Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 1
Attachment A: FY 2023-24 Q2 Detailed Report
TABLE OF CONTENTS
The report has the following major sections:
1. General Purpose Fund Q2 Revenues
2. General Purpose Fund Q2 Expenditures
3. General Purpose Fund Q2 Fund Balance
4. Reserves
5. Non GPF Select Funds
Appendixes: (1)
AA: Consolidated Fiscal Policy
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 2
Summary of FY 2023-24 Q2 GPF Revenues & Expenditures
FY2023-24 GPF Revenue is projected to come in $169.10 million or 19.0% lower compared to the Adjusted Budget of $890.07 million. GPF Expenditures are estimated to come in $8.01 million or 0.9% over the Adjusted Budget of $890.07 million. Table 1 below shows the FY2023- 24 General Purpose Fund revenue and expenditures Adjusted Budget and year-end estimates which currently project a year-end operating shortfall of $177.10 million.
Table 1: Summary of FY 2023-24 Q2 GPF Revenues & Expenditures Budget to Estimated Year-End Actuals ($ in millions)
FY 2023-24
Adjusted
Budget
FY 2023-24 Q2
YTD Actuals
FY 2023-24
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Projected Year-
End % (Over) /
Under Adopted
Budget
FY2023-24
Revenues 890.07 251.75 720.98 (169.10) (19.0) %
FY 2023-24
Expenditures 890.07 373.53 898.08 (8.01) (0.9) %
Operating
(Shortfall) /
Surplus
— (121.78) (177.10) (177.10) (19.9) %
I. GENERAL PURPOSE FUND Q2 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 based on actual performance during the first six months of FY 2023-24, quarterly trends established in prior fiscal years, and external data sources such as the State of California (State), the County of Alameda (County), and the City's Sales Tax and Property Tax consultant HDL Companies (HDL). Based on this analysis, the GPF tax revenue is projected to end the year with a net shortfall of $83.73 million.
The Adjusted Budget also assumes $30.12 million in use of fund balance and $55.24 million in prior year carryforwards. Without accounting for the before mentioned one-time use of available funds, the GPF revenues forecast to come in at $720.98 million, which is $169.10 million lower, when compared to the Adjusted Budget of $890.07 million.
Overall, the external effects of persistent high inflation, high gas prices, high interest rates, decreased consumer confidence, and well-publicized theft and vandalism at local businesses will continue to pose risks to City revenues. The biggest impact is felt as a consequence of high interest rates which continue to negatively affect Real Estate Transfer Taxes by reducing demand and price of properties on the market as well as Sales Tax as it affects the cost of financing a car for prospective buyers and consequently affect the sales of automobiles. For these reasons, the Administration will continue closely monitor economic conditions and the performance of all City funds.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 3
Q2 REVENUE HIGHLIGHTS
Property Tax: The largest revenue source for the City is now estimated to end the year at $298.35 million, exceeding the FY 2023-24 Adjusted Budget of $294.17 million by $4.18 million or 1.4%. The projected increase of $4.18 million is driven by the overall increase in taxable values in the City of approximately 6.6% according to the most recent County Property Tax Rolls, which result in an increase in the amount of property tax assessments. The adjustment based on the increased property valuations would have resulted in a year-end projection of $299.84 million for Property Tax. This increase is being partially offset by $1.49M in projected revenue loss, according to data provided by HDL, resulting from pending property assessment appeals. The potential revenue loss is estimated based on prior success rates of appeals applied to the current pending appeals.
The largest secured roll increase was reported on a developing vacant property owned by CVOW Parcel J Owner LLC at 37 8th Avenue with growth of $116.6 million. This is an 8-story residential building under development as part of the Brooklyn Development in the Brooklyn Basin of Downtown Oakland. The second largest increase in property value comes from an office building in Uptown Oakland owned by 300 F Ogawa Plaza LP at the same address on Frank Ogawa Plaza, which reported an increase in value of $94.1 million between FY 2022-23 and FY 2023-24 after this property was revalued after the current owner purchased the property in 2021. The third highest increase in property value comes from a vacant site developing into a mixed-use site in downtown Oakland. Owned by 19 Bdwy Tower Development LLC, at 1920 Broadway, the added improvements resulted in an increase in property value of $62 million.
Overall, residential use values increased 7.9% for a total of $4.2 billion and represented 79% of all growth experienced in the City. The annual growth in this use type was $2 billion lower this year than last year. Commercial properties posted an increase in value of $599 million or a year over year increase of 5.2%. Industrial properties posted gains in property value of 9.6% for $302.3 million and was $80 million higher than last year.
Business License Tax (BT): The second largest revenue source is projected to end the year at $115.72 million, which is $9.53 million or 7.6% under the FY 2023-24 Adjusted Budget of $125.25 million. The year-end estimate is comparable to the FY 2022-23 year-end total of $115.38 million. The Q1 R&E report lowered the FY 2023-24 year-end estimate to $118.84 million, as an inflationary increase to the FY 2022-23 year-end total was expected based on the recent period of high inflationary trends at the macroeconomic level. However, net of increased revenues resulting from the effect of Measure T, BT has been on a downward trend for the past three Fiscal Years. BT ended FY 2020-21 at $104.23 million, FY 2021-22 at $101.29 million, and FY 2022-23 would have ended at $97.73 million, after deducting from the FY 2022-23 year- end total of $115.38 million the $17.64 million attributable to the effect of Measure T. The approved changes in the tax rates, as captured in Measure T, affected approximately 25,000 businesses, excluding tax rates applicable to property owners and cannabis industry Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 4
As of March 6, 2024, the FY2023-24 total amount accounted for in BT was at $103.15 million.
This figure is preliminary as renewals are still being processed following the yearly March 1 renewal deadline. Active accounts that have yet to renew in FY 2023-24 accounted for $ 12.63 million in Business Tax paid in FY 2022-23. These accounts are those that reported gross receipts in FY2022-23 and have not been closed by the Taxpayer. The renewals that have been accounted for to date in FY 2023-24 have on average reported a half percent decrease in year over year gross receipts compared to FY 2022-23. Assuming that a similar decrease of 0.5% in gross receipts will be reported by the pending active accounts would yield an additional $12.56 million. This would result in approximately $115.72 million in BT collected as a whole for FY 2023-24. Therefore, BT projects to hold the same level as FY 2022-23 which was the first year that Measure T took effect.
Real Estate Transfer Tax (RETT): The third largest revenue source for the City is projected to have the largest decrease in the GPF, by an estimated $57.19 million from the FY 2023-24 Adjusted Budget of $110.41 million, now projecting to end the year at $53.22 million. The significant reduction of 51.8% is attributable to rising interest rates that impact the affordability factor and consequently the number of property sales subject to RETT. Through Q2, the number of properties sold through the first six months dropped by 16.9%, or 350 less properties, compared to the number of properties sold during the same time period in the prior year. The amount decreased is amplified when considering that the gross sales fell by 30.1% when accounting for the sales prices.
Recent trends do not indicate that a rebound is to be expected for the second half of the year.
During the three previous years, 53% of the year-end totals for RETT had been collected through the second quarter of FY 2020-21, 52% through Q2 of FY2021-22, and 62% through Q2 of FY 2022-23. The Federal Reserve is not expected to begin lowering the Federal Funds Rate until the summer months at the earliest. Therefore, the second half is expected to perform similarly to the first half of the year during which $26.61 million has been collected so far. The high budget dollar amount adopted in the FY 2023-25 Biennial Budget was assumed coming off FY 2021-22 during which RETT ended the year at $138.40 million. This was followed by a huge drop in FY 2022-23 which ended the year at $78.05 million. The decline has continued during the first half of FY 2023-24, which has realized even lower figures than FY 2022-23 had through Q2. Table 2 Below summarizes the year over year variance in gross sales and volume, comparing the performance of RETT through Q2 of the current year to that of FY 2022-23.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 5
Table 2: RETT Growth Rate ($ in millions)
FY 2022-23 FY 2023-24 Year-Over-Year
Variance Thru Q2
Sale Price Gross Sales Volume Gross Sales Volume Gross Sales Volume $300,000 or below $19.80 126 $22.21 127 12.2 % 0.8 % $300,001 to $2 Million $1,616.00 1,766 $1,500.21 1,503 (7.2) % (14.9) % $2 million to $5 Million $415.13 151 $58.84 77 (85.8) % (49.0) % $5 -10 Million $88.87 13 $45.52 7 (48.8) % (46.2) % $10 - 50 Million $251.05 11 $84.05 4 (66.5) % (63.6) % $50.01-100 Million $55.50 1 $0.00 — (100.0) % (100.0) % Over $100 Million $— — $0.00 — — % — %
Total $2,446.34 2,068 $1,710.83 1,718 (30.1) % (16.9) %
Sales Tax: The fourth largest revenue source for the City is projected to come in below the FY 2023-24 Adjusted Budget of $67.69 million by approximately by $4.97 million, and is now estimated to end the year at $62.72 million. Detailed Sales Tax data is available through the First Quarter (Q1) of FY 2023-24. Per data provided by the City's Sales Tax consultant HDL, Oakland’s receipts from July through September (Q1) were 6.0% below the Q1 period in 2022.
Excluding reporting aberrations, actual sales were down 6.1%.
Per HDL, through Q1, while modest sales improvement occurred in the food delivery, catering, and fast casual segments, restaurants and hotels overall fell 2.9%. Casual dining venues declined 6% as patronage fatigue linked to inflated menu prices limited dining in visits.
Meanwhile, autos-transportation’s returns contracted 4.0%. While new vehicle dealerships had 8% growth thanks to new openings over the past year, used car sellers plunged as a corporation shut down all operations nationally inclusive of the Oakland site. Expected reductions in petroleum prices provoked a 22.9% drop off by fuel-service stations. Further analysis of taxpayers selling jet fuel products revealed lower transaction volumes as airlines looked to refuel at locations outside of the Bay Area. Cannabis has another downward outcome, more so than regional and statewide trends. This sectors decrease was the primary cause of the food-drugs group weaker returns of 12.1% lower compared to the same period in FY 2022-
23. Other business-to-business based classifications that remitted smaller tax payments included plumbing, electrical, repair shops and medical/biotech. From the Sales tax derived from the allocation of the county pool, a 7.0% bump in pool allocations revealed a larger proportionate share for the City as tax collections in another jurisdiction declined dramatically.
Net of aberrations, taxable sales for all the Bay Area shrank 3.1%. Table 3 below compares the Sales Tax totals received by category through Q1 of FY 2022-23 and Q1 of FY 2023-24.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 6
Table 3: Sales Tax Comparison by Category FY2022-23 and FY 2023-24 ($ in millions) Category
Thru Q1
FY 2022-23
Thru Q1
FY 2023-24 Inc/Dec
Autos & Transportation $2.65 $2.54 -4.0%
Building & Construction $1.69 $1.61 -4.5%
Business & Industry $1.45 $1.32 -9.4%
Food & Drugs $1.38 $1.21 -12.1%
Fuel & Service Stations $2.29 $1.77 -22.9%
General Consumer Goods $1.40 $1.25 -10.3%
Restaurants & Hotels $2.76 $2.68 -2.9%
State/County Pools & Transfers $2.89 $3.09 7.0%
Average $2.07 $1.94 -6.2%
Utility Consumption Tax: This fifth largest revenue source for the City is projected to come in with the second largest projected increase in the GPF. It is now estimated that it will end the year above the FY 2023-24 Adjusted Budget of $61.90 million by approximately $4.42 million or
7.1%, at $66.32 million. The expected increase is mainly attributed to the approval from the California’s Public Utilities Commission (CPUC) of a 12.8% increase to consumer utility rates which became effective in the second half of this fiscal year.
Interfund transfers & Transfers From Fund Balance: The FY 2023-24 Adjusted Budget assumes $30.12 million in use of fund balance to balance budgeted expenditures and $55.24 million in use of fund balance to support carryforward expenditures. Additionally, there is $13.08 million budgeted in anticipated interfund transfers.
