Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 1
Special Finance and Management Committee
November 27, 2023
Attachment B: FY 2023-24 Q1 Detailed Report
TABLE OF CONTENTS
The report has the following major sections:
1. General Purpose Fund Q1 Revenues
2. General Purpose Fund Q1 Expenditures
3. General Purpose Fund Q1 Fund Balance
4. Reserves
Appendixes:
Consolidated Fiscal Policy
FY2022-23 to FY2023-24 Carryforwards
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 2
Special Finance and Management Committee
November 27, 2023
Summary of FY 2023-24 Q1 GPF Revenues & Expenditures
FY 2023-24 GPF Revenue is projected to come in $113.91 million lower compared to the Adjusted Budget of $887.48 million. GPF Expenditures are estimated to come in $15.59 million over the Adjusted Budget. Table 1 below shows the FY 2023-24 General Purpose Fund revenue and expenditures Adjusted Budget, Q1 year to date actuals, and year-end estimates which currently project a year-end operating shortfall of $129.50 million.
Table 1: Summary of FY 2023-24 Q1 GPF Revenues & Expenditures Budget to Estimated Year-End Actuals ($ in millions)
FY 2023-24
Adopted
Budget
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Year-End
Estimate
FY 2023-24
Year-End $
Over / Under
Adjusted
Budget
Projected
Year-End %
(Over) /
Under
Adopted
Budget
FY 2023-24
Revenues 834.12 887.48 75.12 773.42 (113.91) (12.9) %
FY 2023-24
Expenditures 834.12 887.48 141.47 903.07 15.59 1.8 %
Operating
(Shortfall) /
Surplus — — (66.35) (129.50) (129.50) (14.6)%
I. GENERAL PURPOSE FUND FY 2023-24 Q1 REVENUES
This section of the report provides an assessment of the City's revenue condition in the current fiscal year as compared to the FY 2023-24 Adjusted Budget, primarily based on actual year-end performance during FY 2022-23, statewide economic forecasts, and trends seen in monthly remittances in some of the revenue categories during Q1 of FY 2023-24. The preliminary Q1 FY 2023-24 GPF revenue forecast projects an overall decrease of $31.26 million when compared to the Adjusted Budget, decreasing the total FY 2023-24 GPF revenue forecast from the estimated $804.68 million to $773.42 million, net of use of fund balance assumed in the budget to support expenditures and FY 2022-23 carryforwards. The effects of persistent high inflation, high gas prices, high interest rates, as well as decreased consumer confidence and personal savings, continue to affect City revenues. The rise in interest rates continue to reduce the demand and price of properties on the market, directly affecting RETT in particular, which leads the way in the anticipated shortfalls. Additional details are provided below for each category that projects to have a projected significant variance compared to the FY 2023-24 Adjusted Budget.
Q1 REVENUE HIGHLIGHTS
Property Tax projects to have the largest increase compared to the FY 2023-24 Adopted Budget, projecting to come in at $299.84 million, which is $5.68 million or 1.9% higher when compared to the FY 2023-24 Adopted Budget of $294.17 million. The increase is driven by the Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 3
Special Finance and Management Committee
November 27, 2023
overall increase in taxable values for the City of approximately 6.6% according to the 2023 Alameda County Assessor 2022/23 and 2023/24 Secured and Unsecured Tax Rolls that became available after the FY 2023-25 Biennial Budget was adopted by the City. The Property Tax rate is applied to the property values and therefore the increase in property values results in an increase to the amount of Property Tax collected in the same proportion. The 6.6% year- over-year increase from FY 2022-23 to FY 2023-24 is 1.6% lower compared to the prior year increase of 8.2%.
Utility Consumption Tax projects to have the second largest increase compared to the FY 2023-24 Adopted Budget, projecting to come in at $66.44 million, which is $4.54 million or 7.3% higher when compared to the FY 2023-24 Adopted Budget of $61.90 million. Higher Utility Costs have driven UCT to come in higher year-over-year, experiencing annual growth of 6.32% in FY 2020-21, 5.32% in FY 2021-22, and 14.99% in FY 2022-23. The new projection anticipates a CPI growth rate of 3% from the FY 2022-23 year-end all time high in UCT revenue collected of $64.51 million based on the annualized CPI increase as of June 30, 2023. On November 16 2023, the California Public Utilities Commission voted unanimously to increase the PG&E rates by 13%, taking effect on January 1, 2024 which is at the midpoint of FY 2023-
24. The revised UCT projection of a 7.3% increase anticipated compared to the Adopted Budget for FY 2023-24 closely matches the midpoint of the PG&E announced rate hikes. Historical growth in UCT revenue has been due in large part to increases in the tax rate but has high variability due to industry restructuring, technological change, weather, dynamics of energy markets, and price volatility. The Utility Consumption Tax (UCT) is imposed on the use of utilities, primarily electricity and natural gas, but also on cable television and telephone usage, and applies to both residential and commercial users.
Interest Income projects to have the third largest increase compared to the FY 2023-24 Adopted Budget, projecting to come in at $5.00 million, which is $4.51 million or 931.9% higher when compared to the FY 2023-24 Adopted Budget of $0.48 million due to the rapid growth in interest rates, which drove interest earnings to come in $4.51 million above the FY 2022-23 Adjusted Budget. Since March 2022, the Federal Reserve (FOMC) has raised interest rates 11 times by a combined total of 5.25% basis points which have resulted in the highest interest rates in recent history. Rates appear to have peaked but are expected to remain high throughout FY 2023-24 and therefore the updated projection expects a similar performance to FY 2022-23.
Parking Tax in the GPF projects to have the fourth largest increase compared to the FY 2023- 24 Adopted Budget, projecting to come in at $12.37 million, which is $1.10 million or 9.8% higher when compared to the FY 2023-24 Adopted Budget of $11.26 million. The FY 2023-24 Adopted Budget was adopted slightly lower compared to the FY 2022-23 Adopted Budget due to the underperformance in Parking Tax during the Covid Pandemic years, which had dropped from a high of over $11.05 million in FY 2028-19, to $9.07 million in FY 2019-20, and further to $6.26 million in FY 2020-21, before starting to bounce back in FY 2021-22, ending at $9.54 million. Parking Tax continued to rebound in FY 2022-23, falling $0.38 million under the $12.39 million budget in the GPF, but ending the year at $12.01 million, which has now surpassed the pre-pandemic level of $11.05 million.
Real Estate Transfer Tax projects to have the biggest shortfall compared to the FY 2023-24 Adopted Budget, projected to come in at $89.69 million, which is $20.72 million or 18.8% lower Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 4
Special Finance and Management Committee
November 27, 2023
when compared to the FY 2023-24 Adopted Budget of $110.41 million, which was developed prior to realizing the steep drop in RETT revenues that FY 2022-23 ended up experiencing. The significant reduction is attributable to rising interest rates that impact the affordability factor and consequently the number of property sales subject to RETT. Since March 2022, the Federal Reserve (FOMC) has raised interest rates 11 times by a combined total of 5.25% basis points.
As a consequence of the corresponding rise in mortgage rates, the number of properties sold in FY 2022-23 compared to FY 2021-22 dropped by 2,226 or 37.7% less properties in the City.
The CME Fed Watch Tool1, which analyzes the probability of FOMC interest rate moves for upcoming Federal Reserve meeting dates, estimates that interest rates have peaked and will remain constant until May 2024, before starting to drop gradually.
The last time RETT had a similar year-over-year decrease comparable to FY 2022-23 was in FY 2007-08 when it dropped 41.1% compared to the previous year. It remained at a similar level in the immediate future as it was followed by a 5.4% drop in FY 2008-09 and a modest rebound of a 7.88% increase in FY 2009-10. The macroeconomic circumstances appear different this time.
The last time the mortgage rates average was this high, 7.5% as of November 9, 2023, was in FY 2000-01, near the bottom of a 20-year drop during which mortgage rates were coming down from a high of 18.63% in 1981. Moreover, the comparable drop in RETT experienced in FY 2007-08 was more closely tied to the housing sector, while the current drop experienced in FY 2022-23 is a reaction to tighter monetary policy experienced as a result, first, of the Covid pandemic, and consequently of a high inflationary period. Looking outward, the California Association of Realtors released their 2024 Housing and Economic Forecast2 on September 20, 2023 and predict that the California housing market will rebound in 2024. According to their forecast, in the State of California, existing, single-family home sales are forecast to total 327,100 units in 2024, an increase of 22.9% from 2023's projected pace of 266,200.
California's median home price is forecast to climb 6.2% to $860,300 in 2024, following a projected 1.5 percent decrease to $810,000 in 2023 from 2022's $822,300 while housing affordability is expected to remain flat at 17 percent next year from a projected 17 percent in 2023.
By the volatile nature of this tax, RETT are not considered a consistent revenue stream. When certain high value commercial properties are sold, they can result in anomalously high revenue.
These can be unpredictable and cannot be relied upon. Given how the RETT market rebounded slowly during the previous comparable year-over-year drop in revenue, and how macroeconomic conditions appear to point towards a slower U shape recovery rather than a V shape recovery for the economy as a whole, the revised projections anticipate the first half of FY 2023-24 to come in at the levels experienced during FY 2022-23, and apply the estimated growth rate for sales and median price increases as expected by the California Association of Realtors for the second half of FY 2023-24.
Table 2 below presents the year-over-year variance in RETT growth Rate from FY 2021-22 to FY2022-23.
1 CME FedWatch Tool - CME Group, (November 6, 2023)
2 C.A.R. releases its 2024 California Housing Market Forecast (prnewswire.com) , source: California Association of Realtors, www.car.org.
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 5
Special Finance and Management Committee
November 27, 2023
Table 2: RETT Growth Rate ($ in millions)
FY 2021-22 FY 2022-23 Year-Over-Year
Variance
Sale Price Gross Sales Volume Gross Sales Volume Gross Sales Volume $300,000 or below $ 65.00 398 $37.82 229 (41.8) % (42.5) % $300,001 to $2 Million $ 4,719.02 5,011 $2,876.83 3,168 (39.0) % (36.8) % $2 million to $5 Million $ 1,156.53 428 $674.24 245 (41.7) % (42.8) % $5 -10 Million $ 260.91 39 $139.57 20 (46.5) % (48.7) % $10 - 50 Million $ 531.19 26 $293.32 14 (44.8) % (46.2) % $50.01-100 Million $ 194.16 3 $212.65 3 9.5 % — %
Over $100 Million $ 327.50 1 $163.29 $ 1 (50.1) % — % Total $ 7,254.31 5,906 $4,397.71 3,680 (39.4) % (37.7) %
Miscellaneous Revenue projects to have the second biggest shortfall, projected to come in at $5.79 million, which is $15.43 million or 72.7% lower when compared to the FY 2023-24 Adopted Budget of $21.22 million. The reduction in FY 2023-24 is a result of the high amount budgeted due to an anticipated sale of the Raiders Training Facility, which expected to generate $20.00 million in proceeds that are now projected to come in until FY 2024-25. The new estimate expects to end the year at the same level of FY 2022-23, which ended the year $2.87 million over the FY 2022-23 Adjusted Budget of $2.92 million.
