2003 SAN TROPEZ CIR 46.70
4737 SAN SEBASTIAN DR 46.70

Page 14 of 14 ends

69 4
9 5
34 7
8 1
2 3 & 4
1 &
2 03
30 14
12 36
43 28
38 31
46 39
13 25
51 52
10 16
47 37
34 42
24 58
41 23
33 11
40 60
27 55
50 4954
32 53
This map is compiled by the City of Oxnard GIS Division, which is developed and operated solely for the convenience of the City. The City does not make any representations or warranties regarding the use, accuracy, reliability, and/or completeness of this map and no decision involving a risk of economic loss or physical injury should be made in reliance thereon. µ Maintenance Assessment District (District No.)
Waterway Assessment District (Zone No.)
Community Facilities District (District No.)
Landscape Maintenance District (District No.)

CITY OF OXNARD SPECIAL DISTRICTS
3,000 0 3,000 6,000
Feet
Created by:

Geographic Information Systems Division
March 2023
Data Source:

City of Oxnard GIS Division
County of Ventura GIS Program
70 1 & 2 – Westport at Mandalay Bay 7 – Wagon Wheel
3 & 4 – Seabridge at Mandalay Bay 8 – Sakioka Farms
5 – Riverpark 9 – Northshore at Mandalay Bay
3 – Riverridge 37 – Pacific Cove
10 – Country Club 38 – Aldea Del Mar
11 – St Tropez 39 – El Sueno Promesa
12 – Standard Pacific 40 – Cantada
13 – Le Village 41 – Pacific Cove
14 – California Cove 42 – Cantabria/Coronado
16 – California Lighthouse 43 – Greenbelt
23 – Greystone 46 – Daily Ranch
24 – Vineyards 47 – Sycamore Place
25 – The Pointe 49 – Cameron Ranch
27 – Rose Island 50 – PV Senior Housing
28 – Harborside 51 – Pfeiler
30 – Haas Automation 52 – Wingfield
31 – Rancho De La Rosa 53 – Huff Court
32 – Oak Park 54 – Meadowcrest
33 – El Paseo 55 – Wingfield West
34 – Sunrise Pt/Sunset Cove 58 – Westwind
36 – Villa Santa Cruz 60 – Artisan
Zone 1 – Mandalay Bay Zone 2 – Harbour Island

MAINTENANCE ASSESSMENT DISTRICT

WATERWAYS ASSESSEMENT DISTRICTS
4 – Mandalay Beach/Colony

LANDSCAPE MAINTENANCE DISTRICTS
CITY OF OXNARD – SPECIAL DISTRICTS
LANDSCAPE MAINTENANCE DISTRICT * COMMUNITY FACILITIES DISTRICTS WATERWAYS ASSESSMENT DISTRICTS * MAINTENANCE ASSESSMENT DISTRICTS

COMMUNITY FACILITIES DISTRICTS
71 This map is compiled by the City of Oxnard GIS Division, which is developed and operated solely for the convenience of the City. The City does not make any representations or warranties regarding the use, accuracy, reliability, and/or completeness of this map and no decision involving a risk of economic loss or physical injury should be made in reliance thereon.

DISTRICT BOUNDARY
PATH (32,751 SQ FT)
PLANTER (53,720 SQ FT)
SAND / DUNE (324,074 SQ FT)
TURF (66,943 SQ FT)

CITY BOUNDARY
Proposed Maintenance to
Remain MAD 4 Responsibility
MAD No. 4
(Mandalay Beach/Colony/Hotel)
O
0 150 300 45075 Feet

Page 1 of 2 ends

Coordinate System: NAD 1983 StatePlane
California FIPS 0405 Feet
Source: City of Oxnard & Ventura County
District boundaries and authorized improvements are
subject to change based on the final formation documentation 72 73
74 Adoption of Resolution for the FY
2024-25 Levy of Assessments in
Mandalay Beach Maintenance District
Finance & Governance Committee
May 14, 2024
City Council
June 4, 2024
Anthony Miller
Interim Special Districts Manager
75 That the Finance & Governance Committee recommend that the City Council, acting as the legislative body for the Mandalay Beach Maintenance District:

1. Hold a Public Hearing on June 4, 2024 to receive public testimony regarding the proposed Fiscal Year 2024-25
assessments for the Mandalay Beach Maintenance District; and

2. Adopt a resolution to levy the special tax assessment for Fiscal Year 2024-25 within the Mandalay Beach Maintenance District.

RECOMMENDATION
2 76
That the City Council, acting as the legislative body for the Mandalay Beach Maintenance District (MAD 4):

1. Hold a public hearing to receive public testimony
regarding the proposed Fiscal Year 2024-25 assessments for the Mandalay Beach Maintenance District; and

2. Adopt a resolution to levy the special tax assessment for Fiscal Year 2024-25 within the Mandalay Beach Maintenance District.

RECOMMENDATION
3 77
• On November 22, 1983, the Mandalay Beach Maintenance
District (“District” or “MAD-4”) was formed pursuant to the Improvement Act of 1911, in order to recover the cost of the City’s maintenance of a 36-acre beach area, plus
landscaping on public rights-of-way within Tract No. 2923 • July 1, 1986: City’s responsibility to maintain the
above-mentioned areas became effective
• July 5, 1988: City Council adopted Resolution No. 9,500, which shifted the bulk of the District’s beach maintenance costs from residents of The Colony to the Mandalay Beach Resort Hotel

BACKGROUND
4 78
5 MAP OF SPECIAL DISTRICTS IN THE CITY OF OXNARD
More information can
be found at:
oxnard.org/city-depart
ment/finance/special-
assessment-districts/
79 • Total assessment levy for Fiscal Year 2024-25 is $39,446 which funds expenses for landscape and beach
maintenance.

Landscaping ($21,346)
The District maintains the landscape areas along Falkirk Avenue, Harbor Boulevard, Mandalay Beach Road, Costa
del Oro, and the bikeway/greenbelt along the southerly
property line. Based on an agreement between the
residential developers and the Mandalay Beach Resort
Hotel executed in February 1984 - $21,346 allocated cost:
• 75.4% to The Colony residential development of $16,095 • 24.6% to the Embassy Suite hotel of $5,251

DISCUSSION
6 80
Beach Maintenance ($18,100)
• District bears 60% of the beach maintenance cost. Of that,

75.4% is paid by the Embassy Suites hotel and 24.6% is paid by the Colony.

DISCUSSION
7 Annual Costs = $30,092 District City
Percent Share of $30,092 x 60% x 40%
FY 2022-23 Shared Costs $18,055 $12,037
County Collection Fee $45 $0
Total Beach Maintenance Cost $18,100 $12,037

Embassy Suite’s Share (75.4%) $13,647 $0
Colony's Share (24.6%) $4,453 $0
81 • City will assess property owners in Fiscal Year 2024-25 to pay landscape maintenance costs and 60% of beach
maintenance costs for the Mandalay Beach Maintenance
District.
• City’s portion of the beach maintenance, 40% equaling $12,037, will be included as a transfer out contribution to MAD 4 from the General Fund in Fiscal Year 2024-25

FINANCIAL IMPACT
8 82
83 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.3

DATE: May 14, 2024

TO: Finance & Governance Committee

FROM: Javier Chagoyen-Lazaro, Chief Financial Officer, (805) 200-5400, [email protected]

SUBJECT: Increase Appropriations in the FY2023-24 General Fund Operating Budget to Transfer Funds to the State Gas Tax Fund to Restore State Gas Tax Fund Balance. (5 minutes)

RECOMMENDATION

That the Finance and Governance Committee recommend that City Council approve the transfer of funds from the FY 2023-24 General Fund (101) Operating Budget to the State Gas Tax Fund (181) in the amount of $3,300,000, to restore a fund balance deficit of the State Gas Tax for prior year activity, as well as projected budgetary deficits in FY 2023-24 and FY 2024-25.

Please click the following link to view the required Measure M pre-recorded presentation video titled General Fund Transfer to State Gas Tax Fund: https://youtu.be/yQZGBFe0tOQ

BACKGROUND

The City of Oxnard receives an annual allocation of State Gas Taxes pursuant to Streets and Highways Code Section 2101. This allocation is spent on improvements to roadways as one of many funding sources available to the City, the primary funding source being the General Fund. Over the last few years, the State Gas Tax Fund within the City's budget has generated a deficit fund balance whereby expenditures have exceeded revenues. As of June 30, 2023, this deficit was calculated as $2,723,464. Staff projects that this deficit will grow by approximately $250,000 in each of FY 2023-24 and FY 2024-25, requiring an estimated $3,300,000 to balance the fund over this time period.

DISCUSSION

The State Gas Tax Fund is managed by the Public Works Department, who are reviewing the allocation of labor and other resources to the State Gas Tax Fund in order to ensure the fund remains balanced going forward.

This deficit was a result of three main factors that are explained in detail below:

1. Introduction of Road Maintenance and Rehabilitation Act (RMRA) The City began receiving RMRA funding in FY 2017-18. For the first two years, the revenue and expenditures were recorded in the State Gas Tax Fund, combining new RMRA funds with Gas Tax Highway Users Tax Account (HUTA) in a single fund. In FY 2019-20, as recommended by the League of California Cities, the City created a new fund specific to RMRA Gas Tax (20232(h)(2)) (Fund 185) for RMRA. This segregation was made to allow for better tracking and easier auditing by the State 84 Controller’s Office and the City’s independent financial auditor. These two funds combined have a positive fund balance, and are reported together in the City’s Annual Comprehensive Financial Report (ACFR). An accounting journal was recorded in FY 2019-20 to transfer RMRA related revenues out of Gas Tax Fund and into RMRA Fund. While revenues of $7.1M (Jan 2018 - Feb 2020) were transferred, as they could be easily identified, approximately $1.8M in expenditures were transferred via Council action for Public Works Road and Signal Maintenance Project 203009, as well as an additional $1.1M of expenditures leaving approximately $4.2M net expenditures. No further adjustments have been made to reclassify the expenditures that remained in the Gas Tax Fund, resulting in a large reason for the current deficit fund balance.

2. Refunding Debt with Economic Benefit, but Initial Higher Expenditure In FY 2019-20, the City's revenues and expenses included bond refunding transactions. Despite deriving benefits from lower interest payments and decreased financing costs over the bond term (estimated average annual cash flow savings of $0.4M over the 18-year term, maturity date 3/1/2037), a reduction of $1.8 million in the Fund balance occurred in FY 2019-20 due to this refinancing initiative (cash outflow in excess of inflow due to payoff of original debt issuance).

3. Reductions in Gas Tax receipts in comparison to net expenditures.

Allocations of State Gas Tax have been difficult to project over the last decade due to factors such as electric vehicle sales growth. Year-over-year expenditures remained higher in comparison to the revenue, contributing to the increase in the deficit for this fund. This is partly due to the assumption that Full Time Equivalents (FTEs) staff allocated to Fund 181 would support capital projects and labor charges be reimbursed from other funding sources supporting various projects. However, the project support recovery had been relatively low compared to labor costs. Additionally, while HUTA revenues remained relatively stable in recent years, the revenues did decrease approximately 16% comparing FY 2022-23 of $5.1M to FY 2013-14 of $6.1M and did not keep pace with the rising costs associated with FTEs and other operating expenses.

State Gas
Tax
($millions)
FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Revenue $4.5 $5.8 $7.8 $24.4 $5.2 $5.0 $5.6
Expense 6.1 7.0 7.0 26.4 5.3 5.7 5.7
Net $(1.6) $(1.2) $+0.8 $(2.0) $(0.1) $(0.7) $(0.1)

FY17-18 and FY18-19 include RMRA activity. Bond Refunded in FY19-20.

As stated earlier in the report, State Gas Taxes are one source of funding for street and right-of-way maintenance and repair, and provide a material benefit to the City, supplanting the amount of General Fund revenue that would otherwise be required to fund needed repairs and improvements. It was never the intent of the gas tax legislation to completely eliminate an agencies' General Fund from paying for pavement repairs as each agency has a Maintenance of Effort requirement that it has to meet and certify annually. Therefore, staff recommend this one-time transfer from the General Fund of $3.3 million to straighten out the accounting with ongoing adjustments to expenditures in future budgets as necessary to ensure the State Gas Tax Fund has no deficit as of June 30, 2025.

STRATEGIC PRIORITIES

85 This agenda item supports the Economic Development strategy. The purpose of the Economic Development strategy is to focus on the retention and expansion of Oxnard businesses by increasing the skills and employability of our local workforce, invite new business investments, and target site-based redevelopment opportunities.