All Other Revenue Sources:
Table 4 below summarizes the FY 2023-24 GPF revenues by category.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 7
Table 4: FY2023-24 Q2 Adopted Budget to Actuals and Year-end Estimate ($ in millions) Revenue
Category
FY 2023-24
Adopted
Budget
FY 2023-24
Adjusted
Budget
FY 2023-24 Q2
YTD Actuals
FY 2023-24 Q2
Year-End
Estimate
Year-End $ Over
/ Under
Adjusted
Budget
Year-End % Over /
Under Adjusted
Budget
Property Tax 294.17 294.17 122.53 298.35 4.18 1.4 % Business
License Tax 125.25 125.25 8.22 115.72 (9.52) (7.6) % Real Estate
Transfer Tax 110.41 110.41 26.61 53.22 (57.19) (51.8) % Sales Tax 67.69 67.69 21.03 62.72 (4.97) (7.3) %
Utility
Consumption
Tax 61.90 61.90 30.73 66.32 4.42 7.1 %
Service
Charges 51.60 52.28 12.15 46.98 (5.30) (10.1) %
Fines &
Penalties 23.07 23.07 8.92 17.84 (5.23) (22.7) %
Transient
Occupancy
Tax 22.48 22.48 9.95 19.61 (2.87) (12.8) %
Miscellaneou
s Revenue 21.22 21.22 4.58 4.58 (15.43) (72.7) %
Interfund
Transfers 13.08 13.08 — 13.08 — — %
Parking Tax 11.26 11.26 6.01 12.37 1.11 9.8 %
Licenses &
Permits 1.39 1.39 0.59 1.39 — — %
Interest
Income 0.48 0.48 (0.26) 5.00
4.5 2 932.9%%
Grants &
Subsidies — 0.03 0.71 2.59 2.56 N / A
Internal
Service
Funds — — — — — N / A
Subtotal 804.00 804.71 251.75 720.98 (83.73) (10.4) % Transfers
from Fund
Balance 30.12 30.12 — — (30.12) (100.0) %
Project
Offsets &
Carryforwards — 55.24 — — (55.24) (100.0) %
Total Revenue 834.12 890.07 251.75 720.98 (169.10) (19.0) %
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 8
II. GENERAL PURPOSE FUND Q2 EXPENDITURES
GENERAL PURPOSE FUND EXPENDITURE HIGHLIGHTS
The GPF expenditures are forecasted to come in at $898.08 million, which is an increase of $8.01 million, compared to the Adjusted Budget of $890.07 million. The FY 2023-24 Adjusted Budget required a use of fund balance in the amount of $30.12 million to balance the expenditures as budgeted. This follows a trend in recent years, during which 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 27% of FY 2023-24 GPF budgeted expenditures. The budgeted personnel expenditures also assume a vacancy factor of 8.00%, expediting hiring to a large degree could change the outcome.
Overall, the increase in the appropriations level compared to previous years merits further consideration as it reflects the current global inflationary trend affecting the economy.
Table 5 below reflects the GPF expenditures forecasted to come in at $898.08 million, which is $8.01 million or 0.9% over the adjusted budget of $890.07 million.
Table 5: Summary of FY 2023-24 Q2 GPF Expenditures Budget to Actuals ($ in millions)
FY 2023-24
Adopted
Budget
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
FY 2023-24
Expenditures 834.12 890.07 373.53 898.08 (8.01) (0.9) %
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 9
Department Level Spending Trends
Table 6 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 FY 2023-24 Adjusted Budget by $8.01 million. Per the City’s Consolidated Fiscal Policy, Departments projected to overspend in the General Purpose Fund by more than one percent (1%), shall bring an informational report to the City Council within 60 days following acceptance of the Revenue & Expenditure report by the City Council. The report shall list the actions the Administration is taking to bring the expenditures into alignment with the budget.
Table 6: Summary of FY 2023-24 GPF Projected Expenditure Variance ($ in millions) Department
FY 2023-24
Adopted
Budget
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-
End
Estimate
Year-End $
Over /
Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital
Improvement
Projects 0.55 1.96 0.07 1.96 — — %
City
Administrator 9.81 10.89 3.97 10.43 0.46 4.3 %
City Attorney 21.75 23.40 8.98 22.98 0.42 1.8 % City Auditor 3.31 3.60 1.26 3.17 0.43 11.8 %
City Clerk 7.85 10.80 1.42 10.58 0.22 2.1 %
City Council 7.12 7.68 3.26 7.37 0.31 4.1 %
Department of
Transportation 20.54 23.01 7.41 21.90 1.11 4.8 % Department of
Violence
Prevention 10.79 13.08 2.50 12.41 0.66 5.1 %
Department of
Workplace and
Employment
Standard 4.31 5.67 2.49 5.44 0.23 4.0 %
Economic and
Workforce
Development
Department 11.19 17.01 5.70 16.87 0.15 0.9 %
Finance
Department 30.00 33.33 11.78 31.55 1.78 5.3 % Fire Department 199.87 212.29 91.46 205.26 7.03 3.3 % Housing and
Community
Development
Department 0.24 2.91 1.05 2.91 — — %
Human
Resources
Management
Department 9.50 9.79 4.31 9.63 0.16 1.6 %
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 10
Human Services
Department 44.76 44.32 9.23 44.32 — — %
Information
Technology
Department 16.97 18.63 6.78 17.92 0.71 3.8 %
Mayor 4.60 4.66 2.07 4.39 0.27 5.8 %
Non
Departmental
and Port 55.60 60.80 9.35 59.10 1.70 2.8 %
Oakland Animal
Services 6.49 6.54 2.83 6.25 0.29 4.4 %
Oakland Parks
and Recreation
Department 18.30 19.23 10.47 18.57 0.65 3.4 % Oakland Public
Library
Department 12.31 12.32 7.91 12.32 — — %
Oakland Public
Works
Department 1.36 2.06 1.22 2.05 — 0.1 %
Police
Commission 7.96 8.94 2.53 8.12 0.81 9.1 %
Police
Department 325.39 333.34 174.20 358.98 (25.64) (7.7) % Public Ethics
Commission 2.25 2.35 0.73 2.16 0.18 7.9 %
Race and Equity
Department 1.29 1.48 0.53 1.43 0.05 3.4 %
Total 834.12 890.07 373.53 898.08 (8.01) (0.9) %
The following section details Q2 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 $1.96 million.
City Administrator (CAO)
The City Administrator’s Office is projected to underspend by $0.46 million, or 4% of their budget due to vacancies. In the General Purpose Fund, CAO has a vacancy rate of 21%, with eight vacant positions.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 11
City Attorney (OCA)
The City Attorney is projected to underspend by $0.42 million, or 2% of their budget, due to vacancies. In the General Purpose Fund, OCA has a vacancy rate of 2%, with one vacant position.
City Auditor
The City Auditor is projected underspend by $0.43 million, or 12% of their budget due to vacancies. In the General Purpose Fund, City Auditor has a vacancy rate of 33%, with four vacant positions.
City Clerk
The Office of the City Clerk is projected to underspend their budget by $0.22 million, or 2% of their budget, due to vacancies. In the General Purpose Fund, City Clerk has a vacancy rate of 33%, with four vacant positions.
City Council
The City Council is projected to underspend their budget by $0.31 million, or 4% of their budget, due to vacancies. In the General Purpose Fund, City Council has a vacancy rate of 3%, with one vacant position.
Department of Transportation (DOT)
The Department of Transportation is projected to underspend by $1.11 million, or 5% of their budget, due to vacancies. In the General Purpose Fund, DOT has a vacancy rate of 16%, with 14 vacant positions.
Department of Violence Prevention (DVP)
The Department of Violence Prevention is projected to underspend by $0.66 million or 5% of their budget, due to vacancies. In the General Purpose Fund, DVP has a vacancy rate of 26%, with eight vacant positions.
Department of Workplace & Employment Standards (DWES)
The Department of Workplace & Employment Standards is projected to underspend by $0.23 million, or 4% of their budget, due to vacancies. In the General Purpose Fund, DWES has a vacancy rate of 42%, with eight vacant positions.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 12
Economic & Workforce Development (EWD)
Economic & Workforce Development is projected to underspend by $0.15 million, or 1% of their budget, due to vacancies. In the General Purpose Fund, EWDD has a vacancy rate of 6%, with one vacant position.
Finance Department
The Finance Department is projected to underspend by $1.78 million, or 5% of their budget, due to vacancies. In the General Purpose Fund, Finance has a vacancy rate of 16%, with 18 vacant positions.
Fire Department
The Oakland Fire Department is projected to underspend by $7.03 million, or 3% of their budget. In the General Purpose Fund, Fire has a vacancy rate of 16%, with 92 vacant positions which results in savings in the amount of $28.77 million. However, these estimated savings from the vacancies are partially offset by $18.24 million in projected over-time overspending resulting in a net personnel year-end projected underspend in the amount of $10.53 million.
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 $0.16 million, or 2% of their budget, due to vacancies. In the General Purpose Fund, HRM has a vacancy rate of 9%, with three vacant positions.
Human Services Department (HSD)
Human Services Department is projected to end the fiscal year at the adjusted budget of $44.32 million.
Information Technology (ITD)
The Information Technology Department is projected to underspend by $0.71 million, or 4% of their budget, due to vacancies. In the General Purpose Fund, ITD has a vacancy rate of 23%, with twelve vacant positions.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 13
Mayor’s Office
The Mayor’s Office is projected to underspend by $0.27 million, or 6% of their budget, due to vacancies. In the General Purpose Fund, Mayor's Office has a vacancy rate of 18%, with two vacant positions.
Non-Departmental
Non-Departmental is projected to underspend by $1.70 million, or 3% of the budget.
Oakland Animal Services
The Department of Animal Services is projected to underspend by $0.29 million, or 4% of their budget, due to vacancies. In the General Purpose Fund, Animal Services has a vacancy rate of 19%, with six vacant positions.
Oakland Parks, Recreation and Youth Development (OPRYD)
Oakland Parks, Recreation and Youth Development is projected to underspend by $0.65 million, or 3% of their budget, due to vacancies. In the General Purpose Fund, OPRYD has a vacancy rate of 26%, with 28 vacant positions.
Oakland Public Library (OPL)
Oakland Public Library is projected to end the fiscal year at the adjusted budget of $12.32 million.
Oakland Public Works (OPW)
Oakland Public Works is projected to end the fiscal year at the adjusted budget of $2.06 million.
Police Commission
The Police Commission is projected to have savings of $0.81 million, or 9% of their budget, due to vacancies. In the General Purpose Fund, Police Commission has a vacancy rate of 24%, with six vacant positions.
Police Department
The Police Department is projected to overspend by $25.64 million, or 8% of their budget, due to overtime overspending. A detailed explanation of this overage can be found in the "Public Safety Costs & Analysis" section below.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 14
Public Ethics Commission (PEC)
The Public Ethics Commission is projected to have savings of $0.18 million, or 8% of their budget, due to vacancies. In the General Purpose Fund, PEC has a vacancy rate of 10%, with one vacant position.
Race & Equity
The Department of Race & Equity is projected to have savings of $0.05 million, which is 3% of their budget. In the General Purpose Fund, Race & Equity has a vacancy rate of 0%, with no vacant positions.
Public Safety Costs & Analysis
Table 7 below shows the personnel expenditures, including overtime, for Public Safety in the GPF. Once all other personnel costs are accounted for, Oakland Police Department currently shows a projected year-end personnel budget to be overspent by $27.20 million in the General Purpose Fund. Details are provided on Table 7 below.
Table 7: FY 2023-24 Public Safety GPF Personnel Expenditures ($ in millions) Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Police Department**
Overtime (OT) 24.08 27.61 52.84 (28.77) (119.5) %
Reimbursable OT (Special
(5.31) (5.31) 5.31
All Other Personnel (non-
262.44 133.40 261.94 0.50 0.2
OPD Total Personnel 286.51 157.49 309.47 (22.96) (8.0) Fire Department
Overtime (OT) 10.89 14.56 29.13 (18.24) (167.5
All Other Personnel (non-
166.12 69.24 137.35 28.77 17.3
OFD Total Personnel 177.01 83.80 166.48 10.53 6.0
As shown on Table 7 above, OPD was budgeted $24.08 million for overtime and is projected to exceed this budgeted amount by $28.77 million for a projected year-end total of $52.84 million.
