Finance and Budget,
Administration, Resiliency
Community Supports, and
Communications
Oakland City Council Orientation
February 3, 2023
Agenda
• City Administrator’s Office (CAO)
• Department of Race & Equity (DRE)
• Finance and Budget
• Department of Workplace and Employment Standards (DWES) • Human Resources Management Department (HRM)
• Information Technology Department (ITD)
• Administration Summary
Agenda
• Oakland Animal Services (OAS)
• Oakland Public Library (OPL)
• Oakland Parks, Recreation & Youth Development (OPRYD) • Resiliency and Community Supports
• Communications & Engagement
City Administrator’s Office (CAO)
City
Administrator’s
Office (CAO)
Ed Reiskin
City Ad m in is tra to r
CAO - Key Team Members
• Ed Reiskin, City Administrator*
• Harold Duffey, Interim City Administrator
• Elizabeth “Betsy” Lake, Assistant City Administrator • LaTonda Simmons, Assistant City Administrator
• Angela Robinson Pi non, Deputy City Administrator
• Joe DeVries, Deputy City Administrator
• Nicole Neditch, Acting Citywide Communications Director • Aracely “Shelly” Garza, Executive Assistant to the City Administrator ~
Mission Statement:
The Office of the City
Administrator provides
strategic leadership that
supports the Mayor, City
Council and City -wide
Departments; the Office
motivates and challenges
the organization to deliver
efficient and effective
services toward equitable
outcomes in the
community.
CAO - Business Goals
• Administer the affairs of the City in an efficient and effective manner;
• Conduct necessary reviews of City operations to improve accountability of City government toward equitable outcomes; • Manage and coordinate Citywide service delivery;
• Enforce all applicable laws, ordinances, and policies of the City; CAO - Bu sin e ss Go a ls
• Advance the City’s vision and goals and build organizational capacity;
• Provide professional expertise and support to the Mayor and City Council in the formulation, interpretation, and application of public policy; and
• Advance the Mayor’s and City Council’s priorities.
CAO – Responsibilities
Oakland Museum of California(OCMA)
• The CAO manages the 10 -year grant agreement with the OCMA.
Commission Assistance and/or Liaison
• The CAO serves as staff and/or support to various Independent Commissions including the Redistricting Commission, Privacy Advisory Commission (Chief Privacy Officer), Police Commission (liaison), Safety and Services Oversight Commission, Community Policing Advisory Board, Homelessness Commission, Children’s Initiative Oversight Commission, and Sugar Sweetened Beverage Board.
CAO – Responsibilities
Working Groups
• Coordinates interdepartmental efforts for a wide array of activities including Wildfire Prevention, Lake Merritt, Encampment Management, and Public Safety Task Force.
Performance Management System
• Developing a citywide Performance Management System to track progress and measure organizational success.
Alameda County Leadership Academy
• Facilitate City employees participating in the program.
CAO – Responsibilities
Agenda Report Management and City Council Meeting Support • Manages the City Administrator's Agenda Processes, including preparing, reviewing, analyzing, and editing agenda reports and presentations for City Council.
Manage the City's Administrative Instructions (AI)
• Receives, analyzes, and edits AIs, which describe the City’s policies, practices, standards, and procedures for various items; uploads materials to the City's intranet; responds to inquiries from staff.
CAO – Neighborhood Services
"Every block is organized, and every neighbor is skilled, networked, and empowered to work together and in partnership with the City, and County outside community organizations to solve problems and build a healthy, resilient community. "
Mission Statement:
What does Nei ghborhood Serv i ces do?
• Provide support to Neighborhood Council’s and Neighborhood Watch Groups • Provide continuous engagement with resident to ensure connectivity to City services
• Facilitate interdepartmental coordination in the East, Central East, and West Oakland Neighborhood Enhancement Service Teams (NEST) areas to meet the needs of area residents
• Train residents to work together in partnership with each other, community groups, and City/County offices.
• Organizing, outreach, and leadership development
Nei ghborhood Servi ces Coordi nators
(NSCs) P ro g ra m s
• Support the 44 Neighborhood Councils (NCs) established under the Community Policing Program.
• Serve as liaisons to all City Departments and coordinate service delivery to be more effective
• Assist NCs in identifying community priorities for the City to address and track progress on those priorities
• Identify and recruit leaders and participants for Neighborhood Councils and Neighborhood Watch
• Conduct outreach in neighborhoods to increase participation in a variety of city sponsored events
Social, Racial, & Economic Equity
Oakland’s 2030 ECAP*
How do we STOP
Climate Change?
How do we ADAPT to
Climate Change?
