Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 1
Finance and Management Committee
May 27, 2025
Attachment A: FY 2024-25 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
Appendixes:
Consolidated Fiscal Policy
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 2
Finance and Management Committee
May 27, 2025
Summary of FY 2024-25 Q3 GPF Revenues & Expenditures
FY 2024-25 GPF Revenue is projected to come in at $30.09 million or 3.8% lower compared to the Adjusted Budget of $786.28 million. GPF Expenditures are estimated to come in at $24.55 million or 3.1% over the Adjusted Budget of $786.28 million. Table 1 below shows the FY 2024- 25 General Purpose Fund revenue and expenditures Adjusted Budget and year-end estimates which currently project a year end operating shortfall of $54.64 million.
Table 1: Summary of FY 2024-25 Q3 GPF Revenues & Expenditures Budget to Estimated Year-End Actuals ($ in millions)
FY 2024-25
Adjusted
Budget
FY 2024-25
Q3 YTD
Actuals
FY 2024-25
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
FY2023-24
Revenues 786.28 526.62 756.19 (30.09) (3.8) %
FY 2023-24
Expenditures 786.28 591.12 810.83 (24.55) (3.1) % Operating
(Shortfall) /
Surplus
— (64.50) (54.64) (54.64) (7.0) %
I. GENERAL PURPOSE FUND FY 2024-25 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 2024-25 Adjusted Budget based on actual performance during the first nine months of FY 2024-25, quarterly trends established in prior fiscal years, and external data sources. The GPF revenue is projected to end the year with a net shortfall of $30.09 million compared to the Adjusted Budget. The Adjusted Budget assumes $41.82 million in use of fund balance to cover prior year carryforwards. Without accounting for the before mentioned one-time use of fund balance, the GPF revenues forecast to come in at $756.19 million, which is $11.73 million over compared to the budgeted amount of $744.47 million.
Amongst the 5 largest revenue contributors in the GPF, Property Tax is projected to increase driven by an estimated 4.6% annual rise in assessed taxable property values for the City.
Meanwhile collections for Business Tax (BT) are projected to come in 1% over budget led by increases in BT from property rental accounts and professional and personal services. The current projection for Real Estate Transfer Tax (RETT) collections estimate to end the year under the Adjusted Budget, however the market is showing a slight recovery from the downturn in FY 2023-24. Sales Tax is projected to end slightly under budget continuing a decline from the prior year. The Utility Consumption Tax is expected to continue to grow in FY 2024-25, driven by
14.2% in rate increases that have been approved by the California Public Utilities Commission and which have been phased in gradually since the start of 2024.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 3
Finance and Management Committee
May 27, 2025
Q3 HIGHLIGHTS OF THE TOP 5 GPF REVENUE CONTRIBUTORS
Property Tax: FY 2024-25 collections of the City's largest revenue source through Q3 are at $189.87 million or 61.9% of the Adjusted Budget of $306.57 million and are now projected to end the year at $312.91 million, which is $6.34 million or 2.1% over the Adjusted Budget. The current year end projection is based on a 4.6% growth in net assessed taxable property value for the City, which is $89.92 billion in FY 2024-25 compared to $85.96 billion in FY 2023-24. The net assessed value is confirmed after the budget is adopted. The assessed values for Fiscal Year 2024-25 are determined by valuations from the calendar year 2023. For properties sold between January and December 2023, the market value adjustment is calculated by comparing the assessed value on the 2023-24 tax roll with the actual sale price. Due to a decrease in the number of homes that sold in 2023, the year-over-year increase in assessed values was less pronounced than in previous years, leading to a more modest growth in property tax revenue for the City. For context, Fiscal Year 2023-24 concluded with revenues at $299.15 million, which was an increase of $17.87 million or 6.4% over the previous fiscal year, closely matching that period's growth for property assessed values of 6.6%.
Table 2 below details the FY 2024-25 change in assessed property value compared to FY 2023- 24:
Table 2: FY 2024-25 Change in Assessed Property Values
Cause of Value Change Change from 2023-24
($ in millions)
% of 2023-24 Net
Value
% of All Change
from 2023-24
Parcel Add/Drops Net Change $ 31.61 — % 0.8 %
Change from CPI 2.0% Growth $ 1,533.17 1.8 % 38.7 %
Prior Year Transfer of Ownership $ 1,361.48 1.6 % 34.4 % New Construction - Non-
Residential $ 775.93 0.9 % 19.6 %
New Construction - Residential $ 325.05 0.4 % 8.2 %
Prop. 8 - Reduce /Recapture Net $ (417.96) (0.5) % (10.6) % Unsecured Value Change $ 189.88 0.2 % 4.8 %
Other Changes $ 157.82 0.2 % 4.0 %
Total Change $ 3,956.96 4.6 % 100.0 %
Business License Tax (BT): FY 2024-25 collections of the second largest revenue source for the City through Q3 are at $114.61 million or 95.5% of the Adjusted Budget of $120.06 million, and are now projected to end the year at $121.27 million which is $1.21 million or 1.0% over budget. The FY 2024-25 forecast takes into account the impact of a large amount of BT contributor accounts no longer operating within the City's jurisdiction. The largest impacts from account closures occurred in Admin Headquarters led by Kaiser Permanente's headquarters relocation, as well as closures in the real estate industry and in the restaurants and hotel industry, in addition to the Athletics baseball team leaving the City. Overall, the accounts that have closed since 2024 contributed with over $4 million in BT payments in the prior year.
Offsetting these closures are improved collections in the Business / Personal Services and
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 4
Finance and Management Committee
May 27, 2025
Professional / Semi-Professional categories which have come in $2.79 million higher compared to the Q3 in FY 2023-24. Furthermore, there has been more outreach done this year to bring more businesses into compliance. In particular, rental registry noticing to landlords has contributed to over $5.39 million in prior year BT payments received for residential rentals, an increase of $2.58 million compared to prior year payments received in FY 2023-24, leading to the estimated budget surplus to end the year.
Table 3 below breaks down the amount of BT revenue received by rate type through Q3.
Table 3: FY 2024-25 Q3 Business Tax Revenue By Rate Type RATE TYPE TAX & FEES* PEN & INT TOTAL
A - RETAIL SALES $ 5,835,045 $ 151,831 $ 5,986,876
B - GROCERS $ 1,272,116 $ 61,878 $ 1,333,993
C - AUTOMOBILE SALES $ 1,771,535 $ 139,192 $ 1,910,727 D - WHOLESALE SALES $ 3,780,202 $ 56,893 $ 3,837,095
E - BUSINESS/PERSONAL SVCS $ 9,446,952 $ 306,217 $ 9,753,169 F - PROFESSIONAL/SEMI-PROFESSIONAL $ 28,412,095 $ 783,953 $ 29,196,049 G - RECREATION/ENTERTAINMENT $ 1,643,182 $ 29,050 $ 1,672,232 H - CONTRACTORS $ 5,955,813 $ 101,666 $ 6,057,479
H2 - CONTRACTORS APPRENTICE $ 131,793 $ — $ 131,793
I - MANUFACTURING $ 989,916 $ 44,902 $ 1,034,818
I - MANUFACTURING 2 $ 1,161 $ — $ 1,161
J - HOTEL/MOTEL $ 316,496 $ 5,497 $ 321,993
K - ADMIN HEADQUARTERS $ 2,342,848 $ 116 $ 2,342,964
L - MEDIA FIRMS $ 176,061 $ 3,590 $ 179,651
M - UTILITY COMPANIES $ 1,358,790 $ 51,132 $ 1,409,922 N - MISCELLANEOUS $ 38,515 $ 47 $ 38,562
NP - NONPROFIT $ 180 $ 2,667 $ 2,847
O - COMMERCIAL RENTAL $ 50,661 $ 349 $ 51,010
O - RESIDENTIAL RENTAL PROPERTY $ 24,910,882 $ 1,896,327 $ 26,807,209 O - COMMERCIAL RENTAL PROPERTY $ 16,627,331 $ 625,835 $ 17,253,166 P - CANNABIS $ 212,613 $ — $ 212,613
P - CANNABIS - EQ - DISTRIBUTION $ 35,390 $ 2,035 $ 37,425 P - CANNABIS - EQ - INDOOR CULTIVATION $ 1,463 $ 290 $ 1,753 P - CANNABIS - EQ - MANUFACTURING $ 3,090 $ 765 $ 3,856
P - CANNABIS - EQ - OUTDOOR
CULTIVATION
$ — $ — $ —
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 5
Finance and Management Committee
May 27, 2025
RATE TYPE TAX & FEES* PEN & INT TOTAL
P - CANNABIS - EQ - RETAIL $ 672,641 $ 1,259 $ 673,900 P - CANNABIS - GEN - DISTRIBUTION $ 299,908 $ 1,125 $ 301,033 P - CANNABIS - GEN - INDOOR CULTIVATION $ 1,880,367 $ 33,126 $ 1,913,493 P - CANNABIS - GEN - MANUFACTURING $ 352,992 $ 26,129 $ 379,121
P - CANNABIS - GEN - OUTDOOR
CULTIVATION
$ — $ — $ —
P - CANNABIS - GEN - RETAIL $ 1,472,347 $ 59,545 $ 1,531,891 Q - FIREARMS AMMUNITION $ — $ — $ —
R - TAXICABS $ 15,480 $ 453 $ 15,933
R - LIMOUSINES $ 7,470 $ 182 $ 7,652
R - AMBULANCES $ 6,333 $ 204 $ 6,537
S - TRUCKING/TRANSPORTATION $ 200,261 $ 5,610 $ 205,871 Y - AMBULANCES & LIMOUSINES $ — $ — $ —
GRAND TOTAL $ 110,221,931 $ 4,391,865 $ 114,613,796
Real Estate Transfer Tax (RETT): FY 2024-25 collections of the third largest revenue source for the City through Q3 are at $47.99 million or 65.1% of the Adjusted Budget of $73.72 million, and are projected to end the year at $66.31 million, which is $7.41 million or 10.1% under the Adjusted Budget. However, RETT collections are forecasted to increase by 15.1% by the end of this fiscal year compared to last year. In FY 2023-24 RETT ended only at $57.61 million out of a $110.41 million budget, due to higher mortgage rates from elevated federal funds rates, which cooled demand and reduced property sales by 10.1% compared to FY 2022-23. In this current year, property sales through Q3 rose by 10.7%, with 257 more sales and a 17.3% increase in gross sales value compared to the same period in FY 2023-24. High-value property sales over $5 million have also surged by 56%, from 16 to 25 sales compared to Q3 of the previous year.