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

Staff projected at mid-year that the FY 2023-24 General Fund Operating Budget will likely generate a surplus with revenues anticipated higher than budget and some expenditure savings projected. This item would appropriate $3,300,000 of Transfer Out expenditures from available reserves to the Non-Departmental department and an estimated Transfer In revenue within the State Gas Tax fund of $3,300,000. Any unused revenues within the State Gas Tax Fund as at June 30, 2024, will remain as a spendable fund balance within that fund, and anticipated to be consumed in FY 2024-25 given the proposed budget for FY 2024-25 includes an excess of expenditure over revenues.

Prepared by: Mark Sewell, Assistant Chief Financial Officer

ATTACHMENTS

1. Presentation

86 INCREASE TO APPROPRIATIONS AND THE

TRANSFER OF FUNDS FROM THE GENERAL

FUND TO THE STATE GAS TAX FUND TO

RESTORE THE STATE GAS TAX FUND

BALANCE
Finance and Governance Committee
May 14, 2024
Mark Sewell, Assistant Chief Financial Officer
87 RECOMMENDATION 2
That the Finance and Governance Committee recommend that City Council approve the transfer of funds from the FY 2023-24 General Fund (101) Operating Budget to the State Gas Tax Fund (181) in the amount of $3,300,000, to restore a fund balance deficit in the State Gas Tax Fund for prior year activity, as well as projected budgetary deficits in FY 2023-24 and FY 2024-25. 88 BACKGROUND 3
The City of Oxnard receives an annual allocation of State Gas Taxes pursuant to the Streets and Highways Code Section 2101.
State Gas Tax reported as separate Fund.
One of many funding sources for Streets and Right of way. State Gas Tax in deficit
• $2.8 m in deficit as at June 30, 2023.
• Deficit anticipated to grow to $3.3m by June 30, 2025. Recommend Transfer of $3.3m from General Fund in FY 2023-

24. Future Budgets (from FY2025-26) to balance to anticipated Gas Tax Proceeds.
89 DISCUSSION – REASONS FOR DEFICIT 4
New Road Maintenance and Rehabilitation (RMRA) Fund
• Co-mingled until FY 2019-20
• More revenue transferred out to RMRA than expenses
• Left a deficit in State Gas Tax Fund.
Bond Refunding in FY 2019-20
• Impact on fund balance in FY 2019-20
• “Saving” $0.4M annually in debt service
• Other expenditures added to fund over time.
Differences regarding City Labor recharges
• Staff allocated to the State Gas Tax Fund
• Recharges for eligible projects lower than budgeted.
• Creates a short fall in revenues.
90 TRENDS OVER TIME 5
Legacy Fund
181 (State
Gas Tax)
FY
2016-17
FY
2017-18
FY
2018-19
FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
Revenue 4.5 5.8 7.8 24.4 5.2 5.0 5.6
Expense 6.1 7.0 7.0 26.4 5.3 5.7 5.7
Net Change (1.6) (1.2) 0.8 (2.0) (0.1) (0.7) (0.1)
Strip out
Refunding
FY
2016-17
FY
2017-18
FY
2018-19
FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
Revenue 4.5 5.8 7.8 4.6 5.2 5.0 5.6
Expense 6.1 7.0 7.0 4.6 5.3 5.7 5.7
Net Change (1.6) (1.2) 0.8 (0.0) (0.1) (0.7) (0.1)
Strip out
Refunding
and RMRA
FY
2016-17
FY
2017-18
FY
2018-19
FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
Revenue 4.5 4.6 4.0 4.6 5.2 5.0 5.6
Expense 6.1 7.0 6.0 4.6 5.3 5.7 5.7
Net Change (1.6) (2.4) (1.9) (0.0) (0.1) (0.7) (0.1)
Many Years of deficit balances have led to the $2.8m deficit balance as at June 30, 2023 Table. 1 - Reported
Table. 2 – Remove Refunding debt
Table. 3 - Underlying
91 DISCUSSION 6
State Gas Taxes used to pay for streets and right of
way projects
Reduces the need for General Fund dollars
Transferring now resolves a negative fund balance for FY 2023-24.
Provides sufficient fund balance until June 30, 2025. Staff to review expenditures and revenues for balanced budgets for FY2025-26 and beyond.
92 RECOMMENDATION 7
That the Finance and Governance Committee recommend that City Council approve the transfer of funds from the FY 2023-24 General Fund (101) Operating Budget to the State Gas Tax Fund (181) in the amount of $3,300,000, to restore a fund balance deficit in the State Gas Tax Fund for prior year activity, as well as projected budgetary deficits in FY 2023-24 and FY 2024-25. 93 Thank You
94 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.4

DATE: May 14, 2024

TO: Finance & Governance Committee

FROM: Javier Chagoyen-Lazaro, Chief Financial Officer, (805) 200-5400, [email protected]

SUBJECT: FY 2024-25 Proposed Budget. (10 minutes)

RECOMMENDATION

That the Finance and Governance Committee recommend that City Council and Housing Authority Board conduct a public hearing on the Fiscal Year (FY) 2024-25 proposed budget on June 4, 2024, for the City of Oxnard and Oxnard Housing Authority and provide staff direction regarding any adjustments to the proposed budget, in preparation for final budget adoption on June 18, 2024.

Please click the following link to view the required Measure M pre-recorded presentation video titled Fiscal Year 2024-2025 Budget Preview: https://youtu.be/XCXCnjxX62k

Please click the following link to view the required Measure M pre-recorded presentation video titled Additional Information on Fiscal Year 2024-25 Proposed Annual Budget: https://youtu.be/HD51D-WY500

BACKGROUND

In addition to the Measure M video, the city will release a budget preview podcast the week of May 13, 2024, for public viewing (www.oxnard.gov/fiscal-year-2024-2025-budget). The proposed budget as provided in the presentation outlines information on where the City of Oxnard prioritizes services and infrastructure to its residents.

This agenda report covers the projected revenues, expenditures and available fund balances for the City's six major funds, including the General Fund, Measure O (Half-Cent Sales Tax) Fund, Water Fund, Wastewater Fund, Golf Fund and Environmental Resources (solid waste) Fund. The Citywide proposed budget is approximately $760.5 million, which includes the General Fund group: landscape maintenance and community facilities district funds, special revenue funds, assessment district funds, enterprise funds, internal service funds and Housing Authority funds. The total budget appropriation amount will include transfers to capital projects amounting to $200.9 million.

The figures presented represent the City of Oxnard funds (excluding the Housing Authority, which is scheduled for Council Committee on May 28, 2024 and City Council on June 18, 2024) and are preliminary and may be revised between the May 14, 2024, Finance and Governance Committee and the June 4, 2024, City Council/Housing Authority Board public hearing. Significant changes are not anticipated; however, adjustments may be made to reflect the most current available information, especially since the Capital Improvement Plan, Housing Authority Budget, Landscape Maintenance and Community Facility District budget (Special Districts), and Community Facility District budgets are being developed and considered during 95 the same time periods as the City Budget.

New Budgeting Software

The Proposed FY 2024-25 Operating and Capital Budgets were prepared using new software for the first time.

This software has helped to provide additional efficiency and real-time information throughout the process of building and refining the budget. The City has many funds and subfunds, and the online budget tool provides a lot of additional detail regarding the funds described in detail in this report as well as those other funds. Staff recommends that interested stakeholders review the budget document for a full and complete picture of all City funds.

Capital Improvement Projects (CIP)

Public Works staff presented the CIP to the Public Works and Transportation Committee on April 23, 2024.

The Committee voted to defer making recommendations regarding the prioritization of General Fund and Measure O CIP projects to the full City Council. The CIP plan in the proposed budget includes $11.3 million in new capital projects funded by the General Fund and $14.0 million funded by Measure O. These projects are listed in the Capital Improvement Projects section of the digital online budget document.

The City Council will receive the Recommended Five-Year CIP plan report and be asked to provide recommendations for funding at its May 21, 2024, regular meeting.

Special Districts

The budget and assessment process for Special Districts is unique and requires additional steps from many of the other City operating budgets. The City Council reviews and approves the FY 2024-25 operating budget for each of the special financing districts through the annual assessment process. As such, the overall City's FY 2024-25 proposed operating budget includes proposed budget numbers for special financing districts, but are not final until such time the City Council has gone through the required assessment process. This year, Public Works staff anticipates the annual assessment process to take place at the City Council meetings on June 4, 2024, June 18, 2024, and June 27, 2024 (if needed). Once these annual assessment procedures are concluded, the approved special districts' operating budgets will be included into the overall City operating budget for FY 2024-25. Numbers included on the budget website for Special Districts should not be regarded as final at this time.

DISCUSSION

Over the last couple of years, the City has been on a path to restoring services by maintaining adequate public safety, restoring proper paving street cycles, improving cybersecurity, and maintaining financial stability. For the FY 2024-25 proposed budget, as was the case with the FY 2023-24 adopted budget, staff continue to acknowledge challenges including supply chain disruptions, inflation, labor shortages and the Mr.Starr bonding litigation. These challenges have forced the City to slow the pace in terms of restoring programs and investing in infrastructure and enhancing the quality of life. It should be noted that the City has benefited from increases in a number of general tax categories, most notably Sales Tax as a result of the Amazon Fulfillment Center operating within the City limits over the last few years. Increases in the federal interest rate has also had a short-term positive impact on interest income earned on the City’s cash and investment balances too. These positive revenues are not likely to continue but have contributed to a record surplus within the General Fund projected by June 30, 2024. Because this is likely not an ongoing revenue increase, staff continues to recommend limited additions of ongoing programs and one-time projects in the budget, which are described in the following major fund areas.

In developing the proposed budget for FY 2024-25, careful consideration was given to maintaining and 96 improving the financial position of the City. Oxnard's General Fund has a current Issuer Credit Rating (ICR) from Standard and Poor’s. Oxnard's General Fund is currently rated A+, which is slightly lower than neighboring communities such as the cities of Camarillo, Thousand Oaks, and Ventura. The City is on a good path toward improving this rating one notch upward to AA. Credit ratings are important as they affect the price paid to finance infrastructure and reflect financial management practices and resiliency in maintaining city services. Staff is confident that when the City is able to re-access bond markets, its current financial position will be looked upon favorably by external credit rating agencies and may be sufficient to warrant an upgrade.

The following is information about the FY 2024-25 proposed budget for each of the major funds. The Environmental Resources fund includes the recently approved rate structure generating much needed additional revenues, the Water fund reflects the second year of the multiyear water rates adopted by City Council, while Wastewater and Golf continue to budget for the expenditures necessary to maintain infrastructure and deliver services similar to last year’s budget. Capital programs are proposed with supply chain issues, labor shortages and revenue availability taken into consideration.

General Fund (101)

The City has made significant progress towards fiscal sustainability since facing a structural budget deficit of $9.2M in 2019. Today the City anticipates a budget surplus of approximately $35M by the end of fiscal year 2023-2024. While the surplus is an important milestone, we should consider this as one-time funding that is attributed to the new sales tax allocation from the single Amazon Fulfillment Center, one-time revenue from the American Rescue Plan Act, and slightly higher interest earnings. This surplus provides the opportunity to reinforce the Oxnard City Council’s priority of securing long-term financial stability by using the bulk of the funds to pay down long-term debt. While the community may not see or experience the benefits of this choice today, it is the right action to keep our City on the path of adhering to sound financial principles.

Revenues

General Fund revenues are projected at $235.7 million, $11.8 million (5.3%) greater than the prior year Adopted Budget. The projected change is primarily due to a $9.4 million increase in general taxes, with non-tax revenue also projected $2.4 million (8.4%) higher than prior year Adopted Budget. The 1% Bradley Burns sales tax (the City's share of the County pool) has been a strong contributor to the General Fund over the last couple of years and is projected to grow another $4.4 million (8.6%) in Fiscal Year 2024-25 compared to prior year adopted budget. The 1.5% Measure E local sales and use tax has had more modest growth at $0.1 million (0.2%) reflecting the slower trend within the City. Many California cities are seeing flat or declining sales tax forecasts in part due to the increase in interest rates at the federal level affecting sectors such as auto sales and other larger discretionary categories.

Property values have again increased following a fairly level year in 2023; the median home price in Oxnard increased 7.8% to $741,282 in April 2024 compared to April 2023. Since January 2020, the median home price in Oxnard is up 28.4% or $164,179. Continuing inflation allows for the maximum allowable increase in assessed value under Proposition 13. It is fair to say that higher federal interest rates, and thus mortgage rates, has had some impact on the housing market. However, the City’s revenue projection for its portion of levied property tax, including real property transfer tax for FY 2024-25, is projected to grow by $3.3 million (4.7%) to $72.8 million.