Local
Emissions
Life Cycle
Emissions
Carbon
Removal
Resilient
Infrastructure
Resilient
Government
Resilient
Communities
CAO – Sustainability
• CAO Sustainability and Resilience Division focuses on the following services:
– Leading and supporting interdepartmental ECAP Action Items – Leading and supporting grant applications for resources – Providing expertise to departments, Council, Mayor, and community on issues – Conducting technical analysis on climate and resilience conditions – Providing planning and strategy for long -term service provision – Working with community organizations to support community -led climate efforts CAO – Sustainability
• Project Examples include:
– Establishing Resilience Hubs – spaces with reliable electricity during power outages, clean air during smoke and heat days, and serving community -specific needs.
– Electrifying Municipal Buildings – replacing natural gas systems (water and space heating, cooking) with clean electric alternatives.
– Reducing Wildfire Risk – Coordinating with OFD to create healthier forests to remove GHG emissions while lowering fire risk to hillside residents.
– Building EV Infrastructure – Coordinating the installation of charging stations for electric vehicles in frontline communities.
CAO – Sustainability
• Small Dollar Division with Big Dollar Influence:
– Annual Cost to City: $1M in annual staff costs, with no committed long -term funding for implementation
– Revenue Generators: Helped departments secure significant resources for implementation: $28M for TCC (resilience), $90M for sustainable housing (HCD), $5 -$10M for EVs/mobility (DOT) – Revenue Potential: Leading City’s pursuit of funding for Inflation Reduction Act and Infrastructure Investment and Jobs Act - $700B over next two years (target for Oakland is $1.5B) – Council and Mayor have provided ad hoc funding for projects and positions – timing of 2023 is critical for making positions stable amidst once -in-a-generation climate funding from IRA and IIJA.
CAO – Sustainability
CAO – Oakl and T CC
• Climate Investment Cap and Trade Dollars to fund Five Projects and Three Transformative Plans in the amount of $28.2 Million • Focused in 5 square miles in Deep East Oakland spanning Council Districts 6 and 7
• Climate Investment Strategies Include:
• Affordable Housing
• Active Transportation
• Urban Greening and Green Infrastructure
• Health and Wellbeing
• Grant Timeline: January 2021 – December 2024
CAO – Oakl and T CC
• Developed 55 Unit Affordable Housing opening February 2023 • Over 140 Youth completed Bike Enrichment Program and 20 Bikes in circulation for Bike Share Program
• Creation of a Small Business Alliance in Deep East, support for East 14 th Business Corridor, Tenant Improvement and Anti -Displacement for Businesses
• Opened a Resource Center at 9400 International
• Planting Justice purchased 3 -acre lot for Aquaponics Farm • Keeping Deep East residents housed in the neighborhood through anti -displacement strategies
CAO – FOOD SECURI T Y /
SSB PROGRAMS
• Measure HH approved by Oakland voters in Nov 2016 imposed 1 cent per fluid ounce tax on the distribution of sugary beverages in Oakland • Revenues from this excise tax are intended to be used to reduce consumption and/or reduce the health consequences of consuming SSBs
• SSBT Advisory Board comprises of nine (9) Oakland residents who meet once a month to make recommendations to Council
• Commissioners serve 3 -year terms
CAO – FOOD SECURI T Y /
SSB PROGRAMS
• $1.5 million to community -based orgs for programs to improve health and prevent SSBT related diseases
• SABA Grocers Food Card Program
• $2 million in direct food assistance for 1200 lower income Oakland families
• Direct allocations to Parks, Recreation and Youth Development and Human Services Departments to support programming
CAO – FOOD SECURI T Y /
SSB PROGRAMS
Summer Food Service Program
• Over 100,000 meals served to Oakland children in neighborhoods where majority qualify for free and reduced -price school meals • Served 45 sites in East and West Oakland in 2002
Neighborhood Food Hubs
• Commercial kitchen space and food distribution center at Arroyo Viejo • Partnership with Alameda County DSAL and Black Cultural Zone
LEARN MORE
For more information about the work of the City Administrator’s Office, please visit the City of Oakland website.
oakl andca. gov /departm ents/
c it y-adm i ni strator
Department of Race & Equity (DRE)
Advancing
Racial
Equity
Darlene Flynn, Director
Department of Race and Equity (DRE)
Indigenous Populations
Begin with Vision
Race and Equity Vision:
To maintain Oakland’s diversity and create a city where racial disparities have been eliminated and racial equity has been achieved.
High Level Goals:
• Identify and eliminate systemic causes of racial disparities in City Government. • Promote inclusion and full participation for all residents of the City. • Reduce race -based disparities in our communities.
What is Equity?
• Just and fair inclusion, explicitly including those from whom justice has been withheld. • An equitable society is one in which all can participate and prosper. • The goals of equity must be to create conditions that allow all to reach their full potential. • Equity requires system change that removes barriers to opportunity.