The largest sale of approximately $99.0 million was made in December for the tallest residential tower in the City of Oakland, located at 1640 Broadway. No sale of over $50 million was recorded in FY 2023-24 thus the large sale skews the figures slightly. The improvement in this fiscal year resulted in part from actions taken by the Federal Open Market Committee (FOMC) during the first half of the fiscal year, which made three rate cuts of the federal funds rate during the first two quarters of FY 2024-25 (September: 50 basis points (BPS), November: 25 BPS, December: 25 BPS). In December 2024, the FOMC reduced the 2025 rate cut projections from four to two, due to uncertainties from incoming federal policies. These rate cuts would be expected in the second half of 2025, with no additional rate cuts expected for the remainder of FY 2024-25.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 6
Finance and Management Committee
May 27, 2025
Table 4 below shows the RETT growth rate by sales price comparing Q3 in FY 2024-25 to Q3 in FY2023-24.
Table 4: RETT Growth Rate
($ in millions)
FY 2023-24 Q3 FY 2024-25 Q3 Year-Over-Year
Variance Thru Q3
Sale Price Gross Sales Volume Gross Sales Volume Gross Sales Volume $300,000 or below $ 29.57 174 $ 33.43 187 13.03 % 7.5 % $300,001 to $2 Million $ 1,882.66 2106 $ 2,028.09 2,325 7.72 % 10.4 % $2 million to $5 Million $ 300.43 116 $ 354.36 132 17.95 % 13.8 % $5 -10 Million $ 58.87 9 $ 98.20 14 66.80 % 55.6 %
$10 - 50 Million $ 136.85 7 $ 150.09 9 9.67 % 28.6 % $50.01-100 Million $ — 0 $ 160.00 2 — % — %
Over $100 Million $ — 0 $ — $ — — % — %
Total $ 2,408.39 2412 $2,824.18 2,669 17.3 % 10.7 %
Sales Tax: FY 2024-25 collections of the fourth largest revenue source of the City through Q3 are at $35.81 million or 56.2% of the Adjusted Budget of $63.73 million and are now projected to end the year at $60.37 million, which is $3.36 million or 5.3%, under the Adjusted Budget. Data available for FY2024-25 through Q2 (Sales Tax is collected by the State and the corresponding detailed data becomes available to the City in the subsequent quarter) shows that Sales tax across all categories ended FY 2024-25 Q2 2.5% lower on average compared to the same period in the previous fiscal year. Categories with year over year Q2 decreases in Sales Tax are led percentage wise by fuel service stations with revenues sliding by 20.1% compared to the same period in the prior year. New car sales resulted in a comparative annual decline of 3.8%.
Building-construction absorbed reductions in sectors such as plumbing, electrical sales, and contractor activity combining for a 9.9% drop. Decreased sales in grocery stores and cannabis contributed to a slide in food-drugs receipts of 2.9%. Restaurants and hotels sales slightly declined by 0.7%. Growth was led by the business and industry category, including increased sales in office supplies, furniture, repair shop, equipment rentals, and heavy industry which helped boost returns by 11.1% for this category. Meanwhile general consumer goods slightly increased by 0.2%. In addition, the City’s allocation from the countywide sales tax, including unidentified transfers, improved by 3.4% as the City’s County pool share grew due to larger sales tax reductions in another agency within the county.
Table 5 below compares the Sales Tax totals received by category in FY 2023-24 through Q2 to those received in FY 2024-25 through Q2.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 7
Finance and Management Committee
May 27, 2025
Table 5: Q2 Sales Tax Comparison by Category FY2023-24 and FY 2024-25 ($ in millions) Category FY 2023-24 through
Q2
FY 2024-25 Through
Q2 Inc/Dec
Autos & Transportation $ 4.76
$ 4.58
(3.8) %
Building & Construction $ 3.10
$ 2.79
(9.9) %
Business & Industry $ 3.07
$ 3.41
11.1 %
Food & Drugs $ 2.36
$ 2.29
(2.9) %
Fuel & Service Stations $ 3.63
$ 2.90
(20.1) %
General Consumer Goods $ 2.67
$ 2.68
0.2 %
Restaurants & Hotels $ 5.55
$ 5.51
(0.7) %
State/County Pools & Transfers $ 5.78
$ 5.97
3.4 %
Average $ 3.86
$ 3.77
(2.5) %
Utility Consumption Tax (UCT): FY 2024-25 collections of the fifth largest revenue category for the City through Q3 are at $53.38 million or 78.0% of the Adjusted Budget of $68.44 million and are now projected to end the year at $70.05 million which is $1.61 million or 2.4% over the Adjusted Budget. The forecast for FY 2024-25 is driven by a 14.2% increase in utility rates approved by the California Public Utilities Commission (CPUC) since the start of 2024. PG&E, a major contributor to the City's UCT, implemented this increase incrementally: increasing rates by 6% in March 2024, 4% in June 2024, 2.7% in September 2024, and an additional 1.5% in January 2025. The Public Advocates Office at the CPUC reported on their Q4 2024 Electric Rates Report that residential average electrical rates from PG&E have significantly increased by 101% over the past decade from January 2015 to February 2025. These phased increases have led to higher tax revenue as UCT is a percentage of utility bills. UCT collections for FY 2023-24 totaled $66.22 million, and the FY 2024-25 estimate of $70.05 million, represents a year over year rise of $3.83 million or 5.8%.
Figure 1 below shows the growth of UCT revenue over the most recent five fiscal years, primarily driven by continuous utility rate increases.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 8
Finance and Management Committee
May 27, 2025
Figure 1: 5 Year Utility Consumption Tax Revenue Trend
Other Notable Revenue Highlights:
Fines & Penalties: Q3 FY 2024-25 collections came in at $15.76 million or 81.5% of the Adjusted Budget of $19.34 million, and now are projected to end the year at $23.95 million, a
23.8% increase over the Adjusted Budget. Parking citations are the major revenue source, and corresponding revenue expectations have increased due to a 5% increase in fines implemented in FY 2023-24, followed by another 5% increase in FY 2024-25 to account for retroactive inflation. The parking fine rate increases combined with additional staffing in the Parking Enforcement Unit, which aims to be fully staffed by the end of FY 2024-25, have led to a 26% rise in parking fine collections through the third quarter compared to the previous fiscal year.
Miscellaneous Revenue: Q3 FY 2024-25 collections came in at $16.91 million, which is significantly over the $1.23 million Adjusted Budget. A $5.00 million payment from the Coliseum site sale, not initially accounted for in the budget due to sale delays, contributed to this surplus.
Legal settlements in the amount of $7.11 million, which include $3.47 million with offsetting restricted liabilities, also enhanced the revenue received to date for this category through Q3 .
Service Charges: Q3 FY 2024-25 collections came in at $30.02 million or 57.9% of the Adjusted Budget of $51.84 million and are expected end the year at $51.84 million which is at the Adjusted Budget. Certain types of service charges, including Port Revenues and Cable and Gas Franchise Fees do not accrue evenly throughout the year, thus the year-to-date actuals do not represent a linear trend for year-end projections. A significant 21% increase in service charges revenue has been observed when compared to the same period in FY 2023-24, but this growth should be viewed cautiously due to the irregular posting patterns of these charges.