Transient occupancy (hotel) tax revenue is projected to increase again in FY2024-25 to $5.8 million, a rise of $350,000 or 6.4% compared to FY 2023-24 Adopted Budget. The budget does not include any new hotels expected to come online in FY 2024-25.

Finally, non-tax revenues are projected to grow by $2.4 million (8.3%) higher compared to last fiscal year, primarily a result of higher federal interest rates and the ripple effect to the City’s investment portfolio. 97 Expenditures

Total General Fund expenditures are projected at $255.7 million, of which $20.0 million is proposed to represent the investment of a portion of the City’s one-time surplus as contributions towards the City’s long term debt related to pensions. The remaining $235.7 million – in line with FY 2024-25 proposed revenues, is the proposed budget to support ongoing services to Oxnard residents. The FY 2024-25 Proposed Budget of $235.7 million represents a $10.8 million (4.8%) increase compared to FY 2023-24 Adopted Budget. The increase in expenditures mirrors the increase in revenues ensuring a prudent growth that can be funded with ongoing revenues.

The FY 2024-25 Proposed Budget includes $3.1 million in ongoing expenditures in relation to employee pay and benefit increases approved by Council and anticipated changes for bargaining groups with no current agreement beyond FY 2023-24. The Proposed Budget includes $4.3 million additional funding for the City’s Internal Service Funds (ISF) – primarily Information Technology (IT) as the department continues to deliver much needed infrastructure, software and cyber security enhancements. The Proposed Budget also includes a $1.5 million additional contribution to the Workers’ Compensation Insurance Fund, helping to reduce some of the deficit in that fund. There are ten new General Fund positions, as well as various reclassifications, resulting in a net cost of $0.9 million. In addition, there are four reductions in Police sworn positions to fund external contracts for no dollar impact.

Furthermore, Public Safety budgets are increasing by $3.8 million of new funding with the Oxnard Police Department increasing by $1.1 million for items including overtime ($0.5 million), patrol vehicle leases ($0.3 million), Ventura County Animal Shelter cost increase ($0.1 million), and body worn cameras and utilities adjustments due to inflation ($0.2 million). The Fire Department proposal includes an increase of $2.7 million in ongoing funding, including overtime increases for mandated station coverage ($1.9 million), Fire vehicle leases ($0.4 million), transfer of three grant-funded firefighters to the General Fund ($0.3 million), and smaller items totaling $0.1 million.

Public Works increases in proposed funding total $1.5 million include utilities adjustments due to inflation (budgets have not increased for a number of years) of $0.9 million covering electricity, fuel, gas, ER, water and wastewater costs for operating and maintaining the City’s parks and infrastructure. Also included is the purchase of much needed machinery including a bucket truck and park vehicle leases for a total of $0.5 million.

Inflationary adjustments for other contracts and services add another $0.1 million.

Community and Cultural Services proposes an additional $0.5 million in funding to provide adequate funding for temporary labor of $0.3 million. (Previous budgets were calculated prior to the $15.50 minimum wage being enacted.) The Proposed Budget also enhances library security services, adds training and development of staff, and includes additional funding needed to accommodate increased costs associated with the Junior High Graduation event for a total of $0.2 million.

Finally, the City Manager's Office has proposed $0.5 million necessary to initiate a plan to come into compliance with Native American Graves Protection and Repatriation Act, related to the Carnegie Art Museum Collection. The City Manager’s Office also includes $1.5 million as a non-departmental contingency for any unforeseen events within Fiscal Year 2024-25 given the level of uncertainty around the economy and political events occurring nationwide and around the world.

Continued Impact of Bond Litigation

The Fiscal Year 2023-24 Adopted Budget included $11.1 million to cash fund Capital Improvement Plan (CIP) projects that included $4.0 million in Streets and $3.0 million in ERP project funding that would otherwise have been paid with bond financing. Staff recommends this because the court decision in the City's favor is 98 currently under appeal. However, the City can only do this due to the one-time surplus, and it cannot continue to fund CIP with cash at this level for multiple years. Issuing debt service is a standard practice for cities across the nation to implement CIP programs, while maintaining reserves, and aligning the benefits provided to the community by major infrastructure projects with how to pay for the cost to execute those projects.

The General Fund's current debt service, including the Measure O loan payment for FY 2024-25, and excluding vehicle lease purchase loans, is budgeted at $5.9 million and represents approximately 2.6% of the General Fund proposed operating expenses. This is below the 10% limit established by the City’s Debt Management Policy.

Hiring Market Continues to be Challenging

Included in the proposed budget is $11.0 million of anticipated net personnel savings resulting from unfilled positions. The vacancy savings are based on recent trends experienced by the City. Vacancy rates are significant due to labor shortages that are being experienced throughout the country. The Human Resources Department continues to face significant hiring challenges with rising wages and increased competition due to low unemployment.

As of March 31, 2024 , there were 164 vacant of 1475.75 authorized FTE positions throughout the City with a vacancy rate of 11.18 percent of approved positions. Staff recommends incorporating a modest assumption of vacancies into the City’s annual General Fund budget. For FY 2024-25 an $11.0 million proposed vacancy savings represents about a 9% vacancy rate compared to the FY 2023-24 assumption of 9.25%.

Note, The General Fund made its last court ordered reimbursement of the Infrastructure Use Fees to the Utility Funds in FY 2023-24.

Fund Balance

The City’s Fiscal Year 2022-23 Annual Comprehensive Financial Report (ACFR), which was presented to the City Council at the March 19, 2024 meeting, contained information regarding the general fund balance. It was reported that the general fund had a fund balance at the end of FY 2022-23 above the Council reserve policy target of 13%.

Staff project revenues to exceed expenses by $12.0 million in FY 2023-24, which would result in a spendable fund balance by June 30, 2024 of $62.8 million, which is $35.0 million above the Council reserve policy of $27.8 million.

The FY 2024-25 Proposed Budget includes expenditures $20.0 million in excess of revenues, and a recommended acceleration to the Council policy reserve target of 16.6% as explained below, resulting in an anticipated spendable fund balance of $42.8 million, $5.5 million over the recommended Council reserve target of $37.3 million (16.6% of operating expenditures).

The surplus takes a number of months to calculate and will be confirmed following completion of the annual audit and FY 2023-24 ACFR by December 2024.

Given this record one-time surplus, the City Manager recommends one-time investments to continue to improve the City's long-term financial position. The recommendation includes the allocation of $9.5 million to meet the Council's ultimate goal of 16.6% of operating budget ($37.3 million) in reserve, four years ahead of schedule, the allocation of $20.0 million as a payment to long term pension debts, and leaving $5.5 million in abeyance to revisit at mid-year. Given the proposed budget for FY 2024-25 is a balanced one, this would mean if the City were to meet its budget for both revenue and expenditures, the predicted FY2024-25 ending surplus as at June 30, 2025, is $5.5 million (2.4%) in addition to the City’s reserve policy of 16.6 percent of the 99 operating budget.

The available fund balance would only include reserves that are “assigned” and “unrestricted” as defined by Government Accounting Standards Board Statement Number 54. Staff recommends amending the “Establishing Financial Management Policies” resolution to endeavor to maintain a minimum reserve of 16.6% of the adopted operating budget from Fiscal Year 2024-25 on, as attached to this staff report. This resolution includes additional recommended changes to improve operational efficiency, while maintaining administrative approval for specific carryover and budget appropriations. The rest of the resolution is identical to the one with the same title in FY 2023-24. Furthermore, Staff propose minor modifications to the resolution approving the City Operating and Capital Improvement Budget in similar manner to enable administrative approval for these same carryovers of budget. Both resolutions are “red-lined” to show the recommended changes from prior year adopted resolutions with regard to these changes and are included within the attachments to this report.

For additional detail, refer to the General Fund tables in Attachment 3.

Measure O Fund (104)

Revenues

FY 2024-25 revenue from the Measure O half-cent sales (transactions and use) tax is proposed at $21.6 million, a $0.2 million (0.9%) increase over the FY 2023-24 budget. Similar to Measure E sales taxes mentioned in the General Fund narrative, local sales tax receipts have reflected a slow down across a number of categories. This is reflected in a $0.2 million reduction (0.9%) in FY 2024-25 to $19.3 million proposed. Interest income has benefited from rate rises and is projected at $0.5 million, an increase of $0.4 million (390%) compared to the FY 2023-24 Adopted Budget.

It is noted that FY 2024-25 is the last year of repayments of a loan between the General Fund and Measure O, reflecting $1.9 million in proceeds for the Measure O fund.

Expenditures

Long term planning must incorporate that the Measure O half-cent sales tax will terminate on March 31, 2029.

The Measure O Committee recommended on April 28, 2022, and Council adopted on June 7, 2022, a Measure O Weaning Schedule to ensure we are slowly and methodically moving Measure O funded ongoing programs to an alternative source such as the General Fund. The focus of any new additions to the Measure O Fund is for one-time projects. The Committee met most recently on April 25, 2024, to review updates to the weaning schedule. In FY 2024-25, as previously adopted by Council, staff is weaning $1.1 million from Measure O to the General Fund. Of this, $1.0 million relates to the Enhanced Computer Aided Dispatch (the 911 system), Records Management and Mobile Data Computers Systems, with the remaining $0.1 million reflecting the Integrated Library System and Library Wifi projects.

The FY 2024-25 Measure O Proposed Budget includes a $14.0 million transfer to the Capital Outlay Fund of the General Fund to cash fund project execution while the bond litigation is ongoing. The $14.0 million is identified in the Capital Improvement Project page in the City’s Proposed Budget. The list includes funding for Neighborhood Street Resurfacing $5.0 million, Citywide Alleyways $4.0 million, Mandalay Sea Walls $2.5 million, Traffic Signal Modification $1.0 million, Public Restroom Improvements $1.0 million and other projects totaling $0.6 million. The City is also adding new one-time operating funding totaling $0.9 million in equipment, rent stabilization and election funding.

Fund Balance

Measure O Fund surplus was $17.5 million as at June 30, 2023. A surplus of $15.7 million is forecast as at June 100
30, 2024. The Proposed FY 2024-25 budget revenues of $21.6 million and expenditures of $22.6 million result in a use of fund balance of $1.0 million, leading to a surplus of $14.7 million at the end of FY 2024-25. The projected ending fund balance as of June 30, 2024, along with the Weaning Schedule, is adequate to support paying down debt in future years and supporting one-time projects until Measure O sunsets in FY 2028-29.

For additional detail, refer to the Measure O tables in attached Attachment 3.

Enterprise Funds

The Water, Wastewater, Environmental Resources and Golf Funds section of this staff report excludes the transfer in and transfer out transactions necessary to move money between funds within the same division. All numbers quoted for total revenue and expenses net these transactions out. The Budget Forecast section of the digital version of our annual budget publication shows a five year forecast for each enterprise fund.

Water Funds (601-609)

Revenues

FY 2024-25 Water Fund revenues are projected to be $71.4 million, and increase by $1.7 million, (2.5%) compared to FY 2023-24 Adopted Budget at $69.9 million. Water Sales, of which approximately 93% result from utility fees paid by users, are projected to total $65.9 million a $0.7 million, (1.3%) reduction when compared to the FY 2023-24 Adopted Budget. FY 2024-25 marks the second year of the recently adopted rate study and so includes an assumption of an average +9.5% increase in water rates. The amount of water to be consumed by water fund customers is proposed to be lower in FY 2024-25 than what was assumed in FY 2023- 24 based upon recent experience since the FY 2023-24 budget was approved.

Other revenues are proposed to grow by a total of $2.2 million (67.1%). Interest income is the largest single variance included in the FY 2024-25 proposed budget at $1.8 million, an increase of $1.4 million (428.1%) compared to the FY 2023-24 Adopted Budget.

Note, the Water Fund received its last court ordered reimbursement of Infrastructure Use Fees from the General Fund in FY 2023-24.

Expenditures

FY 2024-25 Water Fund expenditures are proposed at $82.0 million, which is $12.1 million (17.4%) higher than the Adopted Budget for FY 2023-24. $10.4 million of this increase is new funding for CIP projects. These projects are listed in the Capital Improvement Projects page in the budget document and include Recycled Water Aquifer Storage and Recovery for $4.5 million, Water Production SCADA Improvements at $2.0 million, and Groundwater Desalter Improvements at $1.0 million. Other projects account for the remaining $2.9 million.

Salaries and benefits are projected at $0.7 million higher than last year. Services and supplies are increasing by $0.7 million. Transfers out for Internal Service Funds and other supplies account for the other $0.3 million in increases.

