Finance and Management Committee
April 11, 2022
City Administrator Approval Date: Apr 1, 2022
TO: Edward D. Reiskin FROM: Erin Roseman
City Administrator Director of Finance
SUBJECT: Informational Report on Measure Q
and Measure W Expenditures DATE: March 31, 2022
RECOMMENDATION
Staff Recommends That City Council Receive An Informational Report From The City Administrator Detailing How The Vacant Property Tax Act (Measure W) And Oakland Parks And Recreation Preservation, Litter Reduction, And Homeless Support Act (Parks Measure Q) Revenues Have Been Spent Since The City Began Collecting Revenues On Both Measures, Including A Breakdown Of All Programs, Projects, And Services Funded By Revenues From These Measures; And Information Regarding The Most Current Fund Balance In Fund 2270 And Fund 2244 And How Much Of The Available Monies Can Be Directed Towards Efforts To Assist The City’s Homeless Populations
EXECUTIVE SUMMARY
This report details the City of Oakland’s (the City) historical spending and revenues collected to date for Measure Q and Measure W. The City created respectively Fund 2270 for Measure W revenues and expenditures and Fund 2244 for Measure Q revenues and expenditures. City Council has allocated all available funding each year revenue has been collected. For FY 2021- 22, based on incoming revenues and current expenditures, both Funds 2270 and 2244 are projected to end with negative fund balances. Specifically, Fund 2244 is projected to have a -$1.2 million fund balance and Fund 2270 is projected to have a -$4.18 million fund balance.
Edward D. Reiskin, City Administrator
Subject: Informational Report on Measure Q and Measure W Historical Expenditures Finance and Management Committee
April 11, 2022
Date: March 31, 2022 Page 2
BACKGROUND / LEGISLATIVE HISTORY
Voters passed Measure W in November 2018 to place a property tax on vacant properties to raise additional funding around illegal dumping and homelessness. Voters passed Measure Q in March 2020 to place a parcel tax to raise additional funding for Oakland’s parks, litter reduction, and homelessness programming.
On February 18, 2020, City Council Resolution No. 13584 C.M.S., to codify and establish Measure W, the Vacant Property Tax.
On June 2, 2020, City Council Resolution No. 13595 C.M.S., to adjust the tax rates of various measures, including the new Measure Q for parks and homelessness.
On June 30, 2020, City Council Resolution No. 13605 C.M.S., to create an exemption for distressed property owners around paying their Measure Q parcel tax.
On November 10, 2020, City Council Resolution No. 13622 C.M.S., to modify the Oakland Parks and Recreation Advisory Commission so this Commission has oversight over Measure Q.
On December 1, 2020, City Council Resolution No. 88422 C.M.S., to establish tax rates for properties subject to Measure W. Starting with FY 2020-21, the City began to collect revenues for Measure W.
On June 15, 2021, City Council Resolution No. 13652 C.M.S., to increase the annual tax rate for local measures, including Measure Q.
In addition, City Council approved budget expenditures for Measure Q in the FY 2020-21 Midcycle Budget cycle through 88174 C.M.S in June 2020. The FY 2021-23 Biennial Budget cycle was the first opportunity for City Council to allocate budget expenditures for both Measure Q and Measure W, which they approved through Resolution No. 88717 C.M.S. in June 2021.
ANALYSIS AND POLICY ALTERNATIVES
Revenues
FY 2020-21 was the first year where the City could fully collect revenue for Measure Q and Measure W. Table 1 on the following page summarizes all revenues collected to date and FY 2021-22 year-end projections for Measure Q (Fund 2244) and Measure W (Fund 2270).
Edward D. Reiskin, City Administrator
Subject: Informational Report on Measure Q and Measure W Historical Expenditures Date: March 31, 2022 Page 3
Finance and Management Committee
April 11, 2022
Table 1: Historical Revenue Collection for Measure Q and Measure W
As of the FY 2021-22 Q2 Revenue & Expenditure report, net of FY 2021-22 authorized budgeted use of fund balance, Measure Q is estimated to collect $26.96 million in revenue and Measure W is estimated to collect $5.6 million in revenue by year-end. Measure Q is estimated to bring in a total of $52.78 million over its two years of collection. Measure W is estimated to bring in a total of $10.31 million.
