City of Oxnard Pension Contributions Set to Double by 2024

As reported by the Ventura County Star, the City of Oxnard faces budget headwinds. Quoted in the article, Mayor Tim Flynn had this to say:

“We’re making decisions that should have been made 10, 20 years ago to put the city on a sustainable path,” Flynn said. “These are very painful cuts, but we have to live within our means. The city historically has not lived within our means.”

City Manager Alex Nguyen was more specific:

“Skyrocketing pension costs and spikes in health care are some of the reasons for the budget shortfall. With projected expenditures approximately $10 million more than anticipated revenue, there is no choice but to recommend programmatic cuts to the City Council.”

Skyrocketing pension costs. You can say that again. Depicted on the chart below is a summary of what’s happening to Oxnard, thanks to “skyrocketing pension costs.” The biggest takeaway from this chart is the fact that Oxnard’s pensions have just begun to “skyrocket.” If you want to skip the details and cut to the chase, view the yellow highlighted figures in the middle and at the bottom of the right column.

The first highlighted numbers show how much Oxnard had to pay CalPERS (not including employee contributions through withholding) back in 2017. Back then, it cost them $23 million. Now look to the bottom of the chart, to see what these pensions are going to cost the city in 2024 – nearly twice as much at over $45 million.

The numbers on […] Read More