Alameda’s Fiscal
Sustainability
Alameda City Council Workshop
October 21, 2025
Goals for
Tonight's Workshop
Receive City Council Direction & Community
Input:
1. Budget update
2. Potential revenue measure
3. Improved collection process
4. Draft budget and financial policy
1. Budget Update:
Revenue Increases
The City’s current financial status is stable and residual fund balance is slightly improved with one-time revenues coming in stronger than anticipated:
• Transfer Tax exceeded projections by $2.7 million, a
20% increase from the prior year
• Interest Income exceeded projections by $3.3 million
driven by high interest rates and a strong cash
balance
• Property tax also increased faster than expected,
resulting in $1 million more than anticipated
1. Budget Update:
Revenue Declines
• Sales Tax declined by $1.6 million, or 14.5%,
from FY 23-24 to FY 24-25
o While we expected these revenues to
decline, this was more than anticipated
• Economic Uncertainty
o Federal grant requirements
o Inflation/interest rate environment
1. Budget Update
Staff Recommendation
No need for significant changes to adopted
FY 2025-27 Biennial Budget
Continue monitoring financial status
2. Explore Revenue Measures
The City Council’s approved Strategic Plan includes
projects to ensure our fiscal sustainability:
Practice Fiscally Responsible, Equitable, & Inclusive
Governance
• GOV15: Explore potential revenue measures that
increase fiscal resilience and implement the City
Council's strategic Priorities
• GOV15b: Explore an infrastructure bond to fund
deferred maintenance and new infrastructure needs.
Hundreds of Millions
in Infrastructure
Needs
The City has a significant backlog of maintenance
needs and facility upgrades to meet current
standards. We want to hear your input.
• Streets, Traffic Safety: Sept 2
• City Facilities, Public Safety: Oct 7
• Libraries, Recreation and Parks: Nov 4
• Flood Protection, Sea Level and Ground Water
Rise, Disaster Preparedness: Dec 2
Stronger Together Campaign
Stronger Together
webpage
Social media and
Nextdoor posts
4 City Council
public workshops
on infrastructure
needs
City Council public
workshop on fiscal
sustainability
Statistically
significant
community polling
In-person
community
engagement
Stakeholder
outreach
Online community
survey, social
media posts
Email bulletins
and information
sent via USPS
Second round of
community polling
August-December 2025
January-April 2026
Approved Revenue Measures
✓ 2016: 72.9% of voters approved updating the
Utility Users Tax (UUT)
✓ 2018: 61.5% of voters approved a Sales Tax
measure
✓ 2019: 57% of voters adopted a new Stormwater
Fee
✓ 2022: 58% of voters approved a Transient
Occupancy Tax (TOT) increase measure
➢ Increases annual revenues by over $1
million
➢ Increases annual revenues by over
$400,000
➢ Increases annual revenues by over $2.5
million (not General Fund)
➢ Increases annual revenues by over
$900,000
These revenue measures result in over $4.8 million each year, including $2.3 million in General Fund revenues
Potential New Revenue Measures
• Staff is actively exploring potential revenues measure to address critical funding gaps, including infrastructure needs and ongoing public safety service demands.
• The City will be conducting a statistically valid community poll to understand the priorities of Alameda voters when it comes to the mechanics of a potential revenue measure and the projects and programs that could be funded.
Infrastructure Bond
• In June 2024, 68% of respondents were supportive or leaning in that direction of a local funding measure dedicated to
City infrastructure improvements
• For a $150 million General Obligation Bond, property owners would pay an average of $29 per $100,000 of assessed value per year while the bonds are outstanding
Revenue Measure to Address
Ongoing Public Safety Needs
• In 2020, City of Berkeley voters passed Measure FF, a parcel tax that generates $8.5 million annually to fund fire services, emergency medical response, 9-1-1 communication, hazard mitigation, and wildfire prevention
• The tax is based on the square footage of improvements on a property, and funds can be used for personnel, equipment, and infrastructure related to public safety
• The City of Alameda has never considered such a tax; however, it would help fund critical ongoing public safety needs
Revenue Measure
Staff Recommendation
Provide direction on revenue measure
opportunities to consider
Explore potential voter support for revenue
measures and projects in upcoming poll
3. Improved Collection Process
As of June 30, 2025, the City had more than $1.4 million in outstanding unpaid receivables across multiple revenue streams.