Expenditures
City Council has allocated budget to several City Departments to fulfill the services designated in Measure Q and Measure W.
Table 2 below summarizes all spending to date for Measure Q (Fund 2244). The FY 2021-22 YTD Actuals shows spending for the first half of the fiscal year. Spending is broken down by department and expense type to provide a detailed breakdown of Measure Q expenditures.
Table 2: Historical spending for Measure Q (Fund 2244) by Department Division
Department
FY19-20
Expenditure
Actuals
FY20-21
Expenditure
Actuals
FY21-22
Expenditure
YTD Actuals
through Dec
2021
Total
Capital Improvement Projects - -
92245 - Engineer Design: Watershed and Stormwater
Program
- -
54000 - Contract Service Expenditures - -
92270 - Engineer Design: Project Management - -
54000 - Contract Service Expenditures - -
City Administrator 62,183 62,183
02141 - Homelessness 62,183 62,183
51000 - Employee Personnel Service Expenditures 62,183 62,183 52000 - Supply and Material Expenditures - -
54000 - Contract Service Expenditures - -
Edward D. Reiskin, City Administrator
Subject: Informational Report on Measure Q and Measure W Historical Expenditures Date: March 31, 2022 Page 4
Finance and Management Committee
April 11, 2022
Department
FY19-20
Expenditure
Actuals
FY20-21
Expenditure
Actuals
FY21-22
Expenditure
YTD Actuals
through Dec
2021
Total
02151 - City Administrator Call Center - -
51000 - Employee Personnel Service Expenditures - -
City Clerk
326,915
873,085
1,200,000
03121 - City Clerk 326,915 873,085 1,200,000
53000 - Service Expenditures 873,085 873,085
54000 - Contract Service Expenditures 326,915 326,915 Finance Department 7,539 3,753 11,292
08241 - Accounts Payable 3,785 3,785
54000 - Contract Service Expenditures 3,785 3,785
08421 - Revenue: Audit - - -
54000 - Contract Service Expenditures - - -
08721 - Treasury: Operations - -
44000 - Interest, Rent, and Concession - -
08811 - Budget Unit 3,754 3,753 7,507
54000 - Contract Service Expenditures 3,754 3,753 7,507
Human Services Department
3,074,738
1,144,722
4,219,460
78111 - Department of Human Services:
Administration
78,882 78,882
51000 - Employee Personnel Service Expenditures 75,560 75,560 56000 - Internal Service / Work Order Expenditures 192 192 58000 - Other Expenditures and Project Budget
Accounts
3,130
3,130
78199 - DHS Fiscal Operations 30,507 10,758 41,265
51000 - Employee Personnel Service Expenditures - 10,020 10,020 56000 - Internal Service / Work Order Expenditures 318 318 58000 - Other Expenditures and Project Budget
Accounts
-
419
419
59000 - Proprietary Budgetary Offsets and
Operating Transfers
30,507
-
30,507
78411 - Community Housing Services 3,044,231 1,055,083 4,099,313 51000 - Employee Personnel Service Expenditures 27,410 63,047 90,457 52000 - Supply and Material Expenditures 58,138 24,701 82,839 53000 - Service Expenditures 4,260 4,260
54000 - Contract Service Expenditures
2,957,542
958,679
3,916,220
56000 - Internal Service / Work Order Expenditures 205 205 58000 - Other Expenditures and Project Budget
Accounts
1,141
4,191
5,332
Non Departmental and Port 341,542 - 341,542
90591 - City-Wide Activities 341,542 - 341,542
54000 - Contract Service Expenditures 341,542 - 341,542 Oakland Parks and Recreation Department 794 794
Edward D. Reiskin, City Administrator
Subject: Informational Report on Measure Q and Measure W Historical Expenditures Date: March 31, 2022 Page 5
Finance and Management Committee
April 11, 2022
Department
FY19-20
Expenditure
Actuals
FY20-21
Expenditure
Actuals
FY21-22
Expenditure
YTD Actuals
through Dec
2021
Total
502237 - Poplar Recreation Center - -
57000 - Capital Acquisitions - -
503238 - San Antonio Recreation Center - -
52000 - Supply and Material Expenditures - -
509232 - Brookdale Recreation Center 794 794
52000 - Supply and Material Expenditures 794 794
509290 - Ball Fields Maintenance - -
56000 - Internal Service / Work Order Expenditures - -