Parking Meter Fees make up 33% of Service Charges and the corresponding increase in revenue collection of 30% through Q3 for these is expected to be sustained. Although the growth observed to date is below the 50% increase for parking meter rates that took effect in this fiscal year, which absorbed an increase from $2 to $3 per hour in FY 2024-25.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 9
Finance and Management Committee
May 27, 2025
Transient Occupancy Tax (TOT): Q3 FY 2024-25 collections came in at $12.18 million or
61.7% of the Adjusted Budget of $19.74 million and is projected to end the year at $16.07 million which is $3.67 million or 18.6% under the Adjusted Budget. Hotel closures, including the Hilton and Jack London Square’s Waterfront Hotel have significantly impacted revenue.
Through Q3 of FY 2024-25 a significant 13.3% decrease in TOT collections has come in compared to the same period in FY 2023-24. The downturn for hotels in Oakland's hospitality market has been impacted by declining commercial property values, public safety concerns, decline in airport passenger levels, and the departure of three major professional sports teams in recent years.
Parking Tax (PT): Q3 FY 2024-25 collections came in at $8.41 million or 64.4% of the Adjusted Budget of $13.07 million, and now is projected to end the year at $11.17 million which is $1.90 million or 14.5% under the Adjusted Budget. The decrease is mainly attributable to PT decrease from the airport and coliseum area. The Oakland International Airport's most recent monthly activity report shows a 15.1% decrease in parking lot revenue at the airport for February year over year. In addition, the Q4 in FY 2024-25 will not receive PT from baseball games played at the Coliseum following the A's departure.
Interfund transfers & Transfers From Fund Balance: The FY 2024-25 Adopted Budget has also been adjusted to include $41.42 million in prior year carryforwards in the GPF which utilizes available fund balance to cover the cost.
Table 6 below summarizes all of the FY 2024-25 GPF revenues by category.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 10
Finance and Management Committee
May 27, 2025
Table 6: FY 2024-25 Q3 Adopted Budget to Actuals and Year End Estimate ($ in millions) Revenue
Category
FY 2024-25
Adopted
Budget
FY 2024-25
Adjusted
Budget
FY 2024-25
Q3 YTD
Actuals
FY 2024-25
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Property Tax 306.57
306.57
189.87
312.91
6.34 2.1 %
Sales Tax 63.73
63.73 35.81
60.37 (3.36) (5.3) %
Business
License Tax
120.06
120.06
114.61
121.27
1.21 1.0 %
Utility
Consumption
Tax
68.44 68.44
53.38 70.05
1.61 2.4 %
Real Estate
Transfer Tax
73.72 73.72
47.99 66.31
(7.41) (10.1) %
Transient
Occupancy Tax
19.74 19.74
12.18 16.07
(3.67) (18.6) %
Parking Tax 13.07
13.07 8.41
11.17 (1.90) (14.5) %
Licenses &
Permits
1.16 1.16
0.84 1.16
—
— %
Fines &
Penalties
19.34 19.34
15.76 23.95
4.60 23.8 %
Interest
Income
2.50 2.50
(3.30)
—
(2.50) (100.0) %
Service
Charges
51.84 51.84
30.02 51.84
—
— %
Internal
Service Funds
—
—
—
—
N / A
Grants &
Subsidies
—
—
0.74 0.92
0.92 — %
Miscellaneous
Revenue
64.32 1.23
16.91 17.12
15.89 1296.3 %
Interfund
Transfers
2.70 3.08
2.70 3.08
—
— %
Subtotal 807.19
744.47
526.62
756.19
11.73 1.6 %
Project Offsets &
Carryforwards
—
41.42 —
(41.42) (100.0) %
Total Revenue 807.19
786.28
526.62
756.19
(30.09) (3.8) %
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 11
Finance and Management Committee
May 27, 2025
II. GENERAL PURPOSE FUND Q3 EXPENDITURES
GENERAL PURPOSE FUND EXPENDITURE HIGHLIGHTS
The GPF expenditures are forecasted to come in at $810.83 million, which is a projected overspend of $24.55 million or 3.1% over, when compared to the Adjusted Budget of $786.28 million. Originally, the Midcycle Adopted Budget assumed the use of the sale of the Coliseum in the amount of $63.5 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 32% of FY 2024-25 GPF budgeted expenditures.
However, the scheduled distribution of Coliseum sale revenues has not been met, leading to the reduction of City services to match the missing revenue. The budgeted personnel expenditures also assume a vacancy factor of 10.00%, it is expected that the actual vacancy factor will be higher with the hiring freeze in effect.
On March 27, 2024, the City Administrator released a memo outlining several policies to be implemented immediately that would help reduce City expenditures, primarily in the GPF. There is a hiring freeze that has gone into effect for all non-sworn positions for the remainder of FY 2023-24. Additionally, there is a citywide moratorium on professional training and conference requests funded through the GPF. All other discretionary spending in the GPF has been limited as the City attempts to bridge the widening gap between GPF revenues and expenditures.
On October 15, 2024, the Budget Administrator released a memo outlining the implementation of the contingency budget amendments after criteria was met related to the timing of receiving revenues from the Coliseum sale. This action consisted of a $63 million reduction to the Adjusted Budget, which included the freezing of 33.50 positions across the City.
On December 17, 2024, the City Council approved additional budget reductions to further aid in the balancing of the budget. An analysis outlining the status and impacts to City services are provided in this report.
On April 4, 2025, labor costs were posted through the Third Quarter of FY 2024-25.
Table 7 below reflects the GPF expenditures forecasted to come in at $810.83 million, which is $24.55 million or 3.1% over the adjusted budget of $786.28 million.
Table 7: Summary of FY 2024-25 Q3 GPF Expenditures Budget to Actuals ($ in millions)
FY 2024-25
Adopted
Budget
FY 2024-25
Adjusted
Budget
FY 2024-25
Q3 YTD
Actuals
FY 2024-25
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
FY 2024-25
Expenditures 807.19 786.28 591.12 810.83 (24.55) (3.1) %
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 12
Finance and Management Committee
May 27, 2025
Department Level Spending Trends
Table 8 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 $24.55 million. Per the City’s Consolidated Fiscal Policy, Departments projected to overspend in the General Purpose Fund by more than one percent (1%), shall bring an informational report to the City Council within 60 days following acceptance of the Revenue & Expenditure report by the City Council. The report shall list the actions the Administration is taking to bring the expenditures into alignment with the budget.
Table 8: Summary of FY 2024-25 GPF Projected Expenditure Variance ($ in millions) Department
FY 2024-25
Adopted
Budget
FY 2024-25
Adjusted
Budget
FY 2024-25
Q3 YTD
Actuals
FY 2024-25
Q3 Year-
End
Estimate
Year-End $
Over /
Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital
Improvement
Projects 0.56 1.61 0.36 1.60 0.01 0.6 %
City
Administrator 5.99 5.94 4.11 6.50 (0.56) (9.4) %
City Attorney 21.71 24.62 16.96 23.63 0.99 4.0 %
City Auditor 3.73 4.01 1.93 2.91 1.10 27.4 %
City Clerk 8.00 9.92 3.30 9.90 0.02 0.2 %
City Council 7.87 7.91 5.06 7.02 0.89 11.3 %
Department of
Transportation 21.72 22.08 14.38 21.47 0.62 2.8 %
Department of
Violence
Prevention 7.49 8.10 4.20 6.24 1.86 23.0 %
Department of
Workplace and
Employment
Standard 2.39 2.15 1.23 1.80 0.35 16.3 %
Economic and
Workforce
Development
Department 15.24 14.94 10.06 13.18 1.76 11.8 %
Finance
Department 29.13 29.03 17.12 28.66 0.37 1.3 %
Fire Department 180.45 166.24 140.45 192.37 (26.13) (15.7) % Human
Resources
Management
Department 0.33 0.53 0.54 0.43 0.10 18.8 %
Human Services
Department 43.08 46.47 34.48 43.99 2.48 5.3 %
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 13
Finance and Management Committee
May 27, 2025
Department
FY 2024-25
Adopted
Budget
FY 2024-25
Adjusted
Budget
FY 2024-25
Q3 YTD
Actuals
FY 2024-25
Q3 Year-
End
Estimate
Year-End $
Over /
Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Information
Technology
Department 6.55 6.95 4.77 7.08 (0.13) (1.8) %
Mayor 5.59 5.60 3.06 4.07 1.53 27.4 %
Non
Departmental
and Port 53.80 59.00 34.97 47.02 11.98 20.3 %
Oakland Animal
Services 6.84 6.57 4.19 5.94 0.64 9.7 %
Oakland Parks
and Recreation
Department 11.80 12.13 8.52 13.03 (0.90) (7.4) %
Oakland Public
Library
Department 12.40 11.40 7.77 10.04 1.36 11.9 %
Oakland Public
Works
Department 2.73 4.51 2.74 3.23 1.29 28.6 %
Police
Commission 8.78 9.57 4.71 7.52 2.04 21.4 %
Police
Department 347.21 322.86 263.77 349.52 (26.65) (8.3) %
Public Ethics
Commission 2.52 2.78 1.58 2.43 0.36 12.8 %
Race and Equity
Department 1.27 1.35 0.87 1.27 0.08 5.7 %
Total 807.19 786.28 591.12 810.83 (24.55) (3.1) %
The following section details Q3 projected GPF savings or overspending by Department, as compared to the FY 2024-25 Adjusted Budget.
