For Oxnard, weaning off Measure O sales tax is a multi-year process

In 2008, Oxnard voters approved a half-cent sales tax that would last two decades.

About 12 years into this city-dependent revenue, officials are now contemplating the end of Measure O. At a recent City Council meeting, leaders discussed ways to wean off the tax, which pays for recreation, public safety and all of Fire Station No. 8.

Measure O sunsets in 2028, and according to the city manager's office, that's not a very long time in municipal terms.

"The sooner that you start, the easier this process will be," said Deputy City Manager Shiri Klima. "The longer you wait, the more drastic the different changes and reductions will be."

City officials are looking at ways to make cuts and reallocate funding to become less dependent on Measure O. It's important, pointed out Klima, because the debt payments for a south Oxnard fire station that opened in 2015 will continue beyond the Measure O sunset date. The schedule of debt payments goes through 2032.

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To pay off the fire station debt, the city plans to begin setting money aside now, ahead of the sunset date in 2028. For the next decade, the city wants to set aside approximately $1 million to $2 million per year for that purpose.

Some of the money set aside could come from savings in projects that ended up costing less than projections. City staff members also propose other cuts such as scrapping the idea to hire a position to oversee the downtown arts hub and scrapping the plan for a Five Points land acquisition to construct a park.

These proposed cuts and reallocations, totaling $1.3 million, will be considered by the City Council in the next budget cycle.

Klima warned that the plan to save money and slowly stop reliance on Measure O only works if there aren't new one-time projects. That's not always easy.

Last year, when the City Council couldn't stomach the $6 million in proposed cuts, it leaned on Measure O to pay for a fire engine in south Oxnard and to keep the performing arts center open.

If the goal is to wean off Measure O, Councilwoman Vianey Lopez said it's important to remember not to rely on the sales tax come budget time.

"That reminded me of our budget discussions last year and how we depended on Measure O to cover some of those costs," Lopez said. "That’s something that we’re going to have to all keep in mind as we go back to the 2021 budget cycle."

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The half-cent sales tax, has been a lifesaver for Oxnard during the Great Recession and beyond. More than half of the revenue goes toward public safety; the rest goes to myriad municipal services, including street repair, recreation and housing. Some Measure O revenue is expected to fund a permanent homeless shelter currently in the planning stage.

"Measure O's purpose was to increase levels of service," said Mayor Tim Flynn. "In many regards, it’s trying to keep up with the needs and not having enough revenue." 

It remains to be seen just what Oxnard's sales tax revenue will look like as Measure O's end date nears.

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The city plans to wage a legal fight against a citizen's proposal to tie Measure O revenue to the condition of the city's streets. The proposed initiative by City Hall critic Aaron Starr would allow Measure O to sunset earlier than anticipated if the streets and alleys are not maintained at a certain level.

In the meantime, the city could ask voters to support another sales tax measure. City Manager Alex Nguyen has said that the city needs at least another one-cent sales tax increase. Last year, the city conducted a community survey to gauge support for a 1.5 cent sales tax.

Wendy Leung is a staff writer for the Ventura County Star. Reach her at wendy.leung@vcstar.com or 805-437-0339. You can also find her on Twitter @Leung__Wendy.