Oakland Public Works Department
9,203,241
7,304,938
16,508,178
30121 - PWA Fiscal Services 443,448 229,152 672,600
54000 - Contract Service Expenditures 443,448 229,152 672,600 30181 - Management Information Systems 131,398 111,346 242,744 51000 - Employee Personnel Service Expenditures 115,064 92,604 207,668 56000 - Internal Service / Work Order Expenditures 7,024 7,024 58000 - Other Expenditures and Project Budget
Accounts
16,334
11,718
28,052
30234 - Facilities Planning and Development - -
54000 - Contract Service Expenditures - -
30245 - Watershed and Stormwater Program 11,921 119,465 131,386 51000 - Employee Personnel Service Expenditures - 9,870 9,870 54000 - Contract Service Expenditures 11,921 102,036 113,957 56000 - Internal Service / Work Order Expenditures 6,310 6,310 58000 - Other Expenditures and Project Budget
Accounts
-
1,249
1,249
30551 - Facilities: Administration 185,530 542,271 727,801 52000 - Supply and Material Expenditures 5,243 3,877 9,120 54000 - Contract Service Expenditures 900 2,950 3,850
56000 - Internal Service / Work Order Expenditures 9,399 23,710 33,108 57000 - Capital Acquisitions 169,989 511,734 681,722
30555 - Facilities: Roving Custodial - OPR 4,432 - 4,432 51000 - Employee Personnel Service Expenditures - -
52000 - Supply and Material Expenditures 4,432 - 4,432 54000 - Contract Service Expenditures - -
58000 - Other Expenditures and Project Budget
Accounts
-
-
30556 - Facilities: Maintenance - 80,856 80,856
51000 - Employee Personnel Service Expenditures - 27,620 27,620 52000 - Supply and Material Expenditures - 11,261 11,261 53000 - Service Expenditures - - -
54000 - Contract Service Expenditures - 6,936 6,936
56000 - Internal Service / Work Order Expenditures 31,655 31,655 Edward D. Reiskin, City Administrator
Subject: Informational Report on Measure Q and Measure W Historical Expenditures Date: March 31, 2022 Page 6
Finance and Management Committee
April 11, 2022
Department
FY19-20
Expenditure
Actuals
FY20-21
Expenditure
Actuals
FY21-22
Expenditure
YTD Actuals
through Dec
2021
Total
57000 - Capital Acquisitions - - -
58000 - Other Expenditures and Project Budget
Accounts
-
3,384
3,384
30557 - Facilities: Structural - -
57000 - Capital Acquisitions - -
30558 - Facilities: Electrical/ Project 10,544 10,544 52000 - Supply and Material Expenditures 10,544 10,544 30651 - Park Building Maintenance: Administration 110,244 69,151 179,395 51000 - Employee Personnel Service Expenditures 97,638 54,900 152,538 56000 - Internal Service / Work Order Expenditures 8,020 8,020 58000 - Other Expenditures and Project Budget
Accounts
12,606
6,231
18,837
30652 - Landscape Maintenance 8,122,932 5,756,658 13,879,589
51000 - Employee Personnel Service Expenditures
6,103,147
4,127,587
10,230,734
52000 - Supply and Material Expenditures 124,771 23,260 148,032 53000 - Service Expenditures - -
54000 - Contract Service Expenditures 1,814 10,776 12,590 55000 - Travel and Education Expenditures - -
56000 - Internal Service / Work Order Expenditures 561,899 415,380 977,279
57000 - Capital Acquisitions
468,343
674,161
1,142,504
58000 - Other Expenditures and Project Budget
Accounts
862,958
505,493
1,368,450
30654 - Tree Services 193,336 385,495 578,831
51000 - Employee Personnel Service Expenditures 160,525 330,583 491,108 52000 - Supply and Material Expenditures 11,188 11,188 56000 - Internal Service / Work Order Expenditures 14,973 14,973 58000 - Other Expenditures and Project Budget
Accounts
21,623
39,939
61,562
30674 - Illegal Dumping - -
54000 - Contract Service Expenditures - -
Total
326,915
13,500,144
8,516,390
22,343,449
Public Works and Human Services are the two main recipients of Measure Q funding. Human Services is responsible for providing services around homelessness in Oakland. Public Works is using Measure Q funding to support park maintenance at various parks across the city and to support stormwater management citywide.