Business License Tax projects to have the third biggest shortfall, projected to come in at $118.84 million, which is $6.41 million or 5.1% lower when compared to the FY 2023-24 Adopted Budget of $125.25 million, aligning closer to the FY 2022-23 year-end actual of $115.38 million, assuming a year over year increase equal to the 3% growth rate based on the CPI for the year ending June 30, 2023, according to the U.S. Bureau of Labor Statistics. The FY 2022-23 baseline represents the first year of BT data containing the new Measure T tiered based tax structure. Recent economic conditions, such as the increase commercial vacancy rates, the rise in borrowing interest rate, the decline in taxable sales, and decline in personal savings continue putting downward pressure on tax revenues. A July 17, 2023 article published by the San Francisco Business Times3, indicates that office vacancy in Oakland’s core business district hit 35.7% in the second quarter (Calendar Year, FY 2022-23 Q4); it further points out that this makes "the fourth consecutive quarter the 6.3 million-square-foot submarket’s vacancy rate has risen." New Business License Tax applications submitted during January through September of 2023 have also declined compared to the number submitted during the same period last year, with 3,451 received in 2023, compared to 4,632 in 2022, which is a 25% decrease. As a result, the revised forecast for the current fiscal year is a decreased by $6.41
3 Sarah Klearman,”Office vacancy in Oakland's core business district hit 35.7% in the second quarter", https://www.bizjournals.com/sanfrancisco/news/2023/07/17/q2-oakland-office.html “www.bizjournals.com”,July 17, 2023.
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 6
Special Finance and Management Committee
November 27, 2023
million from the FY2023-24 Adopted Budget of $125.25 million while maintaining a year over year increase of $3.46 million compared to the FY 2022-23 year-end actuals.
Sales Tax projects to have the fourth biggest shortfall, projected to come in at $65.63 million, which is $2.06 million or 3.0% lower when compared to the FY 2023-24 Adopted Budget of $67.69 million. General consumer goods declined due to buyers' sensitivity to inflated prices. As published in HDL's California Consensus Forecast Report, during Q4 of FY 2022-23, taxable sales overall for all of Alameda County declined 5.4% over the comparable time period in FY 2021-22; the Bay Area was down 0.1% during the same comparable periods. For FY 2023-24, State-wide, HDL projects a 0.6% reduction in sales tax trends, and for Oakland, HDL projects a
1.8% drop in County Sales Tax allocations. As a result, the fourth largest revenue source for the City is projected to come in $2.06 million lower than the FY 2023-24 Adjusted Budget of $67.69 million.
Transient Occupancy Tax projects to have the fifth biggest shortfall, projected to come in at $20.81 million, which is $1.68 million or 3.0% lower when compared to the FY 2023-24 Adopted Budget of $22.48 million. According to the City of Oakland’s Hospitality Market Report4 prepared by CoStar on September 28, 2023, in the 12 months prior to the report, “monthly occupancy has averaged 66.0%, moderately above the national average of 63.2% for the same period” and further “670 rooms currently underway in the Oakland market amount to a 3.1% expansion of the hotel inventory”. Thus, demonstrating the continual rebound that TOT has experienced since the FY 2020-21 pandemic low of $10.61 million collected. However, the current amount of $22.48 million as adopted in the FY 2023-24 Adopted Budget would represent an 11% increase from the FY 2022-23 year-end actual of $20.20 million, which came in lower than anticipated in the FY2022-23 Adjusted Budget. The new projected amount of $20.81 million represents a 3% growth rate from the FY 2022-23 year-end total, based on the Consumer Price Index (CPI) annualized increase as of June 30, 2023.
Fines and Penalties projects to have the sixth biggest shortfall, projected to come in at $22.27 million, which is $0.80 million or 3.5% lower when compared to the FY 2023-24 Adopted Budget of $23.07 million. The Adopted Budget assumed the $0.80 million for a Stand-up Scofflaw Detail program, which is a smart parking boot system that was shut down as a result of a California Court of Appeals decision against the City of San Francisco, which made it unlawful for a local agency to tow a legally parked car for unpaid parking citations.
Overall, there are several macroeconomic factors that have put a strain on City revenues and the recovery of revenue performance to the pre-pandemic high levels hasn’t been achieved overall but it continues to progress at a gradual pace in most categories. On the consumer side, the personal savings rate for individuals, based on data provided by HDL, has dropped to 4.5% as of the quarter ending on June 30, 2023, compared to 19.9% during the quarter ending on March 31, 2021, consequently slowing down spending trends that affect Sales Tax and local businesses. Inflation and high prices continue to be the focal point of the economy. In combating these, the primary driver of the reduction in the revenue projections for the City in FY 2023-24 is due to the rapid increase in interest rates made by the United States Federal
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 7
Special Finance and Management Committee
November 27, 2023
Reserve that have resulted in higher mortgage rates and have caused real estate transactions to drop significantly. Table 3 below summarizes the FY2023-24 GPF revenues by category, with the updated year-end projections for each.
Table 3: FY 2023-24 Q1 General Purpose Fund Revenues
Revenue
Category
FY 2023-24
Adopted
Budget
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-
End
Estimate
Year-End $
Over /
(Under)
Adjusted
Budget
Year-End %
Over /
(Under)
Adjusted
Budget
Property Tax 294.17 294.17 10.28 299.84 5.68 1.9 %
Business
License Tax 125.25 125.25 6.66 118.84 (6.41) (5.1)%
Real Estate
Transfer Tax 110.41 110.41 16.66 89.69 (20.72) (18.8)%
Sales Tax 67.69 67.69 5.84 65.63 (2.06) (3.0)%
Utility
Consumption
Tax 61.90 61.90 15.29 66.44 4.54 7.3 %
Service
Charges 52.28 52.28 4.98 52.28 — — %
Fines &
Penalties 23.07 23.07 4.30 22.27 (0.80) (3.5)%
Transient
Occupancy Tax 22.48 22.48 4.56 20.81 (1.68) (7.5)%
Miscellaneous
Revenue 21.22 21.22 2.85 5.79 (15.43) (72.7)%
Interfund
Transfers 13.08 13.08 — 13.08 — — %
Parking Tax 11.26 11.26 3.30 12.37 1.10 9.8 %
Licenses &
Permits 1.39 1.39 0.25 1.39 — — %
Interest Income 0.48 0.48 — 5.00 4.51 931.9%
Grants &
Subsidies — — 0.15 0.15 0.15 — %
Subtotal 804.68 804.68 75.12 773.57 (31.11) (3.9)%
Transfers from
Fund Balance 30.12 30.12 — — (30.12) (100.0)%
Project Offsets
&
Carryforwards — 52.68 — — (52.68) (100.0)%
Total Revenue 834.80 887.48 75.12 773.57 (113.91) (9.4)%
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 8
Special Finance and Management Committee
November 27, 2023
II. GENERAL PURPOSE FUND Q1 EXPENDITURES
GENERAL PURPOSE FUND EXPENDITURE HIGHLIGHTS
The GPF expenditures are forecasted to come in at $903.07 million, which is an increase of $15.59 million, compared to the Adjusted Budget of $887.48 million. The budget assumes a one-time use of fund balance in the amount of $30.1 million to balance the expenditures as budgeted. In previous years, one-time funding was needed in the balancing of the FY2019-20, FY2020-21, FY2021-22 and FY2022-23 expenditures in the budget by programming CARES dollars ($36.99 million), ARPA dollars ($188 million), and use of VSSF ($14.65 million) for a total of $239.64 million, which would equal 29% of FY2023-24 GPF Adopted Budget expenditures.
Furthermore, the budgeted personnel expenditures also assume a vacancy factor of 8.00 %, expediting hiring to a large degree could change the outcome. Overall, the budget assumes a decrease in appropriation levels due to the exhaustion of emergency/federal funding utilized in prior fiscal years combined with the current global inflationary trend affecting the economy.
Table 4 below reflects the GPF expenditures forecasted to come in at $903.07 million, which is $15.59 million, or 1.8% under the adjusted budget of $887.48 million.
Table 4: Summary of FY 2023-24 Q1 GPF Expenditures Budget to Actuals ($ in millions)
FY 2023-24
Adopted
Budget
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
(Over) /
Under
Adjusted
Budget
Year-End %
(Over) /
Under
Adjusted
Budget
FY 2023-24
Expenditures 834.12 887.48 141.47 903.07 (15.59) (1.8)%
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 9
Special Finance and Management Committee
November 27, 2023
Department Level Spending Trends
Table 5 below reflects department-level spending and projected year-end GPF expenditures. As a result, City-wide GPF departmental expenditure projections are projected to come in above the Adjusted Budget by $15.59 million. Per the City’s Consolidated Fiscal Policy, Departments projected to overspend in the General Purpose Fund by more than one percent (1%), shall bring an informational report to the City Council within 60 days following acceptance of the Revenue & Expenditure report by the City Council. The report shall list the actions the Administration is taking to bring the expenditures into alignment with the budget.
Table 5: Summary of FY 2023-24 GPF Projected Expenditure Variance ($ in millions) Department
FY 2023-24
Adjusted
Budget
FY 2023-24 Q1
YTD Actuals
FY 2023-24 Q1
Year-End
Estimate
Year-End $
(Over) / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
Capital Improvement
Projects 2.35 0.01 2.35 — — %
City Administrator 11.00 1.45 10.43 0.57 5.2 %
City Attorney 23.42 3.40 22.59 0.83 3.5 %
City Auditor 3.60 0.46 3.22 0.38 10.6 %
City Clerk 7.86 0.43 7.49 0.37 4.7 %
City Council 7.68 1.32 7.55 0.13 1.7 %
Department of
Transportation 23.04 2.43 21.63 1.40 6.1 %
Department of
Violence Prevention 13.08 0.87 11.94 1.13 8.7 %
Department of
Workplace and
Employment
Standard 5.67 0.89 5.99 (0.32) (5.7) %
Economic and
Workforce
Development
Department 17.02 1.73 16.87 0.15 0.9 %
Finance Department 33.46 4.37 31.93 1.54 4.6 %
Fire Department 212.60 36.75 207.70 4.90 2.3 %
Housing and
Community
Development
Department 2.91 0.17 2.91 — — %
Human Resources
Management
Department 9.71 1.59 9.40 0.31 3.2 %
Human Services
Department 44.50 2.78 44.50 — — %
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 10
Special Finance and Management Committee
November 27, 2023
Department
FY 2023-24
Adjusted
Budget
FY 2023-24 Q1
YTD Actuals
FY 2023-24 Q1
Year-End
Estimate
Year-End $
(Over) / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
Information
Technology
Department 18.67 2.70 18.12 0.54 2.9 %
Mayor 4.68 0.76 4.35 0.33 7.0 %
Non-Departmental
and Port 60.09 3.19 57.59 2.50 4.2 %
Oakland Animal
Services 6.56 0.99 6.17 0.40 6.0 %
Oakland Parks and
Recreation
Department 19.23 2.34 18.66 0.57 2.9 %
Oakland Public
Library Department 12.32 1.39 12.57 (0.26) (2.1) %
Oakland Public
Works Department 1.78 0.21 1.85 (0.07) (3.7) %
Police Commission 8.54 0.92 7.46 1.08 12.7 %
Police Department 333.91 69.82 366.24 (32.32) (9.7) % Public Ethics
Commission 2.35 0.30 2.15 0.20 8.3 %
Race and Equity
Department 1.48 0.22 1.42 0.06 4.0 %
Total 887.48 141.47 903.07 (15.59) (1.8 %)
The following section details Q1 projected GPF savings or overspending by Department, as compared to the FY 2023-24 Adjusted Budget.
