OXNARD : Mayor Warns of Budget Shortfall

In his first State of the City address delivered Thursday morning, Oxnard Mayor Manuel Lopez told a group of merchants that land values have plummeted and that some tax-generating development projects may not be built because they can’t get financing.

Lopez predicted a $4.2-million shortfall next fiscal year if the city goes forward with plans to beef up police protection and other public services. Even without the extras, he said, the shortfall still weighs in at a hefty $2.6 million.

But there is some good news, he said.

“I believe we are as far down as we are going to go,” Lopez told about 50 Chamber of Commerce members. “I believe things are going to get a lot better.”

Lopez was elected Oxnard’s mayor in November. The cash-strapped city has been forced to cut more than $10 million from its budget since 1990. During that period, officials have avoided layoffs but have been forced to cut Oxnard’s work force by 150 employees.

But Lopez said city leaders in the past few years have approved a series of development projects that promise to boost Oxnard’s sales tax base and generate money to pay for public services.

However, Lopez warned that city officials increasingly must look at creative ways to provide services.

He said he wants to determine whether the Oxnard High School campus can be converted into a regional park once the school district builds a new high school in northwest Oxnard and abandons the old site.

And Lopez said residents may have to consider taxing themselves more to beautify the city and strengthen police and fire protection.

“This entire dilemma may also suggest that the public is not willing to pay for the services it claims it wants,” Lopez said.