Fund Balance

The combined Water Funds had a total spendable fund balance of $25.5 million, which includes a surplus of $8.7 million above the reserve target amount of $16.8 million as at June 30, 2023. A surplus of $3.0 million is projected for FY 2023-24, meaning a surplus of $11.7 million at June 30, 2024, is forecast. The Proposed FY 2024-25 budget revenues of $71.4 million and expenditures of $82.0 million result in a use of surplus and 101
reserve target fund balance of $10.6 million in the year. The predicted FY2024-25 ending surplus at June 30, 2025, is $0.5 million. This results in a projected ending fund balance surplus of $0.5 million - just above the City Council policy reserve amount at $17.9 million (25.7%).

For additional detail, refer to the Water Fund tables in Attachment 3.

Wastewater Funds (611-617 & 628)

Revenues

FY 2024-25 Wastewater Fund revenues are projected to total $95.6 million. $48.0 million of this represents proceeds from debt to finance large CIP projects. Removing this shows an underlying operating revenue reduction of $2.8 million (5.6%) compared to the FY 2023-24 Adopted Budget.

95% of Wastewater Fund revenue is from utility fees paid by users, and this is projected to decline by $1.5 million (3.1%) to $45.1 million due to lower volumes assumed. The main reason for the overall reduction is that the Wastewater funds no longer receive any Infrastructure Use Fee reimbursement as the final payment was received in FY 2023-24. This reduces revenue by $2.8 million. Interest Income is proposed to be $1.5 million (271.5%) higher in FY 2024-25 than in FY 2023-24 due to the impact of federal interest rate increases on the City’s cash and investment portfolio.

Expenditures

FY 2024-25 Wastewater Fund expenditures are proposed at $98.1 million. $48.0 million of this is the expense in capital projects of the proceeds from debt explained in the revenue section. The $48.0 million will fund three CIP projects: Oxnard Wastewater Treatment Plant (OWTP) Primary Clarifiers and Activated Sludge Improvements ($21.0 million), OWTP Reliability Improvements ($22.0 million), and Wastewater Collection - Gravity Main Improvements ($5.0 million). Other CIP projects total $8.3 million and can be viewed on the Capital Improvement Projects page of the budget document.

Salaries and benefits are proposed at $13.1 million, an increase of $0.2 million (4.0%) compared to the FY 2023-24 Adopted Budget. Other operating expenses are budgeted at $28.6 million, a $0.3 million (0.9%) reduction from last year primarily due to a reduction in professional services of $1.0 million (21.8%), offsetting other smaller increases for inflation.

Fund Balance

The combined Wastewater Funds had a total spendable fund balance of $61.5 million, which includes a surplus of $51.4 million above the reserve target amount of $10.1 million as at June 30, 2023. A deficit of $3.0 million is projected in FY 2023-24, meaning a surplus of $48.4 million is projected as at June 30, 2024. The Proposed FY 2024-25 budget revenues of $95.6 million and expenditures of $98.1 million result in a use of fund balance of $2.5 million in the year. The predicted FY 2024-25 ending surplus as at June 30, 2025, is $46.1 million.

Added to the reserve amount of $9.9 million (25.0%), the total is $56.0 million (134.3%). The Fund Balance is anticipated to be consumed over the next few years with significant capital expenditures. The Budget Forecast section of the budget shows a five year forecast for each enterprise fund.

For additional detail, refer to the Wastewater Fund tables in attached Additional Information on FY 2024-25 Proposed Annual Budget.

Environmental Resources Funds (631-638)

Revenues
102

FY 2024-25 Environmental Resources Fund revenues are projected to total $59.2 million, an increase of $1.0 million (20%) compared to FY 2023-24 Adopted Budget. Nearly all of the revenue is paid by users through utility fees and an increase of $12.3 million (27%) is included for user rates and fees in line with recent council approved rate increases. Interest income is proposed at $0.5 million, an increase of $0.4 million (253%).

Reimbursement of prior Infrastructure Use Fees from the General Fund ceased in FY 2023-24, resulting in a reduction of $2.6 million in FY 2024-25.

Expenditures

FY 2024-25 Environmental Resources Fund expenditures are proposed at $64.1 million, a $5.9 million (10%) increase compared to the FY 2023-24 Adopted Budget. Salaries and benefits are proposed to increase by $2.4 million (10%) with an increase in the amount of overtime anticipated to provide services in FY 2024-25. The division is also including $2.3 million more to purchase needed equipment and vehicles than FY 2023-24 for a total of $2.8 million. Other costs are proposed to increase in line with inflation.

Fund Balance

The combined Environmental Resources Funds had a total fund spendable balance of $21.1 million, which is $6.7 million above the Council policy reserve target amount of $14.3 million (25% of operating expenses) as at June 30, 2023. For FY 2023-24, projected expenses are $7.0 million above projected revenues. This requires use of fund balance and will result in not meeting the reserve target by $0.3 million as at June 30, 2024. The Proposed FY 2024-25 budget revenues of $59.2 million and expenditures of $63.1 million results in a use of $3.9 million of fund balance in the year. The predicted FY 2024-25 ending fund balance will be $4.7 million below the 25% reserve policy, but will leave $10.2 million in total spendable fund balance which is equivalent to 17% of operating expenses.

Going below, and staying below, the 25% reserve policy is consistent with the Council approved Environmental Resources Cost of Service Study. For additional detail, refer to the Environmental Resources Fund tables in the Attachment.

Golf Funds

Revenues

FY 2024-25 Golf Fund revenues are projected to total $6.6 million, an increase of $0.2 million (2.5%) compared to FY 2023-24 Adopted Budget. Golf fees are proposed at the same level as the prior budget, with interest income proposed to grow $0.2 million in FY 2024-25.

Expenditures

FY 2024-25 Golf Fund expenditures are proposed at $7.3 million, an increase of $1.5 million (25.1%) compared to FY 2023-24 Adopted Budget. Expenditures are proposed at the same level as FY 2023-24 with the exception of Transfers for Capital and Internal Service Funds of $1.4 million and $0.1 million respectively.

Included in the CIP plan is $1.2 million for River Ridge clubhouse roof replacement and exterior improvements and $0.2 million for Certified Unified Program Agency (CUPA) improvements to enhance and ensure hazardous material safety at the golf course.

Fund Balance

The combined Golf Funds surplus had a total spendable fund balance of $5.1 million, which includes a surplus of $3.7 million at June 30, 2023. An additional surplus of $0.6 million is projected for FY 2023-24, meaning a 103
total surplus of $4.3 million as at June 30, 2024, is forecast. The Proposed FY 2024-25 budget revenues of $6.6 million and expenditures of $7.2 million result in a use of surplus fund balance of $0.7 million in the year. The predicted FY 2024-25 ending surplus, as at June 30, 2025 is $3.7 million, adding the reserve amount of $1.4 million (25.0%) for a total of $5.1 million (86.9%).

For additional detail, refer to the Golf Fund tables in Attachment 3.

STRATEGIC PRIORITIES

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

The financial impact of each recommended action is described in the applicable discussion section.

The preliminary proposed digital version of our annual budget publication is scheduled to be published on the City's website the week of May 13 2024, at (https://www.oxnard.gov/fiscal-year-2024-2025-budget)

Prepared by: Mark Sewell, Assistant Chief Financial Officer

ATTACHMENTS

1. Resolution Establishing Financial Management Policies FY 24-25_redline

2. Resolution Approving the City Operating and Capital Budgets - redline

3. FY 2024-25 Proposed Budget Presentation - Additional Information

4. FY 2024-25 Proposed Budget Preview Presentation

104

CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD

ESTABLISHING FINANCIAL MANAGEMENT POLICIES
WHEREAS, the City Council wishes to establish financial management policies to be followed in the development and implementation of the City budget.

NOW, THEREFORE, the City Council of the City of Oxnard hereby resolves that the following policies will guide the development and implementation of the City’s Operating and Capital Improvement Project Budgets.

I. BUDGET POLICIES
A. Budget Guidelines
1) The City Manager will prepare a multi-year revenue and expenditure forecast, which will provide parameters for the budget development process. 2) The budget process will include the development of a balanced two-year budget when financial circumstances are appropriate for a two-year budget. Any two-year budget will include an approach that City Council approves appropriations for a one-year operating budget and capital improvement plan.
3) The budget will be organized in a department/service level format. 4) The budget development process will include the identification and evaluation of policy options for service levels. However, the adopted budget will include only those policy options approved by the City Council.

B. Appropriation Priorities

1. In evaluating the level of appropriations for department enhancements, or expense reductions, staff will apply the following principles in the priority order given:
a. Essential services that provide for the health, safety and welfare of residents. b. Contractual obligations to bondholders and other debts. c. Adequate ongoing maintenance of facilities and equipment. d. All other services.

2. When reductions in personnel are necessary to reduce expenditures, to the greatest extent possible this will be accomplished through normal attrition. 105
Resolution No.

Page 2 ends

C. Supplemental Services
The City Council may budget for certain services that may also be provided by other governmental agencies or the private sector. The provision of these services will be based on a demonstrated community need or benefit over time. When appropriate, these services will be supported in whole or in part by user fees.

D. Appropriation Changes

1. Changes to the City Council adopted budget for the fiscal year shall occur as follows:

2. By City Council action for all changes that either increase or decrease fund or subfund appropriations adopted in the annual budget appropriation resolution.

3. By the City Manager for appropriation transfers between departments within a fund or subfund.

4. By the City Manager for deductive grant revisions where appropriated grant funding becomes unavailable.

4.5. By the Department Director for appropriation transfers between programs within the same fund or subfund, as long as funding is available in the department as a whole.

II. CAPITAL IMPROVEMENT PROGRAM POLICIES
A. Capital Planning Period

1. Staff will budget all capital improvements in accordance with an adopted Capital Improvement Program (CIP).

2. The City’s long-range capital planning period will be a minimum of five years, or longer where appropriate.

3. The Five-Year Capital Improvement Program will be reviewed and approved by City Council on a two-year cycle, or more frequently, as needed based on economic and funding outlooks. Individual projects will be postponed or canceled if their funding fails to materialize. Conversely, individual projects may be moved up on the timeline if their funding materializes sooner than anticipated. City Council will review and approve appropriations at least annually, and also as necessary during the year if funding and timelines change. Appropriation changes will be in accordance with Section I.D.

4. The CIP will be in conformance with and support the City’s major planning documents: the most current General Plan, project specific plans, and citywide master plans for related infrastructure improvements.
106
Resolution No.

Page 3 ends

5. Public Works staff will prepare strategic plans and master plans for major infrastructure and utility improvements with a 10- or 20-year planning horizon when appropriate.

6. For CIP projects paid for by the General Fund, the Finance Department will transfer Council-approved appropriations from the General Fund to the capital project fund from which the capital expenditures are to be made. Most often, this will be Fund 301 Capital Outlay. Such transfers will be made only as actual expenditures occur, not on a fixed regular schedule. Any transfer authorized but not yet made at the end of the fiscal year will be carried-forward into the next fiscal year(s) until project has been completed.

7. To the extent funds are available, any unused appropriations at the end of the fiscal year in active CIP projects will be carried-forward into the next fiscal year(s) until the project has been completed.

8. During the life of a CIP project, any funding source that is replaced by an alternate funding source may be unappropriated from the project upon approval of the City Manager.

8.9.Any unused funds after the completion of the project, will be returned to the funding source. This should happen within 90-days of notification to the Finance department.

B. Capital Project Priorities

1. Public Works staff will evaluate and prioritize each proposed capital project against the following criteria:
a. Health and Safety: Projects needed to maintain or improve human health or safety.
b. Asset Preservation: Projects needed to maintain or protect the City’s existing assets.
c. New or Expanded Services: Projects that create something new, like a new park, or increase the capacity of existing facilities, like larger water or sewer lines.

C. Capital Project Management by the Public Works Department

1. Capital projects will be managed in a phased approach as needed. The project phases will become a framework for appropriate decision points and reporting. The phasing will consist of:
a. Conceptual/schematic proposal
b. Preliminary design and cost estimate
c. Engineering and final design
107
Resolution No.

Page 4 ends

d. Bid administration
e. Acquisition/construction
f. Project closeout

2. Each capital improvement project will have a project manager who will prepare the project proposal, ensure that required phases are completed on schedule, authorize payment of expenditures as required by the City’s Purchasing Manual, ensure that all regulations and laws are observed, periodically report project status, track project expenditures and perform the project closeout according to current procedures.

III. REVENUE POLICIES
A. Maintenance of Revenues

1. The City Council will attempt to maintain a diversified and stable revenue base to shelter the City from short term fluctuations in any one revenue source.

2. The City Council will promote an increase in the City’s revenue base through economic development programs that maintain and enhance a vigorous local economy.

3. The City Council will seek to supplement the City’s revenue base through the identification of and application for State and federal grant funds, which will support identified needs.

B. User Fees and Rates

1. The City Council will attempt to recover the costs of services providing a private benefit to users through the imposition of user fees and charges.