Edward D. Reiskin, City Administrator
Subject: Informational Report on Measure Q and Measure W Historical Expenditures Date: March 31, 2022 Page 7
Finance and Management Committee
April 11, 2022
Table 3 below summarizes all spending to date for Measure W (Fund 2270). The FY 2021-22 YTD Actuals shows actuals for the first half of the fiscal year. Spending is broken down by department and expense type to provide a detailed breakdown of Measure W expenditures.
Table 3: Historical spending for Measure W (Fund 2270) by Department
Department
FY18-19
Expenditure
Actuals
FY19-20
Expenditure
Actuals
FY20-21
Expenditure
Actuals
FY21-22
Expenditure
Actuals
through
Dec 2021
Total
City Administrator
303,747
144,446
448,193
02111 - City Administrator:
Administration
303,747 23,961 327,708
51000 - Employee Personnel
Service Expenditures
303,747
21 303,768
56000 - Internal Service / Work
Order Expenditures
23,940
23,940
02141 - Homelessness
120,485
120,485
51000 - Employee Personnel
Service Expenditures
120,485
120,485
Finance Department
35,318
384,061
1,338,179
368,226
2,125,785
08222 - General Ledger
225,262
225,262
51000 - Employee Personnel
Service Expenditures
225,262
225,262
08411 - Revenue: Administration
35,318
245,532
539,577
86,552
906,978
51000 - Employee Personnel
Service Expenditures
866
61,316
16,315
78,497
53000 - Service Expenditures
-
-
54000 - Contract Service
Expenditures
35,318
244,666
478,261
66,256
824,501
56000 - Internal Service / Work
Order Expenditures
3,981
3,981
59000 - Proprietary Budgetary
Offsets and Operating Transfers
-
-
08421 - Revenue: Audit
99,249
328,112
139,192
566,554
51000 - Employee Personnel
Service Expenditures
99,249
328,112
126,694
554,056
56000 - Internal Service / Work
Order Expenditures
12,498
12,498
59000 - Proprietary Budgetary
Offsets and Operating Transfers
-
-
08721 - Treasury: Operations
39,280
245,228
142,482
426,991
51000 - Employee Personnel
Service Expenditures
39,280
122,969
66,623
228,873
Edward D. Reiskin, City Administrator
Subject: Informational Report on Measure Q and Measure W Historical Expenditures Date: March 31, 2022 Page 8
Finance and Management Committee
April 11, 2022
Department
FY18-19
Expenditure
Actuals
FY19-20
Expenditure
Actuals
FY20-21
Expenditure
Actuals
FY21-22
Expenditure
Actuals
through
Dec 2021
Total
54000 - Contract Service
Expenditures
122,260 71,460 193,720
56000 - Internal Service / Work
Order Expenditures
4,399
4,399
Housing and Community
Development Department
-
-
-
89939 - Municipal Lending
- - -
54000 - Contract Service
Expenditures
-
-
-
Human Services Department
48,415
259
48,674
78411 - Community Housing
Services
48,415 259 48,674
51000 - Employee Personnel
Service Expenditures
38,617
-
38,617
54000 - Contract Service
Expenditures
-
-
-
56000 - Internal Service / Work
Order Expenditures
259
259
58000 - Other Expenditures and
Project Budget Accounts
9,799
9,799
Oakland Public Works Department
1,653,194
2,779,548
4,432,742
30674 - Illegal Dumping
1,494,925 2,646,790 4,141,714
51000 - Employee Personnel
Service Expenditures
1,169,485
1,346,967
2,516,452
52000 - Supply and Material
Expenditures
1,071
-
1,071
53000 - Service Expenditures
10,203
1,037,955
1,048,158
54000 - Contract Service
Expenditures
1,943
-
1,943
56000 - Internal Service / Work
Order Expenditures
90,568
261,868
352,436
57000 - Capital Acquisitions
221,654
-
221,654
30676 - Litter Enforcement
158,269
132,758
291,027
51000 - Employee Personnel
