OXNARD : Reduction in City Revenues Is Forecast
Because of the continuing slow economy, the city of Oxnard will receive $2.5 million less in revenues this year than previously anticipated, according to a midyear budget report to be reviewed Tuesday by the City Council.
But the losses will be partly offset by a new surcharge of more than $800,000 on utility shipments within the city, higher sales taxes, motor vehicle fees, and savings from staff reductions and debt refinancing.
Taken together, the adjustments will result in a loss of $523,572 in net revenues out of a $65-million budget for the present fiscal year.
According to the report, Oxnard will receive $1.8 million less in property taxes for the present fiscal year than previously forecast. Slower than expected development in Oxnard also will result in a $340,000 decrease in planning fees. Because of the slowed activity, the council will consider eliminating three vacant inspector positions for an estimated savings of $125,000.
While the slow economy is blamed for the drop in revenues, a change in state law governing utility companies led to the unexpected payment of $818,808 by Southern California Edison for gas shipments in the city.
The payment was ordered by the Legislature last year to replace the loss of local government franchise fees when the state Public Utilities Commission terminated the “targeted sales program” for local utilities. The council will review the midyear budget revisions at its Tuesday meeting, which begins at 1:30 p.m.