Port Hueneme--The City Council unanimously approved its Capital Reserve Policy during its Monday, November 20 meeting.
The approval authorizes a $1.5 million initial transfer of funds in Fiscal Year 2022-2023. The City does not currently have a Capital Reserve, and without it, Capital Projects must be funded from the unassigned fund balance, current revenues, or outside financing.
City Manager James Vega said the City adopted the Fiscal Year 2023-2024 and Fiscal Year 2024-2025 budget earlier in the year and said the adopted general fund balance is $27.2683 million.
“For next year’s budget, which starts on July 1, we’re planning to do another $1.3 million in Capital Improvement Projects (CIP),” he said. “One of the things we are looking at doing is trying to have a more consistent Capital Improvement Budget.”
He noted that during Fiscal Year 2022-2023, the City had a $3.7 million Capital Improvement Budget, which was cut by almost half to $1.4 million for Fiscal Year 2024-2025.
“As part of the CIP Reserve Policy, we want to create a consistent level,” he said. “It will create a CIP Reserve Fund, and it will smooth that portion of the budget out where we don’t years where we have…