Eq-ui-ty (ek-wi-tee), noun
Working Assumptions
• Race matters. Almost every indicator of well- being shows troubling disparities by race
• Disparities are often created and maintained
inadvertently through policies and practices
that contain barriers to opportunity (systemic racism)
• It’s possible -- and only possible -- to close equity gaps by using strategies determined through an intentional focus on race
• If opportunities in all key areas of well- being are equitable, then equitable results will follow • Given the right message, analysis, and tools, people will work toward racial equity.
A pattern of social institutions; such as
governmental organizations, schools, banks,
and courts of law, perpetuating negative
treatment toward a group of people based on
their race. Institutional racism leads to
inequality in opportunity and inequity in life
outcomes.
Systemic and
Institutional Racism
“If you always do what you’ve always done,
you’ll always get what you’ve always got.” – Henry Ford Race and Equity Change
Process
• Make a compelling case for racial equity
• Prepare advocates and leadership to advance equity
• Build infrastructure and political will to support the change • Apply new skills/tools (Racial Equity Impact Analysis) • Action focused on changes to policies, procedures and practices • Measure progress and recognize accomplishments
Building Skills and Infrastructure for Change
Department Equity Teams
Training
Tools/Support to Advance Racial Equity
• Racial Equity Implementation Guide
• Inclusive Outreach and Engagement Planning Guide
• Coaching and Technical Assistance from DRE Specialists Ayanna Allen – Executive Assistant, Jacque Larrainzar – Program Analyst, Darlene Flynn - Director
Applied Equity Work Products
(Including the Equitable Paving Plan)
The CIP prioritizes capital needs based on Oakland’s values Citywide Capital Prioritization Factors
Mayor and Council
Priorities
General Plan and
Specific Plans
Departmental
Strategic Plans
Measure KK
Guiding Principles
Other Council
Adopted Plans
Asset Specific Sub-Factors +
Performance Metrics
Public Input
Shared Values
Lead Departments – Transportation and Public Works
Equity: Investment in Underserved Oakland (16 pts.)
Improvement
(8 pts.)
Health & Safety
(16 pts.)
Existing Conditions
(13 pts.)
Economy
(13 pts.)
Shovel Ready
(5 pts.)
Environment
(11 pts.)
Collaboration
(8 pts.)
Required Work
(10 pts.)
Equity is also considered by identifying projects that address disparities within the Heath/Safety, Economy, Environment, Improvement and Collaboration Factors The public was engaged in developing CIP prioritization factors weighting system PUBLIC
REQUESTS FY19 -21
43 44
Example #1:
Black Cultural Zone Signage/
E. Oakland Neighborhood Bike Routes
DOT Example #2:
EONI Transportation Improvements
PUBLIC
REQUESTS FY21 -23
LEARN MORE
About the Department of Race and Equity, Related Reports, News and Resources for Advancing Race and Equity, etc., as well as our contact information. oakl andca. gov /departm ents/
race -and -e q u it y
Questions? Reflections? Insights?
Finance & Budget
Finance
Department
Overview
Erin Roseman
Dire c to r o f Fin a n c e
Fi nance Department
The Finance Department proudly serves as the
fiscal steward of the City of Oakland and is
committed to ethical, efficient, and responsible
financial decision -making and use of the City’s
assets and resources.
The Finance Department strives to foster a
culture of integrity, accountability, teamwork,
and respect while providing quality
governmental financial customer service.
Core Servi ces
• Record and Safeguard the City’s assets;
• Provide comprehensive financial services for the City; • Provide timely and accurate financial reports;
• Maintain integrity of information in the City's financial systems and monitor internal controls;
• Develop a balanced and fiscally responsible budget;
Core Servi ces
• Process payroll and payments;
• Collect, record and report City revenues;
• Procure materials, supplies, and services for City
departments;
• Manage the City's investments;
• Issue and restructure the City's and Successor
Redevelopment Agency’s bond issues and debt; and
• Preserve strong credit ratings and investor relations • Over 20 years of public and private sector experience • Former Chief Financial Officer at Transbay Joint Powers Authority, Former Assistant Director of Fiscal Policy at the City of Arlington, Texas • Master of Public Administration, Master of City and Regional Planning, BA in Political Science, Business Economics Minor from University of Texas
ERIN ROSEMAN
Finance Director
Araceli Harris
Finance Manager
Bradley Johnson
Budget
Administrator
Stephen Walsh
Controller
David Jones
Treasury
Administrator
25+ years of public
sector experience in
Finance & HRM
Former Finance
Manager, Assistant
Controller, and Senior
Accountant
BA in Business
Management: Finance
and Human Resources
emphasis, Menlo
College
12+ Years of Budget,
Finance, & Policy
Experience all with City
of Oakland
Worked in Oakland City
Administrator’s Office,
Revenue, and Budget
Bureaus
BA in Economics
Claremont McKenna
College
Masters in Public Policy,
UC Berkeley
34+ years of public
and private sector
experience
Previously worked
for Alameda County
Administrator's Office
and Fitch Ratings
BA from Haverford
College and Masters
in Public Affairs from
Princeton University
25+ years of experience
in government, non-
profit, private sector
including
PricewaterhouseCoopers
Master of Taxation from
Golden Gate University
Bachelor of Arts from
University of Phoenix in
Accounting
California State –
Licensed CPA
25+ years of finance
experience
Former Investment
Banker; Charles Bell
and Wells Fargo
Bachelor of Arts in
Finance from
Michigan State
University
EXECUTIVE MANAGEMENT
Anjali Saxena
Payroll Manager
17+ years of
Finance/Payroll
experience in public
and private sector.