2. The City Council will establish all user fees and charges at a level related to the direct and indirect costs of providing services and the degree of public versus private benefit.

3. Staff will recalculate periodically the full costs of activities supported by user fees and rates to identify the impact of inflation and other cost increases.

4. The City Council will set fees and user rates for each enterprise fund (water, wastewater, environmental resources) at a level that fully supports the total direct and indirect costs of the activity.

C. Revenue Collection

1. Staff will take all cost effective actions available to collect revenues. 108
Resolution No.

Page 5 ends

2. Staff will grant user fee waivers and debt forgiveness only as authorized by City Council approved policies.

3. Staff will not grant development and permit fee waivers.

D. Interest Earnings

1. Staff will assign interest earnings to the appropriate funds, where required, based on invested cash balances.

2. Investment policies will be reviewed annually by the Finance and Governance Committee.

IV. FUND BALANCE POLICY
This Fund Balance Policy establishes the procedures for reporting unrestricted fund balance in the General Fund financial statements. Certain commitments and assignments of fund balance will help ensure that there will be adequate financial resources to protect the City against unforeseen circumstances, economic downturns and events such as revenue shortfalls and unanticipated expenditures. The policy also authorizes and directs the Chief Financial Officer to prepare financial reports which categorize fund balance in accordance with Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.

A. Procedures
Fund balance is essentially the difference between the assets and liabilities reported in a governmental fund. There are five separate components of fund balance, each of which identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts can be spent.
• Non-spendable
• Restricted
• Committed
• Assigned
• Unassigned
The first two components listed above are not addressed in this policy due to the nature of their restrictions. An example of non-spendable fund balance is a prepaid item. Restricted fund balance is either imposed by law or constrained by grantors, contributors, or laws or regulations of other governments. This policy is focused on financial reporting of unrestricted fund balance, or the last three components listed above. These three components are further defined below.

B. Committed Fund Balance
109
Resolution No.

Page 6 ends

The City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as ordinance or resolution. These committed amounts cannot be used for any other purposes unless the City Council removes or changes the specified use by taking the same type of action it employed to commit those amounts. City Council action to commit fund balance should occur within the fiscal reporting period; however the amount can be determined in the subsequent period.

C. Assigned Fund Balance

1. Amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance.

2. This policy hereby designates the authority to assign amounts to be used for specific purposes to the Chief Financial Officer for the purpose of reporting these amounts in the annual financial statements.

D. Unassigned Fund Balance
These are residual positive net resources of the general fund in excess of what can be properly classified in one of the other four categories.

V. RESERVE POLICIES
A. Adequate reserves will be maintained for all known liabilities, including payable employee leave balances, workers’ compensation, and self-insured retention limits.

B. The City Council will endeavor to maintain an operating reserve equal to a minimum 1316.6% of the General Fund adopted budget for operating budgetexpenses, increasing to

16.6% in annual one percent increments beginning in FY 2023-24. In FY 2027-28, the Unrestricted Fund Balance should be at a minimum of 16.6%, which is equal to approximately two months of operating expenses. The operating reserve shall be available to: cover cash flow requirements; meet unanticipated revenue shortfalls; take advantage of unexpected opportunities; invest in projects with a rapid payback; ensure against physical or natural disasters; and provide interest earnings.

C. The City Council will endeavor to maintain operating reserves in the utility funds equal to 25 percent (25%) of the adopted budget for operating budgets expenses.

VI. INTERFUND BORROWING POLICIES
A. Interfund borrowing requires City Council approval.

B. Such loans will carry a market rate of interest.
110
Resolution No.

Page 7 ends

C. Such loans may, at City Council’s discretion, include interest-only payments by the borrowing fund for the first year or two.

D. Once principal repayments begin, amortization schedules will be for level or decreasing annual debt service, not for increasing annual debt service.

E. The borrowing fund may prepay all or a portion of the principal and interest at any time, without penalty.

F. The lending fund may call all or part of the loan immediately at the lending fund’s discretion, also without penalty.

VII. DEBT POLICIES
A. Use of Debt

1. Any use of tax and revenue anticipation borrowing will be consistent with State and federal laws and regulations.

B. Conditions of Use

1. The City Council will use long term debt to finance a land purchase, major equipment acquisition, a capital project, or reserve only if a cost/benefit analysis establishes that the financial and community benefits of the financing exceed the costs.

2. Benefits can include, but are not limited to, the following:
a. Present value benefit: The current cost plus the financing cost is less than the future cost of the project or acquisition.
b. Maintenance value benefit: The financing cost is less than the maintenance cost of deferring the project or acquisition.
c. Equity benefit: Financing provides a method of spreading the cost of a project or acquisition back to the users of the project or acquisition over time. d. Community benefit: Debt financing of the project or acquisition enables the City Council to meet an immediate community need.

3. Debt financing will be used only when project revenues or other identified revenue sources are sufficient to service the term of the debt.

4. The City Council by resolution will periodically establish industry standard bond debt ratios to assess maximum debt carrying capacity and will apply these ratios to each proposed debt.
111
Resolution No.

Page 8 ends

5. When the City obtains debt financing on behalf of or benefiting a third party (as with assessment districts) such debt will be issued in conformance with existing City Council priorities and policies without contingent liability of the City and with all costs of issuance and administration fully reimbursed by the third party.

C. Methods

1. Staff will retain the following contract advisors for the issuance of debt:
a. Bond Counsel - To be selected by RFP periodically.
b. Disclosure Counsel – To be selected by RFP periodically. c. Special Counsel - To be selected by RFP periodically to protect the City’s interest in complex negotiations and document review.
d. Municipal Advisor - To be selected by RFP periodically to assist the City in assessing financing opportunities and options, selection of underwriters, preparation of all required financing documents, and other financial advisory assistance as required.
e. Underwriters - To be selected periodically by RFP for negotiated financings. For bond issues that are competitively bid, underwriter will be selected on the basis of lowest true interest cost (TIC).

2. The City Council’s preference is to issue fixed rate, long-term debt with level debt service, but variable rate debt or other debt service structure may be considered if an economic advantage is identified for a particular project.

3. Bond proceeds will be held by an independent bank acting as trustee or fiscal agent.

4. The City Council’s bond rating objective for the City for all debt issues is a Standard & Poor’s rating of AA. Credit enhancements will be used to achieve higher ratings when there is an economic benefit.

VIII. ACCOUNTING POLICIES
A. Accounting Standards

1. The City’s accounting systems and procedures will comply with Generally Accepted Accounting Principles (GAAP) and the Governmental Accounting Standards Board (GASB) to the extent necessary to achieve an unmodified audit opinion and adequate internal controls.
112
Resolution No.

Page 9 ends

2. The City has adopted the historical cost method of fixed asset reporting to comply with GASB. The capitalization policy is $5,000 or more for equipment, $20,000 for buildings and improvements other than buildings, and $100,000 for infrastructure.

3. Staff will prepare quarterly and annual financial reports to present a summary of financial performance and position for major operating funds.

4. Staff will provide full disclosure in the annual financial statements and bond representations.

B. Independent Auditor

1. The City will retain an independent certified auditing firm to annually conduct an audit of the financial records in accordance with all state and federal requirements.

2. The selection of the City’s audit firm will be by an RFP submitted to a limited number of qualified audit firms with recognized credentials in municipal auditing.

3. In order to promote continuity in the audit process, the engagement of the audit firm will be for a minimum period of three years. Such three-year engagement may be extended on an annual basis at the option of the City Manager.

IX. RISK MANAGEMENT POLICIES
A. The City will maintain a risk management program for public liability, workers’ compensation, and loss of property exposures. This program will emphasize the prevention and avoidance of risk, whenever possible, funding for losses which cannot be avoided, and transfer of risk to third parties whenever appropriate.

B. The risk management process will include the systematic and continuous identification of loss perils and exposures, the analysis of these perils and exposures in terms of frequency and severity probabilities, the application of sound risk control procedures and the financing of risk consistent with the City’s financial resources.

C. If the loss potential in dollars for a particular risk is substantial and cannot be absorbed within the City’s annual operating budget, the staff will develop and maintain a program of purchased insurance, funded self-insurance, or debt.

D. Staff will endeavor to promptly settle justified claims but will vigorously defend claims which are doubtful, frivolous, or unsupported.

E. Staff will maintain separate self-insurance funds to identify and segregate the financial resources necessary to cover insurance premiums and self-insured retentions.

1. Revenues into the insurance funds will be generated by charges to operating programs allocated to reflect loss experience.
113
Resolution No.

Page 10 ends

2. Resources will be established at the end of each year to fund liability for open claims, incurred but not reported claims, and a catastrophic loss reserve as periodically recommended by an independent actuarial consultant, or as authorized for GAAP.

3. The Confidence Interval for all risk management reserve funds will be maintained at a minimum of 50% confidence interval.

F. To assist in the overall administration of the risk management program, the City Council will utilize the following consultants:

1. Claims adjuster for workers’ compensation and public liability/property damage.

2. Claims auditor, actuarial consultant, and risk management program auditor.

3. Insurance broker of record.
114
Resolution No.

Page 11 ends

X. DEVELOPER DEPOSIT POLICIES
A. The City collects developer deposits often identified in a development agreement (DA) and/or ownership participation agreement (OPA), along with developer deposits and deposit based fees associated with Building and Planning permits. The developer deposits and deposit based fees are used by the City for costs associated with project review and conceptual planning, City staff time, and other third party services required for the project, including, but not limited to, contract planning, engineering, architectural, onsite posting, legal advertising, and attorney review. As charges pertaining to the project accrue, the Department shall keep records of actual staff time and costs of consultant and other third party service providers used.

B. To the extent the City receives deposits from developers as advanced payments to cover staff time and third-party expenses required to issue permits, and these deposits were not accounted for in the Adopted Budget, the Council authorizes the City Manager to administratively appropriate funds to the relevant tracking project and expenditure accounts within the Developer & Other Deposits Fund [Fund 541] up to the amount of the deposits received.

XI. CONTRIBUTION TRUST FUND
A. The contribution trust fund is used to receive and hold donations and other monies on the balance sheet until such time that they are used for their intended purposes or returned to the originators. An appropriation is required for the City to expend these funds on eligible items as determined by the donor or fee type. Items held in the fund include business license fees for development, private donations, Arctic Cold Fire donations, library fundraising monies, Multicultural Festival funds, witness fees, and donations for youth programs.

B. The Council authorizes the City Manager to administratively appropriate funds to the relevant tracking project and expenditure accounts within the Contribution Trust Fund [Fund 571] up to the amount of the donation / fee received.

PASSED AND ADOPTED on this 20th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:
115
Resolution No.

Page 12 ends

John C. Zaragoza, Mayor
ATTEST:

Rose Chaparro, City Clerk
APPROVED AS TO FORM:

Stephen M. Fischer, City Attorney
116

CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO. ______.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD APPROVING THE

CITY OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR THE FISCAL YEAR 2024-2025
WHEREAS, the City Manager submitted for the consideration of the City Council a proposed City Operating and Capital Budget for fiscal year 2024-2025; and WHEREAS, in accordance with City Code, Section 2-179, a public hearing on these budgets was duly scheduled, advertised and held, and there was an opportunity for all persons to be heard and for their suggestions or objections to be carefully considered.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OXNARD HEREBY RESOLVES AS FOLLOWS:

1. The City Council has reviewed the proposed Operating and Capital Improvement Budget and the funds included therein for the period of July 1, 2024 through June 30, 2025 and hereby finds that such budgets, as revised, are sound plans for the financing during fiscal year 2024- 2025 of required City operations, services, and capital improvements. Such budgets are hereby adopted as follows:

2. To the extent funds are available, any unused appropriations at the end of fiscal year 2023-2024 in active capital improvement projects and multi-year programs are hereby re-appropriated for continued use in fiscal year 2024-2025.

3. The Council authorizes the City Manager to transfer and make adjustment of interfund transfers at the close of fiscal year 2023-2024, to eliminate cash deficits in funds when necessary including:

Utility Enterprise Funds, Capital Growth Funds, Impact Fee Funds, Assessment District Funds, Grant Funds, Debt Service Funds, and all other funds that may need such adjustments.

4. Multi-year capital projects or programs funded by Measure O Half-Cent Sales Tax are included in the budget and are hereby re-appropriated to fiscal year 2024-25. In fiscal year 2014-15, the Measure O Fund provided a liquidity loan of $16,000,000 to the General Fund to assure General Fund solvency. The loan is repaid in annual installments of $1,875,688 over a period of ten years at 3% interest.

