Special Rules and Legislation Committee
May 30, 2024

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 1
Finance and Management Committee
May 28, 2024

Attachment A: FY 2023-24 Q3 Detailed Report

TABLE OF CONTENTS

The report has the following major sections:

1. General Purpose Fund Q3 Revenues

2. General Purpose Fund Q3 Expenditures

3. General Purpose Fund Q3 Fund Balance

4. Reserves

5. Select Non-GP Funds

Appendixes:

Consolidated Fiscal Policy

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 2
Finance and Management Committee
May 28, 2024

Summary of FY 2023-24 Q3 GPF Revenues & Expenditures

FY2023-24 GPF Revenue is projected to come in $174.37 million or 19.6% lower compared to the Adjusted Budget of $890.07 million. GPF Expenditures are estimated to come in $19.09 million or 2.1% under 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 $155.27 million.

Table 1: Summary of FY 2023-24 Q3 GPF Revenues & Expenditures Budget to Estimated Year-End Actuals ($ in millions)

FY 2023-24
Adjusted
Budget
FY 2023-24 Q3
YTD Actuals
FY 2023-24
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Projected Year-
End % Over /
(Under)
Adopted
Budget
FY2023-24
Revenues 890.07 485.42 715.70 ( 174.37) (19.6) % FY 2023-24
Expenditures 890.07 605.68 870.97 19.09 2.1 %
Operating
(Shortfall) /
Surplus
— (120.26) ( 155.27) ( 155.27) (17.5) %

I. GENERAL PURPOSE FUND Q3 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 nine 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), the City's Sales Tax and Property Tax consultant HDL Companies (HDL), and revenue consultants Blue Sky Consulting Group. Based on this analysis, the GPF tax revenue is projected to end the year with a net shortfall of $89.01 million. The Adjusted Budget also assumes $30.12 million in use of fund balance and $55.24 million in prior year carry-forwards.

Without accounting for the before mentioned one-time use of available funds, the GPF revenues forecast to come in at $715.70 million, which is $174.37 million lower 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 to closely monitor economic conditions and the performance of all City funds.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 3
Finance and Management Committee
May 28, 2024

Q3 REVENUE HIGHLIGHTS

Property Tax: The largest revenue source for the City is now estimated to end the year at $294.36 million, exceeding the adjusted budget of $294.17 million by $0.19 million or 0.1%. In comparison FY 2022-23 ended the year at $281.28 million. The projected year over year increase 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 is partially offset by projected revenue loss resulting from pending property assessment 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 in valuation. 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 in value 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% or $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 $120.98 million, which is $4.27 million or

3.4% under the FY 2023-24 Adjusted Budget of
$125.25 million. However, this would represent an increase of $5.60 million compared to the FY 2022-23 year-end total of $115.38 million. BT actuals include payments made by businesses in the second year of operation, for which the BT for years one and two are both due in year two, it also includes late payments made by Businesses that had outstanding amounts owed from prior years, and payments captured through the City's assessments, collections, and lien processes.

Payments attributed to the 2024 BT year to date account for $95.12 million which represents

84.9% of the total Business Tax collected to date in FY 2023-24 of $112.08 million. This falls in line with the FY 2022-23 year-end actuals, in which $98.58 million or 85.4% out of the overall BT total collected of $115.38 million corresponded to the 2023 BT year. In years prior to the Measure T BT implementation, the ratio of YTD totals corresponding to that same year in which the Tax was paid was consistently lower. In FY 2019-20 the amount corresponding to the 2020 Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 4
Finance and Management Committee
May 28, 2024

tax year was $78.74 million out of $98.04 million collected, or 80.3 %, in FY 2020-21 the amount corresponding to the 2021 tax year was $79.54 million out of $104.11 million collected, or

76.4%, and in FY 2021-22 the amount corresponding to the 2022 tax year was $78.90 million out of $101.15 million collected, or 78.0%.

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 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 Q3, the number of properties sold through the first nine months dropped by 11.2%, or 303 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 24.8% when accounting for the sales prices.

Recent trends do not indicate that a rebound is to be expected for the remainder of the year. In previous years, 73% of the year-end totals for RETT had been collected through the third quarter of FY2021-22, and 72% through Q3 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 fourth quarter is expected to perform similarly to the first three quarters of the year during which $38.54 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 three quarters of FY 2023-24, which has realized even lower figures than FY 2022-23 had through Q3. Table 2 Below summarizes the year over year variance in gross sales and volume, comparing the performance of RETT through Q3 of the current year to that of FY 2022-23.

Table 2: RETT Growth Rate
($ in millions)
FY 2022-23 FY 2023-24 Year-Over-Year
Variance Thru Q3
Sale Price Gross Sales Volume Gross Sales Volume Gross Sales Volume $300,000 or below $ 27.15 167 $29.57 174 8.9 % 4.2 % $300,001 to $2 Million $ 2,125.57 2,334 $1,882.66 2,106 (11.4) % (9.8) % $2 million to $5 Million $ 498.23 182 $300.43 116 (39.7) % (36.3) % $5 -10 Million $ 119.89 17 $58.87 9 (50.9) % (47.1) % $10 - 50 Million $ 282.26 13 $136.85 7 (51.5) % (46.2) % $50.01-100 Million $ 147.65 2 $0.00 — (100.0) % (100.0) % Over $100 Million $ — — $0.00 $ — — % — %
Total $ 3,200.74 2,715 $2,408.39 2,412 (24.8) % (11.2) %

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 5
Finance and Management Committee
May 28, 2024

Sales Tax: The fourth largest revenue source for the City is projected to come in below the FY 2023-24 adopted budget of $67.69 million by approximately $4.97 million, and is now estimated to end the year at $62.72 million. Detailed Sales Tax data is available through the Second Quarter (Q2) of FY 2023-24. Per data provided by the City's Sales Tax consultant HDL, Oakland’s receipts from July through December (Q2) were 6.4% below the Q2 period in 2022.

Through Q2, modest sales improvement occurred in the food delivery, catering, and fast casual segments, and as a result restaurants and hotels overall rose 1.0%. Autos-transportation’s also shows a year-over-year improvement of 1.5% resulting from new vehicle dealerships which had growth thanks to new openings over the past year. Categories with year over year decreases in sales tax are led percentage wise by fuel service stations. Expected reductions in petroleum prices provoked a 20.7% 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’s weaker returns of 17.8% lower compared to the same period in FY 2022-23. On average, the Sales tax categories dropped by 5.5% overall. Table 3 below compares the Sales Tax totals received by category through Q2 of FY 2022-23 and Q2 of FY 2023-24.

Table 3: Sales Tax Comparison by Category FY2022-23 and FY 2023-24 ($ in millions)
Category Thru Q2
FY 2022-23
Thru Q2
FY 2023-24 Inc/Dec
Autos & Transportation $ 4.65 $ 4.73 1.5 %
Building & Construction $ 3.23 $ 3.10 -4.1 %
Business & Industry $ 3.18 $ 3.09 -2.9 %
Food & Drugs $ 2.89 $ 2.38 -17.8 %
Fuel & Service Stations $ 4.57 $ 3.62 -20.7 %
General Consumer Goods $ 2.91 $ 2.69 -7.6 %
Restaurants & Hotels $ 5.46 $ 5.51 1.0 %
State/County Pools & Transfers $ 5.84 $ 5.82 -0.4 %
Average $ 4.09 $ 3.87 -5.5 %

Utility Consumption Tax: This fifth largest revenue source for the City is projected to come in with a projected increase in the GPF. It is now estimated that it will end the year above the FY 2023-24 adopted budget of $61.90 million by approximately $0.95 million or 1.5%, at $62.85 million. Collections through Q3 in FY 2023-24 lag in comparison to the same period in FY 2022- 23 but the second half of the year is expected to outperform prior periods due to an 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 adjusted budget assumes $30.12 million in use of fund balance to balance budgeted expenditures and $55.24 million in use of Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 6
Finance and Management Committee
May 28, 2024

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 FY2023-24 GPF revenues by category.