Capital Improvement Program (CIP)
The Capital Improvement Program is projected to end the fiscal year at its adjusted budget of $2.35 million.
City Administrator (CAO)
The City Administrator’s Office is projected to underspend by $0.57 million, or 5% of their budget, due to vacancies. In the General Purpose Fund, CAO has a vacancy rate of 29%, with twelve vacant positions.
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 11
Special Finance and Management Committee
November 27, 2023
City Attorney (OCA)
The City Attorney is projected to underspend by $0.83 million, or 4% of their budget, due to vacancies. In the General Purpose Fund, OCA has a vacancy rate of 17%, with eleven vacant positions.
City Auditor
The City Auditor is projected to underspend by $0.38 million, or 11% of their budget due to vacancies. In the General Purpose Fund, City Auditor has a vacancy rate of 36%, with four vacant positions.
City Clerk
The Office of the City Clerk is projected to underspend their budget by $0.37 million, or 5% of their budget due to vacancies. In the General Purpose Fund, City Clerk has a vacancy rate of 18%, with two vacant positions.
City Council
The City Council is projected to underspend their budget by $0.13 million, or 2% of their budget, due to vacancies. In the General Purpose Fund, City Council has a vacancy rate of 6%, with two vacant positions.
Department of Transportation (DOT)
The Department of Transportation is projected to underspend by $1.40 million, or 6% of their budget, due to vacancies. In the General Purpose Fund, DOT has a vacancy rate of 41%, with forty-two vacant positions.
Department of Violence Prevention (DVP)
The Department of Violence Prevention is projected to underspend by $1.13 million, or 9% of their budget, due to vacancies. In the General Purpose Fund, DVP has a vacancy rate of 33%, with ten vacant positions.
Department of Workplace & Employment Standards (DWES)
The Department of Workplace & Employment Standards is projected to overspend by $0.32 million, or 6% of their budget, due to overspending in personnel. In the General Purpose Fund, DWES has a vacancy rate of 25%, with five vacant positions.
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 12
Special Finance and Management Committee
November 27, 2023
Economic & Workforce Development (EWD)
Economic & Workforce Development is projected to underspend by $0.15 million, or 6% of their budget, due to vacancies. In the General Purpose Fund, DWES has a vacancy rate of 35%, with nine vacant positions.
Finance Department
The Finance Department is projected to underspend by $1.54 million, or 5% of their budget, due to vacancies. In the General Purpose Fund, Finance has a vacancy rate of 21%, with twenty- five vacant positions.
Fire Department
The Oakland Fire Department is projected to underspend by $4.90 million, or 2% of their budget. In the General Purpose Fund, Fire has a vacancy rate of 16%, with 101 vacant positions.
Housing & Community Development (HCD)
Housing & Community Development is projected to end the fiscal year at the adjusted budget of $2.91 million.
Human Resources Management (HRM)
Human Resources Management is projected to underspend by $0.31 million, or 3% of their budget, due to underspending in Personnel. In the General Purpose Fund, HRM has a vacancy rate of 16%, with six vacant positions.
Human Services Department (HSD)
Human Services Department is projected to end the fiscal year at its adjusted budget of $44.50 million. In the General Purpose Fund, HSD has a vacancy rate of 21%, with 13 vacant positions.
Information Technology (ITD)
The Information Technology Department is projected to underspend by $0.54 million, or 3% of their budget, due to vacancies. In the General Purpose Fund, ITD has a vacancy rate of 15%, with eight vacant positions.
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 13
Special Finance and Management Committee
November 27, 2023
Mayor’s Office
The Mayor’s Office is projected to underspend by $0.33 million, or 7% of their budget, due to underspending in Personnel. In the General Purpose Fund, the Mayor's Office has no vacancies.
Non-Departmental
Non-Departmental is projected to underspend by $2.50 million, or 4% of the budget, primarily due to savings in debt payments to the Oakland-Alameda County Coliseum Authority (OACCA).
OACAA recommended reduced debt payment contributions as a result of increased revenue from ticket sales at the Coliseum. Subsequently, OACCA passed a resolution reducing the City’s contribution yielding $5 million in savings in the current year.
On November 7, 2023, the City Council passed Resolution 89981 C.M.S., allocating $2.5 million of the savings to enhance improvements to 9-1-1 dispatch and for efforts to recruit and retain workers. As such, and after consideration of the remaining projected year-end savings the entirety of the Coliseum-related savings is fully accounted for.
Oakland Animal Services
The Department of Animal Services is projected to underspend by $0.40 million, or 6% of their budget, due to vacancies. In the General Purpose Fund, Animal Services has a vacancy rate of 21%, with seven vacant positions.
Oakland Parks, Recreation and Youth Development (OPRYD)
Oakland Parks, Recreation and Youth Development is projected to underspend by $0.57 million, or 3% of their budget, due to vacancies. In the General Purpose Fund, OPRYD has a vacancy rate of 27%, with twenty-nine vacant positions.
Oakland Public Library (OPL)
Oakland Public Library is projected to overspend by $0.26 million, or 2% of their budget, due to overspending in personnel. In the General Purpose Fund, OPL has a vacancy rate of 21%, with eight vacant positions.
Oakland Public Works (OPW)
Oakland Public Works is projected to overspend by 0.07, or 4% of their budget, due to overspending in personnel. In the General Purpose Fund, OPW has a vacancy rate of 100%, with three vacant positions.
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 14
Special Finance and Management Committee
November 27, 2023
Police Commission
The Police Commission is projected to have savings of $1.08 million, or 13% of their budget, due to vacancies. In the General Purpose Fund, Police Commission has a vacancy rate of 48%, with thirteen vacant positions.
Police Department
The Police Department is projected to overspend by $32.32 million, or 10% of their budget, due to overtime overspending. A detailed explanation of this overage can be found in the "Public Safety Costs & Analysis" section below.
Public Ethics Commission (PEC)
The Public Ethics Commission is projected to have savings of $0.20 million, or 8% of their budget, due to vacancies. In the General Purpose Fund, PEC has a vacancy rate of 11%, with one vacant position.
Race & Equity
The Department of Race & Equity is projected to have savings of $0.06 million, which is 4% of their budget, due to vacancies. In the General Purpose Fund, Race & Equity has a vacancy rate of 20%, with one vacant position.
Public Safety Costs & Analysis
The Oakland Police Department (OPD) was allocated $24,075,587 in overtime for Fiscal Year (FY) 2023-24. Since July 1, 2023, OPD has experienced a significant surge in overtime expenses in the Personnel/Overtime category. Based on payroll data from Quarter 1 (Q1), the Department is projected to exceed its allocated overtime budget by approximately $32,400,000.
The Department anticipates receiving $5,900,000 in salary savings and reimbursable overtime funds, offsetting overtime spending to a projected overage of $26,500,000.
In FY 2023, OPDs budgeted authorized sworn staffing was reduced from 741 to 712. Although staffing was reduced, 719 sworn positions were filled on July 1, 2023, placing OPD over its budgeted authorized staffing by seven personnel. This staffing overage, which has fluctuated throughout Q1, has contributed to the projected overspending in the Personnel/Overtime category.
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 15
Special Finance and Management Committee
November 27, 2023
The top five areas where overspending has occurred in Q1 are outlined in the table below.
Table 6 OPD Top 5 Units for Overtime
Top 5 Units for Overtime FY23-24 Budget Yearly Projection Variance Special Operations Division (SOD) $2.59 $12.20 $(9.61)
Area 1 $2.13 $8.69 $(6.56)
Area 3 $2.08 $4.80 $(2.72)
Violent Crime Operations Center (VCOC) $0.79 $2.14 $(1.35) Robbery & Burglary Section $0.27 $1.93 $(1.66)
The Department’s objective is to reduce violent crime. This plan requires overtime by sworn personnel and increased spending in the Robbery & Burglary Section, the Violent Crime Operation Center (VCOC), Special Operations Division (SOD), and Areas 1 and 3.
During the month of July, the Robbery & Burglary Section faced a substantial increase in home invasion robberies, requiring investigators to work extended hours to establish connections between cases and identify offenders. Additionally, the Section was actively involved in a 30-day violent suppression operation, collaborating with the VCOC and Ceasefire.
The VCOC played a pivotal role in responding to challenges throughout the city, which included a 23% increase in robberies, a 3% increase in aggravated assaults, and a 6% increase in rapes since this time last year. To address this surge in crime, the VCOC collaborated with the Bureau of Field Operations (BFO), the Area Commanders, and Ceasefire to devise and execute crime- fighting strategies and operations to reduce violent crime. During Q1 of this FY , the VCOC was extensively involved in various crime reduction operations, including the 4th of July Mobile Field Force operation, sideshow operations, and 30-day violence suppression operations, necessitating extended police coverage five to six days a week.
SOD incurred notable overtime spending, primarily related to special enforcement operations, which included special events requiring sworn officers to assist with public safety. While the projected expenditure for SOD overtime is $12,199,480, the Department anticipates receiving $5,900,000 in reimbursable overtime, resulting in a projected total overtime spending for SOD in the amount of $6,299,480.
Patrol overtime allocation, which includes Area 1 and Area 3, is determined by the Watch Commanders and is based on crime analysis data and information obtained from weekly crime meetings. Specific locations and tasks are not predetermined; however, the goal is to reduce shootings, robberies, and other violent crimes.
During Q1, the overtime spending in Areas 1 and 3 persisted from the preceding quarter, particularly in areas with high crime rates, including the Little Saigon Area, International Boulevard, Acorn, Ghost Town, and Campbell Village, areas known for incidents of shootings and homicides. Furthermore, overtime was extended for various operations, including those at Lake Merritt, Human Trafficking, and China Town.