Capital Improvement Program (CIP)
The Capital Improvement Program is projected to end the fiscal year at its adjusted budget of $1.60 million.
City Administrator (CAO)
The City Administrator’s Office is projected to overspend by $0.56 million, or 9.4% of their budget. The overage is primarily due to an increase in personnel costs. In the General Purpose Fund, CAO has a vacancy rate of 4%, with one vacant position.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 14
Finance and Management Committee
May 27, 2025
City Attorney (OCA)
The City Attorney is projected to underspend by $0.99 million, or 4.0% of their budget. In the General Purpose Fund, OCA has a vacancy rate of 3%, with two vacant positions.
City Auditor
The City Auditor is projected to underspend by $1.10 million, or 27.4% of their budget. 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 by $0.02 million, or 0.2% of their budget.
In the General Purpose Fund, City Clerk has no vacant positions.
City Council
The City Council is projected to underspend by $0.89 million, or 11.3% of their budget. 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 $0.62 million, or 2.8% of their budget. In the General Purpose Fund, DOT has a vacancy rate of 11%, with nine vacant positions.
Department of Violence Prevention (DVP)
The Department of Violence Prevention is projected to underspend by $1.86 million or 23.0% of their budget. In the General Purpose Fund, DVP has a vacancy rate of 36%, with 12 vacant positions.
Department of Workplace & Employment Standards (DWES)
The Department of Workplace & Employment Standards is projected to underspend by $0.35 million, or 16.3% of their budget. In the General Purpose Fund, DWES has a vacancy rate of 0%, with no vacant positions.
Economic & Workforce Development (EWD)
Economic & Workforce Development is projected to underspend by $1.76 million, or 11.8% of their budget. In the General Purpose Fund, EWD has a vacancy rate of 14%, with two vacant positions.
Finance Department
The Finance Department is projected to underspend by $0.37 million, or 1.3% of their budget. In the General Purpose Fund, Finance has a vacancy rate of 6%, with five vacant positions.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 15
Finance and Management Committee
May 27, 2025
Fire Department
The Oakland Fire Department is projected to overspend by $26.13 million, or 15.7% of their budget, due to overtime overspending. A detailed explanation of this overage can be found in the "Public Safety Costs & Analysis" section below.
Human Resources Management (HRM)
Human Resources Management is projected to end the fiscal year at its adjusted budget of $0.53 million. In the General Purpose Fund, HRM has no vacant positions.
Human Services Department (HSD)
Human Services Department is projected to underspend by $2.48 million, or 5.3% of their budget. In the General Purpose Fund, HSD has a vacancy rate of 5%, with two vacant positions.
Information Technology (ITD)
The Information Technology Department is projected to overspend by $0.13 million, or 1.8% of their budget. The overage is primarily due to an increase in personnel costs. In the General Purpose Fund, ITD has no vacant positions.
Mayor’s Office
The Mayor’s Office is projected to underspend by $1.53 million, or 27.4% of their budget, due to vacancies. In the General Purpose Fund, Mayor's Office has a vacancy rate of 36%, with five vacant positions.
Non-Departmental
Non-Departmental is projected to underspend by $11.98 million, or 20.3% of the budget.
Oakland Animal Services
The Department of Animal Services is projected to underspend by $0.64 million, or 9.7% of their budget, due to vacancies. In the General Purpose Fund, Animal Services has a vacancy rate of 9%, with three vacant positions.
Oakland Parks, Recreation and Youth Development (OPRYD)
Oakland Parks, Recreation and Youth Development is projected to overspend by $0.90 million, or 7.4% of their budget. The overage is primarily due to an increase in personnel costs. In the General Purpose Fund, OPRYD has a vacancy rate of 7%, with seven vacant positions.
Oakland Public Library (OPL)
Oakland Public Library is projected to underspend by $1.36 million, or 11.9% of their budget. In the General Purpose Fund, OPL has a vacancy rate of 8%, with five vacant positions.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 16
Finance and Management Committee
May 27, 2025
Oakland Public Works (OPW)
Oakland Public Works is projected to underspend by $1.29 million, or 28.6% of their budget. In the General Purpose Fund, OPW has a vacancy rate of 11%, with one vacant position. The department recently received confirmation from California Office of Emergency Services (CalOES) and the Federal Emergency Management Agency (FEMA) regarding the approval of reimbursements in the amount of approximately $1 million for past emergency expenses incurred by the City due to winter storms. This adjustment has been incorporated into the year- projections.
Police Commission
The Police Commission is projected to underspend by $2.04 million, or 21.4% of their budget, due to vacancies. In the General Purpose Fund, Police Commission has a vacancy rate of 21%, with six vacant positions.
Police Department
The Police Department is projected to overspend by $26.65 million, or 8.3% of their budget, due to overtime overspending. This reflects an improvement of approximately $25 million from Quarter 1, as some of the current year balancing measures are now reflected into year-end projections. A detailed explanation of this overage can be found in the "Public Safety Costs & Analysis" section below.
Public Ethics Commission (PEC)
The Public Ethics Commission is projected to underspend by $0.36 million, or 12.8% of their budget, due to vacancies. In the General Purpose Fund, PEC has a vacancy rate of 20%, with two vacant positions.
Race & Equity
The Department of Race & Equity is projected to underspend by $0.08 million, or 5.7% of their budget. In the General Purpose Fund, Race & Equity has no vacant positions.
Public Safety Costs & Analysis
Table 9 below shows the projected personnel expenditures for FY 2024-25, including overtime, for Public Safety in the GPF. Using a projection based on FY 2024-25 Q3 actuals, once all other personnel costs are accounted for, Oakland Police Department currently shows a projected year-end personnel budget projected to be overspent by $23.54 million and Oakland Fire Department currently shows a year-end budget projected to be overspent by $26.23 million in the General Purpose Fund. Details are provided on Table 9 below.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 17
Finance and Management Committee
May 27, 2025
Table 9: FY 2024-25 Public Safety GPF Personnel Expenditures ($ in millions) Department
FY 2024-25
Adjusted
Budget
FY 2024-25
Q3 YTD
Actuals
FY 2024-25
Q3 Year-
End
Estimate
Year-End $
Over /
Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Police Department**
Overtime (OT) 42.85 35.37 47.19 (4.34) (10.1)%
Reimbursable OT (Special Events, etc) (6.09) (8.12) 8.12 All Other Personnel (non-OT) 226.07 191.53 252.59 (26.52) (11.7)% OPD Total Personnel 268.93 220.81 291.66 (22.74) (8.5)% Fire Department
Overtime (OT) 10.66 20.30 27.07 (16.41) (154.0)%
All Other Personnel (non-OT) 126.65 103.14 136.67 (10.02) (7.9)% OFD Total Personnel 137.31 123.44 163.74 (26.43) (19.2)%
As shown on Table 9 above, OPD was budgeted $42.85 million for overtime and is projected to exceed this budgeted amount by $4.34 million for a projected year-end total of $47.19 million. In the table below, are the top five organizations in OPD where overspending has occurred most outlined in Table 10:
Table 10: FY 2024-25 OPD Top 5 Organizations in Overtime Expenditures ($ in millions) Top 5 Organizations in
OPD for Overtime
FY 2024-25
Adjusted Budget
FY 2024-25 Q3
Year-End Estimate
Year-End $ Over /
Under Adjusted
Budget
Special Operations Division (SOD) 7.16 10.34 (3.18) Area 1 3.17 3.55 (0.38)
Area 3 3.17 3.14 (0.03)
Communications 2.35 2.88 (0.53)
Training Division 0.23 2.49 (2.26)
Police
In July 2024, the Oakland City Council adopted the Fiscal Year (FY) 2024-05 budget, allocating $269,195,408 for total personnel costs within the Oakland Police Department (OPD). Of this amount, $212,555,230 was allocated for sworn personnel, and $56,640,178 was allocated for professional staff. This approved budget reduced the total authorized number of sworn positions from 712 to 678 despite a workforce of 705 sworn personnel (27 more than the authorized number of positions) at the time of implementation. It was noted that this reduction in staffing
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 18
Finance and Management Committee
May 27, 2025
from 705 to 678 would occur through natural attrition. The budget also impacted professional staff, freezing 31 vacant positions and reducing the total number of budgeted positions from 334.5 to 303.5.
In September 2024, the City implemented its budget contingency plan, further reducing the authorized number of sworn positions from 678 to 600, again relying on natural attrition to reach this target at a later date. At the time of implementation, OPD had 686 sworn personnel, or 86 more than the authorized and budgeted number of positions. Additionally, authorized professional staff positions were reduced from 303.5 to 298.5 by freezing five vacant positions.
A Citywide hiring freeze further affected staffing, leaving 60 professional staff positions vacant, with 252 positions actively filled within the Department.