Service Expenditures
65,099
21,265
86,364
53000 - Service Expenditures
-
-
54000 - Contract Service
Expenditures
93,171
109,841
203,011
56000 - Internal Service / Work
Order Expenditures
1,652
1,652
Total
35,318
384,061
3,343,535
3,292,480
7,055,394
Edward D. Reiskin, City Administrator
Subject: Informational Report on Measure Q and Measure W Historical Expenditures Date: March 31, 2022 Page 9
Finance and Management Committee
April 11, 2022
Public Works and Human Services are the two main recipients of Measure W funding. Human Services is responsible for providing services around homelessness in Oakland. Public Works is using Measure W funding to clean up illegal dumping and litter.
Fund Balance
The City’s FY 2021-22 Q2 Revenue and Expenditure report indicates that Measure Q (Fund 2244) and Measure W (Fund 2270) are both projected to end in a negative fund balance by year-end.
Measure W is projected to collect $1.40 million less than anticipated in revenue, due to a higher number of delinquencies and the new valuation of properties from Alameda County that are under $10,000. On the expenditure side, Measure W is projected to have $1.63 million in savings, as Table 4 shows below:
Table 4: FY 2021-22 Measure W Projected Expenditures by Department ($ in millions)
Agency / Department
FY 2021-22
Adjusted Budget
FY 2021-22 Q2
YTD Actuals
FY 2021-22 Q2
Year-End
Estimate
Year-End $
(Over) / Under
Adjusted Budget
City Administrator 0.56 0.14 0.41 0.15
Finance 0.82 0.37 0.73 0.09
Human Services 2.27 — 2.11 0.17
Housing & Community
Development
0.50 —
0.50 —
Public Works 8.20 2.78 6.98 1.23
Total Expenditures 12.35 3.29 10.72 1.63
Edward D. Reiskin, City Administrator
Subject: Informational Report on Measure Q and Measure W Historical Expenditures Date: March 31, 2022 Page 10
Finance and Management Committee
April 11, 2022
Measure Q is projected to collect $0.54 million less than anticipated in revenue, based on the current six months of fiscal data. On the expenditure side, Measure Q is projected to have $0.07 million in savings, as Table 5 shows below:
Table 5: FY 2021-22 Measure Q Projected Expenditures by Department ($ in millions)
Agency / Department
FY 2021-22
Adjusted Budget
FY 2021-22 Q2
YTD Actuals
FY 2021-22 Q2
Year-End
Estimate
Year-End $
(Over) / Under
Adjusted Budget
City Administrator 2.40 0.06 2.33 0.07
Finance 0.11 — 0.11 —
Parks, Recreation & Youth
Development
0.25 —
0.25 —
Human Services 10.24 1.14 10.24 —
Public Works 25.39 7.30 25.39 —
Transportation — — — —
Non Departmental 0.92 — 0.92 —
Capital Improvement Projects 0.93 — 0.93 —
Total Expenditures 40.22 8.52 40.15 0.07
Despite the savings anticipated for both Measure Q and Measure W on the expenditure side for FY 2021-22 (Table 4 and Table 5), the funds are still projected to have a negative ending fund balance. This is because the fund balance at the beginning of FY 2021-22 represents the remaining unspent allocations from FY 2020-21 that City Council has already obligated to pay for services. Year-end estimates assume all budgeted funding to be expended by the end of FY2021-22 as Table 6 shows:
Edward D. Reiskin, City Administrator
Subject: Informational Report on Measure Q and Measure W Historical Expenditures Date: March 31, 2022 Page 11
Finance and Management Committee
April 11, 2022
Table 6: Estimated Ending Fund Balance for Measures Q and W
Fund
FY21-22
Audited
Beginning
Balance
FY21-22
Revenue
Year-End
Estimate