BA in Business
Management; minor
in Psychology -
Dominican
University of CA.
Masters of Finance,
(in progress),
Harvard University
Sherry Jackson
Revenue & Tax
Administrator
Fin a n c ia l Ma n a g e m e n t Ac t ivit ie s
• Revenue Collection
• Budgeting - Operating and Capital
• Economic Forecasts
• Cash Management
• Debt Issuances and Management
• Financial Reporting
• Accounting
• Grants Management
• Retirement Reporting and Liability Management
• Financial Policies
• Performance Measures
Fi nance Dept -Ke y In it ia t ive s
• Efficient Core Service Delivery
• Accounts Payable (AP) /
Vendor Payments, purchasing
enhancements, bid advertising
software, disparity study, Contracts
re -org
• Finance System Stabilization &
HR/Payroll Integration
• Point of Sale Update
• City Wide Capital Planning
• Full Asset Assessment, 10 Year
Capital Plan, Debt Management
(GO Bond Policy)
• Equity Expansion
• Include in Budget Documents,
Performance Management,
Capital Planning, and Service
Enhancements
• Data Needs and Analysis
• Greater Fiscal Transparency
• Enhance Staff Reports
• Website Updates
KEY DELIVERABLES
• ACFR
• ADOPTED BIENNIAL BUDGET
• REVENUE AND EXPENDITURE REPORTS
• FIVE YEAR FINANCIAL FORECAST
• CONTINUING DISCLOSURES
• CASH MANAGEMENT REPORTS
• SINGLE AUDITS
Cit y o f Oa kla n d | Fin a n c ia l Re p o rt in g
( oakl andca. gov)
Fi nance
Department
Cit y Fin a n c e s
Erin Roseman
Dire c to r o f Fin a n c e
Fi nance Department
Th e C it y ’s
Fin a n c ia lOverview
Co u n c il’s Ro le in Fisc a l
Managem ent
•Policy Direction
•Informed Decision -Making
•Fiscal Stewardship
T he C i ty of Oakl and Fi nanci al
En t it ie s
• The City of Oakland
• Port of Oakland (The Port) -component unit, discretely presented • Oakland Redevelopment Successor Agency (ORSA)- component unit • Police and Fire Retirement System (PFRS)
• Oakland Alameda County Coliseum Authority (OACCA)- Joint Venture Th e Cit y o f Oa kla n d
$551M
Net Position
~4800 FTE
Employees
$1.28B Debt
Obligations
$2B Annual
Budget
$1.8B Retirement
Liability
74 A Government Corporation
Net Posi ti on
https://cao-94612.s3.amazonaws.com/documents/City-of-Oakland-Annual-Comprehensive-Financial-Report-FY2021_2022-01-11-000557_bnea.pdf Th e C it y ’s
Op e ra t in g Budget:
Revenue
Revenue L i mi tati ons
• Proposition 13 (1978) restricts ability to increase ad valorem tax on real property except for bonded indebtedness for the acquisition or improvement of real property approved by a two -thirds vote; requires special (earmarked or parcel) taxes to by approved by a two -thirds vote • Proposition 218 (1996) a majority vote of the public is required to raise general purpose taxes, property assessments may only be levied on properties receiving a special benefit rather than a general benefit to the public
• Proposition 26 (2010 restricts raising revenues through fees and charges for service by defining may revenues as taxes, and requiring the local government to bears the burden of proof.