In the table below, are the top five organizations in OPD where overspending has occurred most outlined in Table 8:
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 15
Table 8: FY 2023-24 OPD Top 5 Organizations in Overtime Expenditures ($ in millions) Top 5 Organizations in
OPD for Overtime
FY 2023-24
Adjusted Budget
FY 2023-24 Year-
End Estimate
Year-End $
(Over) / Under
Budget
Special Operations Division (SOD) 2.59 10.63 (8.04)
Area 1 2.13 5.98 (3.85)
Area 5 2.15 3.77 (1.63)
Area 3 2.08 3.50 (1.42)
Training Unit 1.8 3.10 (1.30)
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 2 (Q2), the Department is projected to exceed its allocated overtime budget by approximately $28,767,770.
The Department anticipates receiving $5,305,572 in reimbursable overtime funds, offsetting overtime spending to a projected overage of $22,664,648.
The top five areas where overspending has occurred in Q2 are outlined in the table above:
One of the department’s main objectives is to reduce violent crime and improve public safety.
Maintaining that objective requires overtime by sworn personnel and increased spending in the Special Operations Division (SOD), Training Unit, and Areas 1, 3, and 5.
The increase in overtime expenditures can be attributed to several key factors. Firstly, there was a significant shift in the Special Operations Division's (SOD) involvement in Division Level Investigations (DLIs) starting from 2023. This shift resulted in an average of eight sergeants, each managing up to three DLIs concurrently, significantly enhancing the division's workload and leading to increased overtime expenses. Additionally, the implementation of updated Use of Force (UOF) investigative protocols and compliance with California Assembly Bill (AB) 481, which mandated the completion of forms for Military Equipment Deployment (MEU), further intensified the administrative burden on supervisors and officers, contributing to increases in expenditures.
Furthermore, consistent requests for assistance from departments such as Oakland Public Works, The Encampment Management Team, and the Department of Transportation added strain to SOD's resources. Additionally, a nearly three-fold surge in SWAT team callouts in 2023, known as "Blue Alerts," substantially increased financial commitments for SOD. The integration of the Drone (ESU) unit into SOD and the heightened demand for the Air Unit (ARGUS) due to mandated sideshow operations, special operations, and increased patrol requests further compounded the challenges faced by SOD, ultimately leading to increased overtime expenditures.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 16
One of the primary drivers behind overtime expenditures within the Training Division stems from the comprehensive nature of our training protocols, including both foundational academies and ongoing, in-depth instruction. The Department’s efforts to schedule offsite training, particularly crucial firearms instruction, are intricately tied to range availability, which may not always align seamlessly with our officer’s regular duty hours. This inherent scheduling challenge often leaves us with limited control over coordinating range time to best accommodate the diverse schedules of our dedicated training. Moreover, stringent safety protocols mandate adequate staffing levels for training events, sometimes exceeding the capacity of our full-time instructor roster. To meet this demand, we enlist the support of adjunct and auxiliary instructors, a necessity that frequently incurs additional overtime costs. When considering these factors collectively, it becomes evident that the complete volume and essential nature of our training obligations represent the predominant factor contributing to the elevation of overtime expenditures within the Training Unit.
In 2023, Area 1 witnessed a slight decrease (-1%) in shootings, recording 80 incidents and 26 homicides, compared to 81 shootings and 30 homicides in 2022. Most of these incidents occurred in West Oakland and were gang related. To address this issue, violence suppression officers were deployed on overtime to hotspots like Acorn, Ghost Town, and Campbell Village, focusing on proactive car stops and visible deterrence. Additionally, in response to increased robberies and violence in Oakland Chinatown since 2021, overtime officers were deployed to reduce Part 1 crimes. However, officer numbers were reduced from an average of six to eight officers to an average of only two officers in July 2023, leading to a 50% increase in robberies.
Despite this, the presence of overtime officers has shown a correlation with reduced robberies and thefts. Furthermore, Area 1 faced challenges with violent crime, traffic congestion, illegal vendors, and nightclubs operating without permits. The captain’s initiative to use barricades on Broadway and Telegraph initially resulted in a reduction in violent crime. However, the decision was made on October 2, 2023, to discontinue this approach. Importantly, nightclubs such as Mr.
Fabs Night Club, New Karibbean City, and Lux Pub and Club have been associated with violence. Consequently, there is ongoing overtime officer presence downtown as a more permanent solution is developed for weekend nights.
In Area 3, overtime primarily stems from several initiatives and deployments. These include the deployment of Violence Suppression officers working overtime in the San Antonio/Saigon Area, operations targeting Human Trafficking along International Boulevard, and the pre-authorized Lake Merritt Summer Weekend detail, which concluded in November 2023. During October to December 2023, the Violence Suppression unit (coded San Antonio Special Assignment) maintained staffing levels with one sergeant and four to five officers, operating seven days a week. The majority of the violence in Area 3 is linked to Human Trafficking activities. The stretch from the 500 to 2300 blocks of International Boulevard has a longstanding reputation as Oakland's "Track" or "Blade" for street prostitution, a practice which frequently escalates into incidents of violence including shootings, murders, and robberies. To address this issue, the Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 17
Vice Unit conducts two to four operations monthly, focused on rescuing juveniles and apprehending both buyers and exploiters.
During January through February of 2023, Area 5 experienced a significant challenge, nearly leading the city in homicides (7) within that timeframe, along with 95 aggravated assaults. To address this concerning trend, Area 5 consistently deployed violence suppression teams, primarily funded by the area itself, to combat the rising crime rates. These teams also provided valuable assistance to Bureau of Field Operations 2. The violence suppression units have shown effectiveness in reducing aggravated assaults, with a slight decrease of (-2%) and year- to-date, only one homicide.
Area 5 has implemented five violence suppression overtime assignments, with each unit assigned to one of the five sectors. These teams are directed to remain in their designated sector, maintaining a high visibility presence and conducting enforcement and security checks as needed. The determination of these sectors was based on analysis of statistical data, identifying areas with the highest concentration of violent crime and ShotSpotter activity. The sectors are reviewed weekly, allowing for adjustments to align with evolving crime trends.
However, alongside these endeavors, Area 5 also encountered an increase in administrative responsibilities. This included the necessity for two Lieutenants and seven Sergeants to work overtime to fulfill administrative tasks. This escalation in administrative duties can be largely attributed to the implementation of the Division Level Investigation (DLI), introducing additional administrative requirements. Additionally, the Type 32 UOF investigations and updated investigative protocols for pursuits, and the documentation of other uses of force further strained Area 5's overtime budget.
Overall, the department remains committed to addressing violent crime while managing overtime expenditures and administrative burdens across different areas and units.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Expenditures) Date: March 6, 2024 Page 18
Table 9: Year-Over-Year Comparison of Public Safety GPF Personnel Expenditures ($ in millions)
Police Department
Overtime (OT) FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 Adjusted Budget 16.56 15.39 33.36 30.90 24.08
Actuals (FY24 Proj) 35.07 29.18 34.35 51.16 52.84
(Over)/Under (18.51) (13.79) (0.99) (20.26) (28.77)
All Other Personnel (non-OT) FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 Adjusted Budget 232.95 239.29 245.01 252.38 262.44
Actuals (FY24 Proj) 242.01 244.23 234.29 182.02 261.94 (Over)/Under (9.06) (4.94) 10.71 70.36 0.50
Total Personnel FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 Adjusted Budget 249.51 254.68 278.37 283.28 286.51
Actuals (FY24 Proj) 277.08 273.41 264.27 233.18 314.78 (Over)/Under (27.57) (18.73) 14.09 51.57 (28.27)
Fire Department
Overtime (OT) FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 Adjusted Budget 2.37 4.22 19.83 11.19 10.89
Actuals (FY24 Proj) 20.63 24.22 29.83 29.96 29.13
(Over)/Under (18.26) (20.00) (10.00) (18.77) (18.24)
All Other Personnel (non-OT) FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 Adjusted Budget 142.70 144.73 132.44 143.28 166.12
Actuals (FY24 Proj) 123.59 126.99 119.50 129.85 137.35 (Over)/Under 19.11 17.74 12.94 13.44 28.77
Total Personnel FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 Adjusted Budget 145.07 148.95 152.27 154.47 177.01
Actuals (FY24 Proj) 144.22 151.21 149.33 159.80 166.48 (Over)/Under 0.85 (2.26) 2.94 (5.33) 10.53
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Fund Balance; Reserves) Date: March 6, 2024 Page 19
III. GENERAL PURPOSE FUND - FUND BALANCE
The City's GPF Fund Balance, net obligations, is projected to end FY 2023-24 at negative $83.82 million. Obligations are reserves required by City Ordinances and the City Charter (mandated emergency reserves). Table 10 below shows mandated reserves required by City Ordinances and the City Charter (mandated emergency reserves) totaling $33.84 million, decreasing the estimated FY2023-24 year-end available fund balance from negative $92.23 million to negative $117.66 million. The estimated FY 2023-24 available Fund Balance is the amount of unobligated funding available to the City in the GPF.
Table 10: FY 2023-24 Year-End Available GPF Fund Balance GENERAL PURPOSE FUND (1010) FY 2023-24 Q2
Projected FYE
Estimated FY 2023-24 Beginning Audited Fund Balance 93.28
FY2023-24 Performance
Revenue 720.98
Expenditures 898.08
FY 2023-24 Projected Operating Surplus / Deficit (177.10)
Unaudited Projected Ending Fund Balance (83.82)
Obligations Against Ending Fund Balance
Use of Fund Balance in FY 2024-25 (33.84)
Estimated FY 2023-24 Ending Available Fund Balance (117.66)
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Fund Balance; Reserves) Date: March 6, 2024 Page 20
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 past few 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).
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 $125.22 million, or 15% of the GPF revenues.
Table 11 below shows the estimated FY 2023-24 year-end reserve balances.
Table 11: FY 2023-24 Q2 Reserve Balances
($ in millions)
Description
FY 2023-24
Beginning
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
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 21
V. SELECTED Q2 NON-GPF
This section of the Q2 report contains additional analysis on selected non-GPF funds. For additional fund descriptions, please visit
https://stories.opengov.com/oaklandca/published/_dhbklVRjPB.This Q2 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 audited 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 fund balance for FY 2024-25. These amounts represent dollars designated to balance the Adopted Budget.
All other funds are summarized in Table 41.
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 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 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 8% each year since its inception in FY 2017-2018. The FY 2023-24 Adjusted Budget of $16.27 million includes $9.09 million in use of fund balance to support the FY 2023-24 carryforwards. Net of use of fund Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 22
balance, the actual Sales Tax for Measure HH projects to come in at $6.88 million which is at Budget. Through first 6 payments of the year, we have collected 98% in SSBT compared through first 6 months in FY2022-23; 98% of the FY2022-23 total would represent $6.95 million.
Table 12: FY 2023-24 Measure HH (SSBT) Fund Revenues ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q2
YTD Actuals
FY 2023-24 Q2
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 2.79 6.88 — — %
Transfers from
Fund Balance 0.29 — — (0.29) (100.0) %
Interest Income — 0.15 0.15 0.15 — %
Miscellaneous
Revenue — 0.08 0.08 0.08 — %
Total Revenue 16.27 3.02 7.12 (9.15) (56.2) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $14.35 million, which is a savings of $1.92 million, compared to the Adjusted Budget of 16.27 million. The savings are primarily due to underspending in personnel costs.
Table 13: FY 2023-24 Measure HH (SSBT) Fund Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 2.08 — 2.08 — — %
City Administrator 1.72 0.13 1.29 0.43 24.9 %
Economic and Workforce
Development Department 0.71 0.29 0.69 0.02 3.4 %
Finance Department 0.37 0.12 0.37 — (0.1) %
Human Services
Department 6.70 0.38 6.66 0.03 0.5 %
Non Departmental and
Port 0.50 — 0.50 — — %
Oakland Parks and
Recreation Department 4.05 1.36 2.61 1.43 35.4 %
Oakland Public Library
Department 0.11 0.02 0.11 — — %
Oakland Public Works
Department 0.05 — 0.05 — %
Total 16.27 2.29 14.35 1.92 11.8 %
*The adjusted budget includes Council Budget Amendments and Carryforwards Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 23
Fund Balance - FY 2023-24 revenue is projected to end the year at $7.12 million. Expenditures are projected to end the year at $14.35 million. As a result, the estimated available fund balance in Measure HH (SSBT) Fund (1030) is projected to decrease from $10.76 million to $3.52 million in FY 2023-24.