Table 4:

FY2023-24
Q3

FY 2023-24
Adopted
Budget
FY 2023-24
Adjusted
Budget
FY 2023-24 Q3
YTD Actuals
FY 2023-24 Q3
Year-End
Estimate
Year-End $ Over
/ Under
Adjusted
Budget
Year-End % Over /
Under Adjusted
Budget
Property Tax 294.17 294.17 183.97 294.36 0.19 0.1% Business
License Tax 125.25 125.25 112.08 120.98 (4.27) (3.4)% Real Estate
Transfer Tax 110.41 110.41 38.54 53.22 (57.19) (51.8)% Sales Tax 67.69 67.69 36.79 62.72 (4.97) (7.3)% Utility
Consumption
Tax 61.90 61.90 42.12 62.85 0.95 1.5%
Service
Charges 51.60 52.28 19.37 45.70 (6.58) (12.6)% Fines &
Penalties 23.07 23.07 11.39 15.80 (7.27) (31.5)% Transient
Occupancy
Tax 22.48 22.48 13.82 19.74 (2.74) (12.2)%
Miscellaneou
s Revenue 21.22 21.22 4.83 5.79 (15.43) (72.7)% Interfund
Transfers 13.08 13.08 13.08 13.08 — — %
Parking Tax 11.26 11.26 8.48 12.74 1.48 13.1% Licenses &
Permits 1.39 1.39 0.82 1.13 (0.26) (18.6)%
Interest
Income 0.48 0.48 (1.14) 5.00 4.52 932.9%
Grants &
Subsidies — 0.03 0.76 2.59 2.56 9657.0%
Internal
Service
Funds — — — — — N / A
Subtotal 804.00 804.71 485.42 715.70 (89.01) (11.1) % Transfers
from Fund
Balance 30.12 30.12 — — (30.12) (100.0)%
Project
Offsets &
Carryforward

— 55.24 — (55.24) (100.0)%
Total Revenue 834.12 890.07 485.42 715.70 (174.37) (19.6) %

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 7 Finance and Management Committee
May 28, 2024

II. GENERAL PURPOSE FUND Q3 EXPENDITURES

GENERAL PURPOSE FUND EXPENDITURE HIGHLIGHTS

The GPF expenditures are forecasted to come in at $870.97 million, which is a decrease of $19.09 million, when compared to the Adjusted Budget of $890.07 million. The 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%. 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 $870.97 million, which is $19.09 million or 2.1% over the adjusted budget of $890.07 million.

Table 5: Summary of FY 2023-24 Q3 GPF Expenditures Budget to Actuals ($ in millions)

FY 2023-24
Adopted
Budget
FY 2023-24
Adjusted
Budget
FY 2023-24
Q3 YTD
Actuals
FY 2023-24
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
FY 2023-24
Expenditures 834.12 890.07 605.68 870.97 19.09 2.1 %

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 8 Finance and Management Committee
May 28, 2024

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 Adjusted Budget by $19.09 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
Q3 YTD
Actuals
FY 2023-24
Q3 Year-
End
Estimate
Year-End $
Over /
Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital
Improvement
Projects 0.55 1.96 0.29 1.96 — — %
City
Administrator 9.81 12.49 6.08 11.48 1.01 8.1 % City Attorney 21.75 23.40 16.30 22.75 0.65 2.8 % City Auditor 3.31 3.60 1.82 2.74 0.86 23.9 %
City Clerk 7.85 10.75 2.01 10.20 0.55 5.1 %
City Council 7.12 7.68 4.76 6.96 0.72 9.3 %
Department of
Transportation

20.54 23.01 12.19 20.71 2.29 10.0 %
Department of
Violence
Prevention 10.79 13.08 6.05 11.47 1.61 12.3 % Department of
Workplace and
Employment
Standard 4.31 5.67 3.53 5.14 0.53 9.3 %
Economic and
Workforce
Development
Department 11.19 17.07 7.33 16.77 0.30 1.8 %
Finance
Department 30.00 33.33 17.92 28.86 4.47 13.4 % Fire Department 199.87 212.29 135.80 193.39 18.90 8.9 % Housing and
Community
Development
Department 0.24 2.75 1.36 2.75 — — %
Human
Resources
Management
Department

9.50 9.79 6.46 9.64 0.15 1.6 %

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 9 Finance and Management Committee
May 28, 2024

Department
FY 2023-24
Adopted
Budget
FY 2023-24
Adjusted
Budget
FY 2023-24
Q3 YTD
Actuals
FY 2023-24
Q3 Year-
End
Estimate
Year-End $
Over /
Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Human Services
Department 44.76 42.82 36.41 42.61 0.21 0.5 % Information
Technology
Department

16.97 18.68 10.33 16.98 1.69 9.1 %
Mayor 4.60 4.66 3.01 4.02 0.64 13.8 %
Non
Departmental
and Port 55.60 60.80 39.86 55.62 5.18 8.5 %
Oakland Animal
Services 6.49 6.54 4.14 5.96 0.58 8.8 %
Oakland Parks
and Recreation
Department 18.30 19.23 13.19 17.42 1.81 9.4 % Oakland Public
Library
Department 12.31 12.32 8.95 11.59 0.73 5.9 %
Oakland Public
Works
Department

1.36 2.06 1.71 2.06 — — %
Police
Commission 7.96 8.94 3.88 7.08 1.86 20.8 %
Police
Department 325.39 333.34 260.15 359.37 (26.03) (7.8) % Public Ethics
Commission 2.25 2.35 1.23 2.02 0.32 13.7 %
Race and Equity
Department 1.29 1.48 0.90 1.39 0.09 5.9 %
Total 834.12 890.07 605.68 870.97 19.09 2.1 %

The following section details Q3 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 $1.01 million, or 8% of their budget due to vacancies. In the General Purpose Fund, CAO has a vacancy rate of 24%, with ten vacant positions.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 10 Finance and Management Committee
May 28, 2024

City Attorney (OCA)

The City Attorney is projected to underspend by $0.65 million, or 3% of their budget, due to vacancies. In the General Purpose Fund, OCA has a vacancy rate of 7%, with four vacant positions.

City Auditor

The City Auditor is projected underspend by $0.86 million, or 24% of their budget due to vacancies. In the General Purpose Fund, City Auditor has a vacancy rate of 25%, with three vacant positions.

City Clerk

The Office of the City Clerk is projected to underspend their budget by $0.55 million, or 5% of their budget, due to vacancies. In the General Purpose Fund, City Clerk has a vacancy rate of 17%, with two vacant positions.

City Council

The City Council is projected to underspend their budget by $0.72 million, or 9% 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 $2.29 million, or 10% of their budget, due to vacancies. In the General Purpose Fund, DOT has a vacancy rate of 10%, with nine vacant positions.

Department of Violence Prevention (DVP)

The Department of Violence Prevention is projected to underspend by $1.61 million or 12% of their budget, due to vacancies. In the General Purpose Fund, DVP has a vacancy rate of 32%, with ten vacant positions.

Department of Workplace & Employment Standards (DWES)

The Department of Workplace & Employment Standards is projected to underspend by $0.53 million, or 9% of their budget, due to vacancies. In the General Purpose Fund, DWES has a vacancy rate of 6%, with one vacant position.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 11 Finance and Management Committee
May 28, 2024

Economic & Workforce Development (EWD)

Economic & Workforce Development is projected to underspend by $0.30 million, or 2% of their budget, due to vacancies. In the General Purpose Fund, DWES has a vacancy rate of 27%, with six vacant positions.

Finance Department

The Finance Department is projected to underspend by $4.47 million, or 13% of their budget, due to vacancies. In the General Purpose Fund, Finance has a vacancy rate of 13%, with 15 vacant positions.

Fire Department

The Oakland Fire Department is projected to underspend by $18.90 million, or 9% of their budget. In the General Purpose Fund, Fire has a vacancy rate of 16%, with 94 vacant positions which results in savings in the amount of $29.07 million. However, these estimated savings from the vacancies are partially offset by $18.06 million in over-time overspending resulting in a net personnel year-end projected underspend in the amount of $11.01 million.

Housing & Community Development (HCD)

Housing & Community Development is projected to end the fiscal year at the adjusted budget of $2.75 million.

Human Resources Management (HRM)

Human Resources Management is projected to underspend by $0.15 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 underspend by $0.21 million, or 0.5% of their budget, due to vacancies. In the General Purpose Fund, HSD has a vacancy rate of 16%, with six vacant positions.

Information Technology (ITD)

The Information Technology Department is projected to underspend by $1.69 million, or 9% of their budget, due to vacancies. In the General Purpose Fund, ITD has a vacancy rate of 21%, with twelve vacant positions.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 12 Finance and Management Committee
May 28, 2024

Mayor’s Office

The Mayor’s Office is projected to underspend by $0.64 million, or 14% of their budget, due to vacancies. In the General Purpose Fund, Mayor's Office has a vacancy rate of 27%, with three vacant positions.