Based on historical data from OPD, at the start of the fiscal year, the City Council allocated $44,638,900 for overtime expenses. However, in October 2024, the City began operating under the budget contingency plan, which reduced OPD's overtime by $1,785,478, resulting in a new authorized overtime budget of $42,853,422. This reduction was retroactively applied to September 2024.
On December 17, 2024, an additional $20,000,000 reduction was approved by the City Council through the amended budget, reducing OPD's overtime to $22,853,422. This action resulted in an overall 51% reduction in overtime from the beginning of the FY (July 2024). It's important to note that when the overtime budget was reduced to $22,853,422, OPD had already exceeded this amended amount by $4,308,458, resulting in a total overtime expenditure of $27,161,880.
This was due, in part, to insufficient staffing and resources to meet the workload demands driven by citywide crime trends.
As of today's date, OPD is authorized and budgeted for 601 sworn positions. However, the Department currently has 667 sworn staff members, or 66 positions more than what is budgeted. Although the Department has operated above its budgeted staffing levels during the first three quarters of the fiscal year, staffing and resource levels remain insufficient to address crime in Oakland. As of the third quarter (Q3) of this fiscal year, OPD has incurred $37,156,650 in overtime costs, averaging $4,128,517 per month. Of this amount, $6,088,761 was reimbursable overtime, which will be deposited into the General Purpose Fund (GPF), offsetting the net overtime cost to $31,067,889.
In December 2024, the Department implemented a 20% reduction in overtime spending to better align monthly expenditures with budgetary expectations. This adjustment set a target of $3,459,918 in average monthly expenditures, or $10,379,745 per quarter. In the third quarter, actual overtime expenditures totaled $7,972,116, coming in $2,407,638 under the quarterly target. Despite this progress, based on year-to-date spending through Q3, the Department is still projected to exceed its budget contingency plan adjustment, overtime budget by approximately $26,688,779.
The Department anticipates an additional $2,029,587 in reimbursable overtime, bringing the total estimated reimbursement to $8,118,348. These funds will be deposited into the GPF, reducing OPD's projected total amended overtime overage to approximately $18,570,431.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 19
Finance and Management Committee
May 27, 2025
The Department's primary goals are to reduce violent crime and enhance public safety.
Achieving these objectives requires the use of overtime, which has led to increased spending in the Communications Division, Area 1, Area 3, Special Operations Division (SOD), and the Training Division. Additionally, it is also important to note that as of the date of this memo, 108 sworn personnel are completely off work due to administrative and medical leave, further underscoring the need for overtime to backfill vacant positions throughout the Department.
Below is a thorough breakdown of the key areas contributing to overtime overspending in the five units detailed above:
Communication Division: The Communications Division has relied heavily on overtime to mitigate staffing shortages. In Q3, 16 dispatchers were in training and 12 positions were vacant, necessitating overtime to backfill 28 positions. Additionally, five dispatchers were on long-term leave, and two were on administrative leave, bringing the total number of backfilled positions to 35 out of an authorized 78. Overtime expenses were incurred to compensate for vacancies, training, and extended leaves of absence.
Furthermore, four supervisory positions remain vacant due to voluntary resignations and promotions. These roles are currently being backfilled through overtime and acting assignments.
As the Department continues to hire to fill dispatcher and supervisory vacancies, overtime expenditures are expected to decrease as permanent staff assume these roles, thereby reducing the need for overtime coverage.
Area 1: In Q3, Area 1 undertook several targeted overtime deployments authorized by the Captain to address specific safety and crime issues. These initiatives included a Violence Suppression detail consisting of one Sergeant and four Police Officers, a Chinatown detail staffed with four Police Officers, and a Night Club detail, typically active on weekends with one to two Police Officers.
Most overtime expenditures in Area 1 are attributed to backfill. There have been several open beats due to vacancies at both the Officer and Sergeant levels. These vacancies require backfill every day, and Area 1 is among the leading areas for this expense. Additional expenses arise from administrative duties, including Internal Affairs investigations, Use of Force investigations, and assessments related to the Negotiated Settlement Agreement (NSA) monitoring tasks 24 and 25. These obligations are in addition to routine backfill required for officers on leave, training, or reassignment.
Furthermore, major holidays and city events regularly result in extensions of the first and third watch patrol shifts, as the second watch serves as the Mobile Field Force contingent, often necessitating additional hours.
Overtime deployments at the Port of Oakland and Jack London Security were reimbursable by the Port of Oakland. While a long-term weekend deployment strategy was being developed, overtime officers provided a visible downtown presence, supported by shifting resources from patrol units.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 20
Finance and Management Committee
May 27, 2025
All discretionary overtime in Area 1 ended in November 2024. The captain will continue to assess the need for overtime units with the level of violent crime in Area 1.
Area 3: In Q3, overtime expenditures were impacted by human trafficking-related operations.
Area 3 had four officers assigned to the FBI Task Force sworn in as U.S. Marshals. The FBI provided partial reimbursement for these operations, covering approximately $10,000 annually.
Mandatory overtime was necessary to fill gaps left by Officers in training, on sick leave, or on vacation, and to meet administrative deadlines due to investigative backlogs. Mandatory overtime was used to complete NSA-required administrative tasks.
No additional discretionary overtime was used during this period. Area 3 has demonstrated consistent monthly overtime reductions. Moving forward, the Captain will continue to assess overtime deployment needs in response to the violent crime trends in the area.
SOD: In Q3, SOD exceeded its overtime budget due to increased operational demands and specialized responsibilities, including:
• Administrative Responsibilities - SOD played a critical role in division -level investigations, such as use-of-force and pursuit inquiries, leading to higher overtime costs.
Additionally, SOD managed the compilation and maintenance of the annual Military Equipment Utilization (MEU) report, further contributing to overtime expenditures.
• Air Support Demand - The growing demand for air support from the ARGUS Unit, coupled with the integration of FLOCK Group cameras, necessitated daily coverage. This increased overtime costs, as air support remains essential for safely apprehending suspects and preventing pursuits.
• Encampment Management Team (EMT) Cleanups - SOD collaborated with EMT to ensure safe work zones for EMT employees during encampment cleanups. Some operations required a significant number of officers to maintain safety, driving up overtime expenditures.
• Alcohol Beverage Action Team (ABAT) Operations - The ABAT Unit experienced increased demand for business inspections triggered by gun violence in specific areas.
These inspections, aimed at seizing illegal contraband, added to SOD's overtime costs.
• Third-Party Services - SOD provided police services for businesses and city requests generating reimbursable overtime expenses. Although billed to requesting entities, these services initially impact SOD's overtime budget.
• Critical Incident Response - Special Weapons and Tactics (SWAT) team activations for urgent, high-risk incidents incurred unavoidable overtime costs to ensure public safety.
This includes partial activations of elements of the entry team, such as the Hostage Negotiations team (H&T), K-9, and Electronic Surveillance Team (ESU).
• Special Resource Service (SRS) East Operations - SRS East units conducted multiple operations targeting gun violence linked to groups, gangs, and illegal casinos. These
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 21
Finance and Management Committee
May 27, 2025
operations involved search warrant services, surveillance, and administrative duties, contributing to elevated overtime expenses.
• SRS East /SOD backfill - Due to the termination of all loans from patrol, SOD units experienced a significant reduction in staffing. To maintain daily operations, multiple positions must be backfilled through overtime, which has resulted in increased expenditures.
Training Division: The overtime budget was reduced by $1,785,478 as part of the contingency budget which postponed two scheduled academies. This adjustment left $234,522 to support the 194th Academy and cover overtime needs for the remainder of the FY.
The Training Division encompasses several key components that require overtime to sustain operations, including administrative functions, In-Service Training, Basic Academy, and the Field Training Unit.
• Administrative Responsibilities - Overtime was necessary to complete and assist with Internal Affairs investigations, Use of Force investigations, audits of Use of Force investigations, Force Review Board preparations, Personnel Assessment System (PAS) reviews, and Skelly Hearings.
• In-Service Training - Overtime was necessary to facilitate mandatory 4 -hour Peace Officer Standards and Training (POST) firearms qualifi cation sessions and weekly Continued Professional Training (CPT). Additionally, it was required for defensive tactics, arrest, and control instructors to complete CPT, remedial training, and supplemental training. The POST transitional academy, associated with each Basic Academy class, often required instructors to work overtime to deliver their instructional modules, including Procedural Justice training, further increasing overtime expenditures.
• Basic Academy - Overtime was essential to support various learning domains. Instructors frequently worked extra hours due to scheduling constraints at off -site training facilities, with some sessions extending into weekends.
• Field Training Unit - Overtime was required to facilitate focus group meetings that aligned with the schedules of sworn personnel. Supervisors also incurred overtime due to administrative responsibilities, including division- level investigations and reviews.
Furthermore, overtime was utilized for supplemental training, cover ing both individual officer sessions and group sessions.