FY21-22
Expenditure
Year-End
Estimate
FY21-22
(Use of) /
Contribution
to Fund
Balance
FY21-22
Estimated
Ending Fund
Balance
Measure Q - OPR Preservation, Litter
Reduction, Homelessness Support Act
Fund (2244)
11,987,568
39,684,089
40,150,815
(12,719,715)
(1,198,873)
Measure W - Vacant Property Tax Fund
(2270)
942,623
10,950,216
10,720,275
(5,349,885)
(4,177,321)
*The revenue year-end estimate includes carryforwards and use-of-fund-balance
As such, the City’s Q2 Revenue and Expenditure report indicate that Measure Q (Fund 2244) is projected to end FY 2021-22 with a negative $1.2 million fund balance and that Measure W (Fund 2270) is projected to end with a negative fund balance of $4.18 million. This negative fund balance should be mitigated through careful management of current year appropriations and correct actions in the Midcycle Budget Process.
Conclusion
The City’s Measure Q and Measure W funds are recent new revenue sources. In the Fourth Quarter Revenue & Expenditure Report that was presented to the City Council on December 21, 2022, both Measure Q and Measure W had negative available balances of -$2.19 Million and -$4.55 Million respectively. Given current spending trends, Measure Q (Fund 2244) and Measure W (2270) are projected to have negative fund balances at the end of the current Fiscal Year as well. Due to the full appropriation of resources, neither Measure has available funding for additional services in the current FY 2021-22 or, FY 2022-23, unless Council redirects departments to change or reduce currently funded commitments. Staff recommends that any such changes occur after the Third Quarter information is available, and as a part of the FY 2022-23 Midcycle Budget Process.
PUBLIC OUTREACH / INTEREST
No outreach was deemed necessary for this informational report beyond the standard City Council agenda noticing procedures.
COORDINATION
This report was prepared in coordination between the Finance Department, the City Administrator’s Office and various departments.
Edward D. Reiskin, City Administrator
Subject: Informational Report on Measure Q and Measure W Historical Expenditures Date: March 31, 2022 Page 12
Finance and Management Committee
April 11, 2022
SUSTAINABLE OPPORTUNITIES
Economic: No direct economic opportunities have been identified.
Environmental: No direct environmental impacts have been identified.
Race & Equity: No direct Race & Equity opportunities have been identified in this informational report.
ACTION REQUESTED OF THE CITY COUNCIL
Staff recommends that City Council receive an informational report from the City Administrator detailing how the Vacant Property Tax Act (Measure W) and Oakland Parks And Recreation Preservation, Litter Reduction, and Homelessness Support Fund (Parks Measure Q) revenues have been spent since the City began collecting revenues on both measures, including a breakdown of all programs, projects, and services funded by revenues from these measures; and information regarding the most current fund balance in Fund 2270 and Fund 2244 and how much of the available monies can be directed towards efforts to assist the City’s homeless populations.
For questions regarding this report, please contact Bradley Johnson, Budget Administrator, at (510) 238-6119.
Respectfully submitted,
Erin Roseman
Director of Finance
Finance Department
Reviewed by:
Bradley Johnson
Budget Administrator
Prepared by Budget Bureau staff:
Ecaterina Burton