Table 14: FY 2023-24 Measure HH (SSBT) Fund Year-End Available Fund Balance ($ in millions)
MEASURE HH SSBT (1030) FY 2023-24 Q2 Year-
End Estimate
Beginning Fund Balance – Audited $ 10.76
Revenue 7.12
Expenditures 14.35
Estimated Current Year Surplus/(Shortfall) (7.24)
Estimated Ending Fund Balance 3.52
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 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 extended through March 31, 2022 as a compliment to Measure B which sunset in March 2022. The full one-cent sales tax authorized by Measure BB took effect 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 $79.18 million Adjusted Budget assumes $4.67 million in use of fund balance to balance the Adjusted Budget as adopted, and $35.74 million in use of fund balance to support FY 2022-23 carry forwards. The year-end revenues totals of $38.48 million come in $40.70 million or 51.4% under the Adjusted Budget of $79.18 million, net of the use of Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 24
fund balance. The actual Sales Tax for Measure BB projects to come in at $35.10 million which is$1.86 million or 5.0% lower compared to the Adjusted Budget based on the latest estimates from the Alameda CTC.
Table 15: FY 2023-24 Measure BB & F Fund Revenues ($ in millions) Revenue Category
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Sales Tax 36.96 8.56 35.10 (1.86) (5.0) %
Project Offsets &
Carryforwards 35.74 — — (35.74) (100.0) %
Transfers from Fund
Balance 4.67 — — (4.67) (100.0) %
Grants & Subsidies 1.81 — 1.81 — — %
Interest Income — 0.69 0.69 0.69 — %
Service Charges — 0.06 0.06 0.06 — %
Miscellaneous Revenue — 0.82 0.82 0.82 — %
Total Revenue 79.18 10.13 38.48 (40.70) (51.4) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $69.45 million, which is a savings of $9.73 million, compared to the Adjusted Budget of $79.18 million. The savings is primarily due to underspending in personnel costs.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 25
Table 16: FY 2023-24 Measure BB/F Funds Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 32.73 1.20 32.83 (0.10) (0.3) %
City Administrator 0.39 0.10 0.19 0.20 51.0 %
City Attorney 0.05 0.03 0.05 — (8.4) %
Department of
Transportation 37.97 9.98 28.14 9.84 25.9 %
Finance Department 0.01 — 0.01 — — %
Human Resources
Management
Department 0.24 0.03 0.07 0.17 70.1 %
Human Services
Department 5.31 0.57 5.18 0.13 2.4 %
Information Technology
Department — — — — — %
Mayor 0.23 0.13 0.25 (0.01) (5.2) %
Non Departmental and
Port 0.52 — 0.52 — — %
Oakland Public Works
Department 1.74 0.81 2.22 (0.48) (27.5) %
Police Department — — 0.01 (0.01) — %
Total Expenditures 79.18 12.86 69.45 9.73 12.3 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $38.48 million. Expenditures are projected to end the year at $69.45 million. As a result, the estimated available fund balance in the Measure BB/F Funds is projected to decrease from $54.39 million to $23.41 million in FY 2023-24.
Table 17: FY 2023-24 Measure BB/F Funds Year-End Available Fund Balance ($ in millions)
Measure B/BB and Measure F Funds (2211, 2212, 2213, 2215, 2216, 2217, 2218, 2219, 2220)
FY 2023-24 Q2 Year-
End Estimate
Beginning Fund Balance - Audited $ 54.39
Revenue 38.48
Expenditures 69.45
Estimated Current Year Surplus/(Shortfall) (30.97)
Estimated Ending Fund Balance 23.41
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 26
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 - Year-end revenues project to come in at $24.17 million, which is $7.76 million or
24.3% under the Adjusted Budget of $31.94 million, The FY 2023-24 $31.94 million Adjusted Budget assumes $5.74 million in use of fund balance to balance the Adjusted Budget and $6.45 million in use of fund balance to support FY 2022-23 carryforwards. The actual Gas Tax projects to come in at $21.89 million which is $2.29 million or 11.7% above the Adjusted Budget estimate. The new projection is taken from the estimates for FY 2023-24 provided by the State, for the State revenue allocations to Cities and Counties for the Local Streets and Roads including Highway Users Tax Account (HUTA), and for the Road Maintenance and Rehabilitation Account (RMRA). Estimates are as of January 2024.
Table 18: FY 2023-24 State Transportation Gas Tax Fund Revenues ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q2
YTD Actuals
FY 2023-24 Q2
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Gas Tax 19.60 7.73 21.89 2.29 11.7 %
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 — 1.98 1.98 1.98 121176.8 %
Interest Income — 0.16 0.16 0.16 — %
Total Revenue 31.94 9.87 24.17 (7.76) (24.3) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $27.02 million, which is a savings of $4.92 million, when compared to the Adjusted Budget of $31.94 million.
The savings is primarily due to underspending in personnel costs.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 27
Table 17: FY 2023-24 State Transportation Funds Gas Tax Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 5.47 0.10 5.47 — — %
City Administrator 0.18 0.06 0.18 0.01 4.5 %
Department of
Transportation 25.95 8.01 21.26 4.69 18.1 %
Economic and
Workforce
Development
Department 0.01 — 0.01 — — %
Finance Department 0.09 — 0.01 0.09 91.7 %
Human Resources
Management
Department 0.24 0.03 0.07 0.17 70.1 %
Oakland Public Works
Department (0.01) 0.01 0.03 (0.03) 471.7 %
Total Expenditures 31.94 8.22 27.02 4.92 15.4 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $24.17 million. Expenditures are projected to end the year at $27.02 million. As a result, the estimated available fund balance in the State Transportation Gas Tax Funds is projected to decrease from $11.56 million to $8.72 million in FY 2023-24.
Table 18: FY 2023-24 State Transportation Funds Year-End Available Fund Balance ($ in millions)
State Transportation (Gas Tax) Funds (2230, 2232) FY 2023-24 Q2 Year- End Estimate
Beginning Fund Balance - Audited $ 11.56
Revenue 24.17
Expenditures 27.02
Estimated Current Year Surplus/(Shortfall) (2.85)
Estimated Ending Fund Balance 8.72
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, Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 28
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 - Year-end revenues project to come in at $31.27 million, which is $16.33 million or
34.3% under the Adjusted Budget of $47.60 million. The FY 2023-24 $47.60 million Adjusted Budget assumes $2.53 million in use of fund balance to balance the Adjusted Budget and $14.28 million to support carryforward expenditures. The actual Measure Q Tax, net of use of fund balance, projects to come in at $30.78 million which is at budget. This local measure is collected through property tax bills and is a consistent revenue source. As of Q2, the $16.02 million tax collected represents 52% of the Adjusted Budget.
Table 19: FY 2023-24 Preservation, Litter Reduction, Homelessness Support Act Fund Revenues ($ in millions)
Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q2
YTD Actuals
FY 2023-24 Q2
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Local Tax 30.78 16.02 30.78 — — %
Project Offsets
& Carryforwards 14.28 — — (14.28) (100.0) %
Transfers from
Fund Balance 2.53 — — (2.53) (100.0) %
Interest Income — 0.28 0.28 0.28 — %
Miscellaneous
Revenue — 0.20 0.20 0.20 — %
Total Revenue 47.60 16.51 31.27 (16.33) (34.3) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $40.32 million, which is a savings of $7.29 million, when compared to the Adjusted Budget of $47.60 million.
The savings are primarily due to underspending in personnel costs.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 29
Table 20: FY 2023-24 Measure Q - OPR Preservation, Litter Reduction, Homelessness Support Act Fund Expenditures ($ in millions)
Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 2.18 0.32 2.18 — — %
City Administrator 4.35 0.35 4.40 (0.05) (1.2) %
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 1.51 9.65 1.24 11.4 %
Non Departmental and
Port 0.92 — 0.92 — — %
Oakland Parks and
Recreation Department 0.13 — 0.13 — — %
Oakland Public Works
Department 28.89 8.18 22.93 5.96 20.6 %
Total Expenditures 47.60 10.37 40.32 7.29 15.3 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $31.27 million. Expenditures are projected to end the year at $40.32 million. As a result, the estimated available fund balance in Measure Q Fund (2244) is projected to decrease from $21.13 million in FY 2023-24 to $12.09 million in FY 2023-24.
Table 21: FY 2023-24 Measure Q Year-End Fund Balance ($ in millions) MEASURE Q (2244) FY 2023-24 Q2 Year-
End Estimate
Beginning Fund Balance - Audited 21.13
Revenue 31.27
Expenditures 40.32
Estimated Current Year Surplus/(Shortfall) (9.05)
Estimated Ending Fund Balance 12.09
Vacant Property Tax Fund (2270)
Measure W - Vacant Property Tax Fund (2270) is a City of Oakland ballot initiative approved by Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 30
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 the Alameda County.
Revenues - Year-end revenues project to come in at $6.08 million, which is $0.04 million or
0.6% under the Adjusted Budget of $6.12 million, The Adjusted Budget assumes $0.19 million in use of fund balance to balance the Adjusted Budget and $0.58 million to support carryforward expenditures. Net of use of fund balance, the actual Vacant Property Tax projects to come at $6.08 million which is $0.73 million or 13.6% above budget. At Q2, 89% of the Adjusted Budget has been collected. In comparison, last year at Q2 70% had been collected and ended the year at 92% of budget. FY 2022-23 slowed down during the second half as it collected 22% of its year-end total during that span. Similarly, FY2021-22 only collected 28% in the second half. The new projection assumes that the average of the past two years, or 25% of the FY 2023-24 Adjusted Budget will be collected in the 2nd half.
Table 22: FY 2023-24 Vacant Property Tax Fund Revenues ($ in millions) Revenue Category
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Local Tax 5.35 4.54 6.08 0.73 13.6 %
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 4.55 6.08 (0.04) (0.6) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $6.01 million, which is savings of $0.11 million, when compared to the Adjusted Budget of $6.12 million.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 31
Table 23: FY 2023-24 Vacant Property Tax Fund Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
City Administrator 0.23 0.13 0.27 (0.04) (16.3) %
Finance Department 0.81 0.35 0.59 0.22 27.6 %
Human Services
Department 0.17 — 0.09 0.08 49.0 %
Oakland Public Works
Department 4.90 2.21 5.06 (0.16) (3.3) %
Total Expenditures 6.12 2.69 6.01 0.11 1.8 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $6.08 million. Expenditures are projected to end the year at $6.01 million. As a result, the estimated available fund balance in the Vacant Property Tax Fund (2270) is projected to increase from $1.01 million to $1.08 million in FY 2023-24.
Table 24: FY 2023-24 Vacant Property Tax Fund Year-End Available Fund Balance ($ in millions)
Vacant Property Tax Fund (2270) FY 2023-24 Q2 Year-
End Estimate
Beginning Fund Balance - Audited $ 1.01
Revenue 6.08
Expenditures 6.01
Estimated Current Year Surplus/(Shortfall) 0.07
Estimated Ending Fund Balance 1.08
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 statue to be used for street lighting, landscaping, and public parks and recreation facility maintenance, and multi-use fields.
Revenues - The FY 2023-24 year-end revenues project to come in at $19.45 million, which is $0.17 million below the FY 2023-24 Adjusted Budget of $19.62 million, The actual Local tax is projected to come in at the Adjusted Budget amount of $19.08 million. The overall discrepancy is mainly due to FY 2023-23 carryforwards in the amount of $0.26 million that will be supported with use of fund balance. There is an ongoing deficit in the District which can no longer be sustained without significant reductions in service levels. In order to address the difference between Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 32
revenues and expenditures, the City reallocated costs commencing with the Fiscal Year 2022-23 budget process to align District-eligible costs to the revenue source paying the landscape and park costs. As an example, some costs are paid from non-assessment revenues, li ke Gas Tax Funds and the Measure Q Parks Fund, to maintain service levels and fund the historical District shortfall associated with landscape and park costs.
Table 25: FY 2023-24 Landscaping and Lighting Assessment District (LLAD) Fund Revenue ($ in millions)
Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q2
YTD Actuals
FY 2023-24 Q2
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Local Tax 19.08 9.54 19.08 — — %
Project Offsets
& Carryforwards 0.26 — — (0.26) (100.0) %
Service
Charges 0.21 — 0.21 — — %
Licenses &
Permits 0.08 0.03 0.08 — — %
Interest Income — (0.03) — — — %
Grants &
Subsidies — 0.10 0.10 0.10 — %
Miscellaneous
Revenue — (0.01) — — — %
Total Revenue 19.62 9.63 19.45 (0.17) (0.9) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $19.35 million, which is a savings of $0.27 million, when compared to the Adjusted Budget of $19.62 million.
