Oxnard's police and fire departments will get the majority of tax dollars in the city's 2007-08 budget, but with modest increases over the previous fiscal year.

The Oxnard City Council unanimously approved the $311.2 million spending plan Tuesday. Council members dipped into the reserves for $1.18 million to satisfy a host of one-time expenses, decreasing the city's reserve fund for the second year in a row.

The panel approved the budget with little deliberation.

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

The spending plan allocates $115.3 million to the general fund. Remaining dollars come from a host of grants, fees and other revenue.

General fund spending is expected to drop 2.6 percent from the 2006-07 fiscal year. Reserves will drop to roughly 11 percent of the general fund, or $13.4 million, instead of the recommended 18 percent. For the last fiscal year, the council approved a spending plan with reserves at 16 percent of the general fund.

The $1.18 million will help pay for several items, including: $50,000 in additional legal fees; $100,000 for the newly opened California Welcome Center; $57,000 for firefighting supplies, training programs and operating costs; and $246,750 in 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.

Declining reserves will not pose a problem, Deputy City Manager Grace Hoffman said after the vote.

"Although it sounds like a lot of money, I think we're OK," Hoffman said.

The council has judiciously dipped into reserves for opportunities, she said, adding "that's what reserves are for."

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

The Police Department will get $47 million, a 0.6 percent increase over the previous year. The Fire Department will receive $13.6 million, a nearly 1.9 percent increase.

Safe neighborhoods is goal

Speaking Wednesday, Mayor Tom Holden said he was comfortable with the funding for both departments, citing recommendations from Police Chief John Crombach and Fire Chief Joe Milligan.

"The goal is to create safe neighborhoods, and we rely on them to let us know what's needed to do that," Holden said.

Crombach and Milligan were unavailable for comment Wednesday.

At the hearing Tuesday, Councilman John Zaragoza called on city staffers to spend the next year focusing on shoring up reserves, beefing up Code Compliance and finding more money to repair streets and reduce traffic congestion.

Councilman Tim Flynn 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.

Theater funds criticized

Oxnard resident Larry Stein criticized the spending plan for setting aside $500,000 for the city's nearly two-year-old downtown movie theater in the event the operator cannot 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.

According to Tocchini, business at the cineplex is up this summer. He has not borrowed money since that time, and city officials don't anticipate another request.

"But if we don't budget it, we could be in trouble," Cannon said.

Council members also voted themselves a raise of 5 percent a year, allowed under state law. Mayor Tom Holden and the other council members now are paid $1,543 a month. That will increase to $1,701 by January 2009.