Fire
Based on first quarter actuals, a straight-line projection of Fire Department spend for personnel (including overtime) was on pace for $169.52M ($34.95M in overtime costs), $32.27M over the revised budget for Fire personnel after the Contingency Budget took effect, and still $12.31M over Fire’s original baseline FY 2025 personnel budget of $157.21M. Since the Q1 report was published, Fire has identified a few key examples of Q1 and Q2 Personnel and Overtime (OT) expenses that will not continue throughout the year and has updated the projection of personnel J
estin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 22
Fi nance and Management Committee
May 27, 2025
and OT costs accordingly. These adjustments include personnel costs initially expensed to Fund 1010 to be being cost shifted to Measure Z, as well as elevated levels of OT incurred in July to backfill staff support for training the most recent Academy cadre. Given that another academy will not be held in FY 25, this specific OT support will not occur. On the revenue/reimbursement side, approximately $1.2M in known reimbursements for CalOES deployments that occurred through January 2025 were requested for reimbursement by the end of Q3, including support for the Eaton Fire in Pasadena.
The other major anticipated impact to department OT costs through the end of FY 25 is the application of the contingency budget measures, most notably the browning out of Stations 25 and 28, which took effect in early January 2025. The closing of each station equates to a projected savings of approximately $2.5M per station for the period of January through June 2025. Daily fire station staffing levels have been reduced from 137 to 129 and the reallocation of those staff into open shift slots at other stations across the city eliminates 1/3 of average daily overtime shifts. While the brownouts project to reduce a net $5.0M in personnel savings, OT costs related to backfilling vacancies have risen due to retirements since the beginning of the fiscal year. These personnel cost revisions all add up to a reduction of projected year end OT expenses of $7.9M and total reduction of $5.8M in projected Fire personnel expenses compared to Q1. The revised FY 2025 projected year-end total Fire personnel cost to the GPF of $163.74 is nearly $2.7M under FY 2024 actuals.
If Station 25 and 28 are able to reopen, along with the newly renovated Station 10, it is estimated to require an additional $2.0M in budget support to staff those stations beginning with a targeted start date of May 18th through the remainder of the fiscal year.
A historical analysis of Fire’s Personnel budget is shown in Table 11 below.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 23
Finance and Management Committee
May 27, 2025
Table 11: Year-Over-Year Comparison of Public Safety GPF Personnel Expenditures ($ in millions)
Police Department
Overtime (OT) FY 2020-21 FY 2021-22 FY2022-23 FY2023-24 FY2024-25 Adjusted Budget 15.39 33.36 30.90 24.19 42.85
Actuals (FY25 Proj) 29.18 34.35 51.16 55.24 47.19
(Over)/Under (13.79) (0.99) (20.26) (31.05) (4.34)
All Other Personnel (non-OT) FY 2020-21 FY 2021-22 FY2022-23 FY2023-24 FY2024-25 Adjusted Budget 239.29 245.01 252.38 262.50 226.07
Actuals (FY25 Proj) 244.23 234.29 182.02 253.22 245.28 (Over)/Under (4.94) 10.71 70.36 9.29 (19.20)
Total Personnel FY 2020-21 FY 2021-22 FY2022-23 FY2023-24 FY2024-25 Adjusted Budget 254.68 278.37 283.28 286.69 268.93
Actuals (FY25 Proj) 273.41 264.27 233.18 308.45 292.47 (Over)/Under (18.73) 14.09 51.57 (21.76) (23.54)
Fire Department
Overtime (OT) FY 2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 Adjusted Budget 4.22 19.83 11.19 13.80 10.66
Actuals (FY25 Proj) 24.22 29.83 29.96 29.24 27.07
(Over)/Under (20.00) (10.00) (18.77) (15.43) (16.41)
All Other Personnel (non-OT) FY 2020-21 FY 2021-22 FY2022-23 FY2023-24 FY2024-25 Adjusted Budget 144.73 132.44 143.28 163.79 126.65
Actuals (FY25 Proj) 126.99 119.50 129.85 137.19 136.67 (Over)/Under 17.74 12.94 13.44 26.59 (10.02)
Total Personnel FY 2020-21 FY 2021-22 FY2022-23 FY2023-24 FY2024-25 Adjusted Budget 148.95 152.27 154.47 177.59 137.31
Actuals (FY25 Proj) 151.21 149.33 159.80 166.43 163.74 (Over)/Under (2.26) 2.94 (5.33) 11.16 (26.43)
Historical Police Overtime
As Table 11 above shows, Police has overspent its overtime budget on each of the prior 4 years shown. In FY 2020-21, Police's total overtime overspending amounted to being $13.79 million over their budget, in FY 2021-22 it was $0.99 million over budget, in FY 2022-23 it was $20.26 million over budget, and in FY2023-24 it was $31.05 million over budget. FY 2021-22 overspent in overtime by $0.99 million but there was a savings of $14.09 million in personnel costs overall
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 24
Finance and Management Committee
May 27, 2025
and FY 2022-23 overspent in overtime by $20.26 million but there was a savings of $51.57 million in personnel costs overall since higher attrition rates led to salary savings due to vacancies. The savings were despite the rising salary and benefit costs from the City's contract- mandated COLA increase to Sworn employees. In FY 2024-25, Police projects to overspend its Personnel budget by $35.11 million at year end due to overspending in Overtime in the amount of $12.38 million and Personnel in the amount of $22.73 million.
In FY 2020-21, the Police spent $11.90 million in Special Enforcement overtime, which accounted for 40.8% of the total overtime for that year. Of this amount $11.90 million, police coverage of demonstrations and protests accounted for $2.3 million, sideshows enforcement accounted for $1.4 million. To meet the FY 2020-21 midyear reductions, the Police Department began to curtail its Special Enforcement overtime in January of 2021, which dropped to $11.9 million for FY 2020-21.
In FY 2021-22 the Police spent $15.36 million in Special Enforcement overtime, which accounted for 44.7% of the total overtime for that year. Of this $15.36 million, sideshows enforcement accounted for $2.2 million. In addition, OPD spent $2.5 million on Backfill and $2.0 million on Extension of Shift overtime for Uptown Violence in response to several tragic shootings and homicides in the downtown area, entertainment and club scenes, and residential areas adjacent to these areas.
In FY 2022-23 the Police spent a total of $51.16 million in overtime. Police spent $10.13 million in Special Enforcement overtime, which accounted for 19.8% of the total overtime and spent $9.01 million in Area 1 which accounted for 17.6% of the total overtime for that year. Special enforcement overtime, which involves special events requiring sworn officers to assist with public safety. Although the SOD spent $10.13 million in overtime, the Department received $4.9 million in reimbursable overtime.
In FY 2023-24 the Police spent $11.27 million in Special Enforcement overtime, which accounted for 20.4% of the total overtime for that year and spent $5.83 million in Area 1 and $3.98 million in Area 3. The SOD exceeded its overtime budget due to numerous special events requiring operational staff to work overtime. In addition, the Air Unit within the SOD operated nearly seven days a week despite only having six members, one member was on long-term modified work duty and unable to pilot, this lead to overtime in order to meet the operational demands.
A significant portion of Police's personnel policies are mandated from the Negotiated Settlement Agreement (NSA), which therefore also impacts the Police Department's overtime use. Of pertinence, two of NSA mandates on Police have particular impact on patrol overtime. The first is that a patrol sergeant may not supervise more than eight officers. The second is that Police cannot use acting sergeants in patrol. Taken together, a significant amount of overtime is generated because Police must have five regular permanent (not temporary acting) sergeants in patrol for every shift to supervise the minimum of 35 officers. The NSA requires the City to therefore expend a portion of its overtime for "backfill" and "extension of shift" overtime to meet this mandate.
Please refer to the Police Department's Q3 Overtime Report for additional details.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report – Attachment A
Date: May 27, 2025 Page 25
Finance and Management Committee
May 27, 2025
Historical Fire Overtime
Overtime expenses above budgeted levels is an annual challenge for Fire due to systemic causes. As shown in Table 11 above, Fire's overtime exceeded its budgeted amount $20.00 million in FY 2020-21, $10.00 million in FY 2021-22, $18.77 million in FY 2022-23, and $15.43 million in FY 2023-24.
The Fire Department’s overtime use is due to three main causes: unfilled vacant positions, compliance requirements within the Local 55 MOU for minimum staffing provisions, and significant numbers of personnel out on long-term disability leave (work related injuries) all requiring overtime shifts to cover these leaves or vacancies. Due to the Local 55 MOU, most of Fire's overtime is used to backfill required Fire Suppression minimum service levels. Since FY 2020-21, the COVID-19 pandemic related illnesses and quarantine regulations have resulted in elevated levels of overtime. Another contributing factor to Fire's higher use of overtime in recent years is a higher level of sworn staff out on paid disability leave, which has forced the department to utilize overtime to backfill. Fire HR/Personnel Team was worked hard to support staff out of leave to help then return to work, and in past year has brought down the number on extended leave from 61 to 27.