Jestin D. Johnson, City Administrator
Subject: Attachment B: FY 2023-24 Q1 R&E Report
Date: November 27, 2023 Page 16
Special Finance and Management Committee
November 27, 2023
To ensure compliance with NSA regulations following the ransomware incident, a significant number of division-level investigations were assigned in July, requiring immediate attention to prevent missed deadlines that could jeopardize the Department’s compliance status. As a result, overtime was approved for Sergeants and Lieutenants to oversee and complete these investigations.
Considering the increase in violent crime during Q1 of FY 2023-24, the Department anticipates evaluating strategies to reduce excessive overtime spending by restricting overtime during Quarter 2 (Q2). This approach aims to offset the overages accrued during Q1.
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 17
Special Finance and Management Committee
November 27, 2023
III. GENERAL PURPOSE FUND - FUND BALANCE
The City's GPF Fund Balance, net obligations, is projected to end the year at negative $70.15 million in FY 2023-24. Obligations are reserves required by City Ordinances and the City Charter (mandated emergency & OMERS reserves).
Table 7 below shows mandated reserves required by City Ordinances and the City Charter (mandated emergency & OMERS reserves) totaling $33.84 million, decreasing the estimated FY2023-24 year-end available fund balance from negative $36.46 million to negative $70.15 million. The estimated FY 2023-24 available Fund Balance is the amount of unobligated funding available to the City in the GPF.
Table 7: FY 2023-24 Year-End Available GPF Fund Balance GENERAL PURPOSE FUND (1010)
FY 2023-24 Q1 Projected
FYE
Estimated FY 2023-24 Beginning Available Fund Balance 93.19 FY2023-24 Performance
Revenue 773.42
Expenditures 903.07
FY 2023-24 Operating Surplus / (Deficit) (129.50)
Unaudited Ending Fund Balance (36.46)
Obligations Against Ending Fund Balance (33.84)
Use of Fund Balance in FY 2024-25 (33.84)
Estimated FY 2023-24 Ending Available Fund Balance (70.15)
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 18
Special Finance and Management Committee
November 27, 2023
IV. RESERVES
On December 9, 2014 Council Ordinance No. 13279 amended the City’s Consolidated Fiscal Policies to include designated reserves for both the Vital Services Stabilization Fund and for the acceleration of long-term obligations, in addition to the mandated 7.5% GPF Emergency Reserve (refer to the City of Oakland Consolidated Fiscal Policy, Section I, Part C: Use of Excess Real Estate Transfer Tax). It is important to note that while these balances are designated each fiscal year, reserve appropriations adopted in subsequent fiscal years may include any prior year true-ups.
Emergency Reserve
The City’s GPF Emergency Reserve, was calculated by multiplying 7.5% by the FY2022-23 Adopted Budget amount of $872.07 million and carried forward on to FY 2023- 24. The reserve is approximate to one month of FY 2023-24 Adopted Budget in the GPF. This reserve will be held in Fund 1011 as directed by Council in Resolution 88717 C.M.S. The reserve requirement, pursuant to the CFP has been met.
However, the emergency reserve policy level of 7.5% is inadequate to sustain city services in an economic downturn as evidenced by the events of the last 2 years. The recommended policy level is 16.7% or two months of operating expenditures. This recommended level is supported by best practices outlined by the Government Finance Officer's Association's (GFOA).
Additionally, this recommended level can be witnessed in the levels of funding needed in the balancing of the City's Budget since the FY2019-20 budget by programming CARES dollars ($36.99 million), ARPA dollars ($188.00 million) and use of VSSF ($14.65 million) for a total of $239.64 million. Finally, the City Auditor’s Financial Condition for Fiscal Years 2012-13 through 2019- 20 Report cites the need for additional reserves to bolster the city’s financial standing.
Vital Services Stabilization Fund
The Vital Services Stabilization Fund (VSSF) was established in 2014 by City Council after the Great Recession to serve as the City's "Rainy Day" fund. Per the Consolidated Fiscal Policy, 25% of excess RETT revenue is intended to go into the VSSF. The FY 2022-23 ending available balance of $10.27 million was assumed in its entirety in the FY 2023-24 Adopted Budget to balance expenditures as City Council declared that the City is experiencing a severe financial event and state of extreme fiscal necessity. The target funding level per the City's Consolidated Fiscal Policy is $125.22 million, or 15% of the GPF revenues. Table 8 below shows the estimated FY 2023-24 year-end reserve balances.
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 19
Special Finance and Management Committee
November 27, 2023
Table 8: FY 2023-24 Reserve Balances ($ in millions)
Description
FYE Estimated
2022-2023
Balances
FYE Estimated
2023-2024
Balances
Mandated Emergency Reserves FY 2022-23* 65.41
65.41 Vital Services Stabilization Fund 10.27
—
OMERS Reserves (Reso. No. 85098 C.M.S) 2.36
2.36 Total Reserves 78.04
67.77 *The 7.5% GPF reserve is not a cumulative balance
V. SELECTED Q1 NON-GPF
This section of the Q1 report contains additional analysis on selected non-GPF funds. For additional fund descriptions, please visit https://stories.opengov.com/oaklandca/published/R- 0eckHLWBJ.
This Q1 report discusses selected funds that are of special interest to the City because the revenue comes from a special tax or local measure, or because of the particular revenue or expenditure restrictions.
For these funds, the revenue tables below will show year-end estimates compared to the adopted budget. The expenditure tables in this section compares the FY 2023-24 Adopted Budget to FY 2023-24 year-end estimates.
The fund balance tables compare the FY 2023-24 unaudited beginning fund balance to the FY 2023-24 projected ending fund balance for these funds. Please note that some of the fund tables below show a budgeted transfer from the fund balance for FY 2024-25. These amounts represent dollars designated to balance the Adopted Budget.
All other funds are summarized in Table 40.
Measure HH - Sugar Sweetened Beverage Distribution Tax (SSBT) Fund (1030)
Measure HH - SSBT Fund (1030) is a City of Oakland ballot initiative approved by voters on November 8, 2016, that established a general tax of one cent per fluid ounce on the sugar sweetened beverage products. The tax is imposed upon the first non-exempt distribution of sugar-sweetened beverage products in the City. While this revenue is not restricted by State Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 20
Special Finance and Management Committee
November 27, 2023
statute, City Council has elected to restrict it by policy and separate it into its own fund because the primary purpose of the tax is to raise revenue to support programs designed to discourage sugar consumption and to reduce the growing burden of obesity and non-communicable diseases.
The measure formed a nine-member Community Advisory Board, appointed by the Mayor, and approved by City Council. The Board is responsible for:
1. Making recommendations to the City Council on use of funding/programs that will reduce the health consequences from consuming sugar-sweetened beverages (final allocations are still determined by City Council).
2. Publishing an annual report regarding the implementation of the Board's recommendations and the impact on the use of these funds.
Revenues - This revenue source has continued to decline at a rate of about 10% each year since its inception in FY 2017-2018. The FY 2023-24 Adjusted Budget assumes the use of fund balance to balance the Adjusted Budget of $16.27 million and $9.09 million in use of fund balance to support the FY 2023-24 carryforwards. The actual Sales Tax for Measure BB projects to come in at $6.88 million which is at Budget.
Table 9: FY 2023-24 Measure HH (SSBT) Fund Revenues ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q1
YTD Actuals
FY 2023-24 Q1
Year-End
Estimate
Year-End $
Over / (Under)
Adjusted
Budget
Year-End %
Over / (Under)
Adjusted
Budget
Project Offsets
& Carryforwards 9.09 — — (9.09) (100.0)%
Local Tax 6.88 1.55 6.88 — — %
Transfers from
Fund Balance 0.29 — (0.29) (100.0)%
Miscellaneous
Revenue — 0.08 0.08 0.08 — %
Total Revenue 16.27 1.63 6.97 (9.31) (57.2)%
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $14.54 million, which is a savings of $1.73 million, compared to the Adjusted Budget of $16.27 million. The savings is primarily due to underspending in personnel costs.
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 21
Special Finance and Management Committee
November 27, 2023
Table 10: FY 2023-24 Measure HH (SSBT) Fund Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
(Over) /
Under
Adjusted
Budget
Year-End %
(Over) /
Under
Adjusted
Budget
Capital Improvement
Projects 2.08 — 2.08 — (0.2) %
City Administrator 0.69 0.05 0.24 0.45 65.5 %
Economic and Workforce
Development Department 0.71 0.02 0.62 0.09 13.2 % Finance Department 0.37 0.02 0.36 0.01 1.4 %
Human Services
Department 7.73 0.12 7.73 — — %
Oakland Parks and
Recreation Department 4.05 0.44 2.85 1.20 29.6 % Oakland Public Library
Department 0.11 — 0.11 — — %
Oakland Public Works
Department 0.05 — 0.05 (0.01) (16.9) %
Total 16.27 0.64 14.54 1.73 10.6 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $6.97 million. Expenditures are projected to end the year at $14.54 million. As a result, the estimated available fund balance in Measure HH (SSBT) Fund (1030) is projected to decrease from $10.76 million in FY 2022-23 to $2.89 million in FY 2023-24.
Table 11: FY 2023-24 Measure HH (SSBT) Fund Year-End Available Fund Balance ($ in millions)
MEASURE HH SSBT (1030) FY 2023-24 Q1 Year-
End Estimate
Beginning Fund Balance - Unaudited 10.76
Revenue 6.97
Expenditures 14.54
Estimated Current Year Surplus/(Shortfall) (7.57)
Subtotal Fund Balance 3.19
Use of Fund Balance in FY 2024-25
Budgeted Transfer from Fund Balance 0.29
Estimated Ending Fund Balance 2.89
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 22
Special Finance and Management Committee
November 27, 2023
Measures BB & F Funds (2215, 2217, 2218, 2219, 2220)
Measure BB and F Funds are administered by the Alameda County Transportation Commission (Alameda CTC) which manages the following three local fund sources:
1. Measure BB, passed by voters in November 2014, authorized collection of the initial half-cent transportation sales tax by the Board of Equalization. Collection began on April 1, 2015 and will extend through March 31, 2022. The full one-cent sales tax authorized by Measure BB will begin April 1, 2022 and will extend through March 31, 2045. Starting in July 2015, Alameda CTC began making monthly direct local distribution payments to local jurisdictions and transit agencies, per the 2014 Transportation Expenditure Plan, for the following programs: local streets and roads (including county bridges), bicycle and pedestrian, transit, and paratransit.
2. Measure F, approved by voters in November 2010, authorizes the collection of $10 per year per vehicle registration fee to fund the Local Road Improvement & Repair Program and other congestion relief, transportation technology, and pedestrian/bicyclist safety programs in Alameda County.