Table 26: FY 2023-24 Landscaping and Lighting Assessment District (LLAD) Fund Expenditures ($ in millions)
Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Department of
Transportation 2.60 1.20 2.55 0.05 1.8 %
Finance Department 0.03 0.01 0.03 — — %
Non Departmental and
Port 2.94 — 2.94 — — %
Oakland Parks and
Recreation Department 5.00 5.00 5.00 — — %
Oakland Public Works
Department 9.04 3.87 8.82 0.22 2.4 %
Total Expenditures 19.62 10.08 19.35 0.27 1.4 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $19.45 million. Expenditures Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 33
projected to end the year at $19.35 million. As a result, the estimated available fund balance in the Landscaping and Lighting Assessment District (2310) is projected to increase to $0.09 million in FY 2023-24.
Table 27: FY 2023-24 Landscaping and Lighting Assessment District (LLAD) Fund Balance ($ in millions)
Landscaping & Lighting Assess. District Fund (LLAD) (2310) FY 2023-24 Q2 Year- End Estimate
Beginning Fund Balance – Audited $ —
Revenue 19.45
Expenditures 19.35
Estimated Current Year Surplus/(Shortfall) 0.10
Estimated Ending Fund Balance 0.09
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 in the False Alarm reduction Program Fund project to come in at $1.11 million, which is $0.33 million lower compared to the FY 2023-24 Adjusted Budget of $1.44 million, inclusive of the $0.06 million in use of Fund Balance assumed to support FY 2022-23 carryforwards. The year-end projection is slightly lower than the recent trend over the past three fiscal years, during which, on average, revenues have ended the year at $1.15 million. During that same time span, on average, 35% of the year-end revenues had been collected through the second quarter. The second quarter of FY 2023-24 came in at a slower pace, with 28% of the Adjusted Budget for service charges collected through Q2.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 34
Table 28: FY 2023-24 False Alarm Reduction Program Fund Revenue ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q2
YTD Actuals
FY 2023-24 Q2
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Service
Charges 1.27 0.36 1.08 (0.19) (15.1) %
Fines &
Penalties 0.11 — 0.11 — — %
Project Offsets
& Carryforwards 0.06 — — (0.06) (100.0) %
Interest Income — (0.05) — — — %
Miscellaneous
Revenue — (0.03) — — — %
Total Revenue 1.44 0.28 1.11 (0.33) (23.1) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $1.20 million, which is a savings of $0.24 million, compared to the Adjusted Budget of $1.44 million. The savings are primarily due to underspending in personnel costs.
Table 29: FY 2023-24 False Alarm Reduction Program Fund Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Information Technology
Department 0.11 0.06 0.13 (0.01) (13.3) %
Police Department 1.33 0.42 1.07 0.26 19.5 %
Total Expenditures 1.44 0.49 1.20 0.24 16.9 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $1.11 million. Expenditures projected to end the year at $1.20 million. As a result, the estimated available fund balance in False Alarm Reduction Program Fund (2411) is projected to decrease from negative $3.66 million to negative $3.75 million in FY 2023-24.
Table 30: FY 2023-24 False Alarm Reduction Program Fund Balance ($ in millions) False Alarm Reduction Fund (2411) FY 2023-24 Q2 Year-
End Estimate
Beginning Fund Balance – Audited (3.66)
Revenue 1.11
Expenditures 1.20
Estimated Current Year Surplus/(Shortfall) (0.09)
Estimated Ending Fund Balance (3.75)
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 35
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.
Table 31: Historical Revenue for Fund 2415
Fiscal Year Budgeted Revenue Projected Year-end Revenue FY 2023-24 73.02 46.47
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 - Year-end revenues project to come in at $46.47 million, which is $88.28 million or
65.5% under the Adjusted Budget of $134.75 million. The FY 2023-24 $134.75 million Adjusted Budget assumes $31.27 million in use of fund balance to balance the FY 2023-24 Adjusted Budget and $30.46 million in use of fund balance to support FY 2022-23 carryforward expenditures. The new year-end projection estimates that Licenses and Permits and Service Charges will match the first half performance during the second half of FY 2023-24.
Table 32: FY 2023-24 Development Service Fund Revenues ($ in millions) Revenue Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q2
YTD Actuals
FY 2023-24 Q2
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Licenses & Permits 41.91 10.67 21.34 (20.57) (49.1) % Transfers from Fund
Balance 31.27 — — (31.27) (100.0) %
Project Offsets &
Carryforwards 30.46 — — (30.46) (100.0) %
Service Charges 30.11 10.32 20.65 (9.46) (31.4) %
Fines & Penalties 0.62 0.21 0.21 (0.42) (66.9) %
Miscellaneous
Revenue 0.38 1.96 1.96 1.58 417.4 %
Interest Income — 1.84 1.84 1.84 — %
Grants & Subsidies — 0.48 0.48 0.48 — %
Total Revenue 134.75 25.48 46.47 (88.28) (65.5) % *The adjusted budget includes Council Budget Amendments and Carryforwards
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 36
Expenditures - FY 2023-24 year-end expenditures project to come in at $108.30 million, which is a savings of $26.44 million, when compared to the adjusted budget of $134.75 million. The projected savings are mainly attributed to vacancies.
Table 33: FY 2023-24 Development Service Fund Expenditures ($ in millions) Agency /
Department
FY 2023-24
Adjusted
Budget
FY 2023-24 Q2
YTD Actuals
FY 2023-24 Q2
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
City Administrator 3.48 1.54 3.24 0.24 6.9 %
City Attorney 3.59 1.84 3.62 (0.03) (0.8) %
City Auditor 0.05 0.03 0.05 — (6.3) %
Department of
Transportation 20.10 4.88 15.71 4.40 21.9 %
Economic and
Workforce
Development
Department 2.62 1.14 2.31 0.32 12.1 %
Finance Department 1.81 0.68 1.84 (0.03) (1.9) %
Fire Department 14.45 3.12 8.22 6.23 43.1 %
Human Resources
Management
Department 2.03 0.66 1.29 0.74 36.3 %
Information
Technology
Department 5.40 1.52 3.66 1.74 32.3 %
Mayor 0.35 0.07 0.12 0.23 64.7 %
Non Departmental
and Port 2.68 0.06 2.68 — — %
Oakland Public
Works Department 3.21 0.66 2.99 0.22 6.9 %
Planning and
Building Department 74.96 22.56 62.57 12.40 16.5 % Total Expenditures 134.75 38.77 108.30 26.44 19.6 % *The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - The large fund balance, $27.76 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 $46.47 million. Expenditures project to end the year at $108.30 million. As a result, the estimated available fund balance in the Development Service Fund (2415) projects to decrease from $122.38 million to $60.55 million in FY 2023-24.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 37
Table 34: FY 2022-23 Development Service Fund Year-End Available Fund Balance ($ in millions)
Development Service Fund (2415) FY 2023-24 Q2 Year-End
Estimate
Beginning Fund Balance - Audited $ 122.38
Revenue 46.47
Expenditures 108.30
Estimated Current Year Surplus/(Shortfall) (61.83
)
Estimated Ending Fund Balance 60.55
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 project to come in at $6.00 million, which is $0.68 million or 10.2% under the Adjusted Budget of $6.68 million. Declining volume in travel, which correlates to lower occupancy rates at hotels contribute to the estimated shortfall.
Table 35: FY 2023-24 Transient Occupancy Tax (Measure C) Fund Revenues ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q2
YTD Actuals
FY 2023-24 Q2
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Transient
Occupancy Tax 6.13 2.38 5.95 (0.18) (2.9) %
Project Offsets
0.55 — — (0.55) (100.0) %
Interest Income — 0.03 0.03 0.03 — %
Miscellaneous
Revenue — 0.02 0.02 0.02 — %
Total Revenue 6.68 2.42 6.00 (0.68) (10.2) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are projected to come in at $6.49 million, which is a savings of $0.19 million, when compared to the Adjusted Budget of $6.68 million. The savings are primarily due to underspending in personnel costs.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 38
Table 36: FY 2023-24 Transient Occupancy Tax (Measure C) Fund Expenditures ($ in millions)
Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Economic and
Workforce
Development
Department
1.31 0.07 1.13 0.19 14.3 %
Non Departmental and
Port 5.37 2.10 5.37 — — %
Total Expenditures 6.68 2.17 6.49 0.19 2.8 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenues are projected to end the year at $6.00 million.
Expenditures are projected to end the year at $6.49 million. As a result, the estimated available fund balance in the Measure C Fund (2419) is projected to decrease from $1.32 million to $0.82 million in FY 2023-24 .
Table 37: FY 2023-24 Transient Occupancy Tax (Measure C) Fund Year-End Available Fund Balance ($ in millions)
Measure C - Transient Occupancy Tax (TOT) Surcharge Fund (2419) FY 2023-24 Q2 Year- End Estimate
Beginning Fund Balance - Audited $ 1.32
Revenue 6.00
Expenditures 6.49
Estimated Current Year Surplus/(Shortfall) (0.49)
Estimated Ending Fund Balance 0.82
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.
Revenues - The FY 2023-24 year-end revenues project to come in at $50.01 million, which is $3.53 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. The actual internal service fund revenues are expected to come in at $46.24 million which is at budget since the cost recovery of the ISF funds budget is built into the budget.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 39
Table 38: FY 2023-24 City Facilities Fund Revenues ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q2
YTD Actuals
FY 2023-24 Q2
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Internal Service
Funds 46.24 46.23 46.24 — — %
Project Offsets
& Carryforwards 6.74 — — (6.74) (100.0) %
Service
Charges 0.55 0.41 0.55 — — %
Interest Income — (0.04) — — — %
Miscellaneous
Revenue — 3.25 3.25 3.25 — %
Total Revenue 53.54 49.84 50.01 (3.53) (6.6) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 expenditures are projected to end the year at $54.66 million, which is a savings of $2.10 million, compared to the Adjusted Budget of $56.76 million. The savings are primarily due to underspending in personnel costs.
Table 39: FY 2023-24 City Facilities Fund Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q2 YTD
Actuals
FY 2023-24
Q2 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 0.23 0.46 (0.05) (13.2) % Human Resources
Management
Department 0.02 — 0.02 — — %
Human Services
Department 0.88 0.28 0.57 0.31 35.6 %
Non Departmental and
Port 0.25 — 0.25 — — %
Oakland Parks and
Recreation Department 3.42 — 3.42 — — %
Oakland Public Works
Department 49.23 19.41 47.66 1.57 3.2 %
Police Department 0.31 0.01 0.04 0.27 88.1 %
Total 56.76 19.03 54.66 2.10 3.7 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue is projected to end the year at $50.01 million. Expenditures ended the year at $54.66 million. As a result, the estimated available fund balance in the Reproduction Fund (4400) is estimated to decrease from $1.02 million to negative $3.64 million in FY 2023-24.
