The Oxnard City Council on Tuesday unanimously approved a $311.2 million budget for the 2007-08 fiscal year that throws the majority of its dollars to police, fire and public works.

But the city's reserve fund dropped for the second year in a row as council members agreed to spend $1.18 million of that cash to satisfy a host of one-time expenses.

Council members approved the budget with little deliberation.

"I think this is a solid budget we can deal with for the next two years," Councilman Dean Maulhardt said.

The spending plan, which began on July 1, allocates $115.3 million for the general fund. The remaining money comes from a host of grants, fees and other revenues and is allocated to a variety of special funds.

City spending from the general fund is expected to decrease 2.6 percent over the 2006-07 fiscal year. But reserves will drop to roughly 11 percent of the general fund, or $13.4 million — instead of the recommended 18 percent. Last year, the council approved a spending plan with a reserve fund at 16 percent of the general fund.

The $1.18 million from reserves will help pay for several one-time expenses, including $50,000 in additional City Attorney legal fees; $100,000 for the newly opened California Welcome Center; $57,000 for a host of fire fighting supplies, training programs and operation costs; and $246,750 gang-related services from the Ventura County District Attorney's Office.

The money also includes $150,000 to repair playgrounds and basketball and tennis courts and $200,000 to expand the City Corps volunteer program.

Speaking later, Deputy City Manager Grace Hoffman said the drop in reserves did not pose any problem.

"Although it sounds like a lot of money, I think we're OK," Hoffman said of the $1.18 million, adding that the council has judiciously dipped into reserves for opportunities. "That's what reserves are for."

The spending plan is a "good, solid budget," Hoffman said. "I think it's something the City Council is proud of."

The police department will get $47 million, the lion's share of general fund dollars and a little more than 0.5 percent increase over the previous year.

The Fire Department will get $13.6 million, a nearly 1.9 percent increase, while Public Works gets $13.3 million, a decrease of nearly 4.25 percent.

The budget calls for 1,194 jobs and allocates $67.1 million to capital improvement projects.

While the panel seemed satisfied, Councilman John Zaragoza called on city staffers to spend the next year focusing on shoring up reserves, beefing up Code Compliance and finding more cash for street repairs and reducing traffic congestion.

Councilman Tim Flynn called for disclosure of financial documents to the public as part of the city's policies. Flynn also implored the panel to spend $119,428 on a graffiti program administrator. But city staff members recommended against the expense, and none of the other council members took up the cause.

Resident and perennial gadfly Larry Stein criticized the plan for setting aside $500,000 for the city's nearly two-year old, downtown movie theater in the event the operator can not make lease payments.

In November, Plaza Cinema operator Dan Tocchini borrowed $61,300 from the city to meet expenses, invoking a little-known clause in his contract. The theater posted $600,000 in losses in its first 13 months.

City officials agreed to set aside the $500,000 about six months ago, Community Development Director Curtis Cannon said after the budget hearing. Tocchini, who said recently that business has picked up this summer, has not borrowed money since that time.

The city doesn't expect Tocchini to borrow again, "but if we don't budget it, we could be in trouble," Cannons said.

Under Tuesday's vote, council members also gave themselves a raise. Mayor Tom Holden and the rest of the panel currently earn $1,543 a month. That will go up to $1,701 by January 2009.