5. Any remaining balances in approved grant programs, and capital improvement, projects developer deposit and trust fund projects at the end of fiscal year 2023-2024, except for balances reallocated as part of the budget process, are hereby re-appropriated for continuing use in fiscal year 2024- 2025 and all estimated revenues from such approved grants and capital improvement, projects developer deposit and trust fund projects for fiscal year 2023-2024 that are not realized by year end are authorized to be continued.

6. To the extent funds are available, General Fund encumbrances whereby contracts remained active at the close of fiscal year 2023-2024 are carried forward and any corresponding remaining balance of special one-time authorized appropriations are also carried forward with the approval of the City Manager and Chief Financial Officer.
117
Resolution No.

P a g e 2

6.7. To the extent funds are available and requested by the operating department, any unused capital expenditure appropriation in the operating budget may be carried forward with the approval of the City Manager and Chief Financial Officer.

7.8. All General Fund revenues in excess of expenditures and encumbrances at the close of fiscal year 2023-2024, not otherwise provided for in City Council budget policies or re-appropriated above, are hereby appropriated to the General Fund Operating Reserve on June 30, 2024. Current projections, however, do not anticipate any such excess.

8.9. Staff is directed to correct any clerical errors in the proposed budget document.

9.10.Staff is directed to ensure that the final adopted budget documents containing the Operating Budget and the Capital Improvement Budget for fiscal year 2024-2025 shall contain all revisions made by the City Council prior to final budget adoption.

10.11. The City Manager or designee is authorized to approve any appropriation transfers between departments within a fund or subfund. Any department director is authorized to transfer appropriations between programs, within the same fund or subfund, as long as funding is available in the department as a whole (see Financial Policy-Section I.D 3. and 4.)

11.12.Adoption of this resolution provides Council the authority to expend any and all funds appropriated for purposes as determined in the budget.

PASSED AND ADOPTED on this 18th day of June, 2024, by the following vote:

AYES:

NOES:

ABSENT:

John C. Zaragoza, Mayor
ATTEST:

Rose Chaparro, City Clerk
APPROVED AS TO FORM:

Stephen M. Fischer, City Attorney
118
FY 2024-25 PROPOSED ANNUAL BUDGETADDITIONAL INFORMATIONFinance and Governance CommitteeMay 14, 2024Mark Sewell, Assistant Chief Financial Officer 119
RECOMMENDATION2That the Finance and Governance Committee recommend the City Council and Housing Authority Board conduct a public hearing on the Fiscal Year (FY) 2024-25 Proposed Budget on June 4, 2024, for the City of Oxnard and Oxnard Housing Authority and provide staff direction regarding any adjustments to the Proposed Budget, in preparation for final budget adoption on June 18, 2024. 120
Key Terms3•Adopted Budget•The Revenue and Expenditures approved by City Council at their budget adoption meeting in June for the following fiscal year starting July 1.•Revised Budget•The Adopted budget plus City Council approved amendments during the fiscal year and any administrative adjustments for the carryover of unspent budget from prior years.•Resolutions included with the Budget item include the details of what type of expenditures are eligible for carryover, and include unspent CIP project balances and Multi-year project unspent balances.•Proposed Budget•The Revenue and Expenditures recommended by the City Manager to City Council for budget adoption at their meeting in June for the following fiscal year starting July 1.•Spendable Fund Balance•The amount of money held in a fund that is available to be committed to a new expenditure. = Council Reserve + surplus or(deficit). 121
FY 2024-25 Proposed Budget – All Funds - REVENUES AND EXPENDITURES4 * ASSUMES NO VARIANCE IN FY 2023-24
FUND NAME $000'sFY 2024-25 PROPOSED REVFY 2024-25 PROPOSED EXPFY 2024-25 PROPOSED SURPLUS / (DEFICIT)SPENDABLE FUND BALANCE, JUNE 30, 2023 PROJECTED FY24 ADD TO / (USE OF) FUND BALANCESPENDABLE FUND BALANCE, JUNE 30, 2025GENERAL FUND235,748 255,748 (20,000)50,800 11,981 42,781 MEASURE O21,615 22,618 (1,003)17,496 0 16,493 WATER FUNDS70,854 81,483 (10,629)25,452 3,002 17,825 WASTEWATER FUNDS95,587 98,069 (2,483)61,505 (3,013)56,010 ENVR RES FUNDS59,179 63,060 (3,881)21,104 (6,982)10,241 GOLF FUNDS6,569 7,225 (656)5,124 635 5,104 SUBTOTAL489,553 528,204 (38,651)181,482 5,623 148,453 ALL OTHER FUNDS*229,621 232,264 2,643 79,211 0 81,854 CITYWIDE TOTAL719,174 760,468 (36,008)260,692 5,623 230,307 122
FY 2024-25 Proposed Budget – All Funds - EXPENDITURES5
Each CIP Project requires two appropriations for expenditure and one for revenue to enable the technical accounting between operating and capital funds.