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 40
Table 40: FY 2023-24 Facilities Fund Year-End Available Fund Balance ($ in millions) City Facilities Fund (4400) FY 2023-24 Q2 Year-
End Estimate
Beginning Fund Balance - Audited $ 1.02
Revenue 50.01
Expenditures 54.66
Estimated Current Year Surplus/(Shortfall) (4.66)
Estimated Ending Fund Balance (3.64)
ALL OTHER FUNDS – FUND BALANCE SUMMARY
Table 41: FY 2023-24 All Other Funds Year-End Available Fund Balances ($ in millions)
Fund Description
FY23-24
Audited
Beg Fund
Balance
FY23-24
Year-End
Rev Projections
FY23-24
Year-End
Exp Projections
FY23-24 Year-
end Estimated
Fund Balance
1020 - Vital Services Stabilization
Fund
10,633,663
-
10,485,706
147,957
1100 - Self Insurance Liability
29,693,820
59,999,561
60,421,442
29,271,939
1150 - Worker's Compensation
Insurance Claims
-
578,188
9,891,333
(9,313,145)
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
1,008,162
106,478
1700 - Mandatory Refuse Program
(2,288,891)
2,408,782
2,923,995
(2,804,104)
1710 - Recycling Program
4,147,109
6,445,018
6,346,216
4,245,911
1720 - Comprehensive Clean-up
939,179
24,112,197
24,634,770
416,606
1750 - Multipurpose Reserve
(6,078,873)
8,449,302
8,980,786
(6,610,357)
1760 - Telecommunications Reserve
(1,074,992)
1,273,113
1,304,872
(1,106,752)
1770 - Telecommunications Land
Use
1,880,940
792,986
802,295
1,871,632
1780 - Kid's First Oakland Children's
Fund
11,650,428
24,766,580
33,049,172
3,367,836
1820 - OPRCA Self Sustaining
Revolving Fund
6,584,746
6,978,895
9,280,768
4,282,873
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 41
1870 - Affordable Housing Trust
Fund
19,312,804
14,351,490
46,753,765
(13,089,470)
1882 - Multi Service Center/Rent
161,881
107,050
206,450
62,482
1885 - 2011A-T Subordinated
Housing
24,141,386
748,351
1,237,938
23,651,800
2102 - Department of Agriculture
(461,789)
959,809
963,932
(465,912)
2103 - HUD-ESG/SHP/HOPWA
(9,124,618)
29,452,128
28,312,152
(7,984,642)
2108 - HUD-CDBG
(8,098,910)
13,513,155
12,962,830
(7,548,585)
2109 - HUD-Home
2,250,534
27,933,201
25,993,326
4,190,410
2112 - Department of Justice
(2,419,263)
3,294,262
2,788,829
(1,913,830)
2113 - Department of Justice - COPS
Hiring
(1,009,715)
876,370
97,728
(231,073)
2120 - Federal Action Agency
75,221
833,319
652,654
255,887
2123 - US Dept of Homeland
Security
(309,521)
1,960,163
1,943,799
(293,156)
2124 - Federal Emergency
Management Agency (FEMA)
(599,992)
22,676,411
3,431,697
18,644,722
2125 - Environmental Protection
Agency
2,738,637
1,429,569
1,538,626
2,629,581
2128 - Department of Health and
Human Services
1,141,930
36,253,852
29,479,860
7,915,923
2138 - California Department of
Education
1,393,501
5,566,161
3,297,441
3,662,221
2139 - California Department of
Conservation
(4,799,157)
9,104,200
8,981,678
(4,676,635)
2144 - California Housing and
Community Development
421,816
114,599,581
113,328,868
1,692,530
2152 - California Board of
Corrections
(4,097,675)
11,443,634
9,106,795
(1,760,836)
2159 - State of California Other
5,697,405
144,749,602
135,535,497
14,911,510
2160 - County of Alameda: Grants
1,093,920
1,859,860
1,800,798
1,152,982
2162 - Metro Transportation Com:
TDA
(57,255)
1,221,259
1,605,921
(441,916)
2163 - Metro Transportation Com:
Program Grant
(201,264)
(1)
(1)
(201,264)
2164 - Congestion Mitigation & Air
Quality (CMAQ)
(91,003)
-
-
(91,003)
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 42
2172 - Alameda County: Vehicle
Abatement Authority
(327,889)
34,506
193,014
(486,397)
2190 - Private Grants
93,109
168,409
83,196
178,322
2195 - Workforce Investment Act
1,014,733
7,918,228
6,669,813
2,263,148
2215 - Measure F - Vehicle
Registration Fee
3,258,649
1,813,031
4,032,380
1,039,301
2241 - Measure Q-Library Services
Retention & Enhancement
10,204,898
20,324,834
21,453,591
9,076,141
2243 - Measure D - Parcel Tax to
Maintain, Protect & Improve Library
Services
10,211,470
15,345,586
15,994,327
9,562,729
2250 - Measure N: Fund
863,491
2,053,220
2,473,344
443,367
2252 - Measure Z - Violence
Prevention and Public Safety Act of
2014
13,445,310
30,825,609
37,081,619
7,189,299
2253 - Oakland Zoo Fund
-
14,227,333
14,227,333
-
2261 - Measure AA - Oversight
2,598,961
2,814,861
4,755,169
658,653
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
18,261,170
(377,668)
2330 - Werner Court Vegetation
Mgmt District
63,119
3,627
3,200
63,545
2331 - Wood Street Community
Facilities District
543,047
91,251
181,875
452,424
2332 - Gateway Industrial Park
939,470
1,281,807
1,913,071
308,207
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
2,511,153
947,745
2413 - Rent Adjustment Program
Fund
1,095,131
10,924,431
10,795,749
1,223,813
2416 - Traffic Safety Fund
89,106
987,453
941,316
135,243
2417 - Excess Litter Fee Fund
1,454,361
892,115
437,849
1,908,627
2420 - Transportation Impact Fee
9,373,212
1,844,081
8,276,387
2,940,906
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 43
2421 - Capital Improvements Impact
Fee Fund
5,898,947
1,795,540
4,760,224
2,934,263
2423 - Jobs Housing Impact Fee
Fund
13,960,546
4,979,581
12,804,226
6,135,901
2424 - Affordable Housing Impact
Fee Fund
23,618,274
3,481,733
15,596,378
11,503,629
2430 - Lead Settlement 2022
4,887,401
-
9,453,356
(4,565,955)
2826 - Mortgage Revenue
2,061,198
89,492
1,945,391
205,299
2830 - Low and Moderate Income
Housing Asset Fund
25,235,715
5,990,000
34,501,568
(3,275,853)
2990 - Public Works Grants
(911,022)
326,687
365,858
(950,193)
2994 - Social Services Grants
442,929
1,234,859
911,333
766,454
2996 - Parks and Recreation Grants
2001
(16,941)
101,224
101,224
(16,941)
2999 - Miscellaneous Grants
9,761,559
12,880,543
13,410,318
9,231,784
3100 - Sewer Service Fund
100,101,582
70,591,238
144,466,666
26,226,154
3200 - Golf Course
(252,843)
776,882
633,289
(109,250)
4100 - Equipment
27,345,262
33,286,368
44,033,868
16,597,762
4200 - Radio / Telecommunications
6,106,374
7,928,265
9,861,261
4,173,378
4210 - Telephone Equipment and
Software
(227,294)
955,341
897,955
(169,908)
4300 - Reproduction
613,089
1,385,264
1,205,782
792,571
4450 - City Facilities Energy
Conservation Projects
(202,490)
-
3,799
(206,289)
4500 - Central Stores
(120,856)
619,201
687,848
(189,503)
4550 - Purchasing
(35,849)
3,210,525
2,518,706
655,970
4600 - Information Technology
15,319,957
15,990,315
27,937,643
3,372,630
5322 - Measure DD: 2017C Clean
Water, Safe Parks & Open Space
Trust for Oakland
11,506,260
195,324
11,701,585 -
5330 - Measure KK: Infrastructure
and Affordable Housing
6,589,367
115,817
6,705,184 -
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 44
5331 - Measure KK: Affordable
Housing (GOB 2017A-2 Taxable)
9,508,883
167,306
9,676,190 -
5332 - Measure KK: Infrastructure
Series 2020B-1 (Tax Exempt)
19,959,648
341,323
20,300,970 -
5333 - Measure KK: Affordable
Housing Series 2020B-2 (Taxable)
14,804,071
250,834
15,054,905 -
5335 - Measure KK: Infrastructure
Series 2022C-1 (Tax Exempt)
144,715,421
2,620,573
147,335,994 -
5337 - Measure KK: Series 2023
GOB
-
52,179,375
52,179,375
-
5340 - Measure U: Affordable
Housing and Infrastructure GOB
-
100,575,625
100,575,625 -
5341 - Measure U: Affordable
Housing GOB Series 2023A-2
(Taxable)
-
68,000,000
68,000,000 -
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
9,683,740
14,167,058
5611 - Central District: TA Bonds
Series 2003
12,831,140
36,097
2,299,738
10,567,499
5612 - Central District: TA Bonds
Series 2005
6,063,664
41,676
2,572,300
3,533,039
5613 - Central District: TA Bonds
Series 2009T
3,274,844
565,362
4,169,615
(329,410)
5614 - Central District: TA Bonds
Series 2006T
11,496,245
2,135,877
7,676,869
5,955,252
5638 - BMSP: TA Bond Series 2006C-
T
435,165
4,629
157,679
282,115
5643 - Central City East TA Bonds
Series 2006A-T (Taxable)
19,373,751
122,191
6,763,942
12,732,001
5650 - Coliseum Projects
5,038,104
107,759
3,453,105
1,692,758
5656 - Coliseum: TA Bonds Series
2006B-T (Taxable)
46,387,935
-
6,120,122
40,267,812
5671 - OBRA: Leasing & Utility
54,713,494
1,600,000
4,628,187
51,685,307
5999 - Miscellaneous Capital
Projects
3,005,830
3,007,843
7,352,872
(1,339,199)
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
53,267,865
7,359,673
6032 - Taxable Pension Obligation:
Series 2001
328,744
6,179
-
334,924
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 45
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
2,066,300 -
6330 - Measure KK: 2017A-1 (TE)
Infrastructure and Affordable
Housing
1,380,783
2,247,557
3,628,340 -
6331 - Measure KK: 2017A-2
(Taxable) Infrastructure and
Affordable Housing
1,095,854
4,141,280
5,237,134 -
6332 - Measure KK: 2020B-1 GOB
2,408,892
3,941,200
6,350,092 -
6333 - Measure KK: 2020B-2 GOB
498,704
4,965,017
5,463,721 -
6334 - 2020 GOB Refunding
3,070,178
5,808,027
8,878,205 -
6335 - Measure KK: Infrastructure
Series 2022C-1 GOB (Tax Exempt)
20,963,275
10,451,150
31,414,425 -
6336 - Measure KK: Infrastructure
Series 2022C-2 GOB (Taxable)
(13,772,151)
36 (13,772,116) -
6337 - Measure KK: Infrastructure
Series 2023D GOB (Tax-Exempt)
-
4,472,690
4,472,690 -
6340 - Measure U: Infrastructure
Series 2023 A-1 GOB (Tax-Exempt)
-
9,223,221
9,223,221 -
6341 - Measure U: Affordable
Housing GOB Series 2023A-2
(Taxable)
-
370,000
370,000 -
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
16,961,963
3,316,397
429,831,262
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
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q2 R&E Report – Attachment A (Q2 Non GPF Select Funds) Date: March 6, 2024 Page 46
7640 - Oakland Public Museum
Trust
628,637
19,856
584,790
63,703
7760 - Grant Clearing
(5,744,471)
-
11,180,092
(16,924,563)
7999 - Miscellaneous Trusts 2,931,973
377,536
1,992,575
1,316,933
1 Appendix AA
CITY OF OAKLAND
CONSOLIDATED
FISCAL POLICY
Section 1. Budgeting Practices
Part A. General Provisions
Appendix AA
The City's Fiscal Year shall begin on July 1st of each year and end on June 30th of the subsequent year. The City shall adopt a two-year biennial policy budget by June 30th of odd-numbered calendar years. The City shall amend its biennial policy budget (midcycle) by June 30th of even numbered years. The budget and midcycle amendments shall be adopted by resolution of the City Council as required by the City Charter.
Part B. Policy on Balanced Budgets
The City shall adopt a balanced budget that limits appropriations to the total of estimated revenues and unallocated fund balances projected to be available at the close of the current fiscal year. The City Administrator shall be responsible for ensuring that the budget proposed to the City Council by the Mayor, adheres to the balanced budget policy.
This policy entails the following additional definitions and qualifications:
1. The budget must be balanced at an individual fund level.
2. City policies on reserve requirements for individual funds must be taken into account.
The appropriated expenditures included in the balanced budget equation must include the appropriations necessary to achieve or maintain reserve targets.
3. Appropriated revenues can include transfers from unallocated fund balance where such fund balance is reasonably expected to exist by the end of the fiscal year preceding the year of the adopted budget. Transfers from fund balance are not to be counted as revenue if the fund balance is not reasonably expected to exist by the end of the fiscal year preceding the year of the adopted budget. (Note: The precise definition of 'fund balance' will vary from fund to fund, depending on the fund's characteristics and accounting treatment.)
4. Appropriated expenditures can include transfers to fund balance or to reserves.
From time to time the City Council may present changes in policy and consider additional appropriations that were not anticipated in the most recently adopted budget. Amendments by the City Council shall maintain a balanced budget.