Revenues - The FY 2023-24 $79.14 million Adjusted Budget assumes $4.67 million in use of fund balance to balance the Adjusted Budget and $35.71 million in use of fund balance to support FY 2023-24 carryforwards. Year-end revenues are projected to come in in at $39.18 million, which is $39.96 million or 50.5% under the Adjusted Budget of $79.14 million. The actual Sales Tax for Measure BB projects to come in at $36.96 million which is at Budget, and $0.36 million under the FY 2022-23 year-end total. Based on statewide Sales Tax trends, HDL projects a 0.6% year over year decrease for Sales Tax in California for FY 2023-24.
Table 12: FY 2023-24 Measure BB & F Fund Revenues ($ in millions) Revenue Category
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
Over / (Under)
Adjusted
Budget
Year-End %
Over / (Under)
Adjusted
Budget
Sales Tax 36.96 2.67 36.96 — — %
Project Offsets &
Carryforwards 35.71 — — (35.71) (100.0) %
Transfers from Fund
Balance 4.67 — (4.67) (100.0) %
Grants & Subsidies 1.81 — 1.81 — — %
Service Charges — 0.03 0.03 0.03 — %
Miscellaneous Revenue — 0.38 0.38 0.38 — %
Total Revenue 79.14 3.08 39.18 (39.96) (50.5) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 23
Special Finance and Management Committee
November 27, 2023
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $70.75 million, which is a savings of $8.39 million, compared to the Adjusted Budget of $79.14 million. The savings are primarily due to underspending in personnel costs.
Table 13: FY 2023-24 Measure BB/F Funds Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
(Over) / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
Capital Improvement
Projects 32.84 0.23 32.99 (0.15) (0.5) %
City Administrator 0.39 0.04 0.22 0.17 43.5 %
City Attorney 0.05 0.01 0.05 (0.01) (11.6) %
Department of
Transportation 34.55 4.10 25.90 8.65 25.0 %
Finance Department 0.01 — 0.01 — — %
Human Resources
Management
Department 0.24 0.01 0.07 0.17 71.1 %
Human Services
Department 3.75 0.23 3.82 (0.07) (1.7) %
Mayor 3.57 0.05 3.61 (0.04) (1.2) %
Non Departmental and
Port 0.52 — 0.52 — — %
Oakland Public Works
Department 1.69 0.29 2.01 (0.33) (19.4) %
Police Department 1.55 — 1.56 (0.01) (0.4) %
Total 79.14 4.97 70.75 8.39 10.6 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $39.18 million. Expenditures are projected to end the year at $70.75 million. The 2024-25 Adopted Budget assumes $4.48 million in use of fund balance to support expenditures. As a result, the estimated available fund balance in the Measure BB/F Funds is projected to decrease from $54.39 million in FY 2022-23 to $18.34 million in FY 2023-24.
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 24
Special Finance and Management Committee
November 27, 2023
Table 14: FY 2023-24 Measure BB/F Funds Year-End Available Fund Balance ($ in millions)
Measure BB and Measure F Funds (2215, 2216, 2217, 2218, 2219, 2220) FY 2023-24 Q1 Year- End Estimate
Beginning Fund Balance - Unaudited 54.39
Revenue 39.18
Expenditures 70.75
Estimated Current Year Surplus/(Shortfall) (31.57)
Subtotal Fund Balance 22.82
Use of Fund Balance in FY 2024-25
Budgeted Transfer from Fund Balance 4.48
Estimated Ending Fund Balance 18.34
State Transportation Gas Tax Funds (2230, 2232)
The State of California imposes a per-gallon excise tax on gasoline and diesel fuel, sales taxes on gasoline and diesel fuel, and registration taxes on motor vehicles with allocations dedicated to transportation purposes. The local (city and county) portions of these allocations flow through the Highway Users Tax Account (HUTA) into the Gasoline Tax Fund (2230) and the Road Maintenance and Rehabilitation Account (RMRA) (Fund 2232), which allocates much of the revenue from the Road Repair and Accountability Act of 2017.
Revenues - The FY 2023-24 $31.94 million Adjusted Budget assumes $5.74 million in use of fund balance to balance the Adjusted Budget. Year-end revenues project to come in at $20.66 million, which is 35.3% or $11.28 million under the Adjusted Budget of $31.94 million. The actual Gas Tax projects to come in at $19.60 million which is at budget.
Table 15: FY 2023-24 State Transportation Gas Tax Fund Revenues ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
Over / (Under)
Adjusted
Budget
Year-End %
Over / (Under)
Adjusted
Budget
Gas Tax 19.60 2.99 19.60 — — %
Project Offsets
&
Carryforwards 6.45 — — (6.45) (100.0)%
Transfers from
Fund Balance 5.74 — — (5.74) (100.0)%
Grants &
Subsidies 0.14 — 0.14 — — %
Service
Charges 0.01 — 0.01 — — %
Miscellaneous
Revenue — 0.91 0.91 0.91 — %
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 25
Special Finance and Management Committee
November 27, 2023
Total
Revenue 31.94 3.90 20.66 (11.28) (35.3)%
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $27.89 million, which are a savings of $4.05 million when compared to the Adjusted Budget of $31.94 million.
The savings is primarily due to underspending in personnel costs.
Table 16: FY 2023-24 State Transportation Funds Gas Tax Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
(Over) / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
Capital Improvement
Projects 5.47 — 5.47 — — %
City Administrator 0.18 0.02 0.18 — 2.5 %
Department of
Transportation 25.95 2.80 22.12 3.83 14.8 %
Finance Department 0.09 — 0.01 0.09 91.7 %
Human Resources
Management
Department 0.24 0.01 0.07 0.17 71.1 %
Oakland Public Works
Department (0.01) 0.01 0.03 (0.04) 597.0 %
Total 31.94 2.85 27.89 4.05 12.7 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $20.66 million. Expenditures are projected to end the year at $27.89 million. As a result, the estimated available fund balance in the State Transportation Gas Tax Funds is projected to decrease from $11.56 million in FY 2022-23 to $1.59 million in FY 2023-24.
Table 17: FY 2023-24 State Transportation Funds Year-End Available Fund Balance ($ in millions)
State Transportation (Gas Tax) Funds (2230, 2232) FY 2023-24 Q1 Year- End Estimate
Beginning Fund Balance - Unaudited 11.56
Revenue 20.66
Expenditures 27.89
Estimated Current Year Surplus/(Shortfall) (7.23)
Subtotal Fund Balance 4.33
Use of Fund Balance in FY 2024-25
Budgeted Transfer from Fund Balance 2.74
Estimated Ending Fund Balance 1.59
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 26
Special Finance and Management Committee
November 27, 2023
Measure Q - OPR Preservation, Litter Reduction, Homelessness Support Act Fund (2244)
Measure Q, the 2020 Oakland Parks and Recreation, Preservation, Litter Reduction, and Homelessness Support Act Fund (2244), is a City of Oakland ballot initiative approved by voters on March 3, 2020 that established an annual special parcel tax for 20 years. This measure, which passed by more than a two-thirds majority, imposes a special parcel tax for the purpose of raising revenue to provide services for parks, landscape maintenance, and recreational services; to address homelessness and enable unsheltered and unhoused residents to access temporary shelters, transitional, supportive, and permanent housing; and to address water quality and litter reduction, including the maintenance and cleaning of stormwater trash collection systems.
Revenues - The FY 2023-24 $47.46 million Adjusted Budget assumes $2.53 million in use of fund balance to balance the Adjusted Budget and $14.14 million to support carryforward expenditures. Year-end revenues are projected to come in at $31.55 million, which is 33.5% or $15.91 million under the Adjusted Budget of $47.46 million. The actual Measure Q Tax projects to come in at $31.35 million which is 1.8% or $0.57 million over the $30.78 million estimated in the FY 2023-24 Adjusted Budget based on the estimated revenue corresponding to the fixed rate of the Property Tax levied for Fiscal Year 2023-24.
Table 18: FY 2023-24 Preservation, Litter Reduction, Homelessness Support Act Fund Revenues ($ in millions)
Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q1
YTD Actuals
FY 2023-24 Q1
Year-End
Estimate
Year-End $
Over / (Under)
Adjusted
Budget
Year-End %
Over / (Under)
Adjusted
Budget Local Tax 30.78 (0.01) 31.35 0.57 1.8 %
Project Offsets
& Carryforwards
14.14 — — (14.14) (100.0) %
Transfers from
Fund Balance
2.53 — — (2.53) (100.0) %
Miscellaneous
Revenue
— 0.20 0.20 0.20 — %
Total Revenue 47.46 0.19 31.55 (15.91) (33.5) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $42.85 million, which is a savings of $4.62 million when compared to the Adjusted Budget of $47.46 million.
The savings are primarily due to underspending in personnel costs.
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 27
Special Finance and Management Committee
November 27, 2023
Table 19: FY 2023-24 Measure Q - OPR Preservation, Litter Reduction, Homelessness Support Act Fund Expenditures ($ in millions)
Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
(Over) / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
Capital Improvement
Projects 2.13 — 2.13 — — %
City Administrator 4.35 0.12 4.50 (0.15) (3.3) % City Auditor 0.04 — — 0.04 100.0 %
Economic and
Workforce
Development
Department 0.11 — — 0.11 100.0 %
Finance Department 0.11 — 0.11 — — %
Human Services
Department 10.89 0.32 10.06 0.84 8.4 %
Non-Departmental and
Port 0.92 — 0.92 — — %
Oakland Parks and
Recreation Department 0.13 — 0.13 — — %
Oakland Public Works
Department 28.79 2.98 25.01 3.78 13.1 %
Total 47.46 3.42 42.85 4.62 10.8 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $31.55 million. Expenditures are projected to end the year at $42.85 million. As a result, the estimated available fund balance in Measure Q Fund (2244) is projected to decrease from $21.78 million in FY 2022-23 to $10.48 million in FY 2023-24.
Table 20: FY 2023-24 Measure Q Year-End Fund Balance ($ in millions) MEASURE Q (2244) FY 2023-24 Q1 Year-
End Estimate
Beginning Fund Balance - Unaudited 21.78
Revenue 31.55
Expenditures 42.85
Estimated Current Year Surplus/(Shortfall) (11.30)
Subtotal Fund Balance 10.48
Use of Fund Balance in FY 2024-25
Budgeted Transfer from Fund Balance 0.00 Estimated Ending Fund Balance 10.48
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 28
Special Finance and Management Committee
November 27, 2023
Vacant Property Tax Fund (2270)
Measure W - Vacant Property Tax Fund (2270) is a City of Oakland ballot initiative approved by voters on November 6, 2018 that established an annual special tax on vacant property for 20 years to raise revenue necessary to support and fund homelessness programs and services, affordable housing, code enforcement, and clean-up of blighted properties and illegal dumping.