FY 2022-23
Midcycle
Budget – All
Fund
Revenues
$2,270,581,855
Property Tax
• $280.45 M
• Secured &
Unsecured
• Vehicle License
Fee – Property Tax
Swap
• Redevelopment
Property Trust
Funds
(RPTTF passthrough)
Local Tax
(Measures)
• $328.97 M
• Local Measures
• Early Education (AA)
• Parks Measure Q
• Library Measure D
• Measure N
• Vacant Property Tax
• Public Safety
• Landscaping/Lighting
(LLAD)
• Pension Override Tax
Real Estate
Transfer Tax
• $112.20 M
• Transfer of
property ownership
• Progressive Tax
Business License
Tax (Local Tax)
• $111.8 M
• Derived from
Business Gross
Receipts
T op Revenue Sources
Property Tax
Median Home Value
$1.0M
Property Tax Bill
$15K
City Tax Revenues
$13K or 83%
Property Tax
MEASURE REVENUE RESTRICTED PURPOSE
FY 2022- 2023
ESTIMATED
REVENUE
Landscaping & Lighting Assessment District (LLAD) To finance the costs and expenses of landscaping and lighting in public areas. $19,155,500 The Emergency Medical Services
Retention Act of 1997 (Measure M)
To retain and enhance emergency dispatch and medical services in the City of Oakland $2,428,283 The Paramedic Services Act of 1997
(Measure N)
To increase, enhance and support paramedic emergency services in the City of Oakland $1,933,936 The Library Services Retention And Enhancement
Act of 2004/2022 (Library Measure Q & C)
To retain and enhance library services $18,724,130
The 2018 Oakland Public Library Preservation Act
(Measure D)
To maintain, protect and improve direct library services throughout the City $14,257,902 The 2014 Public Safety And Services Violence
Prevention Act (Measure Z)
To fund activities such as community and neighborhood policing, violence prevention services with an emphasis on youth, and fire services
$19,598,935
The 2020 Oakland Parks and Recreation
Preservation, Litter Reduction, and Homelessness
Support Act
(Parks Measure Q)
To fund a variety of programs and services for parks, landscape maintenance, recreational services, services to address homelessness, services, and projects to address water quality and litter reduction, and maintenance and cleaning of stormwater trash collection systems throughout the City
$28,988,424
The Children’s Initiative of 2018 (Measure AA) To fund various programs to increase educational outcomes and reduce education inequality.
• 62% for educational programs to support early childcare and childhood education, • 31% to support and increase awareness of college readiness programs and career access, • 7% for the oversight and accountability cost
$40,276,456
Total Estimated FY 2022-2023 Revenues $145,363,566
L ocal Measure – Parcel T axes
V acant
Property Tax
Sug ar -Sweetened
Beverage Ta x
1¢ per ounce tax on the distribution of
sugar-sweetened beverages and eligible to
be expended on any lawful government
purpose. Current expenses are primarily
salary and contract services.
FY 22-23 Estimated Revenue
$8,076,270
An annual tax of $3,000 to $6,000 on vacant
property.
A property is considered “vacant” if it is in use
less than fifty (50) days in a calendar year.
FY 22-23 Estimated Revenue
$5,378,388
PROPERTY TYPE 2021 SPECIAL TAX RATE
Residential $6,000 per parcel
Condominium, duplex, or
townhome unit under
separate ownership
$3,000 per vacant
residential unit
Nonresidential $6,000 per parcel
Parcel with ground floor commercial
activity allowed but vacant $3,000 per parcel
Undeveloped $6,000 per parcel
Real Estate Transfer Tax
Pursuant to O.M.C. Chapter
4.20, all transfers of real
property within the city limits
of Oakland are subject to real
property transfer tax and due
upon sale or transfer of an
interest of real property
F Y2 2-23 Estim ated - $ 112 M
Business Tax
2022 Ballot Measure T - Progressive Business Tax
On July 5, 2022, City Council adopted Resolution No. 89297 C.M.S. calling and giving notice, on its own motion, for a voter consideration of the ballot measure “amending Oakland’s business tax rates to create a progressive rate structure that would:
1) impose the highest rates on the highest gross businesses, 2) increase Oakland’s annual tax revenue by an estimated $20,900,000, and 3) generate approximately $120,000,000 in total annual revenue for municipal services.”
On November 8, 2022, Oakland voters approved Measure T and authorized the City to amend Oakland’s business tax structure “by imposing business tax rates of .05% to .55% of gross receipts, and other rates as stated in the measure.”
Service Charges
Established via the Master Fee Schedule, service charges are cost-recovery fees for the services provided to Oakland Residents, in accordance with 2010 Proposition 26.
General Purpose
Fund
FY 2022-23
Midcycle Budget
Revenues
$872,069,302
E x pendi tures
Personnel and
Overhead
• $975.75M
• Salary
• Retirement
• Fringe Benefits
Operations and
Maintenance (O&M)
• $589.37M
• Contract
Services
• Services &
Supplies
• Operating
Subsidies
Debt Service
• $193.80M
• Note & Bond
Payments
• Interest
• Bank, Bond,
and Credit
Card Fees
Capital Acquisition
• $104.41M
• Construction
• Vehicles
• Furniture &
other
equipment
T op E x pendi tures
FY 2022-23
Midcycle
Budget – All
Funds by
Department
Expenditures
$2,270,581,855
FY 2022- 23 Mid c yc le Ad op te d Budget By
Department Category
Elected Officials &
Staff, $36,028,905
General
Government,
$186,585,200
Public Safety &
Violence
Prevention,
$449,035,864
Public Services,
$285,484,640
Personnel &
Overhead
• The cost of paying City
employees to perform various
functions and provide services to
the public and include salaries,
overtime, premium pay,
retirement, and healthcare
costs.