Non-Departmental

Non-Departmental is projected to underspend by $5.18 million, or 9% of the budget.

Oakland Animal Services

The Department of Animal Services is projected to underspend by $0.58 million, or 9% 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 $1.81 million, or 9% of their budget, due to vacancies. In the General Purpose Fund, OPRYD has a vacancy rate of 26%, with 27 vacant positions.

Oakland Public Library (OPL)

Oakland Public Library is projected to underspend by $0.73 million, or 6% of its budget, due to vacancies. In the General Purpose Fund, OPL has a vacancy rate of 10%, with four vacant positions.

Oakland Public Works (OPW)

Oakland Public Works is projected to end the fiscal year at an adjusted budget of $2.06 million.

Police Commission

The Police Commission is projected to have savings of $1.86 million, or 21% of their budget, due to vacancies. In the General Purpose Fund, the Police Commission has a vacancy rate of 20%, with five vacant positions.

Police Department

The Police Department is projected to overspend by $26.03 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 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 13 Finance and Management Committee
May 28, 2024

Public Ethics Commission (PEC)

The Public Ethics Commission is projected to have savings of $0.32 million, or 14% of their budget, due to vacancies. In the General Purpose Fund, PEC has a vacancy rate of 25%, with two vacant positions.

Race & Equity

The Department of Race & Equity is projected to have savings of $0.09 million, which is 6% 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, the Oakland Police Department currently shows a projected year-end personnel budget to be overspent by $25.75 million in the General Purpose Fund. Details are provided in Table 7 below.

Table 7: FY 2023-24 Public Safety GPF Personnel Expenditures ($ in millions) Department
FY 2023-
24 Adjusted
Budget
FY 2023-
24 Q3
YTD
Actuals
FY 2023-
24 Q3
Year-End
Estimate
Year-End
$ Over /
Under
Adjusted
Budget
Year-End
% Over /
Under
Adjusted
Budget
Police Department**
Overtime (OT) 24.08 41.30 55.24 (31.16) (129.4)%
Reimbursable OT (Special Events, etc.) (5.07) (5.07) 5.07 All Other Personnel (non-OT) 262.44 198.26 262.10 0.34 0.1% OPD Total Personnel 286.52 234.49 312.27 (25.75) (9.0) % Fire Department
Overtime (OT) 10.89 21.71 28.95 (18.06) (165.8)%
All Other Personnel (non-OT) 165.92 103.13 136.85 29.07 17.5% OFD Total Personnel 176.81 124.84 165.80 11.01 6.2 %

As shown on Table 7 above, OPD was budgeted $24.08 million for overtime and is projected to exceed this budgeted amount by $31.16 million for a projected year-end total of $55.24 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 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 14 Finance and Management Committee
May 28, 2024

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 10.35 (7.76)
Area 1 2.13 5.99 (3.85)
Area 5 2.15 3.82 (1.67)
Area 3 2.08 3.73 (1.65)
Homicide 0.74 3.67 (2.93)

The Oakland Police Department (OPD) was allocated $24,075,587 in overtime for Fiscal Year (FY) 2023-24. Since July 1, 2023, OPD has consistently spent an average of $4,603,148 per month in overtime.

Based on Quarter 3 (Q3) payroll data, the Department is projected to exceed its overtime budget by approximately $31,162,194. However, the Department anticipates receiving $5,073,292 in reimbursable overtime funds, which will offset the projected overage to $25,918,002.

The Department’s primary objectives are to reduce violent crime and improve public safety.

Achieving this objective necessitates overtime by sworn personnel and increased spending in the Homicide Section, Special Operations Division (SOD), and Areas 1, 3, and 5.

Homicide Section: The Homicide Section plays a crucial role within OPD, serving as its primary investigative unit tasked with a range of responsibilities, including investigating homicides, unexplained deaths, cold cases, in-custody deaths, officer-involved shootings, and other Level 1 uses of force incidents. These investigations often involve complex and sensitive matters that demand meticulous attention and urgency.

Overtime in the Homicide Section is often essential due to the unpredictable nature of these investigations, which often require round-the-clock attention. Callout activations, such as homicides and Level 1 investigations, can occur at any moment, requiring investigators and assisting units to work beyond regular hours to gather evidence, interview witnesses, and follow leads for a thorough investigation. Additionally, collaboration with specialized units, outside agencies, forensic specialists, the Alameda County District Attorney’s Office, and other investigative partners often demands scheduling flexibility, further contributing to the need for overtime.

During Q3 (January to March 2024), the Homicide Section was exceptionally busy, responding to 20 homicides, investigating 223 unexplained deaths or suicides, and conducting 20 cold case reviews, resulting in four closures. Additionally, the Section investigated three Level 1 incidents, including an officer killed in the line of duty and an officer-involved shooting investigation, both requiring intensive, around-the-clock efforts to meet stringent time deadlines as per established protocols and procedures.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 15 Finance and Management Committee
May 28, 2024

Special Operations Division: The Special Operations Division (SOD) plays a critical role in our law enforcement efforts, currently staffed with 11 sergeants, three lieutenants, and a Captain.

Significant administrative responsibilities, including preliminary investigations, division-level inquiries, use of force investigations, and risk management related tasks contribute to increased overtime expenditures.

SOD is responsible for supporting Area commanders during potential demonstrations, civil unrest, and unforeseen large-scale events. In Q3, SOD was actively involved in managing various unforeseen events, particularly due to the Palestinian and Israeli conflict.

The Air Unit within SOD is essential to the Department’s crime reduction strategies and operates nearly seven days a week. Despite having six members, one member is currently on long-term modified duty, unable to pilot. The limited number of trained pilots mean that qualified personnel must operate on overtime to meet the Department's demands, with their overtime expenses being covered by the "Restore" fund shared with Traffic. Additionally, the Crime Reduction Teams, now part of SOD, are instrumental in apprehending known violent felons.

Given the rise in criminal activities like robberies, car jackings, shootings, and commercial burglaries, these teams engage in targeted violence suppression operations based on Department intelligence, often requiring overtime expenditures for arrests, evidence processing, and reporting.

Furthermore, the Unhoused Unit has been actively involved in numerous large-scale encampment closures due to safety concerns for City employees. Overtime is frequently requested by Oakland Public Works (OPW) to provide sufficient police presence to safely complete these tasks, especially with the implementation of new City ordinances and deployment policies, along with California Assembly Bill (AB) 481.

While many overtime expenditures within SOD are unavoidable, the Division remains committed to diligently balancing labor costs with operational needs to minimize expenditures while achieving the Chief’s strategic goals.

Area 1: In Q3, Area 1 experienced a 33% decrease in shootings, dropping from 12 incidents in 2023 to eight in 2024, with a total of five homicides in 2024. To address this trend, violence suppression officers were deployed on overtime to hotspots such as Acorn, Ghost Town, and Campbell Village, focusing on proactive car stops and visible deterrence.

The Area 1 Violence Suppression Detail was discontinued on March 23, 2024, with anticipated savings expected to be reflected in the next quarter. Additionally, the overtime Chinatown Detail was temporarily understaffed for approximately three weeks from the end of March to April 2024 but was subsequently reinstated with overtime officers. Despite these efforts, this quarter has seen an increase in violent crime other than shootings, traffic congestion, illegal vendors, and nightclubs operating beyond their permits.

Previously, a strategy involving barricades in the Broadway and Telegraph areas successfully led to a reduction in reported violent crimes. However, a decision was made in October 2023, to discontinue the use of barricades, resulting in a resurgence of crime, traffic congestion, and illegal vendors in the area. Moreover, there has been a rise in Sideshow activity around 1900 Broadway, and incidents of violence at nightclubs to include Mr. Fabs Night Club (1770

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 16 Finance and Management Committee
May 28, 2024

Broadway), New Karibbean City (1408 Webster St), and Lux Pub and Club (1100 Franklin St).

Until a more permanent strategy is developed for Friday, Saturday, and Sunday nights, overtime officers will continue to maintain a presence in the downtown area.

Area 3: Overtime in Area 3 is primarily driven by various initiatives and deployments, including the deployment of Violence Suppression officers working overtime in the San Antonio/Saigon Area and operations targeting Human Trafficking along International Boulevard.