FUND NAMEFY 2023-24ADOPTED BUDGET $000'sFY 2024-25 PROPOSEDBUDGET $000'sCHANGE $000's CHANGE %GENERAL FUND224,989 255,748 30,759 14%MEASURE O24,341 22,618 (1,723) -7%ENTERPRISE FUNDS*189,166 249,837 60,671 32%INTERNAL SERVICE FUNDS51,148 60,496 9,348 18%SPECIAL DISTRICTS17,418 18,929 1,511 9%SPECIAL REVENUE FUNDS*61,374 152,860 91,486 149%TOTAL OPERATING FUNDS568,436 760,488 192,053 34%CAPITAL OUTLAY FUND*32,770 132,565 99,794 305%WATER CAPITAL0 10,400 10,400 NAWASTEWATER CAPITAL*13,900 56,340 42,440 305%ENV RES CAPITAL0 200 200 NAGOLF CAPITAL0 1,350 1,350 NATOTAL CAPITAL FUNDS46,670 200,855 154,184 330%TOTAL CITY APPROPRIATIONS615,106 961,343 346,237 56%NON CITY HOUSING38,201 42,220 4,020 11%GRAND TOTAL653,307 1,003,564 350,257 54%*Two large external revenues, and their transfer to Capital Funds account for the majority of the $350m increase 123
FY 2024-25 Proposed Budget – Grant Revenue6GRANT SOURCEFY 2023-24ADOPTED BUDGET $000'sFY 2024-25 PROPOSEDBUDGET $000'sCHANGE $000's CHANGE %FEDERAL GRANTS 8,741 11,938 3,197 37%STATE GRANTS 0 98,050 98,050 NACDBG GRANT2,214 2,214 0 0%OTHER463 570 108 23%GRAND TOTAL11,417 112,772 101,355 888%The FY 2024-25 Proposed Budget includes $112.8 million in new grant funding for various operational and capital projects across many functional areas. This is a significant increase on prior years primarily due to a state grant for the Rice Avenue & Fifth Street Railroad Grade Separation project of $95.9 million. 124
FY 2024-25 Proposed Budget – General Fund Revenues7GENERAL FUND $ 000'sFY 2023-24 ADOPTED BUDGETFY 2023-24 REVISED BUDGETFY 2024-25 PROPOSED BUDGET$ CHANGE % CHANGEPROPERTY TAX69,483 69,483 72,772 3,288 4.7%SALES AND USE TAX109,062 109,062 113,602 4,540 4.2%TRANSIENT OCCUPANCY TAX5,460 5,460 5,810 350 6.4%FRANCHISE TAX4,787 4,787 4,768 (19) (0.4%)BUSINESS LICENSE TAX6,500 6,500 6,970 470 7.2%CANNABIS TAX320 320 1,100 780 243.8%SUBTOTAL GENERAL TAXES195,612 195,612 205,022 9,409 4.8%LICENSES AND PERMITS2,437 2,437 2,655 218 8.9%SPECIAL REVENUES2,427 2,518 2,566 139 5.7%FEES AND CHARGES7,361 7,361 7,348 (13) (0.2%)RECREATION REVENUES255 255 262 7 2.5%MISC INCOME4,227 5,527 6,439 2,212 52.3%TRANSFERS IN11,650 11,650 11,457 (193) (1.7%)SUBTOTAL OTHER REVENUE28,358 29,748 30,726 2,369 8.4%TOTAL REVENUE223,970 225,361 235,748 11,778 5.3% Change columns compare the FY 2024-25 Proposed Budget to the FY 2023-24 Adopted Budget 125
FY 2024-25 Proposed Budget – General Fund Expenditures8GENERAL FUND $ 000'sFY 2023-24 ADOPTED BUDGETFY 2023-24 REVISED BUDGETFY 2024-25 PROPOSED BUDGET$ CHANGE % CHANGENON-DEPARTMENTAL28,370 44,228 45,200 16,829 59.3%CITY COUNCIL812 812 858 47 5.7%BILLING & LICENSING1,515 1,515 1,523 8 0.5%CITY CLERK683 683 704 20 3.0%CITY MANAGER'S OFFICE3,168 3,424 4,392 1,224 38.6%CITY ATTORNEY'S OFFICE2,840 2,840 2,896 56 2.0%FINANCE DEPARTMENT7,227 7,286 7,110 (117) (1.6%)HUMAN RESOURCES DEPT4,086 4,036 4,071 (15) (0.4%)POLICE DEPARTMENT80,325 80,415 85,468 5,143 6.4%FIRE DEPARTMENT33,378 34,202 36,981 3,602 10.8%PUBLIC WORKS DEPARTMENT27,504 30,246 30,379 2,875 10.5%COMMUNITY DEVELOPMENT DEPT16,080 16,730 15,192 (889) (5.5%)CULTURAL & COMMUNITY SVS14,537 14,572 16,474 1,937 13.3%HOUSING DEPARTMENT4,463 4,450 4,501 38 0.8%TOTAL EXPENDITURES224,989 245,440 255,748 30,759 13.7%PAY DOWN LONG TERM PENSION DEBT0 020,000 20,000 TOTAL EXPENDITURES (UNDERLYING)224,989 245,440 235,748 10,759 4.8%TFR TO CAPITAL11,050 25,202 11,000 (50) (0.5%)TOTAL OPERATING EXPENDITURES213,939 220,238 224,748 10,809 5.1% Change columns compare the FY 2024-25 Proposed Budget to the FY 2023-24 Adopted Budget 126
FY 2024-25 Proposed Budget – General Fund Balance9FUND BALANCE INFORMATION $ 000’sFY 2023-24 ADOPTED BUDGETFY 2024-25 PROPOSED BUDGETBEGINNING RESERVE 13.0%27,812 27,812 INCREASE RESERVE TO TARGET 16.6%0 9,455 BEGINNING RESERVE27,812 37,267 BEGINNING SURPLUS22,988 25,514 BEGINNING SPENDABLE FUND BAL50,800 62,781 BUDGETED REVENUE223,970 235,748 BUDGETED EXPENDITURE224,989 255,748 NET BUDGETED SURPLUS / (DEFICIT) IN YR (1,019) (20,000)ANTICIPATED VARIANCE FY 2023-2413,000 0 ANTICPATED ADD TO FUND BALANCE11,981 (20,000)ESTIMATED ENDING RESERVE27,812 37,267 ESTIMATED ENDING SURPLUS34,969 5,514 ESTIMATED ENDING SPENDABLE FUND BAL62,781 42,781 FUND BALANCE AS % OF OPERATING EXP. 29.3% 17.5% 127
FY 2024-25 Proposed Budget – Measure O ½ Cent Sales Tax Fund10 Change columns compare the FY 2024-25 Proposed Budget to the FY 2023-24 Adopted Budget MEASURE O (1/2 CENT SALES TAX) $ 000'sFY 2023-24 ADOPTED BUDGETFY 2023-24 REVISED BUDGETFY 2024-25 PROPOSED BUDGET$ CHANGE % CHANGEREVENUESSALES AND USE TAX19,459 19,459 19,282 (177) (0.9%)GENERAL FUND LOAN PAYMENT1,876 1,876 1,876 0 0.0%INTEREST INCOME93 39 458 365 390.5%TOTAL REVENUE21,428 21,374 21,615 187 0.9%EXPENDITURES BY CATEGORYPUBLIC SAFETY AND GANG PREV’N2,729 3,765 1,765 (965) (35.3%)TRAFFIC AND ROAD IMPROVEMENTS14,967 17,145 12,682 (2,285) (15.3%)REC, PARKS AND OPEN SPACES3,687 4,351 4,727 1,039 28.2%OTHER COMMUNITY PROJECTS2,957 5,382 3,445 488 16.5%TOTAL EXPENDITURES24,341 30,643 22,618 (1,723) (7.1%)TFR TO CAPITAL12,750 20,277 14,001 1,251 9.8%TOTAL OPERATING EXPENSES11,591 10,366 8,617 (2,974) (25.7%)NET ACTIVITY (2,913) (9,269) (1,003)1,910 128
FY 2024-25 Proposed Budget – Measure O ½ Cent Sales Tax Fund Balance11FUND BALANCE INFORMATIONFY 2023-24 ADOPTED BUDGETFY 2024-25 PROPOSED BUDGETBEGINNING SPENDABLE FUND BAL17,496 15,696 BUDGETED REVENUE21,428 21,615 BUDGETED EXPENDITURE24,341 22,618 NET (2,913) (1,003)ANTICIPATED VARIANCE FY 2023-241,113 0 ANTICPATED ADD TO FUND BALANCE (1,800) (1,003)ESTIMATED ENDING SURPLUS / (DEFICIT)15,696 14,693 ESTIMATED ENDING SPENDABLE FUND BAL15,696 14,693 FUND BALANCE AS % OF OPERATING EXP. 135.4% 115.9% 129
FY 2024-25 Proposed Budget – Water Funds Revenue and Expenses12WATER FUNDS $000'sFY 2023-24 ADOPTED BUDGETFY 2023-24 REVISED BUDGETFY 2024-25 PROPOSED BUDGET$ CHANGE % CHANGEREVENUES43 - FEES AND CHARGES497 497 688 191 38.4%45 - UTILITY FEES66,677 66,677 65,946 (731) (1.1%)47 - MISC INCOME2,448 3,798 3,980 1,532 62.6%48 - GRANT REVENUES0 0 500 500 na49 - TRANSFERS IN292 46,525 239 (53) (18.1%)TOTAL REVENUES69,914 117,497 71,354 1,440 2.1%50 - SALARIES & WAGES6,892 6,892 7,521 629 9.1%51 - EMPL BENEFITS4,239 4,239 4,345 106 2.5%52 – SUPPLIES3,313 3,592 3,335 22 0.7%53 – SERVICES5,365 32,662 6,033 668 12.5%54 - UTILITY & ENERGY29,132 29,132 29,137 5 0.0%55 – MAINTENANCE225 225 225 0 0.0%56 - CAPITAL EXPENDITURE910 11,253 85 (825) (90.7%)57 – FINANCING14,960 17,001 15,143 183 1.2%59 - TRANSFERS OUT4,814 52,212 16,159 11,345 235.7%TOTAL EXPENSES69,850 157,208 81,983 12,133 17.4%NET SURPLUS / (DEFICIT)64 (39,710) (10,629) (10,693) Change columns compare the FY 2024-25 Proposed Budget to the FY 2023-24 Adopted Budget 130
FY 2024-25 Proposed Budget – Water Funds – Fund Balance13FUND BALANCE INFORMATIONFY 2023-24 ADOPTED BUDGETFY 2024-25 PROPOSED BUDGETBEGINNING RESERVE 25.0%16,776 16,776 INCREASE RESERVE TO TARGET 0 578 BEGINNING RESERVE16,776 17,354 BEGINNING SURPLUS8,676 11,100 BEGINNING SPENDABLE FUND BALANCE25,452 28,454 BUDGETED REVENUE69,914 71,354 BUDGETED EXPENDITURE69,850 81,983 NET BUDGETED SURPLUS / (DEFICIT) IN YR+64 (10,629)ANTICIPATED VARIANCE FY 2023-242,937 0 IMPACT TO FUND BALANCE+3,002 (10,629)ESTIMATED ENDING RESERVE16,776 17,354 ESTIMATED ENDING SURPLUS / (DEFICIT)11,678 471 ESTIMATED ENDING SPENDABLE FUND BAL28,454 17,825 FUND BALANCE AS % OF OPERATING EXP. 42.4% 27.7% 131
FY 2024-25 Proposed Budget – Wastewater Funds Revenue and Expenses14WASTEWATER FUNDS $000'sFY 2023-24 ADOPTED BUDGETFY 2023-24 REVISED BUDGETFY 2024-25 PROPOSED BUDGET$ CHANGE % CHANGEREVENUES43 - FEES AND CHARGES439 439 425 (14) (3.2%)45 - UTILITY FEES46,582 46,582 45,122 (1,460) (3.1%)47 - MISC INCOME549 64,732 2,040 1,491 271.5%49 - TRANSFERS IN2,847 106,015 48,000 45,153 1586.0%TOTAL REVENUES50,417 217,768 95,587 45,169 89.6%50 - SALARIES & WAGES7,853 7,853 8,390 537 6.8%51 - EMPL BENEFITS4,780 4,780 4,753 (27) (0.6%)52 - SUPPLIES3,480 3,751 3,650 170 4.9%53 - SERVICES20,232 97,405 5,293 (14,939) (73.8%)54 - UTILITY & ENERGY3,622 3,781 3,608 (14) (0.4%)55 - MAINTENANCE270 303 90 (180) (66.7%)56 - CAPITAL EXPENDITURE1,783 7,069 58,370 56,588 3174.6%57 - FINANCING9,996 11,566 10,226 231 2.3%59 - TRANSFERS OUT3,404 110,426 3,689 285 8.4%TOTAL EXPENSES55,419 246,935 98,069 42,650 77.0%NET SURPLUS / (DEFICIT) (5,002) (29,167) (2,483)2,519 Change columns compare the FY 2024-25 Proposed Budget to the FY 2023-24 Adopted Budget 132
FY 2024-25 Proposed Budget – Wastewater Funds – Fund Balance15FUND BALANCE INFORMATION $ 000’sFY 2023-24 ADOPTED BUDGETFY 2024-25 PROPOSED BUDGETBEGINNING RESERVE 25.0%10,081 10,081 INCREASE RESERVE TO TARGET 0 578 BEGINNING RESERVE10,081 10,659 BEGINNING SURPLUS51,424 47,833 BEGINNING SPENDABLE FUND BALANCE61,505 58,492 BUDGETED REVENUE50,417 95,587 BUDGETED EXPENDITURE55,419 98,069 NET BUDGETED SURPLUS (DEFICIT) IN YR (5,002) (2,483)ANTICIPATED VARIANCE FY 2023-241,988 0 IMPACT TO FUND BALANCE (3,013) (2,483)ESTIMATED ENDING RESERVE10,081 10,659 ESTIMATED ENDING SURPLUS / (DEFICIT)48,411 45,350 ESTIMATED ENDING SPENDABLE FUND BAL58,492 56,009 FUND BALANCE AS % OF OPERATING EXP. 151.9% 145.1% 133
FY 2024-25 Proposed Budget – Environmental Resources Funds – Revenue and Expenses16ENVIRONMENTAL RESOURCES FUNDS $000'sFY 2023-24 ADOPTED BUDGETFY 2023-24 REVISED BUDGETFY 2024-25 PROPOSED BUDGET$ CHANGE % CHANGEREVENUES43 - FEES AND CHARGES265 265 265 0 0.0%45 - UTILITY FEES46,111 46,111 58,394 12,283 26.6%47 - MISC INCOME148 148 521 373 252.6%48 - GRANT REVENUES0 48 0 0 na49 - TRANSFERS IN2,614 7,600 0 (2,614) (100.0%)TOTAL REVENUES49,138 54,171 59,179 10,042 20.4%50 - SALARIES & WAGES14,150 14,274 16,770 2,620 18.5%51 - EMPL BENEFITS9,511 9,573 9,302 (209) (2.2%)52 - SUPPLIES1,716 1,964 2,011 296 17.2%53 - SERVICES2,194 6,245 2,596 402 18.3%54 - UTILITY & ENERGY16,328 16,098 14,983 (1,345) (8.2%)55 - MAINTENANCE350 350 400 50 14.3%56 - CAPITAL EXPENDITURE515 824 3,017 2,502 485.8%57 - FINANCING3,623 4,009 3,435 (188) (5.2%)59 - TRANSFERS OUT9,734 14,813 10,547 813 8.4%TOTAL EXPENSES58,120 68,150 63,060 4,941 8.5%NET SURPLUS / (DEFICIT) (8,982) (13,979) (3,881)5,101 134
FY 2024-25 Proposed Budget – Environmental Resources Funds – Fund Balance17FUND BALANCE INFORMATION $ 000’sFY 2023-24 ADOPTED BUDGETFY 2024-25 PROPOSED BUDGETBEGINNING RESERVE 25.0%14,382 14,382 INCREASE RESERVE TO TARGET 0 578 BEGINNING RESERVE14,382 14,959 BEGINNING SURPLUS6,722 (837)BEGINNING SPENDABLE FUND BALANCE21,104 14,122 BUDGETED REVENUE49,138 59,179 BUDGETED EXPENDITURE58,120 63,060 NET BUDGETED SURPLUS / (DEFICIT) IN YR (8,982) (3,881)ANTICIPATED VARIANCE FY 2023-242,000 0 IMPACT TO FUND BALANCE (6,982) (3,881)ESTIMATED ENDING RESERVE14,382 14,959 ESTIMATED ENDING SURPLUS / (DEFICIT) (260) (4,718)ESTIMATED ENDING SPENDABLE FUND BAL14,122 10,241 FUND BALANCE AS % OF OPERATING EXP. 24.7% 18.0% 135
FY 2024-25 Proposed Budget – Golf Funds – Revenue and Expenses18GOLF FUNDS $000'sFY 2023-24 ADOPTED BUDGETFY 2023-24 REVISED BUDGETFY 2024-25 PROPOSED BUDGET$ CHANGE % CHANGEREVENUES44 - RECREATION REVENUES6,146 7,078 6,146 0 0.0%47 - MISC INCOME265 265 423 157 59.4%49 - TRANSFERS IN0 1,189 0 0 naTOTAL REVENUES6,412 8,532 6,569 157 2.5%50 - SALARIES & WAGES26 26 27 1 2.5%51 - EMPL BENEFITS11 11 10 (0) (4.5%)52 - SUPPLIES348 348 348 0 0.0%53 - SERVICES4,184 5,725 4,184 0 0.0%54 - UTILITY & ENERGY701 701 701 0 0.0%55 - MAINTENANCE35 33 35 0 0.0%56 - CAPITAL EXPENDITURE100 584 100 0 0.0%57 - FINANCING184 186 184 0 0.0%58 - INSURANCE126 126 126 0 0.0%59 - TRANSFERS OUT62 746 1,510 1,448 2328.8%TOTAL EXPENSES5,777 8,486 7,225 1,448 25.1%NET SUPRLUS / (DEFICIT)635 46 (656) (1,291) Change columns compare the FY 2024-25 Proposed Budget to the FY 2023-24 Adopted Budget 136
FY 2024-25 Proposed Budget – Golf Funds – Fund Balance19FUND BALANCE INFORMATION $ 000’sFY 2023-24 ADOPTED BUDGETFY 2024-25 PROPOSED BUDGETBEGINNING RESERVE 25.0%1,444 1,444 INCREASE RESERVE TO TARGET 0 578 BEGINNING RESERVE1,444 2,022 BEGINNING SURPLUS3,680 3,737 BEGINNING SPENDABLE FUND BALANCE5,124 5,759 BUDGETED REVENUE6,412 6,569 BUDGETED EXPENDITURE5,777 7,225 NET BUDGETED SURPLUS (DEFICIT) IN YR+635 (656)ANTICIPATED VARIANCE FY 2023-240 0 IMPACT TO FUND BALANCE+635 (656)ESTIMATED ENDING RESERVE1,444 2,022 ESTIMATED ENDING SURPLUS / (DEFICIT)4,315 3,081 ESTIMATED ENDING SPENDABLE FUND BAL5,759 5,103 FUND BALANCE AS % OF OPERATING EXP. 101.4% 71.6% 137
RECOMMENDATION20That the Finance and Governance Committee recommend the City Council and Housing Authority Board conduct a public hearing on the Fiscal Year (FY) 2024-25 Proposed Budget on June 4, 2024, for the City of Oxnard and Oxnard Housing Authority and provide staff direction regarding any adjustments to the Proposed Budget, in preparation for final budget adoption on June 18, 2024. 138
Thank You
139
1 140
2 141
3 142
4 143
5 144
6 145
7 146
8 147
9 148
10 149
11 150
12 151
13 152
14 153
15 154
16 155
17 156
18 157
19 158
20 159
21 160
22 161
23 162
24 163
25 164
26 165
27 166
28 167
29 168
30 169
31 170
32 171
33 172
34 173
35 174
36 175
37 176
38 177
39 178
40 179
41 180

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.5

DATE: May 14, 2024

TO: Finance & Governance Committee

FROM: Javier Chagoyen-Lazaro, Chief Financial Officer, (805) 200-5400, [email protected]

SUBJECT: Annual Delegation of Investment Authority. (10 minutes)

RECOMMENDATION

That the Finance and Governance Committee recommend the City Council Adopt a Resolution Delegating Investment Authority to the City Treasurer for FY 2024-25.