A property is considered vacant if it is not in-use for at least 50 days in a calendar year. "Use" is defined as the performance of a function or operation. The per-parcel tax rates are $6,000 for vacant properties or lots and $3,000 for vacant condominium, duplex, townhouse and commercial ground floor commercial spaces. The tax is included in the secured property tax bill administered by Alameda County.
Revenues - The FY 2023-24 $6.12 million Adjusted Budget assumes $0.19 million in use of fund balance to balance the Adjusted Budget and $0.58 million to support carryforward expenditures.
Year-end revenues project to come in at $5.36 million, which is 12.5% or $0.76 million under the Adjusted Budget of $6.12 million, The actual Vacant Property Tax projects to come at $5.35 million which is at budget.
Table 21: FY 2023-24 Vacant Property Tax Fund Revenues ($ in millions) Revenue Category
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
Over / (Under)
Adjusted
Budget
Year-End %
Over / (Under)
Adjusted
Budget
Local Tax 5.35 (0.03) 5.35 — — %
Project Offsets &
Carryforwards 0.58 — — (0.58) (100.0) %
Transfers from Fund
Balance 0.19 — (0.19) (100.0) %
Miscellaneous
Revenue — 0.01 0.01 0.01 — %
Total Revenue 6.12 (0.03) 5.36 (0.76) (12.5) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 29
Special Finance and Management Committee
November 27, 2023
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $6.20 million, which is over the Adjusted Budget by $0.08 million.
Table 22: FY 2023-24 Vacant Property Tax Fund Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
(Over) / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
City Administrator 0.23 0.08 0.37 (0.14) (60.6) % Finance Department 0.81 0.10 0.69 0.12 15.3 %
Human Services
Department 0.17 0.01 0.12 0.05 30.6 %
Oakland Public Works
Department 4.90 0.85 5.02 (0.12) (2.5) %
Total 6.12 1.04 6.20 (0.08) (1.3) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $5.36 million. Expenditures are projected to end the year at $6.20 million. As a result, the estimated available fund balance in the Vacant Property Tax Fund (2270) is projected to decrease from $1.01 million in FY 2022- 23 to negative $0.17 million in FY 2023-24.
Table 23: FY 2023-24 Vacant Property Tax Fund Year-End Available Fund Balance ($ in millions)
Vacant Property Tax Fund (2270) FY 2023-24 Q1 Year-
End Estimate
Beginning Fund Balance - Unaudited 1.01
Revenue 5.36
Expenditures 6.20
Estimated Current Year Surplus/(Shortfall) (0.84)
Subtotal Fund Balance 0.17
Use of Fund Balance in FY 2024-25
Budgeted Transfer from Fund Balance 0.34
Estimated Ending Fund Balance (0.17)
Landscaping and Lighting Assessment District (LLAD) Fund (2310)
The Landscaping and Lighting Assessment District (LLAD) Fund (2310) revenue is generated through a direct benefit assessment, or special assessment and is restricted by statute to be used for street lighting, landscaping, and public parks and recreation facility maintenance, and multi-use fields.
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 30
Special Finance and Management Committee
November 27, 2023
Revenues - The FY 2023-24 year-end revenues project to come in at $19.36 million, which is at the FY 2023-24 Adjusted Budget, net the $0.26 million in use of fund balance to balance FY 2022-23 carryforwards.
Table 24: FY 2023-24 Landscaping and Lighting Assessment District (LLAD) Fund Revenue ($ in millions)
Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q1
YTD Actuals
FY 2023-24 Q1
Year-End
Estimate
Year-End $
Over / (Under)
Adjusted
Budget
Year-End %
Over / (Under)
Adjusted
Budget
Local Tax 19.08 — 19.08 — — %
Project Offsets
& Carryforwards 0.26 — — (0.26) (100.0) %
Service
Charges 0.21 — 0.21 — — %
Licenses &
Permits 0.08 0.02 0.08 — — %
Miscellaneous
Revenue — (0.01) — — — %
Total Revenue 19.62 — 19.36 (0.26) (1.3) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $16.11 million, which is a savings of $3.51 million, compared to the Adjusted Budget of $19.62 million. The savings are primarily due to underspending in personnel costs.
Table 25: FY 2023-24 Landscaping and Lighting Assessment District (LLAD) Fund Expenditures ($ in millions)
Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
(Over) / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
Department of
Transportation 2.60 0.01 0.19 2.41 92.7 %
Finance Department 0.03 — 0.03 — — %
Non-Departmental and
Port 2.94 — 2.94 — — %
Oakland Parks and
Recreation Department 5.00 — 5.00 — — %
Oakland Public Works
Department 9.04 0.74 7.94 1.10 12.1 %
Total 19.62 0.75 16.11 3.51 17.9 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $19.36 million. Expenditures projected to end the year at $16.11 million. As a result, the estimated available fund balance in the Landscaping and Lighting Assessment District (2310) is projected to improve to $3.24 million in FY 2023-24.
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 31
Special Finance and Management Committee
November 27, 2023
Table 26: FY 2023-24 Landscaping and Lighting Assessment District (LLAD) Fund Balance ($ in millions)
Landscaping & Lighting Assess. District Fund (LLAD) (2310) FY 2023-24 Q1 Year- End Estimate
Beginning Fund Balance - Unaudited —
Revenue 19.36
Expenditures 16.11
Estimated Current Year Surplus/(Shortfall) 3.25
Subtotal Fund Balance 3.24
Use of Fund Balance in FY 2024-25
Budgeted Transfer from Fund Balance —
Estimated Ending Fund Balance 3.24
False Alarm Reduction Program Fund (2411)
The False Alarm Reduction Program was implemented by OPD in November 2003 by Ordinance No. 13015 C.M.S., and amended in 2010, to address the large number of false alarms that OPD was responding to each year. The revenue generated by these fees is to offset a portion of the expense that OPD incurs as a result of false alarm response. Fees also assist in encouraging residents and businesses to properly use and maintain their alarm systems, thus reducing false alarms.
Revenues - The FY 2023-24 year-end revenues project to come in at $1.38 million, which is at the FY 2023-24 Adjusted Budget, net of the $0.06 million in use of Fund Balance to balance FY 2022-23 carryforwards. The budget is a slight decrease of $0.03 million under the FY 2022-23 year-end total of $1.41 million which came in below expectations, ending $0.84 million under the FY 2022-23 Adjusted Budget.
Table 27: FY 2023-24 False Alarm Reduction Program Fund Revenue ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q1
YTD Actuals
FY 2023-24 Q1
Year-End
Estimate
Year-End $
Over / (Under)
Adjusted
Budget
Year-End %
Over / (Under)
Adjusted
Budget
Service
Charges 1.27 0.18 1.27 — — %
Fines &
Penalties 0.11 — 0.11 — — %
Project Offsets
& Carryforwards 0.06 — — (0.06) (100.0) %
Miscellaneous
Revenue — (0.03) — — — %
Total Revenue 1.44 0.15 1.38 (0.06) (4.3) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 32
Special Finance and Management Committee
November 27, 2023
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $1.28 million, which is a savings of $0.17 million, compared to the Adjusted Budget of $1.44 million. The savings are primarily due to underspending in personnel costs.
Table 28: FY 2023-24 False Alarm Reduction Program Fund Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
(Over) / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
Information Technology
Department 0.11 0.02 0.13 (0.02) (16.6) %
Police Department 1.33 0.20 1.15 0.18 13.8 %
Total 1.44 0.22 1.28 0.17 11.4 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $1.38 million. Expenditures are projected to end the year at $1.28 million. As a result, the estimated negative available fund balance in False Alarm Reduction Program Fund (2411) is projected to decrease from negative $3.66 million from FY 2022-23 to negative $3.56 million in FY 2023-24.
Table 29: FY 2023-24 False Alarm Reduction Program Fund Balance ($ in millions) False Alarm Reduction Program (2411) FY 2023-24 Q1 Year- End Estimate
Beginning Fund Balance - Unaudited (3.66)
Revenue 1.38
Expenditures 1.28
Estimated Current Year Surplus/(Shortfall) 0.10
Subtotal Fund Balance (3.56)
Use of Fund Balance in FY 2024-25
Budgeted Transfer from Fund Balance —
Estimated Ending Fund Balance (3.56)
Development Service Fund (2415)
The Development Service Fund (2415) was created on June 20, 2006 by Ordinance No. 12741 C.M.S. This fund collects revenues from licenses, fees, and permits from housing and commercial planning and construction-related activities to support planning and zoning services, construction inspections and permit approvals, building code enforcement, plan checks and engineering services. This fund is required to keep a minimum 7.5% reserve of annual budgeted revenues for its balance, which would be $5.48 million in FY2023-24.
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 33
Special Finance and Management Committee
November 27, 2023
Table 30: Historical Revenue for Fund 2415
Fiscal Year Budgeted Revenue Actual Revenue
FY 2022-23 52.24 65.32
FY 2021-22 63.98 73.94
FY 2020-21 47.33 50.25
FY 2019-20 61.58 60.71
FY 2018-19 49.92 63.20
FY 2017-18 45.14 90.13
FY 2016-17 38.03 77.15
Revenues - The FY 2023-24 $134.45 million Adjusted Budget assumes $31.27 million in use of fund balance to balance the Adjusted Budget. Year-end revenues are projected to come in at $74.38 million, which is 44.7% or $60.07 million under the Adjusted Budget of $134.45 million based on the FY 2022-23 performance.
Table 31: FY 2023-24 Development Service Fund Revenues ($ in millions) Revenue Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q1
YTD Actuals
FY 2023-24 Q1
Year-End
Estimate
Year-End $
Over / (Under)
Adjusted
Budget
Year-End %
Over / (Under)
Adjusted
Budget
Licenses & Permits 41.91 6.39 41.91 — — %
Transfers from Fund
Balance
31.27 — — (31.27) (100.0) %
Project Offsets &
Carryforwards 30.17 — — (30.17) (100.0) %
Service Charges 30.11 6.12 30.11 — — %
Fines & Penalties 0.62 0.12 0.62 — — %
Miscellaneous
Revenue 0.38 1.27 1.27 0.89 234.5 %
Grants & Subsidies — 0.48 0.48 0.48 — %
Total Revenue 134.45 14.37 74.38 (60.07) (44.7) % *The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $112.44 million, which is a savings of $22.01 million, compared to the adjusted budget of $134.45 million. The projected savings are mainly attributed to vacancies.