In Q3, Area 3 experienced an 80% increase in robberies and "blipping" style car burglaries, as indicated in the March 10th Weekly Crime Report. These incidents were widespread across the city. Analysis of crime statistics revealed that the "blipping" crew initiated their activities early in the morning. Consequently, a burglary operation was deployed concurrently, resulting in the arrest of two individuals. This intelligence was then leveraged to further investigations and suppressed larger organized criminal organization. As of April 28th, the robbery rate in Area 3 has decreased to 28%, as reported in the April 28th Weekly Crime Report.

The Violence Suppression unit, coded as the San Antonio Special Assignment, has maintained staffing levels with one sergeant and four to five officers, operating seven days a week. The majority of violence in Area 3 is associated with Human Trafficking activities. The stretch from the 500 to 2300 blocks of International Boulevard has earned a longstanding reputation as Oakland's "Track" or "Blade" for street prostitution, often leading to incidents of violence, including shootings, murders, and robberies. To address this issue, the Vice Unit conducts two to four operations monthly, focusing on rescuing juveniles and apprehending both buyers and exploiters. Five of the FBI Human Trafficking Task Force Officers, who work for OPD, are reimbursed by the FBI.

Area 5: In Q3, Area 5 faced significant challenges, leading the city in homicides (7) and recording 95 aggravated assaults. To counteract this trend, Area 5 consistently deployed violence suppression teams, primarily funded by the Area itself, to address rising crime rates.

These teams also provided valuable assistance to the Bureau of Field Operations 2. The effectiveness of the violence suppression units is evident in the reduction of assaults with a firearm by 4% year-to-date, and two homicides, a 71% reduction.

Area 5 has implemented five violence suppression overtime assignments, with each unit assigned to one of the five sectors. These teams are instructed to remain in their designated sector, maintaining a high visibility presence and conducting enforcement and security checks as required. The selection of these sectors was based on statistical data analysis, 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. While Area 5 utilizes more violence suppression units than Area 4 or Area 6, the presence of these units enables Crime Reduction Team (CRT) East to allocate minimal time to Area 5, focusing instead on Area 4 and Area 6.

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 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 17 Finance and Management Committee
May 28, 2024

Table 9: Year-Over-Year Comparison of Public Safety GPF Personnel Expenditures ($ in millions)
Police Department
Overtime (OT) FY 2019-20 FY 2020-21 FY 2021-22 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 55.24
(Over)/Under (18.51) (13.79) (0.99) (20.26) (31.16)
All Other Personnel (non-OT) FY 2019-20 FY 2020-21 FY 2021-22 FY2022-23 FY2023-24 Adjusted Budget 232.95 239.29 245.01 252.38 262.44
Actuals (FY24 Proj) 242.01 244.23 234.29 182.02 262.10 (Over)/Under (9.06) (4.94) 10.71 70.36 5.41
Total Personnel FY 2019-20 FY 2020-21 FY 2021-22 FY2022-23 FY2023-24 Adjusted Budget 249.51 254.68 278.37 283.28 286.52
Actuals (FY24 Proj) 277.08 273.41 264.27 233.18 312.27 (Over)/Under (27.57) (18.73) 14.09 51.57 (25.75)
Fire Department
Overtime (OT) FY 2019-20 FY 2020-21 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 28.95
(Over)/Under (18.26) (20.00) (10.00) (18.77) (18.06)
All Other Personnel (non-OT) FY 2019-20 FY 2020-21 FY 2021-22 FY2022-23 FY2023-24 Adjusted Budget 142.70 144.73 132.44 143.28 165.92
Actuals (FY24 Proj) 123.59 126.99 119.50 129.85 136.85 (Over)/Under 19.11 17.74 12.94 13.44 29.07
Total Personnel FY 2019-20 FY 2020-21 FY 2021-22 FY2022-23 FY2023-24 Adjusted Budget 145.07 148.95 152.27 154.47 176.81
Actuals (FY24 Proj) 144.22 151.21 149.33 159.80 165.80 (Over)/Under 0.85 (2.26) 2.94 (5.33) 11.01

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 18
Finance and Management Committee
May 28, 2024

III. GENERAL PURPOSE FUND - FUND BALANCE

The City's GPF Fund Balance, net obligations, is projected to end FY 2023-24 at negative $62.09 million. Obligations are reserves required by City Ordinances and the City Charter (mandated emergency reserves). Table 7 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 $64.4962.09ion to negative $95.93 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 Q3
Projected FYE

Estimated FY 2023-24 Beginning Audited Fund Balance 93.18

FY2023-24 Performance
Revenue 715.70
Expenditures 870.97
FY 2023-24 Operating Surplus / Deficit (155.27)

Unaudited Ending Fund Balance (62.09)

Obligations Against Ending Fund Balance
Use of Fund Balance in FY 2024-25 (33.84)

Estimated FY 2023-24 Ending Available Fund Balance (95.93)

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 19
Finance and Management Committee
May 28, 2024

IV. RESERVES

On December 9, 2014, Council Ordinance No. 13279 amended the City’s Consolidated Fiscal Policies to include designated reserves for both the Vital Services Stabilization Fund and for the acceleration of long-term obligations, in addition to the mandated 7.5% GPF Emergency Reserve (refer to the City of Oakland Consolidated Fiscal Policy, Section I, Part C: Use of Excess Real Estate Transfer Tax). It is important to note that while these balances are designated each fiscal year, reserve appropriations adopted in subsequent fiscal years may include any prior year true-ups.

Emergency Reserve

The City’s GPF Emergency Reserve was calculated by multiplying 7.5% by the FY2022-23 Adopted Budget amount of $872.07 million and carried forward on to FY 2023- 24. The reserve is approximate to one month of FY 2023-24 Adopted Budget in the GPF. This reserve will be held in Fund 1011 as directed by Council in Resolution 88717 C.M.S. The reserve requirement, pursuant to the CFP , has been met.

However, the emergency reserve policy level of 7.5% is inadequate to sustain city services in an economic downturn, as evidenced by the events of the last 2 years. The recommended policy level is 16.7% or two months of operating expenditures. This recommended level is supported by best practices outlined by the Government Finance Officer's Association (GFOA).

Vital Services Stabilization Fund

The Vital Services Stabilization Fund (VSSF) was established in 2014 by the 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 the 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 Q3 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 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 20
Finance and Management Committee
May 28, 2024

V. SELECTED Q3 NON-GPF

This section of the Q3 report contains additional analysis on selected non-GPF funds. For additional fund descriptions, please visit
https://stories.opengov.com/oaklandca/published/_dhbklVRjPB.Thi s Q3 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 the 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 the City Council on the use of funding/programs that will reduce the health consequences of consuming sugar-sweetened beverages (final allocations are still determined by the City Council).

2. Publishing an annual report regarding the implementation of the Board's recommendations and the impact on the use of these funds.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 21
Finance and Management Committee
May 28, 2024

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 balance, the actual Sales Tax for Measure HH projects to come in at $6.88 million which is at Budget. Through the first 9 payments of the year, we have collected 74.4% in SSBT compared to the Adjusted Budget.

Table 12: FY 2023-24 Measure HH (SSBT) Fund Revenues ($ in millions)

Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q3
YTD Actuals
FY 2023-24 Q3
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 5.12 6.88 — — %
Transfers from
Fund Balance 0.29 — — (0.29) (100.0) %
Interest Income — 0.28 0.28 0.28 — %
Miscellaneous
Revenue — 0.08 0.08 0.08 — %
Total Revenue 16.27 5.23 7.25 (9.02) (55.5) %
*The adjusted budget includes Council Budget Amendments and Carryforwards

Expenditures - FY 2023-24 year-end expenditures are projected to come in at $14.34 million, which is a savings of $1.93 million, compared to the Adjusted Budget of 16.27 million. The savings are primarily due to underspending in personnel costs.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 22
Finance and Management Committee
May 28, 2024

Table 13: FY 2023-24 Measure HH (SSBT) Fund Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q3 YTD
Actuals
FY 2023-24
Q3 Year-End
Estimate
Year-End $
(Over) /
Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 2.09 0.15 2.09 — — %
City Administrator 6.06 0.24 5.70 0.36 6.0 %
Economic and Workforce
Development Department 0.71 0.66 0.70 0.01 1.8 % Finance Department 0.37 0.17 0.37 — —

Human Services
Department 2.36 0.59 2.29 0.07 3.1 %
Non Departmental and
Port 0.50 — 0.50 — — %
Oakland Parks and
Recreation Department 4.05 1.85 2.56 1.49 36.8 % Oakland Public Library
Department 0.11 0.02 0.11 — — %
Oakland Public Works
Department 0.03 — 0.03 — — %
Total 16.27 3.68 14.34 1.93 11.9 %
*The adjusted budget includes Council Budget Amendments and Carryforwards

