CITYOFOAKLAND
BUDGETMEMORANDUM
DATE: June12,2023TO: CityCouncilandMembersofthePublicFROM: CouncilPresidentNikkiFortunatoBas,CouncilmembersRebeccaKaplan,CarrollFifeandKevinJenkinsSUBJECT: CouncilPresident’sAmendmentstotheFY23-25ProposedBudget DearCityCouncilColleaguesandMembersofthePublic,
AttachedforyourconsiderationareamendmentsandpolicydirectivesfortheFiscalYear2023-2025ProposedBudgetfrommyCouncilPresident’sBudgetTeamincludingCouncilmembersRebeccaKaplan,CarrollFifeandKevinJenkins.
WehaveappreciatedhearinginputfromeachCouncilmemberaswellasthepublic.Wevaluetheinformationandfeedbackwehavereceivedfromourcitydepartmentleaders.And,wearegratefulforourcollaborationwiththeMayor’sOfficeandherAdministration,particularlytheFinanceDepartment.
OurstartingpointfortheseamendmentsisMayorThao’screativeandthoughtfulplantoachieveabalancedbudget,closingahistoric$360milliondeficit.Toughdecisionshavealreadybeenmadetoreduceexpenditureswhileavoidinglayoffs,maintainingcriticalservices,andmakingrecordinvestmentsinaffordablehousing.
Ourteamscrutinizedtheproposedbudget,spokewithcitystaffandcommunitymembersaboutpriorities,andidentifiedavailablefundbalance,revenue,andexpenseadjustmentsinordertoproposetheseamendmentstomeetourcity’sneeds.
TheMayorandCouncilPresidenthavemadeacommitmenttoworktogetherasOneOakland— tofocusondeliveringeffectiveandequitableservices,andtolaythefoundationfortacklinghistoricracialinequitiesandsystemicproblemsinordertochartapathforwardtowardsanequitableandthrivingfutureforallOaklanders.OurBudgetTeamlooksforwardtodiscussingtheseamendments,andultimately, hopesthatwewillcollaborativelyapproveabalancedbudget.
Budget AmendmentsBelowisasummaryofouramendments:
Revenue&ExpenditureAdjustments1. AcceptanceoftheFEMASAFERgranttoreversetherollingFireStationbrownout2. Useofavailablefundbalancefromseveralfunds3. $3millionincreaseinassumedrevenuefrompropertysales4. $2milliondecreaseindebtpaymentstotheColiseumJointPowersAuthority5. FreezingthevacantCouncilBudget&PolicyAnalystposition($300,000)inordertoincreaseDVPgrantstoaddressthesextraffickingcrisis ExpenditureAdditions
CommunitySafety, Prevention&HealingTheseamendmentsexpandourcomprehensivecommunitysafetyprogramby:1. Committingtocitywidefireandemergencyservices(reversingrollingFireStationbrownout)2. Investing$2.1millioninviolencepreventionprograms($1millionperyearinDVPgrants,with$300,000peryearsetasidetoaddressthesextraffickingcrisis)3. Adding$391,000instaffingtoensure24/7crisisresponsetoviolentincidents4. Addingcommunityambassadorsinourbusinesscorridors($1millioneachyear)5. Increasingtrafficsafetywith$1million($800,000tobeallocatedevenlybyeachCouncilmember($100,000each)and$100,000peryearfortrafficsafetyaroundLakeMerrittfromparkingrevenue)6. Addingtwo(2)civilianpoliceinvestigatorstosolvecrimes(unfreezingtwo(2)positions)7. AddingHumanResourcesstaffingtohireandfillvacantMACROcrisisresponsepositions8. Dedicatingone(1)MACROteamtoOaklandlibraries9. UnfreezingtheAdministrativeAnalystIIpositionintheOfficeoftheInspectorGeneral(OIG)10.Adding$100,000foranOPDstaffingstudytobeconductedbytheOIG(totalfundsforthestudywillbe$200,000includingfundscommittedinthelastbudgetcycle) HousingSecurityandHomelessnessSolutionsTheseamendmentsbuildontheMayor’sproposedinvestmentsinaffordablehousingandhomelessnesssolutionsby:1. CreatingaRapidResponseHomelessHousingAcquisitionFundwith$8.8million.Thisfundsupplementsthe$216millionalreadyintheMayor’sproposedbudgetforaffordablehousing,inordertomorerapidlycreatehousingforunhousedresidents2. Adding$1millionperyearfortenantlegalservices3. Supportinghousingandrealestatedevelopmentwith:1FTEpositiontocoordinateappraisalsofpropertiesforacquisitionforhomelesshousingandofcitypropertiesforpotentialsaleandredevelopmentpurposes;$50,000forappraisalsofpotentiallandsales,developmentandacquisition;and$100,000tosupportappraisals,seismicassessments,andenvironmentalreportsforaffordablehousingacquisition ItemNo.:________SpecialCouncilMeetingJune14,2023Page2
GoodJobs&VibrantEconomyTheseamendmentssupportourartistsandculturekeepers,businesscommunityandworkersby:1. IncreasingCulturalAffairsgrantsby$300,000eachyear2. UnfreezingtheProgramAnalystIIpositionintheCulturalAffairsDivision3. UnfreezingtheSpecialEventsCoordinatorposition4. Adding$100,000peryearforactivationofFrankOgawaPlaza5. UnfreezingtheUrbanEconomicAnalystIIinEconomic&WorkforceDevelopmenttoprovidemultilingualbusinessassistance6. Adding$200,000peryearfortheFacadeImprovementProgramtosupportsmallbusinesses7. IncreasingtheWorkplaceOutreach&EducationContractby$43,000toaccountforsix(6)yearsofinflation(totalcontractwouldbe$283,000peryear)8. AddingHumanResourcesstaffingtohireandfillvacantPlanning&Buildingpositions Clean,Healthy, SustainableNeighborhoodsTheseamendmentssupportourdiverseOaklandcommunityandenvironmentwith:1. $750,000forcommunitygrants,tobeallocatedbyeachCouncilmemberat$93,750each2. $100,000peryearfortheOaklandPublicLibrarytopurchasecanopies,tables,chairs,andrugsforeachlibrarylocationforexpandedoutdoorprogramming3. $500,000toSABAGrocersFoodCardProgrameachyearforfoodsecurity4. $300,000toSOSMealsonWheelseachyearforseniorfoodsecurity5. $20,000toFeatherRiverCampeachyear6. $43,200toFairylandtorestorethecontractamounteachyear7. $40,000toOaklandAsianCulturalCentertorestorethecontractamounteachyear8. Allocationof$1millionperyearinparkingrevenueforLakeMerritttoadvanceequityandinclusionviatheLakeMerrittFreedomMarketsupportingBIPOCvendorsandLakeMerrittevents;ParkStewards;parksmaintenance;trafficsafetyimprovementsaroundLakeMerritt;andstaffingtosupportsafetyandcomplianceattheLake9. AvailablefundsfromMeasureQtoprogramforparksmaintenance($1.6M),homelessness($418k)andstormwater($126k) EffectiveGovernmentTheseamendmentsadvanceamoreeffectivegovernmentby:1. AddingcapacitytothePublicEthicsCommissionwiththeunfreezingoftheProgramManagerpositiontoimplementMeasureWandadding$155,000indiscretionaryfunds2. Adding$10,900forlaptopsforjobfairstoimproveonsiteapplicationandhiringprocess PleasenotethattheseamendmentsincorporaterequestsfromtheAdministrationandOfficeoftheCityAttorney, whicharemostlybudgetneutral.SeetheitemshighlightedinblueinthebudgetamendmentsspreadsheetandthememofromtheAdministration.
