$36.5 Million Judgment Against The City of Oxnard’s Unlawful Infrastructure Use Fee (IUF)

Press Release by Aaron Starr

Another favorable decision in court today concerning our $36.5 million judgment against the City of Oxnard’s unlawful Infrastructure Use Fee (IUF). The City of Oxnard will have to pay back over a three-year period the money they illegally took — far less than the eight years they demanded. The judge did not accept the city’s claims of financial hardship.
Oh … and the next time someone at Oxnard City Hall claims they did nothing illegal when they siphoned $36.5 million out of the City’s utilities, tell them to read this part of the judge’s decision:
“City’s systematic disregard of Proposition 218’s unambiguous prohibition against using IUFs ‘for general governmental services including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners’ without first obtaining voter approval (Art. XIII D, sect. 6, subd. (b)(5)) over the course of multiple fiscal years was illegal and unreasonable.”




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Gayle Washburn

City of Santa Paula are you reading this? Santa Paula has been making transfers from the water and sewer enterprise funds again Prop 218.

Douglas D Partello

“illegal and unreasonable” is certainly an unambiguous condemnation of Oxnard’s siphoning off utility enterprise fund monies into the General Fund, by the judge. Makes you wonder just how much they got away with, as there is a three year statute of limitations, plus the added timeframe of the continued litigation, about one and a half more years, bringing that total to $36.5 million. Approximately $7 million per year was taken. So, where did all that money go? They claim it goes toward road repairs. But that is not $7 million per year, but rather $4 million they are claiming for that use. Also, with a PCI of 61, back in 2008, when Measure O was passed, to a PCI of 64 today, seems unlikely the extra cash was going toward road repairs. So, how badly is Oxnard being managed that they need an extra $7 million, produce over ten years of deficit budgets, and roads and landscaping gone to hell, and alleys worse than some third world countries? Then, they need double par revenues from sales tax, with the passage of Measure E, compared to Camarillo and T.O.? Makes you wonder about other schemes they have engaged in to fill the pension debt, and escalating cost of salaries, and benefits. Maybe the hidden Landscaping Maintenance District audit report might give us some clues.

Last edited 5 months ago by Doug Partello