Fund Balance - FY 2023-24 revenue is projected to end the year at $7.25 million. Expenditures are projected to end the year at $14.34 million. As a result, the estimated available fund balance in Measure HH (SSBT) Fund (1030) is projected to decrease from $10.76 million to $3.67 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 Q3 Year-
End Estimate
Beginning Fund Balance - Audited $ 10.76
Revenue 7.25
Expenditures 14.34
Estimated Current Year Surplus/(Shortfall) (7.09)
Estimated Ending Fund Balance 3.67

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 23
Finance and Management Committee
May 28, 2024

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 the 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 $39.84 million come in $39.34 million or 49.7% under the Adjusted Budget of $79.18 million, net of the use of 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.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 24
Finance and Management Committee
May 28, 2024

Table 15: FY 2023-24 Measure BB & F Fund Revenues ($ in millions) Revenue Category
FY 2023-24
Adjusted
Budget
FY 2023-24
Q3 YTD
Actuals
FY 2023-24
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Sales Tax 36.96 19.86 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 — 1.27 1.27 1.27 — %
Service Charges — 0.09 0.09 0.09 — %
Miscellaneous Revenue — 1.57 1.57 1.57 — %
Total Revenue 79.18 22.79 39.84 (39.34) (49.7) %
*The adjusted budget includes Council Budget Amendments and Carryforwards

Expenditures - FY 2023-24 year-end expenditures are projected to come in at $70.95 million, which is a savings of $8.23 million, compared to the Adjusted Budget of $79.18 million. The savings is primarily due to underspending in personnel costs.

Table 16: FY 2023-24 Measure BB/F Funds Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q3 YTD
Actuals
FY 2023-24
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 34.49 2.01 34.58 (0.09) (0.3)%
City Administrator 0.39 0.15 0.20 0.19 48.2 %
City Attorney 0.05 0.04 0.05 (0.01) (10.7)%
Department of
Transportation 36.09 15.18 28.20 7.88 21.8%
Finance Department 0.01 — 0.01 — — %
Human Resources
Management
Department 0.24 0.05 0.07 0.16 68.6%
Human Services
Department 5.31 1.15 5.11 0.19 3.7%
Mayor 0.23 0.17 0.23 — 1.0 %
Non Departmental and
Port 0.52 — 0.52 — — %
Oakland Public Works
Department 1.87 1.10 1.97 (0.10) (5.3) %
Total Expenditures 79.18 19.87 70.95 8.23 10.4 % *The adjusted budget includes Council Budget Amendments and Carryforwards

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 25
Finance and Management Committee
May 28, 2024

Fund Balance - FY 2023-24 revenue is projected to end the year at $39.84 million. Expenditures are projected to end the year at $70.95 million. As a result, the estimated available fund balance in the Measure BB/F Funds is projected to decrease from $54.39 million to $23.28 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 Q3 Year-
End Estimate
Beginning Fund Balance - Audited $ 54.39
Revenue 39.84
Expenditures 70.95
Estimated Current Year Surplus/(Shortfall) (31.11)
Estimated Ending Fund Balance 23.28

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 $25.17 million, which is $6.76 million or

21.2% 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 the Road Maintenance and Rehabilitation Account (RMRA). Estimates are as of January 2024.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 26
Finance and Management Committee
May 28, 2024

Table 18: FY 2023-24 State Transportation Gas Tax Fund Revenues ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q3
YTD Actuals
FY 2023-24 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Gas Tax 19.60 12.23 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 — 2.84 2.84 2.84 173731.7 %
Interest Income — 0.30 0.30 0.30 — %
Total Revenue 31.94 15.37 25.17 (6.76) (21.2) % *The adjusted budget includes Council Budget Amendments and Carryforwards

Expenditures - FY 2023-24 year-end expenditures are projected to come in at $27.63 million, which is a savings of $4.31 million, compared to the Adjusted Budget of $31.94 million. The savings is primarily due to underspending in personnel costs.

Table 17: FY 2023-24 State Transportation Funds Gas Tax Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q3 YTD
Actuals
FY 2023-24
Q3 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 0.07 0.15 0.04 20.1 %
Department of
Transportation 25.95 13.67 21.90 4.05 15.6 %
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 0.05 0.07 0.16 68.6 %
Oakland Public Works
Department (0.01) 0.02 0.02 (0.03) 419.4 %
Total Expenditures 31.94 13.91 27.63 4.31 13.5 % *The adjusted budget includes Council Budget Amendments and Carryforwards

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 27
Finance and Management Committee
May 28, 2024

Fund Balance - FY 2023-24 revenue is projected to end the year at $25.17 million. Expenditures are projected to end the year at $27.63 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 $9.11 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 Q3 Year- End Estimate
Beginning Fund Balance - Audited $ 11.56
Revenue 25.17
Expenditures 27.63
Estimated Current Year Surplus/(Shortfall) (2.45)
Estimated Ending Fund Balance 9.11

Measure Q - OPR Preservation, Litter Reduction, Homelessness Support Act Fund (2244)

Measure Q, the 2020 Oakland Parks and Recreation, Preservation, Litter Reduction, and Homelessness Support Act Fund (2244), is a City of Oakland ballot initiative approved by voters on March 3, 2020, that established an annual special parcel tax for 20 years. This measure, which passed by more than a two-thirds majority, imposes a special parcel tax for the purpose of raising revenue to provide services for parks, landscape maintenance, and recreational services; to address homelessness and enable unsheltered and unhoused residents to access temporary shelters, transitional, supportive, and permanent housing; and to address water quality and litter reduction, including the maintenance and cleaning of stormwater trash collection systems.

Revenues - Year-end revenues project to come in at $31.50 million, which is $16.10 million or

33.8% 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 Q3, the $19.48 million collected from Measure Q represents 63% of the Adjusted Budget.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 28
Finance and Management Committee
May 28, 2024

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 Q3
YTD Actuals
FY 2023-24 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Local Tax 30.78 19.48 30.78 — — %
Project Offsets
& Carryforwards 14.28 — — (14.28) (100.0) %
Transfers from
Fund Balance 2.53 — — (2.53) (100.0) %
Interest Income — 0.52 0.52 0.52 — %
Miscellaneous
Revenue — 0.20 0.20 0.20 — %
Total Revenue 47.60 20.20 31.50 (16.10) (33.8) % *The adjusted budget includes Council Budget Amendments and Carryforwards

Expenditures - FY 2023-24 year-end expenditures are projected to come in at $41.09 million, which is a savings of $6.52 million, when compared to the Adjusted Budget of $47.60 million.

The savings are primarily due to underspending in personnel costs.

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
Q3 YTD
Actuals
FY 2023-24
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
Capital Improvement
Projects 2.18 0.54 2.18 — — %
City Administrator 4.35 0.64 4.38 (0.03) (0.7) % 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 4.55 9.87 1.02 9.4 %
Non Departmental and
Port 0.92 — 0.92 — — %
Oakland Parks and
Recreation Department 0.13 — 0.13 — — %
Oakland Public Works
Department 28.89 12.55 23.51 5.38 18.6 %
Total Expenditures 47.60 18.27 41.09 6.52 13.7 % *The adjusted budget includes Council Budget Amendments and Carryforwards

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 29
Finance and Management Committee
May 28, 2024

Fund Balance - FY 2023-24 revenue is projected to end the year at $31.50 million. Expenditures are projected to end the year at $41.09 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 $11.55 million in FY 2023-24.

Table 21: FY 2023-24 Measure Q Year-End Fund Balance ($ in millions) MEASURE Q (2244) FY 2023-24 Q3 Year-
End Estimate
Beginning Fund Balance - Audited 21.13
Revenue 31.50
Expenditures 41.09
Estimated Current Year Surplus/(Shortfall) (9.58)
Estimated Ending Fund Balance 11.55

Vacant Property Tax Fund (2270)

Measure W - Vacant Property Tax Fund (2270) is a City of Oakland ballot initiative approved by voters on November 6, 2018 that established an annual special tax on vacant property for 20 years to raise revenue necessary to support and fund homelessness programs and services, affordable housing, code enforcement, and clean-up of blighted properties and illegal dumping.

A property is considered vacant if it is not in-use for at least 50 days in a calendar year. "Use" is defined as the performance of a function or operation. The per-parcel tax rates are $6,000 for vacant properties or lots and $3,000 for vacant condominium, duplex, townhouse and commercial ground floor commercial spaces. The tax is included in the secured property tax bill administered by the Alameda County.