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Budget PolicyDirectivesAttachedareourteam’sBudgetPolicyDirectives.Highlightsinclude:1. AffordableHousing:developmentofacoordinatedadvocacystrategywithCounty, State&FederalGovernmentforfundingandpolicythatsupportssuccessfullyexitingunhousedindividualsfromshelterintopermanenthousing.2. CommunitySafety:staffingandresourceanalysisoftheOaklandPoliceDepartmenttobeconductedbytheOfficeoftheInspectorGeneralto:identifycurrentresources;determinethenumberofofficersneededinaparticulargeographicarea;anddecidehowstaffingandoperationalresourcesshouldbeallocated.3. EffectiveGovernment:a. ReorganizationPlanandquarterlyinformationalmemostoCouncilandPublic,withareporttoCouncilbyMarch30,2024forconsiderationduringmid-cyclebudget.b. VacancyStrikeforceinformationalreporttoCouncilandPubliconfillingprioritypositionsinPublicWorks,Housing&CommunityDevelopment,Planning&Building,andDepartmentofTransportation, andcreatingamorerobustpipelineintoCityjobsandfocusedoutreachtopopulationswhohavehistoricallybeeneconomicallymarginalized4. RevenueGeneration:developmentofaplanforincreasedrevenuegeneration,thatincludesbutisnotlimitedto:aneconomicdevelopmentstrategytogrowthetaxbase;developmentofanewballotmeasuretoreplaceMeasureZ,theOaklandPublicSafetyandServicesViolencePreventionAct,whichexpiresin2024;partneringwiththeAssociationofBayAreaGovernmentstoplacearegionalaffordablehousingbondmeasureonthe2024ballot;andpartneringwiththeOaklandFundforPublicInnovationtodevelopprivatepartnershipstoresourcetheCity’skeypriorities.
Welookforwardtodiscussingourproposedamendments,hearingpubliccomments,andworkingtowardachievingabalancedbudget.ThankyoutotheFinanceStaffandotherDepartmentStaffforsupportingourbudgetdeliberations,andtotheMayor’sOfficeforyourpartnership.
Forquestionsregardingthismemo,pleasecontactCinthyaMuñozRamos,ChiefofStaff,OfficeofCouncilPresidentNikkiFortunatoBas,[email protected].
RespectfullySubmitted,
NikkiFortunatoBas RebeccaKaplanCouncilPresident,District2 Councilmember,AtLarge CarrollFife KevinJenkinsCouncilmember, District3 Councilmember,District6 ItemNo.:________SpecialCouncilMeetingJune14,2023Page4
Attachments:1. BudgetPolicyDirectives2. SpreadsheetofBudgetAmendments3. SlidePresentation ItemNo.:________SpecialCouncilMeetingJune14,2023Page5
OaklandCouncilPresident’sBudgetTeamBudget PolicyDirectives AffordableHousing
1. DirecttheCityAdministratortodevelopacoordinatedadvocacystrategywithCounty, State&FederalGovernmentforfundingandpolicythatsupportssuccessfullyexitingindividualsfromshelterintopermanenthousing.a. TheRapidResponseHomelessHousingAcquisitionFund, createdwiththeseproposedbudgetamendments,setsaside$8,871,364torapidlycreatehousingtoserveunhousedindividuals,includingfundingcapitalandoperatingcosts.ThissupplementsmillionsfromMeasureU,aswellaspotentialfundsfromStateHomekeyGrants.b. Thiscoordinatedstrategyincludesseizingopportunitiesforhousingbyrapidlyconductingappraisalsforproperties,includingtheSageMotellocatedat4844MacArthurBlvd.,forthepurposeofacquisitionforhomelesshousing,andLakeMerrittLodgelocatedat2332HarrisonStreet,formaintainingthecurrent92homelesshousingunits;andauthorizingtheCityAdministratorortheirdesigneetopursueappraisalsforotherpropertieswithoutreturningtoCouncilfortheacquisitionoftransitionalandhomelesshousingunits.2. DirecttheCityAdministratortodesignatefuturenetproceedsgeneratedfromthesaleorlong-termgroundleaseofCity-ownedrealpropertydesignatedforaffordablehousingdevelopmenttotheAffordableHousingTrustFund. Netproceedsisdefinedas"allsales/leaseproceedsnetoftransactioncosts.”Netproceedsdoesnotincludeanyfeespaidbydevelopersintendedtocoverthird-partyexpensesrelatedtothenegotiationofDDAs,LDDAsandGroundLeasesorfundsneededforinterimpropertymaintenanceandotheradministrativecosts.3. DirecttheCityAdministratortodesignatetheEast12thparcelleasepaymentstotheAffordableHousingTrustFund.4. DirecttheCityAdministratortopursueaprogramtoofferavailable,smallproperties(lessthan5,000sqft)toabuttingpropertyownersforpurchase(perGov. Code§54221(f)(1)(B),excerptedbelow).a. (f)(1)Exceptasprovidedinparagraph(2),“exemptsurplusland”meansanyofthefollowing:(B)Surpluslandthatis(i)lessthan5,000squarefeetinarea,(ii)lessthantheminimumlegalresidentialbuildinglotsizeforthejurisdictioninwhichtheparcelislocated,or5,000squarefeetinarea,whicheverisless,or(iii)hasnorecordaccessandislessthan10,000squarefeetinarea;andisnotcontiguoustolandownedbyastateorlocalagencythatisusedforopen-spaceorlow-andmoderate-incomehousingpurposes.Ifthesurpluslandisnotsoldtoanownerofcontiguousland,itisnotconsideredexemptsurpluslandandissubjecttothisarticle.