Department/Program FY 23-24 FY 24-25 Total
Business License (General Fund) $219,455 $38,614 $258,069 Fire Prevention (General Fund) $73,000 $302,000 $375,000 APD False Alarms (General Fund) $10,000 $17,000 $27,000 Rent Program $209,000 $261,000 $470,000
Traffic Mitigation* $183,000 $0 $183,000
Zero Waste Program $0 $40,000 $40,000
C ode Enforcement $5,000 $10,000 $15,000
Sidewalk Program** N/A $86,000 $86,000
C lean Water Program TBD TBD TBD
Total: $699,455 $754,614 $1,454,069
Uncollected Revenues
(FY 25 Year -End Balances)
Unsecured
Fire Prevention fees $ 375,000
Police False Alarm fines $ 27,000
Traffic Mitigation fees $ 183,000
Zero Waste Citations $ 40,000
Clean Water Citations
Business License Tax $ 258,000
Secured
Rent Program fees $470,000
Code Enforcement Citations
Authorized
Sidewalk Program $ 86,000
Collection Policies Around the Bay
City
Internal
Collections
Process
Third Party
Collection
Agency
Types of Delinquent
Revenue
Use of
Property Tax
Liens
State Tax
Intercept
Program
Berkeley
Revenue
Collection
Division
None
• Taxes & Fees
• Citations
• Fines & Penalties
Yes Yes
Concord Finance Dept HdL
• Taxes & Fees
• Citations
• Fines & Penalties
Yes Yes
Dublin Finance Dept HdL
• Taxes & Fees
• Citations
• Fines & Penalties
Yes Yes
Emeryville Finance Dept
HdL,
MuniServices/
Avenue
• Taxes & Fees
• Citations
• Fines & Penalties
Yes Yes
Hayward Finance Dept RFP issued in
2024
• Taxes & Fees
• Citations
• Fines & Penalties
Yes Yes
San Leandro Finance Dept HdL
• Taxes & Fees
• Citations
• Fines & Penalties
Yes Yes
Probability of Recovering Debt
with Age
Accounts Receivable Process
Invoice Issued
(1st Attempt)
1-30 Days
Account is referred to
the Finance Dept
($50 Collection Fee
applies)
91+ Days
Final Collections
Notice mailed
(4th Attempt)
136-180 Days
Hearing Date -
Judgement is awarded
Court costs
Small Claims
Court
Lien Hearings
County Tax rolls
Property Liens
Past Due Notice
Mailed
(2nd Attempt)
31-60 Days
1st Collections
Notice mailed
(3rd Attempt)
92-135 Days
The City is within its
right to take Legal
Action
181+ Days
State Tax
intercept
FTB Intercept
If unable to collect
after 3 years
Write-offs
We are here
Why Enforce Revenue Collections?
• Equitable: Establishing and enforcing collections discourages non-payment and promotes fairness among taxpayers and fee payers.
• Revenue Opportunity: Helps recover funds due to the City that would otherwise be lost and could be used to fund services.
• Best Practice: All cities maintain a delinquent revenue process and a GFOA best practice.
• Flexibility: Includes hardship policies, payment plans, and appeal processes, ensuring residents and businesses have fair opportunities to resolve outstanding balances.
3. Improve Collections Process
Staff Recommendation
Provide direction on improving the City’s
collections process
Staff will return to Council later this year
with formal next steps needed to
implement
4. Budget Policy
PURPOSE:
• To help the City attain and maintain financial sustainability & accountability • To identify and maintain best practices in budgeting, reserves, and grants • To set up a clear policy and accountability measures to ensure compliance • To instill a culture of fiscal prudence citywide
Section 1. Budget Practices
HIGHLIGHTED POLICIES:
• Budget will be structurally balanced
• 5-year fiscal forecasting is a part of Biennial Budget Process • One-time revenues used only for one-time purposes
• Capital Projects will be budgeted for both capital and operating costs Section 2. Reserves & Revenue Practices
HIGHLIGHTED POLICIES:
• Adequate reserves will be maintained
• Revenue projections will use a reasonably conservative methodology • Only the stable portion of revenues will be used for ongoing operations • Grants that are deemed appropriate will be actively sought out Section 3. Reporting & Planning Practices
HIGHLIGHTED POLICIES:
• Financial status of major City funds will be periodically reviewed • Long-term General Financial Plan will be produced and maintained • Financial policies will be periodically reviewed
4. Budget Policy
Staff Recommendation
Provide feedback on draft budget and
financial accountability policy
Staff will return to Council for formal
approval
Other Fiscal Sustainability
Measures
Staff will continue to monitor expenditures and maximize new and existing funding:
• Continue pursuing grant funding, such as Water Resources Development Act (WRDA) approved $15 million for coastal adaptation projects
• Closely review and monitor City contracts, especially major contracts funded by General Fund • Monitor risks of federal funding losses, including loss of Medicaid funding for reimbursement of local fees
• Explore new funding opportunities for Strategic Plan projects that are not fully funded • Renegotiate marina and pier leases to include performance standards and capital investment to reduce City’s ongoing liability
• Implement Community Facilities Districts to fund ongoing fiscal impacts of new, large-scale development areas
When Alameda is
fiscally sustainable, we:
• Are better positioned to maintain a high-level of operational performance and customer service for the Alameda community
• Achieve City Council’s Strategic Priorities
• Are efficient with limited resources
• Attract and retain an exceptional workforce
• Successfully weather economic downturns, federal uncertainty, emergencies and disasters, and other unforeseen circumstances Join the Conversation
Attend A Workshop:
• September 2: Streets, Traffic Safety
• October 7: City Facilities, Public Safety
• November 4: Libraries, Recreation and Parks
• December 2: Flood Protection, Sea Level and Ground Water Rise, Disaster Preparedness
Visit our website to read more and share your feedback:
• www.alamedaca.gov/strongertogether
Council Discussion
Receive City Council Direction & Community
Input:
1. Budget update
2. Potential revenue measure
3. Improved collection process
4. Draft budget and financial policy