Revenues - Year-end revenues project to come in at $5.36 million, which is $0.76 million or

12.4% 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 $5.35 million which is at budget.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 30
Finance and Management Committee
May 28, 2024

Table 22: FY 2023-24 Vacant Property Tax Fund Revenues ($ in millions) Revenue Category
FY 2023-24
Adjusted
Budget
FY 2023-24
Q3 YTD
Actuals
FY 2023-24
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Local Tax 5.35 3.72 5.35 — — %
Project Offsets &
Carryforwards 0.58 — — (0.58) (100.0) %
Transfers from Fund
Balance 0.19 — — (0.19) (100.0) %
Miscellaneous
Revenue — 0.01 0.01 0.01 — %
Total Revenue 6.12 3.74 5.36 (0.76) (12.4) %
*The adjusted budget includes Council Budget Amendments and Carryforwards

Expenditures - FY 2023-24 year-end expenditures are projected to come in at $5.99 million, which is savings of $0.13 million, when compared to the Adjusted Budget of $6.12 million.

Table 23: FY 2023-24 Vacant Property Tax Fund Expenditures ($ in millions) Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q3 YTD
Actuals
FY 2023-24
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
City Administrator 0.23 0.14 0.18 0.05 20.0 %
Finance Department 0.81 0.48 0.57 0.24 30.0 %
Human Services
Department 0.17 — 0.17 — — %
Oakland Public Works
Department 4.90 3.24 5.06 (0.16) (3.3) %
Total Expenditures 6.12 3.86 5.99 0.13 2.1 %
*The adjusted budget includes Council Budget Amendments and Carryforwards

Fund Balance - FY 2023-24 revenue is projected to end the year at $5.36 million. Expenditures are projected to end the year at $5.99 million. As a result, the estimated available fund balance in the Vacant Property Tax Fund (2270) is projected to decrease from $1.01 million to $0.38 million in FY 2023-24.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 31
Finance and Management Committee
May 28, 2024

Table 24: FY 2023-24 Vacant Property Tax Fund Year-End Available Fund Balance ($ in millions)
Vacant Property Tax Fund (2270) FY 2023-24 Q3 Year-
End Estimate
Beginning Fund Balance - Audited $ 1.01
Revenue 5.36
Expenditures 5.99
Estimated Current Year Surplus/(Shortfall) (0.63)
Estimated Ending Fund Balance 0.38

Landscaping and Lighting Assessment District (LLAD) Fund (2310)

The Landscaping and Lighting Assessment District (LLAD) Fund (2310) revenue is generated through a direct benefit assessment, or special assessment and is restricted by statute to be used for street lighting, landscaping, and public parks and recreation facility maintenance, and multi-use fields.

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 the use of the 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 revenues and expenditures, the City has reallocated costs 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, like 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.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 32
Finance and Management Committee
May 28, 2024

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 Q3
YTD Actuals
FY 2023-24 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Local Tax 19.08 12.39 19.08 — — %
Project Offsets
& Carryforwards 0.26 — — (0.26) (100.0) %
Service
Charges 0.21 — 0.21 — — %
Licenses &
Permits 0.08 0.09 0.08 — — %
Interest Income — (0.07) — — %
Grants &
Subsidies — 0.10 0.10 0.10 — %
Miscellaneous
Revenue — (0.01) (0.01) (0.01) — %
Total Revenue 19.62 12.51 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 $20.06 million, which is an overage of $0.44 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
Q3 YTD
Actuals
FY 2023-24
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Department of
Transportation 2.60 2.45 3.39 (0.79) (30.3) %
Finance Department 0.03 0.01 0.03 — — %
Non Departmental and
Port 2.94 1.48 2.94 — — %
Oakland Parks and
Recreation Department 5.00 5.00 5.00 — — %
Oakland Public Works
Department 9.04 6.16 8.69 0.35 3.9 %
Total Expenditures 19.62 15.09 20.06 (0.44) (2.2) % *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 projected to end the year at $20.06 million. As a result, the estimated available fund balance in the Landscaping and Lighting Assessment District (2310) is projected to decrease to negative $0.61 million in FY 2023-24.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 33
Finance and Management Committee
May 28, 2024

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 Q3 Year- End Estimate
Beginning Fund Balance - Audited $ —
Revenue 19.45
Expenditures 20.06
Estimated Current Year Surplus/(Shortfall) (0.60)
Estimated Ending Fund Balance (0.61)

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 $1.07 million, which is $0.38 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. Through Q3 only $0.40 million or 27.7% of the Adjusted Budget had been collected but it is typical to book some of the revenues for this fund at year end. Over the last three Fiscal Years, on average, the final month of the Fiscal Year has averaged approximately $0.33 million in service charges revenues booked.

Table 28: FY 2023-24 False Alarm Reduction Program Fund Revenue ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q3
YTD Actuals
FY 2023-24 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Service
Charges 1.27 0.52 1.08 (0.19) (15.1) %
Fines &
Penalties 0.11 — 0.11 — — %
Project Offsets
& Carryforwards 0.06 — — (0.06) (100.0) %
Interest Income — (0.09) (0.09) (0.09) — %
Miscellaneous
Revenue — (0.03) (0.03) (0.03) — %
Total Revenue 1.44 0.40 1.07 (0.38) (26.0) %
*The adjusted budget includes Council Budget Amendments and Carryforwards

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 34
Finance and Management Committee
May 28, 2024

Expenditures - FY 2023-24 year-end expenditures are projected to come in at $1.22 million, which is a savings of $0.22 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
Q3 YTD
Actuals
FY 2023-24
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Information Technology
Department 0.11 0.10 0.13 (0.02) (17.0) %
Police Department 1.33 0.65 1.09 0.24 18.2 %
Total Expenditures 1.44 0.75 1.22 0.22 15.5 %
*The adjusted budget includes Council Budget Amendments and Carryforwards

Fund Balance - FY 2023-24 revenue is projected to end the year at $1.07 million. Expenditures projected to end the year at $1.22 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 $3.81 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 Q3 Year-
End Estimate
Beginning Fund Balance - Audited (3.66)
Revenue 1.07
Expenditures 1.22
Estimated Current Year Surplus/(Shortfall) (0.15)
Estimated Ending Fund Balance (3.81)

Development Service Fund (2415)

The Development Service Fund (2415) was created on June 20, 2006 by Ordinance No. 12741 C.M.S. This fund collects revenues from licenses, fees, and permits from housing and commercial planning and construction-related activities to support planning and zoning services, construction inspections and permit approvals, building code enforcement, plan checks and engineering services. This fund is required to keep a minimum 7.5% reserve of annual budgeted revenues for its balance, which would be $5.48 million in FY2023-24.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 35
Finance and Management Committee
May 28, 2024

Table 31: Historical Revenue for Fund 2415
Fiscal Year Budgeted Revenue Projected Year End Revenue FY 2023-24 73.02 52.98
FY 2022-23 52.24 65.32
FY 2021-22 63.98 73.94
FY 2020-21 47.33 50.25
FY 2019-20 61.58 60.71
FY 2018-19 49.92 63.20
FY 2017-18 45.14 90.13
FY 2016-17 38.03 77.15

Revenues - Year-end revenues project to come in at $52.98 million, which is $81.77 million or

60.7% 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 in Q4, Licenses, Permits, and Service Charges will match the trends observed through Q3.