• Negotiated with Labor
Contracts
FY 2022- 23
M i dcycl e A dopted Budget
Personnel Only Costs
$957.13 M
4,811 Full-Time
Equivalent Staff
Largest Department
OPD
1,227.50 FTE
$270.30 Million
• Non-labor related costs,
processed through the
City’s contracting and
purchasing systems such
as contracts for services,
supplies and materials,
travel, education, and
utilities .
O &M
Debt Servi ce
• General Obligation Bonds (GO
Bonds)
• Sewer Revenue Refunding bonds
• Lease Revenue Bonds
• Pension Obligation Bonds
• Master Lease Purchase Agreements
• Special Assessment Bonds
• Tax and Revenue Anticipation Notes
FY 2022-23 $179.3M (Annual Debt Service)
FY 2023-24 $134.9M (Annual Debt Service)
https://stories.opengov.com/oaklandca/published/BGIL7S4gm Ca p it a l
Ac q u isit io n s
• Construction
• Vehicles and Fire Apparatus’
• Software and Equipment such as radios, computers, or other non-fixed assets
FY2022 -23 Mid -Cycle Budget $104.41M
T he City’ s Budget Process:
Operati ng and Capi tal
Residents
Department
of Race &
Equity
Mayor
City
Administrator
City Council
City
Department
Managers &
Fiscal Staff
Budget
Advisory
Committee
Budget Process – Key Players
Consolidated
Fiscal Policy
(CFP)
Appropriations
GANN Limit
Race and
Equity Policy
Debt Policy
OPEB Policy
Grant Policy
CA Gov't
Code
Budget Process – Gu id in g P o lic ie s
Department
Proposals
Baseline Budget
Development
Budget
Priorities Poll
Budget Priorities
Poll Results
Council Priorities
Workshop
Five-Year Forecast
Released
T he Budget Process
Council
Priorities
Due
Mayor’s
Proposed
Budget
Community Budget
Forums & Police
Commission Hearing
Council
President’s
Budget
Deadline for
Budget
Adoption
Final Policy
Decisions
from Mayor
Direct
Community Grant
List Released
FY 2023 -24 and 24 -25
Biennial Budget Outlook
Biennial
Forecast
FY2023-24
Preliminary
Baseline
Revenue
FY2023-24
Preliminary
Baseline
Expenditures
FY2023-24
Surplus
/ (Deficit)
FY2024-25
Baseline
Revenue
FY2024-25
Baseline
Expenditures
FY2024-
25 Surplus
/ (Deficit)
General
Purpose
Fund
$750.60M $856.39M ($105.79) $766.95M $869.45M ($102.50) Debt Obligations and
Management
Debt Obligations
• The City of Oakland's underlying ratings for its bonds as of January 1, 2023 were as follows:
Debt Obligation Moody's S&P Fitch
General Obligation Bonds Aa1 AA AA -
Sewer Revenue Debt - AA AA+
Lease Revenue Bonds Aa2 AA -
Pension Obligation Bonds Aa2 AA - A+
Other Long - Term Borrowings - A+ -
Redevelopment Successor Agency
of the City of Oakland
A+/AA -/AA
Long Term
Outstanding
Debt
Outstandi ng Debt -
$ 1. 2 8 Bas of
July 1 , 2022
Lo n g Te rm
Outstandi ng
De b t ,
conti nued…
Outstandi ng Debt -
$ 1. 2 8 Bas of
July 1 , 2022
Debt Authorization
• Voter Authorized General Obligation - Repaid by Ad Valorem (Property) Tax
Original Authorization
• 2002 Measure DD - $198.25M Lake Merritt and Estuary
• 2016 Measure KK - $600M Infrastructure & Affordable Housing • 2022 Measure U - $850M Infrastructure & Affordable Housing Remaining Authorization
• 2002 Measure DD - $35.75M
• 2016 Measure KK - $85M
• 2022 Measure U - $850M
Debt Policy
The California Debt and Investment Advisory Commission
(CDIAC) - State Guidance
Improves the practice of public finance in California by providing responsive and reliable information, education, and guidance to state and local public agencies and other public finance professionals
Approach to Debt Management
• Ensure High Credit Quality
• Achieve Lowest Cost of Capital
• Preserve Flexibility
• Prudent Level of Financial Risk
• Maintain Full Compliance
• Ensure Timely Payments
Debt Policy -GO Bond Policy
• Maintain Tax Rate at FY2022 -23 Tax Rate at $0.22
• 10-Year Forward Looking Debt Outlook
Debt (Bond) Issuance -Typical Timeline
Bond Issuance Cycle (Minimum 5 months Process)
1. Identification of
Projects to be
Funded with
Bonds
2. Selection of
Professionals through
RFP
3. Document Drafting
(Bond Indenture,
Offering Documents)
4.Issuer
Approvals
(Authorizing
Resolutions
etc.)