In addition, staffing academies requires the department to pull personnel from their regularly scheduled shifts in the fire house to serve as instructors in the academy cadre, and thereby creating vacancies in the fire house which must be filled at the overtime rate. This affects any season in which the department is actively training an academy.
This overtime overspending has traditionally been offset with savings in all other personnel (non-OT) pay due to the volume of vacancies throughout the year. The non-OT savings in FY2023-24 of $26.59 million resulted in a net underspend of overall GPF funded personnel in the amount of $11.16 million.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 26
Finance and Management Committee
May 27, 2025
III. GENERAL PURPOSE FUND - FUND BALANCE
The City's GPF Fund Balance, net obligations and adjustments, is projected to end FY 2024-25 at negative $61.46 million. Obligations may include reserves required by City Ordinances or the City Charter (mandated emergency reserves). Table 12 below adds to the projected ending fund balance return of excess fund balance from the Equipment Fund (4100) totaling $8.32 million, deducts restricted set-asides for legal settlements in the amount of $3.47 million, and deducts the use of fund balance for opioids in the upcoming biennial budget in the amount of $1.13 million, combining to improve the estimated FY 2024-25 year-end available fund balance from negative $61.46 million to negative $57.75 million. The estimated FY 2024-25 available Fund Balance is the amount of unobligated funding available to the City in the GPF.
Table 12: FY 2024-25 Year-End Available GPF Fund Balance GENERAL PURPOSE FUND (1010) FY 2024-25 Q3 Year-
End Estimate
Beginning Fund Balance - Audited (6.83)
Revenue 756.19
Expenditures 810.83
Estimated Current Year Surplus/(Shortfall) (54.64)
Estimated Ending Fund Balance (61.46)
Use of Fund Balance in FY 2024-25
Return of Excess Fund Balance in Equipment Fund 8.32
Legal Settlements (3.47)
Opioid Programming in FY25-27 Proposed Budget (1.13)
Estimated Ending Fund Balance (57.75)
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 27
Finance and Management Committee
May 27, 2025
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 budgeted at 7.5% of the FY 2022-23 GPF Adopted Budget of $872.07 million. As of June 30, 2024, the balance in this reserve was $70.16 million, or approximately 8.1% of the FY 2023-24 GPF Adopted Budget of $863.68 million. The reserve is approximate to one month of FY 2023-24 Adopted Budget in the GPF. This reserve will be held in Fund 1011 as directed by Council in Resolution 88717 C.M.S. The reserve requirement, pursuant to the CFP has been met.
However, the emergency reserve policy level of 7.5% is inadequate to sustain city services in an economic downturn as evidenced by the events of the last 2 years. The recommended policy level is 16.7% or two months of operating expenditures. This recommended level is supported by best practices outlined by the Government Finance Officer's Association's (GFOA).
Vital Services Stabilization Fund
The Vital Services Stabilization Fund (VSSF) was established in 2014 by City Council after the Great Recession to serve as the City's "Rainy Day" fund. Per the Consolidated Fiscal Policy, 25% of excess RETT revenue is intended to go into the VSSF. The FY 2022-23 ending available balance of $10.27 million was assumed in its entirety in the FY 2024-25 Adopted Budget to balance expenditures as City Council declared that the City is experiencing a severe financial event and state of extreme fiscal necessity. The target funding level per the City's Consolidated Fiscal Policy is $125.22 million, or 15% of the GPF revenues.
Table 13 below shows the estimated FY 2024-25 year end reserve balances.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 28
Finance and Management Committee
May 27, 2025
Table 13: FY 2024-25 Q3 Reserve Balances ($ in millions) Description
FY 2023-24
Beginning
Balances
FYE
Estimated
2023-24
Balances
Mandated Emergency Reserves FY 2022-23* 66.63 70.16
Vital Services Stabilization Fund 10.27 —
OMERS Reserves (Reso. No. 85098 C.M.S) 2.36 2.36
GPF Balancing (9.62)
Total Reserves 79.26 62.90
*The 7.5% GPF reserve is not a cumulative balance
V. SELECTED Q3 NON-GPF
This section of the FY 2024-25 Q3 report contains additional analysis on selected non-GPF funds. For additional fund descriptions, please visit
https://stories.opengov.com/oaklandca/published/_dhbklVRjPB.This 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 2024-25 Adopted Budget to FY 2024-25 year-end estimates.
The fund balance tables compare the FY 2024-25 unaudited beginning fund balance to the FY 2024-25 projected ending fund balance for these funds. Please note that some of the fund tables below show a budgeted transfer from fund balance for FY 2024-25. These amounts represent dollars designated to balance the Adopted Budget or to cover carry forward expenditures.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 29
Finance and Management Committee
May 27, 2025
Measure HH - Sugar Sweetened Beverage Distribution Tax (SSBT) Fund (1030)
Measure HH - SSBT Fund (1030) is a City of Oakland ballot initiative approved by voters on November 8, 2016, that established a general tax of one cent per fluid ounce on the sugar sweetened beverage products. The tax is imposed upon the first non-exempt distribution of sugar-sweetened beverage products in the City. While this revenue is not restricted by State statute, City Council has elected to restrict it by policy and separate it into its own fund because the primary purpose of the tax is to raise revenue to support programs designed to discourage sugar consumption and to reduce the growing burden of obesity and non-communicable diseases.
The measure formed a nine-member Community Advisory Board, appointed by the Mayor, and approved by City Council. The Board is responsible for:
1. Making recommendations to City Council on use of funding/programs that will reduce the health consequences from consuming sugar-sweetened beverages (final allocations are still determined by City Council).
2. Publishing an annual report regarding the implementation of the Board's recommendations and the impact on the use of these funds.
Revenues - In the Third quarter (Q3) of FY 2024-25, collections from Measure HH came in at $4.28 million, which is 29.7% of the adjusted budget of $14.39 million, and now project to end the year at $6.87 million, which is $7.52 million or 52.3% under the Adjusted Budget. The adjusted budget includes $6.09 million in use of fund balance to cover carryforwards from FY 2023-24 and $1.41 million in use of fund balance to cover expenditures as adopted in the budget. Excluding the use of the fund balance, the projected revenue from Measure HH for the year based on Q3 trends is expected to be $6.55 million which is $0.34 million or 4.9% under budget. Collections of the SSBT to date are 4% lower when compared to the same period in FY 2023-24 which ended the year at $6.68 million.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 30
Finance and Management Committee
May 27, 2025
Table 14: FY 2024-25 Measure HH (SSBT) Fund Revenues ($ in millions) Revenue
Category
FY 2024-25
Adjusted Budget
FY 2024-25 Q3
YTD Actuals
FY 2024-25 Q3
Year-End
Estimate
Year-End $ Over
/ Under Adjusted
Budget
Year-End % Over
/ Under Adjusted
Budget
Local Tax 6.90 3.96 6.55 (0.34) (4.9) %
Interest Income — 0.33 0.33 0.33 — %
Miscellaneous
Revenue — (0.01) (0.01) (0.01) — %
Transfers from
Fund Balance 1.41 — — (1.41) (100.0) %
Project Offsets
& Carryforwards 6.09 — — (6.09) (100.0) %
Total Revenue 14.39 4.28 6.87 (7.52) (52.3) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2024-25 year-end expenditures are projected to come in at $12.15 million, which is a savings of $2.24 million, compared to the Adjusted Budget of $14.39 million. The savings are primarily due to underspending in personnel costs.
Table 15: FY 2024-25 Measure HH (SSBT) Fund Expenditures ($ in millions) Agency / Department
FY 2024-25
Adjusted
Budget
FY 2024-25 Q3
YTD Actuals
FY 2024-25 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 1.94 — 1.94 — — %
City Administrator 3.30 1.15 3.44 (0.14) (4.3) % Economic and Workforce
Development Department 0.59 0.37 0.55 0.03 5.2 % Finance Department 0.37 0.05 0.35 0.02 6.2 %
Human Services
Department 2.51 0.47 1.58 0.93 37.0 %
Oakland Parks and
Recreation Department 5.63 2.62 4.21 1.41 25.1 % Oakland Public Library
Department 0.04 — 0.04 — — %
Oakland Public Works
Department 0.03 0.01 0.04 (0.01) (56.0) %
Total 14.39 4.67 12.15 2.24 15.6 %
*The adjusted budget includes Council Budget Amendments and Carryforwards Fund Balance - FY 2024-25 revenue is projected to end the year at $6.87 million. Expenditures are projected to end the year at $12.15 million. This results in a current year estimated operating shortfall of $5.28 million. $2.55 million of the fund balance will be used to balance the GPF in FY 2024-25. Therefore, the estimated available fund balance in Measure HH (SSBT) Fund (1030) is expected to decrease from $11.65 million to $3.82 million.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 31
Finance and Management Committee
May 27, 2025
Table 16: FY 2024-25 Measure HH (SSBT) Fund Year-End Available Fund Balance ($ in millions)
MEASURE HH SSBT (1030) FY 2024-25 Q3
Year-End Estimate
Beginning Fund Balance - Audited $ 11.65
Revenue 6.87
Expenditures 12.15
Estimated Current Year Surplus/(Shortfall) (5.28)
Estimated Ending Fund Balance 6.37
Use of Fund Balance in FY 2024-25
GPF Balancing (2.55)
Estimated Ending Fund Balance 3.82
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 32
Finance and Management Committee
May 27, 2025
Self-Insurance Liability Fund (1100)
The Self-Insurance Liability Fund (1100) receives contributions from the General Purpose Fund and select funds to cover costs associated with liability claims and settlements, insurance premiums, outside legal services, and court costs. Projecting these costs, particularly the settlements, are difficult as they are driven by being sued sporadically and with varying settlement values. Additionally, Insurance costs continue to increase over time due to market factors within the national insurance environment. Fixes will be in arrears as the negative balances must be trued up.