Table 32: FY 2023-24 Development Service Fund Revenues ($ in millions) Revenue Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q3
YTD Actuals
FY 2023-24 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Licenses & Permits 41.91 16.89 22.52 (19.39) (46.2) % Transfers from Fund
Balance 31.27 — — (31.27) (100.0) %
Project Offsets &
Carryforwards 30.46 — — (30.46) (100.0) %
Service Charges 30.11 18.02 24.03 (6.08) (20.2) % Fines & Penalties 0.62 0.65 0.65 0.03 4.4 %
Miscellaneous
Revenue 0.38 2.07 2.07 1.70 447.6 %
Interest Income — 3.23 3.23 3.23 — %
Grants & Subsidies — 0.48 0.48 0.48 — %
Total Revenue 134.75 41.34 52.98 (81.77) (60.7) % *The adjusted budget includes Council Budget Amendments and Carryforwards

Expenditures - FY 2023-24 year-end expenditures project to come in at $109.92 million, which is a savings of $24.83 million, compared to the adjusted budget of $134.75 million. The projected savings are mainly attributed to vacancies.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 36
Finance and Management Committee
May 28, 2024

Table 33: FY 2023-24 Development Service Fund Expenditures ($ in millions) Agency /
Department
FY 2023-24
Adjusted
Budget
FY 2023-24 Q3
YTD Actuals
FY 2023-24 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
City Administrator 3.48 2.31 3.33 0.15 4.3 %
City Attorney 3.59 2.78 3.74 (0.14) (4.0) %
City Auditor 0.05 0.04 0.05 — (9.5) %
Department of
Transportation 20.09 7.26 15.73 4.36 21.7 %
Economic and
Workforce
Development
Department 2.62 1.73 2.38 0.25 9.4 %
Finance Department 1.81 0.97 1.78 0.03 1.5 %
Fire Department 14.45 4.61 8.31 6.14 42.5 %
Human Resources
Management
Department 2.03 1.01 1.35 0.68 33.4 %
Information
Technology
Department 5.40 2.26 3.85 1.55 28.6 %
Mayor 0.35 0.18 0.24 0.12 32.9 %
Non Departmental
and Port 2.68 1.37 2.68 — — %
Oakland Public
Works Department 3.22 1.06 3.03 0.18 5.7 %
Planning and
Building Department 74.96 33.43 63.44 11.52 15.4 % Total Expenditures 134.75 59.03 109.92 24.83 18.4 % *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 $52.98 million. Expenditures project to end the year at $109.92 million. As a result, the estimated available fund balance in the Development Service Fund (2415) projects to decrease from $122.38 million to $65.44 million in FY 2023-24.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 37
Finance and Management Committee
May 28, 2024

Table 34: FY 2022-23 Development Service Fund Year-End Available Fund Balance ($ in millions)
Development Service Fund (2415) FY 2023-24 Q3 Year-End
Estimate
Beginning Fund Balance - Audited $ 122.38
Revenue 52.98
Expenditures 109.92
Estimated Current Year Surplus/(Shortfall) (56.94)
Estimated Ending Fund Balance 66.44

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 $5.45 million, which is $1.23 million or 18.4% under the Adjusted Budget of $6.68 million. Declining volume in travel, which correlates to lower occupancy rates, has improved from the Pandemic era lows but is still not at the pre-pandemic levels.

Table 35: FY 2023-24 Transient Occupancy Tax (Measure C) Fund Revenues ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q3
YTD Actuals
FY 2023-24 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Transient
Occupancy Tax 6.13 3.48 5.38 (0.75) (12.2) %
Project Offsets

0.55 — — (0.55) (100.0) %
Interest Income — 0.05 0.05 0.05 — %
Miscellaneous
Revenue — 0.02 0.02 0.02 — %
Total Revenue 6.68 3.54 5.45 (1.23) (18.4) %
*The adjusted budget includes Council Budget Amendments and Carryforwards

Expenditures - FY 2023-24 year-end expenditures are projected to come in at $6.47 million, which is a savings of $0.21 million, 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 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 38
Finance and Management Committee
May 28, 2024

Table 36: FY 2023-24 Transient Occupancy Tax (Measure C) Fund Expenditures ($ in millions)
Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q3 YTD
Actuals
FY 2023-24
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Economic and
Workforce
Development
Department 1.31 0.10 1.10 0.21 16.1 %
Non Departmental and
Port 5.37 3.16 5.37 — — %
Total Expenditures 6.68 3.27 6.47 0.21 3.2 %
*The adjusted budget includes Council Budget Amendments and Carryforwards

Fund Balance - FY 2023-24 revenues are projected to end the year at $5.45 million.

Expenditures are projected to end the year at $6.47 million. As a result, the estimated available fund balance in the Measure C Fund (2419) is projected to decrease from $1.32 million to $0.30 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 Q3 Year- End Estimate
Beginning Fund Balance - Audited $ 1.32
Revenue 5.45
Expenditures 6.47
Estimated Current Year Surplus/(Shortfall) (1.02)
Estimated Ending Fund Balance 0.30

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 $50.20 million, which is $3.34 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 is built into the budget. Actual revenues also include a one-time insurance claim collected during FY 2023-24 as miscellaneous revenue.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 39
Finance and Management Committee
May 28, 2024

Table 38: FY 2023-24 City Facilities Fund Revenues ($ in millions) Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q3
YTD Actuals
FY 2023-24 Q3
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 0.59 0.55 — — %
Interest Income — 0.14 0.14 0.14 — %
Miscellaneous
Revenue — 3.26 3.26 3.26 — %
Total Revenue 53.54 50.22 50.20 (3.34) (6.2) %
*The adjusted budget includes Council Budget Amendments and Carryforwards

Expenditures - FY 2023-24 expenditures are projected to end the year at $52.24 million, which is a savings of $1.30 million, compared to the Adjusted Budget of $53.54 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
Q3 YTD
Actuals
FY 2023-24
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 2.24 0.30 2.24 — — %
City Administrator 0.41 0.29 0.40 0.01 2.5 %
Human Resources
Management
Department

0.02 — 0.02 — — %
Human Services
Department 0.88 0.42 0.59 0.29 33.0 %
Non Departmental and
Port 0.25 0.25 0.25 — — %
Oakland Parks and
Recreation Department 0.20 0.41 0.20 — — %
Oakland Public Works
Department 49.23 32.13 48.44 0.79 1.6 %
Police Department 0.31 0.07 0.10 0.21 67.4 %
Total 53.54 33.88 52.24 1.30 2.4 %
*The adjusted budget includes Council Budget Amendments and Carryforwards

Fund Balance - FY 2023-24 revenue is projected to end the year at $50.20 million. Expenditures ended the year at $52.24 million. As a result, the estimated available fund balance in the Reproduction Fund (4400) is estimated to decrease from $1.02 million to negative $1.02 million in FY 2023-24.

Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 40
Finance and Management Committee
May 28, 2024

Table 40: FY 2023-24 Facilities Fund Year-End Available Fund Balance ($ in millions) City Facilities Fund (4400) FY 2023-24 Q3 Year-
End Estimate
Beginning Fund Balance - Audited $ 1.02
Revenue 50.20
Expenditures 52.24
Estimated Current Year Surplus/(Shortfall) (2.04)
Estimated Ending Fund Balance (1.02)

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 Beg
Audited 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 61,053,598 60,280,815 30,466,603 1150 - Worker's
Compensation
Insurance Claims
— 1,026,643 9,803,120 (8,776,476) 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) 1,237,643 1,018,922 120,135 1700 - Mandatory
Refuse Program (2,288,891) 2,407,249 2,923,198 (2,804,839) 1710 - Recycling
Program 4,147,109 7,373,748 6,515,631 5,005,227 1720 -
Comprehensive
Clean-up
939,179 25,108,361 25,567,681 479,859 1750 - Multipurpose
Reserve (6,078,873) 8,616,269 8,980,851 (6,443,455) 1760 -
Telecommunications
Reserve
(1,074,992) 1,340,751 1,313,520 (1,047,761) 1770 -
Telecommunications
Land Use
1,880,940 951,172 808,989 2,023,123 Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 41
Finance and Management Committee
May 28, 2024

Fund Description
FY23-24 Beg
Audited Fund
Balance
FY23-24 Year End
Rev Projections
FY23-24 Year End
Exp Projections
FY23-24 Year
End Estimated
Fund Balance
1780 - Kid's First
Oakland Children's
Fund
11,650,428 35,245,680 34,601,408 12,294,699 1820 - OPRCA Self-
Sustaining Revolving
Fund
6,584,746 7,185,442 8,869,564 4,900,623 1870 - Affordable
Housing Trust Fund 19,312,804 49,011,002 46,799,050 21,524,755 1882 - Multi-Service
Center/Rent 161,881 206,450 206,450 161,881 1885 – 2011A-T
Subordinated
Housing
24,141,386 1,866,623 1,018,469 24,989,540 2102 – Department
of Agriculture (461,789) 959,809 962,897 (464,876) 2103 – HUD-
ESG/SHP/HOPWA (9,124,618) 29,452,128 28,325,932 (7,998,422) 2108 – HUD-CDBG (8,098,910) 13,229,204 13,288,853 (8,158,559) 2109 – HUD-Home 2,250,534 27,933,201 25,976,590 4,207,145 2112 – Department
of Justice (2,419,263) 3,689,349 3,963,381 (2,693,295) 2113 – Department
of Justice – COPS
Hiring
(1,009,715) 876,370 98,728 (232,073) 2120 – Federal
Action Agency 75,221 833,319 665,678 242,862 2123 – US Dept of
Homeland Security (309,521) 1,960,163 2,210,256 (559,613) 2124 – Federal
Emergency
Management Agency
(FEMA)
(599,992) 22,676,411 3,373,448 18,702,970 2125 –
Environmental
Protection Agency
2,738,637 1,429,569 1,540,599 2,627,608 2128 – Department
of Health and
Human Services
1,141,930 36,318,102 30,220,162 7,239,871 2138 – California
Department of
Education
1,393,501 7,161,335 3,525,544 5,029,292 2139 – California
Department of
Conservation
(4,799,157) 9,104,200 8,963,699 (4,658,656) 2144 – California
Housing and