6. Marketing the
Bond Issue to
Investors
7. Pricing the
Bond Issue
8. Closing the
Bond Issue
5. Rating
Agency/Insurer
Presentations
120 – 180 days depending
on a number of factors
(complexity,new vs. existing
credit, validation, etc.)
1 – 3 weeks
1 - 2 weeks
9. Regulatory
Compliance
(Cont.
Disclosure,
Arbitrage, Use of
Proceeds,
Refunding)
Ongoing – for
the life of the
bonds
Lo n g Te rm Lia b ilit ie s
Long Term Liabilities
Other Post Retirement Benefits (OPEB)
• Medical Benefits for Retirees
Based on the most recent actuarial valuation as of
July 1, 2021
• OPEB Liability= $617 million
• Funded ratio= 5.5%
• Anticipated year of full funding = 2040
Note-full funding estimate assumes we maintain policy of contributing
2.5% of payroll every year for OPEB unfunded liability. 2019 labor agreement with sworn bargaining units have significantly contributed to the goal
Long Term Liabilities
Pension (Retirement) Benefits
• CalPERS
– Classic Members
– The Public Employees’ Pension Reform Act- (PEPRA) Members • Police and Fire Retirement System (PFRS )
Based on the most recent actuarial valuation as of
July 1, 2021
Oakland Pension Plans Pension Liability Funded Ratio
PFRS Plan $120 million 79.3%
CalPERS Miscellaneous Plan $465 million 80.1%
CalPERS Safety Plan $630 million 74.3%
Total $1.215 billion
Long Term Liabilities
(Pension)
CalPERS
Oakland participates in the CalPERS pension system. City employe es hired prior to 6/8/2012, are eligible to retire as early as age 50 (Saf ety) or age 55 (Miscellaneous) without a reduced service benefit. The Public Employees’ Pension Reform Act (PEPRA) –
an act of the state legislature required all public employees hired aft er January 1, 2013
to participate in a new tier with a reduced benefit multiplier. Oakland does not participate in Social Security.
Long Term Liabilities (Pension)
CalPERS
FAS = Final Average Salary
Source: Miscellaneous Plan of the City of Oakland,Annual ValuationReport as of June 30, 2018 CalPERS Effective Date City of Oakland
Safety Plan
City of Oakland
Miscellaneous Plan
Tier 1 Pre-6/8/2012 Hires 3.0% at age 50;
12 month of highest salary
2.7% at age 55;
12 months FAS
Tier 2 6/8/2012 – 12/31/2012
3.0% at age 55;
36 months FAS
2.5% at age 55;
36 months FAS
Tier 3 (PEPRA) Post-1/1/2013 Hires
2.0% at age 57;
36 months FAS
2.0% at age 62;
36 months FAS
Long Term Liabilities (Policies)
2019 OPEB Funding Policy - Additional 2.5% of Payroll annually until fully funded
The Primary Objectives of the City's overall program goals are to provide benefits that are:
• Affordable in the near -term, without crowding out the City's capacity to deliver quality services to the public or to provide reasonable salary increases to active employees • Sustainable over the long term, ensuring that benefits will be secure and reliable for career employees throughout retirement, with substantial intergenerational equity for taxpayers in regard to benefit costs, and
• Competitive , to support effective recruitment and retention of a strong municipal workforce.
Consolidated Fiscal Policy -Excess Real Estate Transfer Tax (RETT) At least 25% shall be used to fund debt retirement and unfunded long -term obligations such as negative fund balances, Police and Fire Retirement System (PFRS) unfunded liabilities, CalPERS pension unfunded liabilities, paid leave unfunded liabilities, and Other Post -Employment Benefits (OPEB) unfunded liabilities
C ash, I nv estments, and
Reserves
Cash, Investments, and
Reserves
Cash Management and Investments
September 2022 Cash Management Report
$2.183B in Cash and Investments
Government Investments are expressly provided for in the CA Govt Code, City's Investment Policy (more restrictive), Core Principles = Safety, Liquidity, and Yield
Investment Portfolios - City of Oakland and Port of Oakland, ORSA, and Bond Covenant Trustee Investments
Cash, Investments,
and Reserves
Fund Bal ance vs. R eserves
Fund Balance - Starting fund balance + Change in fund
balance = Ending fund balance .