BACKGROUND

Government Code section 53607 authorizes the City Council to delegate its authority to invest or to reinvest City funds, or to sell or exchange securities so purchased, for a one-year period to the City Treasurer. The Council may also renew this delegation of authority each year. On September 15, 1992, the City Council adopted Resolution No. 10,455, delegating to the City Treasurer the authority to invest and to reinvest surplus City funds in short-term public investments and securities. The attached resolution renews the City Treasurer’s investment authority pursuant to Resolution No. 10,455 and Government Code section 53607.

STRATEGIC PRIORITIES

This agenda item supports the Organizational Effectiveness strategy. The purpose of the Organizational Effectiveness strategy is to reinforce, stabilize, improve, and strengthen the organizational foundation of the City in order to build a modern, high-functioning City government that effectively and efficiently supports the operating departments in providing high-quality services and programs for our residents and businesses.

FINANCIAL IMPACT

There is no financial impact.

Prepared by: Javier Chagoyen-Lazaro, Chief Financial Officer

ATTACHMENTS

1. Resolution - FY 24-25 Annual Delegation of Investment Authority

181
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD

DELEGATING INVESTMENT AUTHORITY TO THE CITY TREASURER
WHEREAS, on September 15, 1992, the City Council adopted Resolution No. 10,455, delegating to the City Treasurer the authority to invest and reinvest City funds; and WHEREAS, effective January 1, 1997, Government Code section 53607 was amended to provide the authority of the City Council to invest or to reinvest City funds, or to sell or exchange securities so purchased, may be delegated for a one-year period by the Council to the City Treasurer, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires; and
WHEREAS, it remains the intention of the City Council to delegate such authority to the City Treasurer.

NOW, THEREFORE, the City Council of the City of Oxnard resolves to delegate to the City Treasurer the authority to invest and to reinvest City funds, and to sell and exchange securities so purchased, thereby reaffirming such delegation of authority contained in Resolution No. 10,455, for a one-year period.

PASSED AND ADOPTED this 18th day of June, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

John C. Zaragoza, Mayor
ATTESTED:

Rose Chaparro, City Clerk
APPROVED AS TO FORM:
______________________________
Stephen Fischer, City Attorney
182

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.6

DATE: May 14, 2024

TO: Finance & Governance Committee

FROM: Javier Chagoyen-Lazaro, Chief Financial Officer, (805) 200-5400, [email protected]

SUBJECT: Public Safety Property Tax Assessment FY 2024-25. (10 minutes)

RECOMMENDATION

That the Finance and Governance Committee review and recommend to City Council the adoption of a resolution establishing the FY 2024-25 tax rates on property in the City of Oxnard for the payment of voter- approved obligations related to public safety personnel pension expenses.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/8LGh8C_esbA

BACKGROUND

A special municipal election held on October 23, 1951, authorized the City to enroll its Fire and Police Safety employees in the California State Employees' Retirement System (later renamed the California Public Employees' Retirement System or CalPERS), and obligated the City to pay the annual costs of participation in the retirement system. Each year, the City Council adopts a resolution establishing the annual tax rate on property in the City of Oxnard for the payment of voter approved obligations, which is exempt from the one percent (1%) tax limitation established by Proposition 13. This tax is sometimes referred to as the "Carman Override" based upon the California Supreme Court case Carman v. Alvord in which the court ruled that voter approved pension costs constituted debt that could be supported by a tax levy in excess of the 1% maximum allowed by Proposition 13. Only 24 out of 482 cities in California have access to this property tax override.

The City has two taxing districts, District I and District IV. District IV consists of property that in December 1969 was annexed to the City, but not into District I, and accounts for less than one quarter of one percent of the City’s property tax base. The City's tax rate for the voter-approved obligations only applies to District I. All future annexations into the City now also require annexation into District I, such that any future annexed area would be subject to tax levy for voter approved indebtedness.

A 2002 court case in the City of Huntington Beach limited costs covered by the public safety property tax to the pension benefits in effect when Proposition 13 became effective - July 1, 1978. Costs for increased benefits granted after July 1, 1978, are excluded from the tax calculation.

The City engaged Foster & Foster, Inc., to complete an actuarial analysis and estimate the eligible CalPERS costs for FY2024-25. Its analysis determined the eligible CalPERS costs related to Police and Fire employees' salaries that can be paid from the proceeds of the public safety property tax assessment for FY 2024-25 are an 183
estimated $18,946,120. Total public safety retirement costs for FY 2024-25 are estimated at $28,027,068.

The tax rate is calculated each year based on forecast expenditures, the available fund balance that can be utilized and the forecasted assessed property values. As a result of a City-initiated audit, the County Tax Collector began applying the Public Safety Property Tax Assessment to RDA and Unitary properties beginning in FY2020-21. The levy on these Unitary railroad and utility properties, which is collected by the State, helps to lower the assessment on the remaining local properties.

The estimated surplus fund balance for the Public Safety Retirement Fund (Fund 119) at June 30, 2024, is $1,046,793, which will be credited against the required revenue in FY 2024-25 to produce a new net tax rate, calculated as follows:

Beginning fund balance (Fund 119) at July 1,2023 $2,263,361 Plus: estimated revenue received through June 30, 2024 16,230,624 Less: estimated expenditures through June 30, 2024 (17,447,192) Total estimated ending fund balance at June 30, 2024 $1,046,793

Forecasted eligible public safety expenditures for FY 2024-25 $18,946,120 Less: estimated fund balance at June 30, 2024 (1,046,793) Total assessment for FY 2024-25 $17,899,327
Less: estimated Unitary tax contribution 5,222,552
Total amount assessed on Oxnard property base for FY2024-25 $12,676,775

Based upon projected taxable assessed value (AV) for FY 2024-25 of $26,801,440,105, and projected contributions of $5,222,552 from State-allocated unitary tax payments, the total tax rate required to generate $17,899,327 to contribute toward eligible Police and Fire retirement costs is $0.047299 per $100 of assessed value (AV). As an example, for every $100,000 in assessed value, a property owner will pay $47.30. This assessment is 3.4% higher than the FY2023-24 assessment of $.045750 per $100, resulting in an increase of $1.55 per $100,000 of assessed value. The maximum allowable tax rate for the Public Safety Pension Tax is $0.076637 per $100 of AV, which would result in a payment of $76.64 for every $100,000 of AV.

The proposed budget for FY 2024-25 includes approximately 137 fire positions and 242 police positions covered under the voter approved authorization.

STRATEGIC PRIORITIES

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

The total estimated retirement cost for FY 2024-25 for 379 public safety employees is $28.0 million, of which $18.9 million is the amount eligible to be levied through the Public Safety Tax assessment. After accounting for the estimated $1.0 million surplus fund balance at the end of June, 2024 for the Public Safety Retirement Fund, the net amount assessed or levied for FY 2024-25 is $17.9 million. Of that, $5.2 million is estimated to be collected through unitary taxes, leaving $12.7M to be collected from the local tax base. This results in a net tax rate of $0.047299 per $100 of assessed value. The remaining public safety retirement cost of $9.1 million is budgeted in other operating funds for FY 2024-25, primarily in the General Fund.

Prepared by: Jim Costello, Financial Analyst III

ATTACHMENTS
184

1. FY 2024-25 Property Tax Resolution

2. FY 24-25 Public Safety Property Tax Assessment Presentation

185
RESOLUTION NO.___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD
ESTABLISHING THE FISCAL YEAR 2024-25 PROPERTY TAX RATE

FOR VOTER APPROVED OBLIGATIONS
WHEREAS, Section 2237.2 of the Revenue and Taxation Code requires that within 90 days of the end of the fiscal year, the City report to the County Controller the tax rate and total revenues expected to be generated in the current fiscal year for voter approved obligations; and WHEREAS, the City’s adopted budget for the Fiscal Year 2024-25 appropriates monies required to pay voter approved obligations of the City; and WHEREAS, the total assessed valuation for Fiscal Year 2024-25 was estimated based on Ventura County Auditor-Controller provided assessed valuation of City tax districts for tax rate purposes.

NOW, THEREFORE, the City Council of the City of Oxnard hereby determines and resolves that the following amounts of revenue from property taxes are required for the current fiscal year to pay the City’s obligation for public safety retirement expenditures:

Total Property Taxes from Required FY 2024-25 Tax Rates on Projected Secured and Unsecured Assessed Values $17,899,327 The City Council of the City of Oxnard further resolves that for the purpose of raising such revenue the rates of taxation for the different portions of the City are hereby fixed and taxes are hereby levied on the taxable property in the City for the fiscal year beginning July 1, 2024, in the number of dollars upon each one hundred dollars of the assessed value of the property as assessed by the County Assessor and equalized by the Board of Equalization of the County of Ventura as set forth in the following table. The taxes levied upon property in each portion of the City hereinafter described and designated by a tax district number is at the rate set in the column headed by the tax district number which is prefixed to the description of such portion of the City as hereinafter stated.

TAX DISTRICT I
All territory included within the boundaries of the City, as originally incorporated, and all territory annexed to the City by action of the City Council by annexation proceedings, excepting there-from Annexation No. 69-9.

TAX DISTRICT IV
All territory annexed to the City by action of the City Council as described in Ordinance No. 1255, adopted November 12, 1969, to become effective December 12, 1969, known and referred to as Annexation No. 69-9 (Rancho La Ribera).
186
Resolution No.

Page 2 ends

DISTRICT I DISTRICT IV
Public Safety Retirement Fund
Tax Rate Required (Per $100 Assessed Value) 0.047299 -0- Total Tax District Tax Rates
(Per $100 Assessed Value) 0.047299 -0-
The City Council of the City of Oxnard further resolves that the foregoing tax rate is determined to be necessary to provide revenues required for the stated purpose during the period specified; that the City Council does hereby levy this sum on the property in such tax districts for Fiscal Year 2024-25; that in accordance with Government Code Section 36936.1, the City Clerk is instructed to cause this resolution to be published one time in the newspaper within 15 days after adoption; and that the City Clerk is instructed to transmit immediately to the County Auditor a certified copy of this resolution.

PASSED AND ADOPTED this 18th day of June, 2024, by the following vote: AYES:

NOES:

ABSENT:

John C. Zaragoza, Mayor
ATTEST:

Rose Chaparro, City Clerk
APPROVED AS TO FORM:

Stephen M. Fischer, City Attorney
187
Public Safety Property Tax Assessment
for FY2024-25 (Carman Override)
Annual resolution setting the tax rate on property in the City of Oxnard for the payment of voter-approved obligations related to public safety personnel pension expenses
Finance and Governance Committee Meeting
Jim Costello, Administrative Services Analyst
May 14, 2024
188
That the Finance and Governance Committee
review and recommend to City Council the
adoption of a resolution establishing the Fiscal
Year 2024-25 tax rates on property in the City of
Oxnard for the payment of voter-approved
obligations related to public safety personnel
pension expenses
RECOMMENDATION 2
189
• Public safety pension cost obligation authorized by voters in 1951 • Applies only to public safety pension benefits that were in effect on July 1, 1978
• Capped at the rate that was in effect in 1983-84 ($0.076637 per $100 of assessed value)
• Third-party actuarial analysis performed annually to determine eligible costs
• The proposed budget for FY 2024-25 includes approximately 137 fire positions and 242 police positions
• Total estimated public safety CalPERS retirement costs for FY2024- 25 are $28,027,068
• Estimated eligible public safety CalPERS retirement costs:
$18,946,120
Public Safety Property Tax - Background 3
190
Factors used in determining required tax rate
Public Safety Property Tax - Discussion 4
Total projected assessed property value for FY2024-25 $26,801,440,105 Total projected eligible expenses for FY2024-25 $18,946,120 Projected ending available fund balance (fund 119) $1,046,793 Total revenue required from assessments $17,899,327
Projected revenue from unitary properties* $5,222,552
Revenue required from assessed properties $12,676,775
Tax rate needed to meet required revenue $0.047299 per $100 191
*Unitary property is property in the City that is owned by railroads and utilities that is taxed at the state level and allocated back to the cities and counties. Following a City-initiated audit, the City began receiving Public Safety Pension tax payments on unitary property in FY2020-21 resulting in lower assessments on the remaining City properties.

Unitary property - Definition 5
192
That the Finance and Governance Committee review
and recommend to City Council the adoption of a
resolution establishing the Fiscal Year 2024-25 tax
rates on property in the City of Oxnard for the
payment of voter-approved obligations related to
public safety personnel pension expenses
RECOMMENDATION 6
193
Questions?
194

Finance & Governance CommitteeMay 14, 2024

Finance & Governance Committee
May 14, 2024