CommunitySafety
1. DirecttheCityAdministratorortheirdesignee(OfficeoftheInspectorGeneral)toconductastaffingstudyandresourceanalysisoftheOaklandPoliceDepartment(OPD). Thisstudywouldhelpto:a. Identifycurrentresourcesb. DeterminethenumberofofficersneededinaparticulargeographicareaItemNo.:________SpecialCouncilMeetingJune14,2023Page6 c. DecidehowstaffingandoperationalresourcesshouldbeallocatedCallsforserviceauditsandresourceallocationreviewsarebestwhentiedtoastaffingstudy. IftheCityofOakland’sobjectiveistodetermineifpolicearerespondingtocallsforserviceinanefficienttimeframe,itiscriticaltofirstknowthenumberofavailableofficers,targettimeframes,andhowalternateresourcescanbeusedtosupplementservices.2. DirecttheCityAdministratorortheirdesigneetodevelopanewcivilianinvestigativeclassificationforaPoliceServicesTechnicianpositiontomanagetrafficcases,replacingPoliceOfficerswhoarecurrentlyperformingtheseduties.
EffectiveGovernment
1. DirecttheCityAdministratortoprepareaReorganizationPlanandprovidequarterlyinformationalmemostotheCouncilandPublic,andscheduleareporttoCityCouncilbyMarch30,2024forconsiderationduringthemid-cyclebudgetprocess.a. TheReorganizationPlanshallalsoincludeafeasibilitystudyregardingmovingthe911CallCenteroutoftheOaklandPoliceDepartment(OPD)andintocivilianadministration,centralizingallcallcenterfunctions.2. DirecttheCityAdministratortoprovideanupdateviaaninformationalreportonthe“VacancyStrikeforce…fillingtheover340vacantpositionsinOaklandPublicWorks,HousingandCommunityDevelopment,PlanningandBuilding,andtheDepartmentofTransportation.”a. TheupdateshouldalsoincludeinformationoncreatingamorerobustpipelineintoCityjobsfromlocalschoolsandcommunitycolleges,andfocusedoutreachtopopulationswhohavehistoricallybeeneconomicallymarginalizedsuchasformerlyincarceratedindividuals.3. DirecttheCityAdministratortoprovideanupdateviaaninformationalreportonthe“studyofsalariesandcompensationforallCityworkerstoassessiftheCityiscompetitivewithotherneighboringpublicagencies.”4. DirecttheCityAdministratortoresearchandapplyforlocal,state,andfederalgrants/programsthatacceleratetheCity’seffortstoprocure,operate,andmanageazero-emissionvehiclefleetandbuildouttheCity’szero-emissionchargingandfuelinginfrastructureasoutlinedintheCity’sZeroEmissionVehicleActionPlan,ActionCL-8–AccelerateCityFleetVehicleReplacement.5. DirecttheCityAdministratortocreateaplanforincreasedrevenuegeneration, thatincludesbutisnotlimitedto:a. Aneconomicdevelopmentstrategytogrowthetaxbase,currentlyunderwayandanticipatedforcompletioninthesecondhalfof2024,b. DevelopmentofanewballotmeasuretoreplaceMeasureZ, theOaklandPublicSafetyandServicesViolencePreventionAct,whichexpiresin2024,includingpolling,c. PartneringwiththeAssociationofBayAreaGovernmentstoplacearegionalaffordablehousingbondmeasureonthe2024ballot,andd. PartneringwiththeOaklandFundforPublicInnovationtodevelopprivatepartnershipstoresourcetheCity’skeypriorities.
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