Each fiscal year the City Administrator shall report to the City Council on actual revenues and expenditures in the General Purpose Fund and other funds as deemed necessary.
Part C. Use of Excess Real Estate Transfer Tax (RETT) Revenues To ensure adequate levels of the General Purpose Fund reserves and to provide necessary funding for municipal capital improvement projects and one-time expenses, the City shall require that excess Real Estate Transfer Tax revenues be defined and used as follows:
2 Appendix AA
1. The excess Real Estate Transfer Tax (RETT) revenue is hereby defined as any amount of projected RETT revenues that exceed 15% of General Purpose Fund Tax Revenues (inclusive ofRETT).
2. The excess Real Estate Transfer Tax, as described in this section, shall be used in the following manner and appropriated through the budget process:
a. At least 25% shall be allocated to the Vital Services Stabilization Fund, until the value in such fund is projected to equal to 15% of total General Purpose Fund revenues over the coming fiscal year; and
b. At least 25% shall be used to fund debt retirement and unfunded long-term obligations such as negative fund balances, Police and Fire Retirement System (PFRS) unfunded liabilities, CalPERS pension unfunded liabilities, paid leave unfunded liabilities, and Other Post-Employment Benefits (OPEB) unfunded liabilities; and
c. The remainder shall be used to fund one-time expenses or to augment reserves.
3. Use of the excess RETT revenues for purposes other than those established in this section must be authorized by City Council resolution. The resolution shall explain the need for using excess RETT revenues for purposes other than those established in this section. The resolution shall also include steps the City will take to return to using excess RETT revenues pursuant to this section.
4. Following the completion of the annual audit, excess RETT revenues will be analyzed to determine whether the transfers to the Vital Services Stabilization Fund or expenditures to fund debt retirement and unfunded long-term obligations were sufficient. If insufficient funds were transferred, a true-up payment shall be made in the next fiscal year. If the transfers exceed the actual requirement, the amounts in excess may be credited against allocations in the next fiscal year.
Part D. Use of One-Time Revenues
1. One-time revenues are defined as resources that the City cannot reasonably expect to receive on an ongoing basis, such as proceeds from asset sales and debt refinancing. This part shall not apply to the use of excess RETT revenues pursuant to Section 1. Part C.
2. Fiscal prudence requires that any unrestricted one-time revenues be used for one-time expenses. Therefore, one-time revenues shall be used in the following manner, unless 3 they are legally restricted to other purposes: to fund one-time expenditures, to fund debt retirement and unfunded long-term obligations such as negative fund balances, Police and Fire Retirement System (PFRS) unfunded liabilities, CalPERS pension unfunded liabilities, paid leave unfunded liabilities, and Other Post-Employment Benefits (OPEB) unfunded liabilities; or shall remain as fund balance.
Appendix AA
3. Use of one-time revenues for purposes other than those established in in this section must be authorized by City Council resolution. The resolution shall explain the need for using one-time revenues for purposes other than those established in this section. The resolution shall also include steps the City will take to return to using one-time revenues pursuant to this section.
Part E. Use of Unassigned General Purpose Fund Balance
Any unassigned General Purpose Fund balance, as projected in the 3rd Quarter Revenue and E){penditure Report, and not budgeted for other purposes, shall be used in accordance with Section 1, Part D.
Part F. Analysis of Funding for Debt or Unfunded Long-Term Obligations From Certain Revenues
When excess RETT or other one-time revenues are used to fund accelerated debt retirement or unfunded long-term obligations, the City Administrator shall present his or her analysis and recommendations to the Council based on the best long-term financial interest of the City.
Part G. Criteria for Project Carryforwards and Encumbrances Previously approved but unspent project appropriations ("carryforwards") and contingent liability reserves for current purchases or contracts that are paid in the following fiscal year ("encumbrances") are financial obligations against reserves. Fiscal prudence requires that such obligations be limited.
Each fiscal year, the Finance Department will submit a list of eligible carryforwards and encumbrances to all departments for evaluation for all funds, including the General Purpose Fund. Departments may request to retain some or all carryforwards and encumbrances when such balances are:
1. Deemed essential to the delivery of active city projects, programs and services; or
2. If the liquidation of such balances would be in violation of legislative or legal requirements.
A departmental request to retain project carryforwards and/or encumbrances must be submitted to the Finance Department. Departments shall provide specific reasons for requested project carryforwards and encumbrance carryforwards, including, but not limited to, those reasons outlined above. Carryforward of project appropriations in funds with negative balances will only be allowed on an exception basis.
The Finance Department will recommend to the City Administrator an action on the departmental requests. The City Administrator shall make a final determination on project carryforward and encumbrances, and will direct the Finance Department to make carryforwards 4 available to the appropriate department.
Part H. Grant Retention Clauses
Appendix AA
Prior to the appropriation of revenues from any grant outside of the budget process, the City Council shall be informed of any retention clauses that require the City to retain grant-funded staff, services, programs, or operations beyond the term of the grant. The fiscal impacts of such retention clauses shall be disclosed. During the biennial budget process staff shall report to the Council the ongoing projected fiscal impacts of such retention clauses.
Part I. Alterations to the Budget
Substantial or material alterations to the adopted budget including shifting the allocation of funds between departments and substantial or material changes to funded service levels, shall be made by resolution of the City Council.
The Finance Department will include departmental expenditure projections for the General Purpose Fund in the Second Quarter Revenue & Expenditure Report. In the event that a department is projected to overspend in the General Purpose Fund by more than one percent (1 %), the City Administrator 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.
Part J. Transfers of Funds between accounts.
The City Administrator shall have the authority to transfer funds between personnel accounts, and between non-personnel accounts within a department. The City Administrator shall have the authority to transfer funds allocated to personnel accounts to non-personnel accounts within a department provided that cumulative transfers within one fiscal year do not exceed 5% of the original personnel account allocation of that department. The City Administrator shall have the authority to transfer funds from non-personnel accounts to personnel accounts within a department. The City Administrator shall have the authority to transfer funds allocated to personnel accounts to non-personnel accounts if the transfer is required to meet the conditions of or maximize the funding derived from a grant that has been approved by the City Council. For the purposes of this section accounts for the provision of temporary personnel services shall be considered personnel accounts.
Part K. Pay-Go Account Expenditures, Priority Project Fund Expenditures, and Grants The City Council hereby finds and determines that it is in the public interest to spend Pay-go account fund to facilitate and support programs & services of the City of Oakland, capital improvement projects of the City of Oakland, and programs & capital improvement projects of the public schools and other public entities within the City of Oakland. The Council authorizes Pay-Go account funds to be used for the following purposes:
5 Appendix AA
Capital Improvements:
1. To pay for or augment funding for a City of Oakland capital improvement project including planning and pre-construction services for projects such as, but not limited to, feasibility studies and design, landscaping, architectural and engineering services and all services and materials needed to construct a capital improvements such as, but not limited to, contractor services, lumber, concrete, gravel, plants and other landscape materials, fountains, benches, banners, signs, affixed artwork and any other design and decorative elements of the project; and
2. To provide a grant to a public school, including a school chartered by the State of California or Oakland Unified School District, or other public entity for use on capital improvement project within the City of Oakland, including planning and pre-construction services for projects such as; but not limited to, feasibility studies and design, landscaping, architectural and engineering services and all services and materials needed to construct a capital improvements such as, but not limited to, contractor services, lumber, concrete, gravel, plants and other landscape materials, fountains, benches, banners, signs, affixed artwork and any other design and decorative elements of the project; and
Furniture & Equipment:
3. To pay for or augment funding for purchase of furniture and equipment, including computer equipment and software, to be used by participants in a program operated by the City of Oakland; and
4. To provide a grant to a public school, including a school chartered by the State of California or Oakland Unified School District, or another public entity to be used for furniture and equipment, including computer equipment and software, to be used by participants in a program operated by the public school or public entity.
Pay-go purposes stated above shall operate as restrictions on Pay-go expenditures or Pay-go grants, regardless of the Pay-go account funding source.
Pay-go purposes stated above shall apply to any and all Pay-go expenditures or grants made by the Mayor and each City Councilmember. All Pay-go expenditures and grants shall be administered by the City Administrator on behalf of the city, and grant agreements shall be required for all such grants.
In accord with the City Council's motion approving the initial allocation of Councilmember Priority Project funds on June 8, 2006, the City Councilmembers must obtain City Council approval for all Priority Project expenditures.
All Priority Project fund grants approved by the City Council and shall be administered and executed by the City Administrator on behalf of the city, and grant agreements shall be required for all such grants.
6 Appendix AA
Section 2. Reserve Funds
Part A. General Purpose Fund Emergency Reserve Policy
1. Council hereby declares that it shall be the policy of the shall City of Oakland maintain in each fiscal year a reserve equal to seven and one-half (7.5%) of the General Purpose Fund (Fund 1010) appropriations as adopted in the biennial or midcycle budget, and not including prior year carryforwards, encumbrances, or appropriations to Fund Balance for, such fiscal year (the "General Purpose Fund Emergency Reserve Policy"),
2. Each year, upon completion of the City's financial audited statements, the City Administrator shall report the status of the General Purpose Funds Emergency Reserve to the City Council and on the adequacy of the of the 7.5% reserve level. If in any fiscal year the General Purpose Fund Reserve Policy is not met, the City Administrator shall present to Council a strategy to meet the General Purpose Funds Emergency Reserve Policy. Each year, the City Administrator shall determine whether the 7.5% reserve level requires adjustment and recommend any changes to the City Council.
3. The amounts identified as the General Purpose Funds Emergency Reserve may be appropriated by Council only to fund unusual, unanticipated and seemingly insurmountable events of hardship of the City, and only upon declaration of fiscal emergency. For the purposes of this Ordinance, "fiscal emergency" may be declared (1) by the Mayor and approved by the majority of the City Council, or (2) by a majority vote of the City Council.
4. Prior to appropriating monies from the General Purpose Funds Emergency Reserve, the City Administrator shall prepare and present such analysis to the City Council. Upon review and approval of the proposed expenditure by the City Council, and appropriate fiscal emergency declaration necessary for the use of GPF reserve, the City Administrator will have the authority to allocate from the reserves.
Part B. Vital Services Stabilization Fund Reserve Policy
1. Council hereby declares that it shall be the policy of the City of Oakland to maintain a Vital Services Stabilization Fund (VSSF) with a target funding level of 15% of General Purpose Fund Revenues. The funding of the Vital Services Stabilization Fund shall be made pursuant to Section 1, Part C concerning excess Real Estate Transfer Tax.
2. In years when the City forecasts that total General Purpose Fund revenues will be less than the current year's revenues, or anytime significant service reductions, such as layoffs or furloughs, are contemplated due to adverse financial conditions, use of this fund must be considered to maintain existing services.
7 3. Use of the VSSF must be authorized by City Council resolution. The resolution shall explain the need for using the VSSF. The resolution shall also include steps the City will take in order to replenish the VSSF in future years.
Appendix AA
Part C. Capital Improvements Reserve Fund
1. Council hereby declares that it shall be the policy of the City of Oakland to maintain a Capital Improvements Reserve Fund.
2. Revenue received from one time activities, including the sale of Real Property, shall be deposited into the Capital Improvements Reserve Fund, unless otherwise directed by a majority vote of the City Council. Interest earnings on monies on deposit in the Capital Improvements Reserve Fund shall accrue to said fund and be maintained therein.
3. Monies on deposit in the Capital Improvements Reserve Fund may be appropriated by Council to fund unexpected emergencies, major capital maintenance, repair costs to City owned facilities and to fund capital improvement projects through the Five-Year Capital Improvement Program.
8 Appendix AA
Section 3. Budget Process� Fiscal Planning,
Transparency, and Pub1ic Participation
Unless otherwise noted all timelines apply only to budget development years, normally odd numbered years and not to mid-cycle revisions to an adopted two-year budget.
1. Assessment of Stakeholder Needs, Concerns and Priorities Timeline: Budget Advisory Committee review prior to survey release. Survey completion by December 5th of even-numbered years. Results publicly available within three weeks of survey's close.
Requirements: The City Administrator should develop or secure a statistically valid survey for assessing the public's concerns, needs and priorities prior to the development of the biennial budget. Whenever feasible, the City should conduct a professional poll administered to a statistically relevant and valid sample of residents that is representative of Oakland's population in terms of race, income, neighborhood, age, profession, family size, homeownership/renter-ship, etc. If that's not possible, then demographic information should be collected and reported out with the survey results.
