A City of Ojai Financial Health Report
By Andy Gilman

Dear Ojai Resident,

I want to take this opportunity to give a financial health overview for the City of Ojai. The Staff and Council take our financial responsibility very seriously, a duty that is among our very top priorities. 

The City has published its first Annual Comprehensive Financial Report (ACFR) for the period ending June 30, 2024. The City’s ACFR was awarded the Government Finance Officers Association (GFOA) Certificate of Achievements of Excellence, which represents the highest recognition in governmental financial reporting and reflects the City’s commitment to fiscal transparency. The ACFR shows the financial trends of the City, and the growth of its fund balance over the years. Due to the City Council’s leadership and guidance, the general fund reserve has more than tripled from 2019 to 2024 from $6.3 million to $21.7 million. 
 
The City adopted the Balanced Budget Policy in August 2025. The City is to maintain a balanced budget, meaning that general fund operating revenues must fully cover operating expenditures. Under the policy, total expenditures can exceed revenues in a given year, where fund balance can be used to fund capital projects and “one-time,” non-recurring expenditures. Examples of these non-recurring expenditures include the property purchase of 503 S Ventura Street, speed survey, and the Ojai Unified School District Career Technical Education grant match. The Council has established nine substantial goals, with tactics supporting each goal, and regularly uses this framework to guide priorities and allocate resources accordingly. 
 
The City staff is currently preparing for Fiscal Year 2026/27 and will propose a budget (adopted in July) that complies with the Balanced Budget Policy and Reserve Policy. Per the reserve policy, the City maintains a minimum fund balance of 100% of the prior year’s general fund operating expenditures as the minimum general fund reserve. Many cities maintain a reserve balance of 50% or less; Ojai’s unusual 100% policy recognizes its reliance on transient occupancy tax revenue, and the need to set aside funds in the event these revenues decline unexpectedly. The Finance and Budget Committee has agreed to further research and evaluate this policy in a future meeting (following the review of the proposed FY 2026/27 budget). The Balanced Budget and 100% Reserve policies aim to ensure long-term financial health and stability. 

Additionally, the City has hired consultants to assist in projecting top revenue sources as well as ensuring the efficiency of our accounting systems. The City has a 5-Year Capital Improvement Project (CIP) Plan to address the priority of infrastructure maintenance and improvement, which is projected to be ahead of schedule in 2026/2027. The next phase of our road paving plan will begin soon. Retiree benefits and long-term liabilities are also being pre-funded to ensure long-term sustainability and responsible fiscal planning. 

Even through catching up on deferred maintenance, re-evaluating underfunded programs, bringing staff up to capacity and county pay standards, and working to improve our climate resiliency and recreation resources, we continue to maintain an over 100% general fund reserve. We will always strive to allocate resources responsibly and with the best interests of our residents in mind. We welcome your feedback and ideas and look forward to continuing our work in maintaining our city and bringing this evolving set of goals to life for our community.