Non-Spendable
Restricted
Committed
Assigned
Unassigned
Most of the City’s fund balances are restricted, committed or assigned for pension obligations, affordable housing, reserves and capital projects
As of June 30, 2022, the City had $206 million of unassigned General Funds* balance:
‒ $65.4 million set aside to meet the mandated 7.5%
required reserve- FY23 projected
‒ $17 million VSSF- FY23 projected
Cash, Investments, and Reserves
Appropriate Fund Balance Level: Typicallyno less than 60 days or two months (about 16.5%-16.7%) of operating expenditures for the general fund - Municipal Research and Services Center
Reserves and Restricted Cash
Operating Reserves -Can be held as fund balance
Consolidated Fiscal Policy (CFP) Reserve Policies
General Purpose Fund - FY 2022-23 Adopted Mid- Cycle Budget $872.07M • Emergency Reserve(1011): 7.5%-$65.4M
• Vital Services Fund (1020): 15% of GPF Revs-$10.5M
Oakland
Redevelopment Successor
Agency (ORSA)
Oakland Redevelopment
Successor Agency (ORSA)
• Dissolution of the Redevelopment Agency
• Finding of Completion – May 2013
• State of California –Department of Finance (DOF)
• County of Alameda Countywide Oversight Board
• City Council acts as ORSA Board
Redevelopment RPTTF
Redevelopment Property TaxTrust Fund (RPTTF) - The RPTTF is a fund administered by the County that holds property tax funds that formerly would have been the tax increment funds of the Redevelopment Agency. ORSA’s approved enforceable obligations are paid with this funding via the annual Recognized Obligation Payment Schedule (ROPS).
AB 1290 requires that all funds collected by the Redevelopment Agency are “passed-through” to the affected taxing entities. A pass-through payment is the return of tax dollars from a redevelopment agency to affected taxing entities (ATEs).
Ordinance No. 13139 requires that 25% of residual RPTTF are deposited into the Affordable Housing Trust Fund (1870) to increase, improve, and preserve affordable housing with priority given to very low-income households.
Oakland Redevelopment
Successor Agency (ORSA)
Tax Increment
Received By
Alameda
County (RPTTF)
RPTTF
Distributed for
ROPS
Obligations
RPTTF Distributed
to ATE
(1010 – GPF
1870 – Affordable
Housing)
Administrative
Distributions
(County Fees &
SB 2557)
AB 1290
Passthrough
Distributions
(1010 – GPF)
F Y2 2-23 Mid c yc le -
$1 3.25M
F Y2 2-23 ROPS -
$ 18 .4 3 M F Y2 2-23 Mid c yc le -
$40. 03M
$ 13 .3 1 M
ORSA & City RPTTF Distributions
Oakland Redevelopment
Successor Agency (ORSA)
67.6 M
64.4 M
59.7 M
53.2 M
23.1 M
18.4 M
11.2 M
14.2 M
19.0 M
25.0 M
32.4 M
40.0 M
8.1 M
9.0 M
10.8 M
11.8 M
12.3 M
13.2 M
3.6 M
4.4 M
6.3 M
8.3 M
10.8 M
13.3 M
$0.0 M
$10.0 M
$20.0 M
$30.0 M
$40.0 M
$50.0 M
$60.0 M
$70.0 M
$80.0 M
FY 18 FY 19 FY 20 FY 21 FY 22 FY 23
RPTTF Distributions
RPTTF - ORSA Obligations RPTTF - General-Purpose Fund
RPTTF - AB 1290 Pass-through RPTTF - Affordable Housing Fund 1870
Oakland Redevelopment Successor
Agency (ORSA)
• ORSA Entity
– Redevelopment Property Tax Trust Fund
(RPTTF)
– Recognized Obligation Payment Schedule
(ROPS)
• City Entity
– Estimated Tax Revenue
– Budget Cycle
• Pass-Through(s) (1010 & AB 1290)
• Ordinance 13139 Residual RPTTF (1870 –
Affordable Housing Trust Fund)
FY 2022
Est. RPTTF
Tax
Revenue
FY 22-23
Budget
Dev
FY 22-23
AB-1290
Pass
Through
FY 22-23
ATE
Distribution
GPF
FY 22-23
Affordable
Housing 25%
Residual
Oakland Redevelopment
Successor Agency (ORSA)
• City Departments Winding Down ORSA
–Housing & Community Development Department
–Economic & Workforce Development
–Finance Department (Debt Service Only)
KEY DELIVERABLES
• Annual Consolidated Financial Report (ACFR)
• Adopted Biennial Budget
• Revenue And Expenditure Reports
• Five Year Financial Forecast
• Continuing Disclosures
• Cash Management Reports
• Single Audits
• ORSA - Recognized Obligation Payment Schedule (ROPS)
Cit y o f Oa kla n d | Fin a n c ia l Re p o rt in g
( oakl andca. gov)