Prior to release, the survey questions shall be submitted to the Budget Advisory Committee by September 1st of even numbered years for review of bias, relevance, consistency in administration, inclusion of benchmark questions, and ability to assess concerns, needs and priorities. The· survey instrument, method of dissemination, and any instructions for administration shall be publicly available. The survey should be conducted following the November election and before December 5th.
If the City cannot afford a professional survey, an informal survey shall be made available for broad dissemination by the Mayor and Councilmembers through community list serves and other communication channels. Furthermore, the City Administrator shall take steps to promote participation, such as issuing a Flyer promoting participation in the survey and methods of participation (survey internet link, email, phone number) and posting such Fliers near publicly available computers in all City libraries, Recreation Centers, and Senior Centers. A list of those dissemination channels should be publicly available along with survey results.
Survey results should be publicly available within three weeks of the completion and analysis of the survey. Survey results should be made widely available, shared on social media, and published on the City's Budget website. In the event that City's statistically valid survey has been completed, the Mayor and City Administrator shall include in their proposed budget a summary of the survey data and a statement regarding how the data was or was not incorporated into the final proposed budget. Informal surveys and their results shall be made public but not included in their proposed budget document.
The City Administrator shall development a standardized and diverse means of collecting resident input via other means prior to budget development.
2. Council Initial Budget Briefing and Priorities Discussion 9 Appendix AA
Timeline: February
Requirements: The Mayor and City Council will hold a bi-annual budget workshop soon after the commencement of the Council term. The workshop will include briefings on estimated baseline expenditures, revenue projections and an overview of the City's budgeting process. The workshop will provide the Mayor and Council with the opportunity to begin discussing priorities for the next budget year based on the Assessment of Stakeholder Needs, Concerns and Priorities.
3. Five-Year Forecast
Timeline: Produced and heard by the Council's Finance & Management Committee or the full City Council in February or March. Forecast Fact Sheets should be distributed to City community centers and Forecast data should be available on Open Data Portal within two weeks of the Council hearing.
Requirements: Each Budget Cycle, the City Administrator must prepare a Five-Year Forecast.
The Five-Year Financial Forecast ("Forecast") is a planning tool that estimates the City's likely revenues and expenditures over five-years, based on appropriate financial, economic, and demographic data. The purpose of the Forecast is to surface all major financial issues and estimate future financial conditions to support informed long-term decision making. Such planning provides for greater financial stability, signals a prudent approach to financial management, and is consistent with best practices.
The Forecast shall contain the two-year baseline budget for the forthcoming budget period, clearly reflecting projected expenditures to maintain existing service levels and obligations, plus an additional three-year forecast of revenues and expenditures. The Baseline Budget shall consist of projected expenditures necessary to maintain existing staffing and service levels, plus an estimate of anticipated revenues for the two-year period.
The Forecast shall also contain information on the variance between prior forecasts and actual amounts, including the factors that influenced these variances. Revenue estimates shall be based on the most current data available; minimally revenue projections shall take into account projected revenue for the current fiscal year, as reflected in the 2nd quarter Revenue and Expenditure Report, with appropriate trending into future years and an explanation as to how such revenue projections were derived.
The report shall include a Five-Year Forecast "Fact Sheet" document, which summarizes the Forecast's key findings with simplified text and graphics to make this important budgetary information more accessible to the general public. Within two weeks after the Forecast is heard by the City Council, the City Administrator shall print and distribute the Forecast Fact Sheet to all City libraries, recreation centers and senior centers, including in languages required by Oakland's Equal Access Ordinance. The full Forecast shall also be posted on the City of Oakland's website. Forecast data shall be available in open data format on Oakland's data portal.
4. Statement of Councilmember Priorities
Timeline: Written submission due by March 15th.
Appendix AA
Requirements: City Council Members will have the opportunity to advise the Mayor and City Administrator publicly of their priorities. Each Councilmember shall be invited to submit up to seven expenditure priorities in ranked and/or weighted order for changes to the baseline budget as presented in the Five-Year Forecast. Councilmember priority statements must be submitted as part of a report to be heard by the City Council and/or in a publicly available writing to the Mayor and City Administrator by March 15. In addition to the priorities, Councilmembers may also submit other suggestions, including revenue suggestions.
5. Administrator's Budget Outlook Message & Calendar Report Timeline: Heard by City Council before April 15th.
Requirements: The City Administrator shall bring as a report to the City Council a Budget Outlook Message & Calendar no later than April 15th that provides an overview of the budget development process and lists all key dates and estimated dates of key budget events, including, but not limited to the release of the Mayor and Administrator's Proposed Budget, Community Budget Forums, Council meetings, and formal budget passage dates. This publication shall be posted on the City's website and by other means determined by the City Administrator.
6. Release of Mayor & Administrator's Proposed Budget & Fact Sheet Timeline: Published and publicly available by May 1st. Heard by City Council and Fact Sheet distributed by May 15th.
Requirements: The Proposed Budget must be released by May 1st and shall clearly indicate any substantive changes from the current baseline budget, including all changes to service levels from the current budget. The Proposed Budget shall indicate staffing by listing the number of positions in each classification for each Department, including a listing of each position proposed for addition or deletion. The Council shall hold a public meeting to present the Proposed Budget no later than May 15th in budget adoption years. The full proposed budget document shall be made available oilline from the City's website, and printed copies shall be available in all City libraries. Additionally, the proposed budget data shall be available in open data format on the City's open data portal by May 1st. Every effort should be made to thoroughly respond to any public request for departmental budget details, such as line item budgets. The requested information shall also be made available on the City's website and open data portal within a reasonable time following the request.
The Proposed Budget must include a Budget Fact Sheet with easy-to-understand graphics and text explaining the City's overall finances, the Proposed Budget and that year's Budget Calendar.
The Fact Sheet shall be published in languages required by Oakland's Equal Access Ordinance.
The Fact Sheet shall be printed and made available in all City Recreation Centers and Senior Centers as well as all City libraries by May 15th or the presentation to the Council, whichever is 11 sooner.
7. Community Budget Forums
Timeline: During the months of May and June of odd-numbered years Appendix AA
Requirements: The Administration and Council shall hold at least one (1) Community Budget Forum in each council district. These forums, organized by the City Administrator's Office in partnership with Councilmembers shall be scheduled to maximize residents' access. The forums should include sufficient time for a question and answer period in a format that maximizes community participation, as well as a presentation of budget facts by City staff. One or more of the forums must be scheduled in the evening. Another must be scheduled on the weekend. These meetings shall also be scheduled so that Councilmembers have sufficient opportunity to attend a meeting close to their council district. Every member of the City Council shall make their best effort to attend the Community Budget Forum in their council district. Sufficient Fact Sheets in all available languages shall be available at all Forums.
These forums should be publicized in social media and via other means in a manner that is linguistically and culturally appropriate. City Council staff shall work with community-based, faith-based, identity based, and district specific organizations to ensure that a representative and broad group of residents is aware and encouraged to attend each forum.
8. Ongoing Public Education
Timeline: During the months of May and June of even-numbered years Requirements: Beginning with the first even-numbered year following adoption of this ordinance, the Administration and City Council shall hold at least three (3) Community Budget Education Presentations in different neighborhoods throughout the City and outside of City Hall.
These presentations shall seek to increase Oakland residents understanding and awareness of the City Budget and Budget process.
9. Budget Advisory Commission's Report
Timeline: June 1st
Requirements: The Budget Advisory Committee (BAC) shall be requested to submit published, written report to the full City Council regarding the proposed budget with any suggested amendments no later than June 1 in budget adoption years. If submitted, the statement shall be published as part of the next budget report to the City Council. The BAC is encouraged to provide similar statements during the mid-cycle budget revise and any other significant budget actions.
10. Council President's Proposed Budget
Timeline: June 17th
12 Appendix AA
Requirements: The City Council President, on behalf of the City Council, shall prepare a proposed budget for Council consideration to be heard at a Special City Council Budget Hearing occurring on or before June 17th. The Council President may delegate the duty to prepare a budget proposal to another member of the Council. The Finance Department will provide a costing analysis for proposed amendments. The City Council may schedule additional Special City Council Budget Hearings or Workshops as needed.
11. Council Budget Amendments
Timeline: No later than up to three (3) days prior to final budget adoption for public noticing Requirements: In addition to the Council President's proposed budget, any Councilmember or group of Councilmembers may submit proposed budget amendments at any time during the budget process. However, the adopted budget shall not contain substantive amendments made on the floor by Councilmembers at the final meeting when the budget is adopted. All substantive amendments must have been published in the City Council agenda packet for at least three days prior to the budget's final adoption and posted on the City's budget website. This shall not preclude Council members from combining elements from various proposals, provided each element considered has been published in the City Council agenda packet as a component of one proposal. This three-day noticing requirement may be waived by a vote of Council upon a finding that (1) new information impacting the budget by at least $1 million dollars came to the attention of the body after the publication deadline making it not reasonably possible to meet the additional notice requirement and (2) the need to take immediate action on the item is required to avoid a substantial adverse impact that would occur if the action were deferred to a subsequent special or regular meeting, such as employee layoffs.
Councilmembers will present their proposed amendments in an easy to understand, standardized format provided by the City Administrator. The format should allow the proposals to be easily compared to the Mayor's Proposed Budget and to one another. Additions and reductions shall be clearly noted in separate sections.
In order to provide sufficient time to evaluate the cost of proposals, Councilmembers should request costing analyses for proposed budget amendments or line-items within a budget amendment to the City Administrator at least six (6) working days prior to the City Council meeting where that amendment will be considered.
12. Process Feedback & Continual Improvement
Timeline: September 30th following budget adoption
Requirements: The Budget Advisory Commission (BAC) shall be requested to submit an Info1mational Report to the Council's Finance and Management Committee and City Council containing their analysis of the budget adoption process including, but riot limited to: 1) the informational quality of the Proposed Budget; 2) the City Administration's and City Council's attention to engaging the public and its impacts on the budget process and product; 3) the level of 13 Appendix AA
transparency and open dialogue in all public meetings dedicated to the budget; and 4) opportunities for improving the process in future years. In assessing opportunities for continually improving public participation in the budget process, the Administration, City Council and BAC shall be requested to consider the following guiding principles:
• Inclusive Design: The design of a public participation process includes input from appropriate local officials as well as from members of intended participant communities. Public participation is an early and integral part of issue and opportunity identification, concept development, design, and implementation of city policies, programs, and projects. • Authentic Intent: A primary purpose of the public participation process is to generate public views and ideas to help shape local government action or policy. • Transparency: Public participation processes are open, honest, and understandable. There is clarity and transparency about public participation process sponsorship, purpose, design, and how decision makers will use the process results.
• Inclusiveness and Equity: Public participation processes identify, reach out to, and encourage participation of the community in its full diversity. Processes respect a range of values and interests and the knowledge of those involved. Historically excluded individuals and groups are included authentically in processes, activities, and decision and policymaking. Impacts, including costs and benefits, are identified and distributed fairly. • Informed Participation: Participants in the process have information and/or access to expertise consistent with the work that sponsors and conveners ask them to do. Members of the public receive the information they need, and with enough lead time, to participate effectively. • Accessible Participation: Public participation processes are broadly accessible in terms of location, time, and language, and support the engagement of community members with disabilities.
• Appropriate Process: The public participation process uses one or more engagement formats that are responsive to the needs of identified participant groups; and encourage full, authentic, effective and equitable participation consistent with process purposes. Participation processes and techniques are well- designed to appropriately fit the scope, character, and impact of a policy or project. Processes adapt to changing needs and issues as they move forward. • Use oflnformation: The ideas, preferences, and/or recommendations contributed by community members are documented and given consideration by decision-makers. Local officials communicate decisions back to process participants and the broader public, with a description of how the public input was considered and used. • Building Relationships and Community Capacity: Public participation processes invest in and develop long-term, collaborative working relationships and learning opportunities with community partners and stakeholders. This may include relationships with other temporary or ongoing community participation venues.
• Evaluation: Sponsors and participants evaluate each public participation process with the collected feedback and learning shared broadly and applied to future public participation efforts. 14