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 34
Special Finance and Management Committee
November 27, 2023
Table 32: FY 2023-24 Development Service Fund Expenditures ($ in millions) Agency /
Department
FY 2023-24
Adjusted
Budget
FY 2023-24 Q1
YTD Actuals
FY 2023-24 Q1
Year-End
Estimate
Year-End $
(Over) /
Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
City Administrator 3.48 0.63 3.30 0.19 5.3 %
City Attorney 3.59 0.69 3.50 0.10 2.7 %
City Auditor 0.05 0.01 0.05 — (0.2) %
Department of
Transportation 20.10 1.86 15.74 4.36 21.7 %
Economic and
Workforce
Development
Department 2.62 0.45 2.27 0.35 13.4 %
Finance Department 1.81 0.25 1.78 0.02 1.3 %
Fire Department 14.45 1.25 8.80 5.66 39.1 %
Human Resources
Management
Department 2.03 0.23 1.19 0.84 41.6 %
Information
Technology
Department 4.24 0.42 2.65 1.59 37.4 %
Mayor 0.35 — 0.03 0.32 90.6 %
Non Departmental
and Port 2.68 0.03 2.68 — — %
Oakland Public
Works Department 2.91 0.25 2.65 0.26 9.0 %
Planning and
Building Department 76.13 9.22 65.62
10.51 13.8 %
Total 134.45 15.29 110.26 24.19 18.0 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - The large fund balance, $25.58 million at the end of FY 2022-23, has accumulated over the life of the fund due to revenues exceeding the budget as well as longstanding underspending or delays in expenditures attributed to a high number of vacancies within the Planning and Building Department. This fund is required to keep a minimum 7.5% reserve of annual budgeted revenues for its balance, which would be $5.48 million in FY 2023-
24. FY 2023-24 revenue projects to end the year at $74.38 million. Expenditures project to end the year at $110.26 million. As a result, the estimated available fund balance in the Development Service Fund (2415) projects to decrease from $122.38 million in FY 2022-23 to $53.96 million in FY 2023-24.
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 35
Special Finance and Management Committee
November 27, 2023
Table 33: FY 2023-24 Development Service Fund Year-End Available Fund Balance ($ in millions)
Development Service Fund (2415) FY 2023-24 Q1 Year End
Estimate
Beginning Fund Balance - Unaudited 122.38
Revenue 74.38
Expenditures 110.26
Estimated Current Year Surplus/(Shortfall) (35.88)
Subtotal Fund Balance 86.50
Use of Fund Balance in FY 2024-25
Budgeted Transfer from Fund Balance (32.54) Estimated Ending Fund Balance 53.96
Transient Occupancy Tax (Measure C) Fund (2419)
The Transient Occupancy Tax (Hotel Tax) Fund (2419) is a City of Oakland initiative approved by voters in July 2009 that imposed a 3% special transient occupancy tax on the privilege of renting a hotel room in the City. The revenue generated by this special tax is allocated as follows: 50% to the Oakland Convention and Visitor’s Bureau for its expenses and promotion of tourism activities, and 12.5% each to the Oakland Zoo, the Oakland Museum of California, the Chabot Space and Science Center and the City’s Cultural Arts Programs and Festivals.
Revenues - The FY 2023-24 year-end revenues are projected to come in at $5.69 million, which is 14.8% or $0.99 million under the Adjusted Budget of $6.68 million. The year projection assumes a 3% growth rate applied to the FY 2022-23 year-end total and based on the Consumer Price Index (CPI) year over year increase as of the year ending on June 30, 2023.
This brings the expectations closer to recent trends of gradual year over year increases in TOT collections that have yet to reach the pre-pandemic high revenues.
Table 34: FY 2023-24 Transient Occupancy Tax (Measure C) Fund Revenues ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q1
YTD Actuals
FY 2023-24 Q1
Year-End
Estimate
Year-End $
Over / (Under)
Adjusted
Budget
Year-End %
Over / (Under)
Adjusted
Budget
Transient
Occupancy Tax
6.13 0.83 5.67 (0.46) (7.5) %
Project Offsets
& Carryforwards
0.55 — — (0.55) (100.0) %
Miscellaneous
Revenue — 0.02 0.02 0.02 — %
Total Revenue 6.68 0.85 5.69 (0.99) (14.8) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $6.46 million, which is a savings of $0.22 million, compared to the Adjusted Budget of $6.68 million. The Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 36
Special Finance and Management Committee
November 27, 2023
savings are primarily due to underspending in personnel costs.
Table 35: FY 2023-24 Transient Occupancy Tax (Measure C) Fund Expenditures ($ in millions)
Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
(Over) / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
Economic and
Workforce
Development
Department 1.31 0.02 1.10 0.22 16.4 %
Non-Departmental and
Port 5.37 0.21 5.37 — — %
Total 6.68 0.24 6.46 0.22 3.2 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenues are projected to end the year at $5.69 million.
Expenditures are projected to end the year at $6.46 million. As a result, the estimated available fund balance in the Measure C Fund (2419) is projected to decrease from $1.32 million in FY 2022-23 to $0.54 million in FY 2023-24.
Table 36: FY 2023-24 Transient Occupancy Tax (Measure C) Fund Year-End Available Fund Balance ($ in millions)
Measure C - Transient Occupancy Tax (TOT) Surcharge Fund (2419) FY 2023-24 Q1 Year- End Estimate
Beginning Fund Balance - Unaudited 1.32
Revenue 5.69
Expenditures 6.46
Estimated Current Year Surplus/(Shortfall) (0.78)
Subtotal Fund Balance 0.54
Use of Fund Balance in FY 2024-25
Budgeted Transfer from Fund Balance —
Estimated Ending Fund Balance 0.54
City Facilities Fund (4400)
The Facilities Fund (4400) is reported on a modified full accrual basis to reflect current assets and liabilities. The Fund supports the Citywide function for building maintenance and janitorial services of City-owned facilities. Revenues are generated by charges to internal user departments.
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 37
Special Finance and Management Committee
November 27, 2023
Revenues - The FY 2023-24 year-end revenues are projected to come in at $46.80 million, which is $6.74 million lower than the FY 2023-24 Adjusted Budget. The Adjusted Budget assumes $6.74 million in use of fund balance to balance carryforward expenditures.
Table 37: FY 2023-24 City Facilities Fund Revenues ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q1
YTD Actuals
FY 2023-24 Q1
Year-End
Estimate
Year-End $
Over / (Under)
Adjusted
Budget
Year-End %
Over / (Under)
Adjusted
Budget
Internal Service
Funds
46.24 — 46.24 — — %
Project Offsets
& Carryforwards
6.74 — — (6.74) (100.0) %
Service
Charges 0.55 0.13 0.55 — — %
Miscellaneous
Revenue
— 0.03 — — — %
Total Revenue 53.54 0.16 46.80 (6.74) (12.6) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 expenditures are projected to end the year at $49.23 million, which is a savings of $2.27 million, compared to the Adjusted Budget of $51.50 million. The savings are primarily due to underspending in personnel costs.
Table 38: FY 2023-24 City Facilities Fund Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q1 YTD
Actuals
FY 2023-24
Q1 Year-End
Estimate
Year-End $
(Over) / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
Capital Improvement
Projects 2.24 — 2.24 — — %
City Administrator 0.41 0.05 0.33 0.08 19.5 %
Human Resources
Management
Department 0.02 — 0.02 — — %
Human Services
Department 0.81 0.08 0.55 0.26 32.1 %
Non Departmental and
Port 0.25 — 0.25 — — %
Oakland Public Works
Department 47.46 6.30 45.83 1.63 3.4 %
Police Department 0.31 — 0.01 0.30 96.8 %
Total 51.50 6.43 49.23 2.27 4.4 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $46.80 million. Expenditures are projected to end the year at $49.74 million. As a result, the estimated available fund balance in the Reproduction Fund (4400) is estimated to decrease from $1.07 million in FY 2022-23 to negative $1.87 million in FY 2023-24.
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 38
Special Finance and Management Committee
November 27, 2023
Table 39: FY 2023-24 Facilities Fund Year-End Available Fund Balance ($ in millions) City Facilities Fund (4400) FY 2023-24 Q1 Year-
End Estimate
Beginning Fund Balance - Unaudited 1.07
Revenue 46.80
Expenditures 49.74
Estimated Current Year Surplus/(Shortfall) (2.94)
Subtotal Fund Balance (1.87)
Use of Fund Balance in FY 2024-25
Budgeted Transfer from Fund Balance —
Estimated Ending Fund Balance (1.87)
ALL OTHER FUNDS – FUND BALANCE SUMMARY
Table 40: FY 2023-24 All Other Funds Year-End Available Fund Balances ($ in millions)
FUND
DESCRIPTION
Unaudited
Beginning Fund
Balance P01-24
FY23-24
Projected
Revenues
FY23-24
Projected
Expenditures**
ESTIMATED
Ending Fund
Balance P12-24
1020 - Vital Services
Stabilization Fund 10,633,663 — 10,485,706 147,957 1100 - Self Insurance
Liability 31,409,568 59,999,561 61,214,978 30,194,151 1150 - Worker's
Compensation
Insurance Claims
— 569 9,961,317 (9,960,748)
1200 - Pension
Override Tax
Revenue
305,342,789 93,094,389 93,094,389 305,342,789
1610 - Successor
Redevelopment
Agency
Reimbursement
Fund
(98,586) 1,213,226 970,132 144,508
1700 - Mandatory
Refuse Program (2,288,891) 2,408,782 2,901,480 (2,887,109) 1710 - Recycling
Program 4,147,109 6,445,018 6,386,841 4,205,287
1720 -
Comprehensive
Clean-up
939,179 24,112,197 24,368,578 510,545
1750 - Multipurpose
Reserve (6,117,408) 8,449,302 9,056,484 (6,724,590) 1760 -