421,816 114,599,581 113,229,609 1,791,789 Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 42
Finance and Management Committee
May 28, 2024

Fund Description
FY23-24 Beg
Audited Fund
Balance
FY23-24 Year End
Rev Projections
FY23-24 Year End
Exp Projections
FY23-24 Year
End Estimated
Fund Balance
2152 – California
Board of Corrections (4,097,675) 16,926,667 14,659,505 (1,830,514) 2159 – State of
California Other 5,697,405 144,749,602 135,884,513 14,562,494 2160 – County of
Alameda: Grants
1,093,920 1,841,878 1,768,823 1,166,975 2162 – Metro

(57,255) 1,221,259 1,547,426 (383,422) 2163 – Metro
Transportation Com:

(201,264) -__ -__ (201,264)
2241 – Measure Q-
Library Services
Retention &
Enhancement
10,204,898 21,649,838 22,892,121 8,962,615 2243 – Measure D –
Parcel Tax to

10,211,470 15,717,795 16,705,447 9,223,818 2250 – Measure N:

Fund 863,491 2,093,736 2,510,855 446,372 2252 – Measure Z –
Violence Prevention

13,445,310 42,949,537 36,826,562 19,568,285 2262 – Measure AA
– Early Education
13,151,155 36,521,878 36,521,878 13,151,155 2263 – Measure AA
– Oakland Promise
5,417,689 17,102,935 17,102,935 5,417,689 2331 – Wood Street
Community Facilities
District
543,047 175,750 194,077 524,721 2332 – Gateway
Industrial Park
939,470 2,074,429 1,913,707 1,100,192 2412 – Measure M –
Alameda County:

880,758 2,621,464 2,501,855 1,000,366 2416 – Traffic Safety
Fund
89,106 994,946 972,407 111,645 2417 – Excess Litter
Fee Fund 1,454,361 971,228 437,849 1,987,740 2420 –
Transportation

9,373,212 6,245,209 8,251,922 7,366,499 2421 – Capital
Improvements

5,898,947 4,730,527 4,771,406 5,858,068 2423 – Jobs Housing
Impact Fee Fund
13,960,546 12,804,226 12,804,226 13,960,546 Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 43
Finance and Management Committee
May 28, 2024

Fund Description
FY23-24 Beg
Audited Fund
Balance
FY23-24 Year End
Rev Projections
FY23-24 Year End
Exp Projections
FY23-24 Year
End Estimated
Fund Balance
2424 – Affordable
Housing Impact Fee

23,618,274 15,596,378 15,596,378 23,618,274 2430 – Lead
Settlement 2022 4,887,401 4,797,185 9,453,356 231,230
2826 - Mortgage
Revenue
2,061,198 1,679,693 1,975,477 1,765,414
2830 - Low and
Moderate Income

25,235,715 8,209,074 30,860,282 2,584,507
2990 - Public Works
Grants (911,022) 326,687 355,114 (939,448)
2994 - Social

442,929 1,365,171 1,254,672 553,428
2996 - Parks and

(16,941) 101,224 98,225 (13,942)
2999 -
Miscellaneous

9,761,559 12,880,543 13,419,482 9,222,621
3100 - Sewer
Service Fund
100,101,582 129,800,629 142,648,352 87,253,859
3200 - Golf Course (252,843) 789,881 609,576 (72,539)
4200 - Radio /
Telecommunications
6,106,374 10,811,196 9,923,549 6,994,021
4210 - Telephone
Equipment and

(227,294) 971,679 985,374 (240,989)
4300 - Reproduction 613,089 1,516,237 1,234,817 894,509 4450 - City Facilities
Energy Conservation
Projects
(202,490) 3,799 3,799 (202,490)
4500 - Central
Stores
(120,856) 635,532 677,410 (162,734)
4550 - Purchasing

(35,849) 3,245,436 2,607,096 602,491
4600 - Information
Technology
15,319,957 28,805,299 28,145,100 15,980,157
5322 - Measure DD:
2017C Clean Water,

11,506,260 10,481,539 21,987,800 -
5330 - Measure KK:

Infrastructure and
Affordable Housing
6,589,367 4,668,400 11,257,767 -
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 44
Finance and Management Committee
May 28, 2024

Fund Description
FY23-24 Beg
Audited Fund
Balance
FY23-24 Year End
Rev Projections
FY23-24 Year End
Exp Projections
FY23-24 Year
End Estimated
Fund Balance
5331 - Measure KK:

Affordable Housing
(GOB 2017A-2
Taxable)
9,508,883 6,891,839 16,400,723 -
5332 - Measure KK:

Infrastructure Series

19,959,648 20,765,052 40,724,700 -
5333 - Measure KK:

Affordable Housing
Series 2020B-2

14,804,071 14,267,883 29,071,953 -
5335 - Measure KK:

Infrastructure Series
2022C-1 (Tax

144,715,421 154,416,580 299,132,001 -
5337 - Measure KK:

Series 2023 GOB
— 52,743,655 52,743,655 -
5340 - Measure U:

Affordable Housing

— 100,575,625 100,575,625 -
5341 - Measure U:

Affordable Housing
GOB Series 2023A-2

— 68,739,680 68,739,680 -
5336 - Measure KK:

Infrastructure Series

14,129,617 387,204 14,516,821 -
5505 - Municipal
Capital

3,301,801 1,818,560 1,459,438 3,660,922
5610 - Central
District Projects 23,650,797 9,150,441 9,760,291 23,040,947 5611 - Central
District: TA Bonds
Series 2003
12,831,140 2,299,738 2,299,738 12,831,140
5612 - Central
District: TA Bonds
Series 2005
6,063,664 2,535,187 2,572,300 6,026,550
5613 - Central
District: TA Bonds
Series 2009T
3,274,844 4,285,130 4,169,615 3,390,358
5614 - Central
District: TA Bonds
Series 2006T
11,496,245 8,437,187 7,729,419 12,204,013
5638 - BMSP: TA
Bond Series 2006C-
T
435,165 189,398 157,679 466,884
5643 - Central City
East TA Bonds
Series 2006A-T
(Taxable)
19,373,751 6,832,066 6,835,821 19,369,996
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q3 R&E Report – Attachment A
Date: May 10, 2024 Page 45
Finance and Management Committee
May 28, 2024

Fund Description
FY23-24 Beg
Audited Fund
Balance
FY23-24 Year End
Rev Projections
FY23-24 Year End
Exp Projections
FY23-24 Year
End Estimated
Fund Balance
5650 - Coliseum
Projects 5,038,104 3,575,330 3,461,071 5,152,363
5656 - Coliseum: TA
Bonds Series

46,387,935 6,867,828 6,148,974 47,106,789
5671 - OBRA:

Leasing & Utility 54,713,494 5,357,400 4,604,949 55,465,945 5999 -
Miscellaneous
Capital Projects
3,005,830 12,687,511 11,383,212 4,310,129
6013 - 2013 LED
Streetlight

107,199 1,469,110 1,456,420 119,889
6029 - Taxable
Pension Obligation
Bonds: 2012 Series-
PFRS
7,346,983 53,456,302 53,280,555 7,522,731
6032 - Taxable
Pension Obligation:

Series 2001
328,744 10,352 - 339,096
6064 - GO
Refunding Bonds,
Series 2015A
2,995,920 5,510,175 5,510,175 2,995,920
6322 - Measure DD:
2017C Clean Water,

609,368 1,456,932 2,066,300 -
6330 - Measure KK:
2017A-1 (TE)
Infrastructure and

1,380,783 2,247,557 3,628,340 -
6331 - Measure KK:
2017A-2 (Taxable)
Infrastructure and

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

20,963,275 10,451,150 31,414,425 -
6336 - Measure KK:

Infrastructure Series

(13,772,151) 41 - (13,772,110)