Oxnard OKs utilities borrowing at meeting dominated by George Floyd discussion

In order to maintain cash flow, Oxnard plans to borrow up to $30 million from its utilities as it waits for deferred sales tax revenue. The borrowing plan, which requires the city's general fund to pay back the water, wastewater and solid waste funds with interest, was approved by the City Council on Tuesday.

It drew the attention of longtime city critic Aaron Starr.

"We’re inclined to legally challenge this," Starr said during public comment.

The council meeting touched on a range of municipal businesses including cannabis business fines and coronavirus-related orders. But what dominated the evening was a discussion on the death of George Floyd and the protests that followed.

On Saturday, about 350 protesters marched from downtown Plaza Park to the police station to denounce police brutality and the May 25 death of Floyd while in the custody of Minneapolis police.

There were no arrests made at the afternoon protest. Similar marches have taken place since and more are planned this week in Oxnard and elsewhere in Ventura County.

More:Hundreds protest George Floyd death in rallies across Ventura County

"The actions of the former officers that killed Mr. George Floyd can not be defended, can not be tolerated," said Police Chief Scott Whitney. "It sickens our stomachs within the Oxnard Police Department."

Whitney said although the police made preparations for Saturday's protest, officers were not seen.

"There’s no need for the police to be there," Whitney said.  

"Last couple of days have been filled with many emotions and many thoughts in seeing the response of so many people who are fed up, who are tired of seeing another black life gone," said Councilwoman Vianey Lopez.

Lopez said addressing this issue must start at home and in our communities with how we treat each other. 

"We have to support our community so that they can trust us as leaders, so they can have trust and faith in our officers," Lopez said. "I want to say that I am here and I speak in solidarity with our black community. I’m here to listen and I want to work on this."

In other council business:

• City leaders approved a set of fines aimed at cannabis businesses that operate illegally or violate their permits. Fines will start at $10,000; $30,000 for illegal operations.
• Council ratified an order allowing restaurants to expand outdoor dining to sidewalks and parking lots.
• A plan for the city's general fund to borrow up to $10 million each from the water, wastewater and solid waste funds received unanimous approval.  

Kevin Riper, chief financial officer for Oxnard, explained that the city's general fund could run out of cash in a year's time due to the pandemic-induced recession and the fact that Gov. Gavin Newsom has allowed sales tax payments to be deferred.

"General fund cash could be exhausted at the end of next fiscal year. You can’t have negative cash at the end of a fiscal year," Riper said. "It’s possible the general fund needs a temporary source of cash."

Riper said rather than borrow from the capital markets and pay interest to bond holders, it was in the city's interest to borrow from itself.

"The thought is, pay ourselves rather than pay the outside world," Riper said.

During public comment, which was given by telephone, Alicia Percell pointed out that when the wastewater rates were increased, the city's justification was the sewer plant needed repair. Now that the rates are increased and the utility funds have cash, those improvement projects seem no longer urgent, she said.

"The city is attempting to turn these utility funds as a piggy bank," Percell said.

Percell and Starr were leaders of an effort to halt the wastewater rate increases. Starr, who said during public comment he may sue over this borrowing plan, added that he was willing to have a dialogue with the city.

City Manager Alex Nguyen said some of those emergency repairs have been completed and more projects are on the way. He said the wastewater fund is saving more money for future improvements. 

Nguyen said with sales tax revenue deferred, the city could have a cash-flow issue.

"So if we run out of cash, hopefully we won’t, what would you have us do? Stop the city?" Nguyen said. "It makes no sense."   

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.