City Council
May 3, 2023
AGENDA REPORT
TO: Steven Falk FROM: Erin Roseman
Interim City Administrator Director of Finance
SUBJECT: FY 2023-25 Proposed Budget
Legislation
DATE: May 1, 2023
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Adopt The Following Pieces of Legislation:
A Resolution:
(1) Adopting The Biennial Budget For Fiscal Years 2023 -25 And Appropriating Funds To Cover Expenditures Approved By Said Budget;
(2) Authorizing The City Administrator To Transfer Funds Between Departments, Programs And Funds As Necessary To Support Departmental Reorganization As Set Forth In The Adopted Biennial Budget For Fiscal Years 2023-25.
(3) Taking All Steps Necessary To Apply For And Receive Additional Funds Required To Advance And Complete The Projects Identified In The Capital Improvement Program And Accept And Appropriate Any Additional Funds Provided That Such Acceptance Is Consistent With And Does Not Otherwise Negatively Impact T he City’s Capital Improvement Program
(4) Directing The City Administrator To Return To The Council With An Ordinance Amending Chapter 2.29 Of The Oakland Municipal Code To Implement The July 2024 Reorganizations Proposed In This Budget
EXECUTIVE SUMMARY
The Mayor’s FY 2023-25 Proposed Policy Budget was published on May 1, 2023. This proposed two-year spending plan appropriates more than $4.26 billion over Fiscal Years 2023- 24 and 2024-25. Approval of the proposed resolutions will invest in the City Council shared priorities (Housing Security & Homelessness Solutions, Community Safety, Prevention and Healing, Good Jobs and Vibrant Economy, and Clean, Healthy, Sustainable Neighborhoods).
BACKGROUND / LEGISLATIVE HISTORY
Steven Falk, Interim City Administrator
Subject: FY 2023-25 Proposed Budget Legislation
Date: May 1, 2023 Page 2
City Council
May 3, 2023
Per Section 801 of the Oakland City Charter, the City Council is required to adopt a budget by June 30 to authorize expenditures for the following fiscal year. If a budget is not adopted by June 30, the appropriations of the previous fiscal year are deemed to be effective until the new budget and appropriation measures are adopted.
ANALYSIS AND POLICY ALTERNATIVES
The FY 2023-25 Proposed Policy Budget totals more than $4.26 billion over the next two years (see Table 1). This Proposed Budget freezes a net 2-year total of 325.93 vacant FTEs and results in no layoffs. This budget invests in the four City Council Priorities: Housing Security & Homelessness Solutions, Community Safety, Prevention and Healing, Good Jobs and Vibrant Economy, and Clean, Healthy, Sustainable Neighborhoods.
Table 1: Revenues, Expenditures, & Full-time Equivalent Positions Proposed
FY 2023-24
Proposed FY2023-25
FY 2024-25 2-Year Total
General Purpose Fund $830,158,436 $847,271,764 $1,677,430,200 Restricted Special Funds $1,285,684,571 $1,293,333,671 $2,579,018,242 Total - All Funds $2,115,843,007 $2,140,605,435 $4,256,448,442 Full-Time Equivalent Positions - GPF 2,366.74 2,409.33 4,776.07 Full-Time Equivalent Position - All Funds 4,690.13 4,716.13 9,406.26
In the event that the City receives other revenues, or achieves cost savings not currently budgeted, and provided such revenues or savings are in excess of the amount necessary to support forecasted revenues and expenditures in the FY 2023-25 Proposed Budget; staff recommends the City Council authorize the restoration of services in a priority order.
Please see the FY 2023-25 Proposed Budget document for details on the proposed budget.
The FY 2023-25 Proposed Budget may be accessed online in interactive budget book on the FY 2023-25 Budget website (https://www.oaklandca.gov/topics/fiscal-year-2023-2025-budget).
FISCAL IMPACT
The fiscal impacts are described in the FY 2023-25 Proposed Budget.
PUBLIC OUTREACH / INTEREST
The budget development process includes various opportunities for community input. The process began with a scientifically conducted poll on community priorities, which was conducted and presented to the City Council in March 2023. A public meeting was held (the City Council Retreat) on March 3, 2023 to discuss individual Councilmembers and shared budget priorities.
Community Budget Forums are planned in the month of May on the proposed budget. Several special budget meetings are scheduled for May and June in City Hall.
See the City’s Budget website for additional information: www.oaklandca.gov/budget.
Steven Falk, Interim City Administrator
Subject: FY 2023-25 Proposed Budget Legislation
Date: May 1, 2023 Page 3
City Council
May 3, 2023
COORDINATION
The Finance Department worked with all City Departments in preparing the FY 2023-25 Proposed Budget.
SUSTAINABLE OPPORTUNITIES
Economic: The City’s Budget represents over $4.26 billion in expenditures into the local economy over the next two years. There could be significant economic impacts depending on the decisions made by the Mayor and Council.
Environmental: The impact of the City’s appropriation can have a considerable effect on the local environment impacts depending on the decisions made by the Mayor and Council.
Race & Equity: The budget is a significant tool for improving equity. Budgetary decisions were made with equity as a focus with the intent to mitigate the inequitable circumstances of Oakland residents. The Proposed Budget specifically addresses areas of Housing Security & Homelessness Solutions, Community Safety, Prevention and Healing, Good Jobs and Vibrant Economy, and Clean, Healthy, Sustainable neighborhoods, all of which have equity considerations.
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt The Following Pieces of Legislation:
A Resolution:
(1) Adopting The Biennial Budget For Fiscal Years 2023-25 And Appropriating Funds To Cover Expenditures Approved By Said Budget;
(2) Authorizing The City Administrator To Transfer Funds Between Departments, Programs And Funds As Necessary To Support Departmental Reorganization As Set Forth In The Adopted Biennial Budget For Fiscal Years 2023-25.
(3) Taking All Steps Necessary To Apply For And Receive Additional Funds Required To Advance And Complete The Projects Identified In The Capital Improvement Program And Accept And Appropriate Any Additional Funds Provided That Such Acceptance Is Consistent With And Does Not Otherwise Negatively Impact The City’s Capital Improvement Program
(4) Directing The City Administrator To Return To The Council With An Ordinance Amending Chapter 2.29 Of The Oakl and Municipal Code To Implement The July 2024 Reorganizations Proposed In This Budget Steven Falk, Interim City Administrator
Subject: FY 2023-25 Proposed Budget Legislation
Date: May 1, 2023 Page 4
City Council
May 3, 2023
For questions regarding this report, please contact Brad Johnson, Budget Administrator, at 510-207-5730.
Respectfully submitted,
ERIN ROSEMAN
Director of Finance
Finance Department
Reviewed by:
Brad Johnson, Budget Administrator
Prepared by:
Rina Stabler, Assistant Budget Administrator