Telecommunications
Reserve
(1,074,992) 1,273,113 1,207,466 (1,009,345)
1770 -
Telecommunications
Land Use
1,677,134 792,986 784,284 1,685,836
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 39
Special Finance and Management Committee
November 27, 2023
FUND
DESCRIPTION
Unaudited
Beginning Fund
Balance P01-24
FY23-24
Projected
Revenues
FY23-24
Projected
Expenditures**
ESTIMATED
Ending Fund
Balance P12-24
1780 - Kid's First
Oakland Children's
Fund
11,650,428 24,766,580 34,476,931 1,940,077
1820 - OPRCA Self
Sustaining Revolving
Fund
6,506,874 6,978,895 11,182,442 (1,095,661)
1870 - Affordable
Housing Trust Fund 19,755,599 14,351,490 48,809,776 (14,702,686) 1882 - Multi Service
Center/Rent 187,587 107,050 206,450 88,188
1885 - 2011A-T
Subordinated
Housing
24,141,386 748,351 1,800,119 23,089,618
2102 - Department
of Agriculture (461,789) 676,593 961,939 (747,135) 2103 - HUD-
ESG/SHP/HOPWA (9,124,618) 13,704,047 28,326,782 (19,907,427) 2108 - HUD-CDBG (8,098,910) 8,201,600 12,869,060 (12,766,370) 2109 - HUD-Home 2,250,534 2,935,667 25,969,845 (20,783,644) 2112 - Department of
Justice (2,419,263) — 2,507,152 (4,926,416)
2113 - Department of
Justice - COPS
Hiring
(1,009,715) — 97,728 (1,107,443)
2120 - Federal
Action Agency 75,221 394,705 639,229 (75,889)
2123 - US Dept of
Homeland Security (309,521) 92,645 2,007,850 (2,224,726) 2124 - Federal
Emergency
Management Agency
(FEMA)
(599,992) 4,316,911 3,172,356 544,563
2128 - Department
of Health and
Human Services
1,141,930 16,223,246 28,553,465 (10,286,703)
2138 - California
Department of
Education
1,393,501 5,703,395 2,973,306 4,123,590
2139 - California
Department of
Conservation
(4,799,157) 864,899 9,020,942 (12,955,200)
2144 - California
Housing and
Community
Development
421,816 24,858,516 72,020,786 (46,740,454)
2152 - California
Board of Corrections (4,097,675) 1,212,309 5,617,975 (8,503,342) 2159 - State of
California Other 5,697,405 52,417,985 132,960,990 (74,845,601) 2160 - County of
Alameda: Grants 1,093,920 553,648 1,812,682 (165,114) 2172 - Alameda
County: Vehicle
Abatement Authority
(327,889) — 196,424 (524,313)
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 40
Special Finance and Management Committee
November 27, 2023
FUND
DESCRIPTION
Unaudited
Beginning Fund
Balance P01-24
FY23-24
Projected
Revenues
FY23-24
Projected
Expenditures**
ESTIMATED
Ending Fund
Balance P12-24
2190 - Private
Grants
93,109 25,000 79,332 309,542
2195 - Workforce
Investment Act 1,014,733 3,663,823 6,768,560 (2,090,004) 2241 - Measure Q-
Library Services
Retention &
Enhancement
10,204,898 20,324,834 21,235,950 8,193,047
2243 - Measure D -
Parcel Tax to
Maintain, Protect &
Improve Library
Services
10,211,470 15,345,586 16,233,322 7,664,900
2250 - Measure N:
Fund 863,491 2,053,220 2,534,970 68,964
2252 - Measure Z -
Violence Prevention
and Public Safety
Act of 2014
13,445,310 30,825,609 36,562,418 7,708,501
2253 - Oakland Zoo
Fund — 14,227,333 14,227,333 —
2261 - Measure AA -
Oversight 2,598,961 2,814,861 5,189,388 224,435
2262 - Measure AA -
Early Education 13,151,155 24,931,626 36,521,878 1,560,903 2263 - Measure AA -
Oakland Promise 5,417,689 12,465,813 18,051,941 (168,439) 2330 - Werner Court
Vegetation Mgmt
District
63,119 3,200 3,200 63,119
2331 - Wood Street
Community Facilities
District
543,047 91,251 180,888 453,410
2332 - Gateway
Industrial Park 939,470 1,281,807 2,064,856 156,421 2333 - Brooklyn
Basin Public
Services
503,533 502,382 979,403 26,511
2412 - Measure M -
Alameda County:
Emergency Dispatch
Service
Supplemental
Assessment
880,758 2,578,140 2,588,676 651,321
2413 - Rent
Adjustment Program
Fund
1,095,131 10,924,431 10,899,214 1,120,348
2416 - Traffic Safety
Fund 89,106 987,453 787,719 288,840
2417 - Excess Litter
Fee Fund 1,454,361 450,000 437,849 1,466,512
2420 -
Transportation
Impact Fee
9,373,212 1,844,081 8,247,636 1,398,762
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 41
Special Finance and Management Committee
November 27, 2023
FUND
DESCRIPTION
Unaudited
Beginning Fund
Balance P01-24
FY23-24
Projected
Revenues
FY23-24
Projected
Expenditures**
ESTIMATED
Ending Fund
Balance P12-24
2421 - Capital
Improvements
Impact Fee Fund
5,898,947 1,795,540 4,770,784 2,923,703
2423 - Jobs Housing
Impact Fee Fund 13,960,546 4,979,581 10,335,645 8,604,482 2424 - Affordable
Housing Impact Fee
Fund
23,618,274 3,481,733 9,603,645 17,496,362
2430 - Lead
Settlement 2022 4,887,401 — 9,836,650 (4,949,249) 2826 - Mortgage
Revenue 2,061,198 89,492 1,945,391 (601,515)
2830 - Low and
Moderate Income
Housing Asset Fund
25,235,715 5,990,000 34,505,051 (3,279,336)
2990 - Public Works
Grants (911,022) 304,613 387,434 (107,446)
2994 - Social
Services Grants 442,929 515,713 887,514 71,127
2996 - Parks and
Recreation Grants
2001
(16,941) 16,847 99,224 (99,318)
2999 -
Miscellaneous
Grants
9,761,559 28,000 11,430,967 (1,904,408)
3100 - Sewer
Service Fund 101,283,852 70,591,238 144,341,718 12,151,090 3200 - Golf Course (259,893) 776,882 701,198 (184,209) 4100 - Equipment 27,542,264 29,997,933 37,941,247 19,598,950 4200 - Radio /
Telecommunications 6,231,867 7,928,265 9,720,880 4,439,252 4210 - Telephone
Equipment and
Software
(286,326) 955,341 828,179 (159,164)
4300 - Reproduction 603,766 1,385,264 1,178,864 810,165 4450 - City Facilities
Energy Conservation
Projects
(204,086) — 3,799 (207,884)
4500 - Central
Stores
(121,496) 619,201 697,206 (199,501)
4550 - Purchasing (35,010) 3,210,525 2,261,860 913,655 4600 - Information
Technology 15,401,907 15,990,315 28,145,425 3,246,797 5322 - Measure DD:
2017C Clean Water,
Safe Parks & Open
Space Trust for
Oakland
11,506,260 45,807 11,013,477 538,590
5331 - Measure KK:
Affordable Housing
(GOB 2017A-2
Taxable)
9,508,883 41,927 6,891,839 2,658,972
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 42
Special Finance and Management Committee
November 27, 2023
FUND
DESCRIPTION
Unaudited
Beginning Fund
Balance P01-24
FY23-24
Projected
Revenues
FY23-24
Projected
Expenditures**
ESTIMATED
Ending Fund
Balance P12-24
5333 - Measure KK:
Affordable Housing
Series 2020B-2
(Taxable)
14,804,071 59,792 14,013,735 850,128
5335 - Measure KK:
Infrastructure Series
2022C-1 (Tax
Exempt)
144,715,421 858,779 178,638,769 (33,064,569)
5337 - Measure KK:
Series 2023 GOB — 52,179,375 52,179,375 —
5340 - Measure U:
Affordable Housing
and Infrastructure
GOB
— 100,575,625 100,635,299 (59,674)
5505 - Municipal
Capital
Improvement: Public
Arts
3,301,801 211,648 1,431,128 2,082,321
5610 - Central
District Projects 23,650,797 200,000 9,866,141 13,273,036 5614 - Central
District: TA Bonds
Series 2006T
11,019,420 2,135,877 7,669,461 5,485,836
5638 - BMSP: TA
Bond Series 2006C-
T
435,165 — 157,679 277,486
5643 - Central City
East TA Bonds
Series 2006A-T
(Taxable)
19,373,751 16,650 6,770,974 12,619,427
5650 - Coliseum
Projects 5,038,104 100,000 3,496,524 1,641,580
5656 - Coliseum: TA
Bonds Series
2006B-T (Taxable)
46,981,052 — 6,312,071 38,295,874
5671 - OBRA:
Leasing & Utility 54,527,442 1,600,000 4,741,276 51,386,166 5999 -
Miscellaneous
Capital Projects
3,005,830 3,007,843 7,396,566 (1,382,892)
6013 - 2013 LED
Streetlight
Acquisition Lease
Financing
107,199 1,469,110 1,469,110 107,199
6029 - Taxable
Pension Obligation
Bonds: 2012 Series-
PFRS
7,346,983 53,280,555 53,280,555 7,346,983
6032 - Taxable
Pension Obligation:
Series 2001
328,744 1,772 — 330,517
6064 - GO
Refunding Bonds,
Series 2015A
2,995,920 5,510,175 5,510,175 2,995,920
6322 - Measure DD:
2017C Clean Water,
Safe Parks & Open
Space Trust for
Oakland
609,368 1,456,932 1,456,932 609,368
Jestin Johnson, City Administrator
Subject: FY 2022-23 Q4 R&E Report
Date: November 27, 2023 Page 43
Special Finance and Management Committee
November 27, 2023
FUND
DESCRIPTION
Unaudited
Beginning Fund
Balance P01-24
FY23-24
Projected
Revenues
FY23-24
Projected
Expenditures**
ESTIMATED
Ending Fund
Balance P12-24
6330 - Measure KK:
2017A-1 (TE)
Infrastructure and
Affordable Housing
1,380,783 2,247,557 2,247,557 1,380,783
6331 - Measure KK:
2017A-2 (Taxable)
Infrastructure and
Affordable Housing
1,095,854 4,141,280 4,141,280 1,095,854
6332 - Measure KK:
2020B-1 GOB 2,408,892 3,941,200 3,941,200 2,408,892 6333 - Measure KK:
2020B-2 GOB 498,704 4,965,017 4,965,017 498,704
6334 - 2020 GOB
Refunding 3,070,178 5,808,027 5,808,027 3,070,178 6335 - Measure KK:
Infrastructure Series
2022C-1 GOB (Tax
Exempt)
20,963,275 10,451,150 10,451,150 20,963,275
6540 - Skyline
Sewer District -
Redemption
35,448 — 20,000 15,448
6557 - Piedmont
Pines P1 2018
Reassessment
Refunding Bond
224,451 111,885 131,626 204,710
6587 - 2012
Refunding
Reassessment
Bonds-Debt Service
908,328 419,687 419,687 908,328
6613 - JPFA Lease
Revenue Refunding
Bonds, Series 2018
(9,095) 8,335,000 8,335,000 (9,095)
6999 -
Miscellaneous Debt
Service
— 25,000,000 25,000,000 —
7100 - Police and
Fire Retirement
System
416,185,696 3,663,395 3,262,474 412,708,517
7130 - Employee
Deferred
Compensation
2,636 42,505 51,484 (6,344)
7320 - Police and
Fire Retirement
System Refinancing
Annuity Trust
42,045,196 4,086,166 4,086,166 42,045,196
7540 - Oakland
Public Library Trust 1,360,232 103,399 1,133,530 330,100 7640 - Oakland
Public Museum Trust 628,637 11,168 584,790 55,015 7760 - Grant
Clearing (5,744,471) — 9,843,506 (15,587,977)
7999 -
Miscellaneous Trusts 2,931,973 331,770 1,992,575 1,271,168