Revenues - Through the Third quarter (Q3) of FY 2024-25, collections from the Self-Insurance Liability Fund have come in at $65.50 million, and are projected to come in at $63.75 million, which is $2.25 million or 3.6% over the Adjusted Budget of $61.50 million driven by miscellaneous revenue not anticipated in the budget. Per Resolution 90655, contributions from interfund transfers coming out of the GPF will be reduced by $1.75 million due to fewer liability case expenditures.
Table 17: FY 2024-25 Self-Insurance Liability Fund Revenues ($ in millions) Revenue
Category
FY 2024-25
Adjusted
Budget
FY 2024-25 Q3
YTD Actuals
FY 2024-25 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Interest Income — 0.27 0.27 0.27 — %
Miscellaneous
Revenue — 3.73 3.73 3.73 — %
Interfund
Transfers
61.50 61.50 59.75 (1.75) (2.8)%
Total Revenue 61.50 65.50 63.75 2.25 3.6%
Expenditures - FY 2024-25 year-end expenditures are projected to come in at $62.23 million, which is an overage of $0.73 million, compared to the Adjusted Budget of $61.50 million.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 33
Finance and Management Committee
May 27, 2025
Table 18: FY 2024-25 Self-Insurance Liability Fund Expenditures ($ in millions) Agency /
Department
FY 2024-25
Adjusted
Budget
FY 2024-25 Q3
YTD Actuals
FY 2024-25 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
City Attorney 2.46 1.86 2.46 — — %
Fire Department 2.28 0.05 2.28 — — %
Non
Departmental
and Port 45.94 45.70 46.67 (0.73) (1.6) %
Oakland Parks
and Recreation
Department 0.63 — 0.63 — — %
Oakland Public
Works
Department 2.94 0.08 2.94 — — %
Police
Department 7.25 0.91 7.25 — — %
Total
Expenditures 61.50 48.60 62.23 (0.73) (1.2) %
Fund Balance - FY 2024-25 revenue is projected to end the year at $63.75 million. Expenditures are projected to end the year at $62.23 million. This results in a current year estimated operating surplus of $1.52 million. $14.85 million of the fund balance will be used to balance the GPF in FY 2024-25, and $8.23 million of excess fund balance to return to various contributing funds.
Therefore, the estimated available fund balance in the Self-Insurance Fund (1100) is projected to decrease from $23.10 million to $1.54 million.
Table 19: FY 2024-25 Self-Insurance Liability Fund Year-End Available Fund Balance ($ in millions)
SELF-INSURANCE LIABILITY FUND (1100) FY 2024-25 Q3
Year-End Estimate
Beginning Fund Balance - Audited $ 23.10
Revenue 63.75
Expenditures 62.23
Estimated Current Year Surplus/(Shortfall) 1.52
Subtotal Fund Balance 24.62
Use of Fund Balance in FY 2024-25
GPF Balancing (14.85)
Excess FB Return (8.23)
Estimated Ending Fund Balance 1.54
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 34
Finance and Management Committee
May 27, 2025
Affordable Housing Trust Fund (1870)
The Affordable Housing Trust Fund's (1870) main revenue is redevelopment dissolution funds from the County's Real Property Tax Trust Fund (RPTTF). RPTTF is an unrestricted property tax revenue source collected by the County; however, City Council has chosen to restrict 25% of its value for uses related to affordable housing. Fund 1870 revenues are then provided as loans and grants for the development of rental and owner-occupied affordable housing within the City.
Revenues - Through the Third quarter (Q3) of FY 2024-25, collections from the Affordable Housing Trust Fund have come in at $8.25 million which is 19.5% of the Adjusted Budget and are projected to come in at $17.61 million, which is $24.75 million or 58.4% lower than the Adjusted Budget of $42.36 million. The Adjusted Budget assumes the use of $25.71 million in fund balance to support expenditure carryforwards and $0.82 million to balance expenditures as adopted in the budget. Excluding the use of the fund balance, the projected revenue for the year is expected to be $17.61 million which is $1.78 million or 11.2% over budget due primarily to an increase in assessed value of taxable property in the City leading to slightly higher than expected corresponding property tax collections.
Table 20: FY 2024-25 Affordable Housing Trust Fund Revenues ($ in millions) Revenue
Category
FY 2024-25
Adjusted
Budget
FY 2024-25 Q3
YTD Actuals
FY 2024-25 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Property Tax 15.83 6.80 16.17 0.33 2.1 %
Interest Income — 0.86 0.86 0.86 — %
Service
Charges — 0.61 0.61 0.61 — %
Miscellaneous
Revenue — (0.02) (0.02) (0.02) — %
Transfers from
Fund Balance 0.82 — — (0.82) (100.0) %
Project Offsets
& Carryforwards 25.71 — — (25.71) (100.0) %
Total Revenue 42.36 8.25 17.61 (24.75) (58.4) %
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 35
Finance and Management Committee
May 27, 2025
Expenditures - FY 2024-25 year-end expenditures are projected to come in at $37.22 million, which is an underspend of $5.14 million, when compared to the Adjusted Budget of $42.36 million.
Table 21: FY 2024-25 Affordable Housing Trust Fund Expenditures ($ in millions) Agency /
Department
FY 2024-25
Adjusted
Budget
FY 2024-25 Q3
YTD Actuals
FY 2024-25 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
City
Administrator 0.56 0.44 0.59 (0.03) (5.9) %
City Attorney 0.21 0.16 0.22 — (1.3) %
City Auditor 0.04 — — 0.04 95.2 %
Economic and
Workforce
Development
Department 0.59 0.20 0.27 0.32 54.5 %
Finance
Department 0.28 0.22 0.29 (0.01) (3.4) %
Housing and
Community
Development
Department
40.46 25.04 35.74 4.72 11.7 %
Human
Services
Department 0.12 0.01 0.01 0.10 87.4 %
Non
Departmental
and Port — — (0.01) 0.01 — %
Total
Expenditures 42.36 26.07 37.22 5.14 12.1 %
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 36
Finance and Management Committee
May 27, 2025
Fund Balance - FY 2024-25 revenue is projected to end the year at $17.61 million. Expenditures are projected to end the year at $37.22 million. This results in a current year estimated operating shortfall of $19.61 million. $5.78 million of the fund balance will be used to balance the GPF in FY 2024-25. There is a $0.01 million return of excess fund balance from the Equipment Fund (4100).
Also, there is a $14.68 million transfer to the Jobs Housing Impact Fee Fund (1871) and the Affordable Housing Impact Fee Fund (1872). Therefore, the estimated available fund balance in the Affordable Housing Trust Fund is expected to decrease from $37.49 million to negative $2.57 million in FY 2024-25.
Table 22: FY 2024-25 Affordable Housing Trust Fund Year-End Available Fund Balance ($ in millions)
AFFORDABLE HOUSING TRUST FUND (1870) FY 2024-25 Q3
Year-End Estimate
Beginning Fund Balance - Audited $ 37.49
Revenue 17.61
Expenditures 37.22
Estimated Current Year Surplus/(Shortfall) (19.61)
Subtotal Fund Balance 17.88
Use of Fund Balance in FY 2024-25
GPF Balancing (5.78)
Return of Excess Fund Balance in Equipment Fund 0.01
Impact Fee Fund Transfer (14.68)
Estimated Ending Fund Balance (2.57)
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 37
Finance and Management Committee
May 27, 2025
Measures BB & F Funds (2215, 2217, 2218, 2219, 2220)
Measure BB and F Funds are administered by the Alameda County Transportation Commission (ACTC) which manages the following local fund sources:
1. Measure BB, passed by voters in November 2014, authorized collection of the initial half-cent transportation sales tax by the Board of Equalization. Collection began on April 1, 2015 and extended through March 31, 2022 as a compliment to Measure B which sunset in March 2022. The full one-cent sales tax authorized by Measure BB took effect April 1, 2022 and will extend through March 31, 2045. Starting in July 2015, Alameda CTC began making monthly direct local distribution payments to local jurisdictions and transit agencies, per the 2014 Transportation Expenditure Plan, for the following programs: local streets and roads (including county bridges), bicycle and pedestrian, transit, and paratransit.
2. Measure F, approved by voters in November 2010, authorizes the collection of $10 per year per vehicle registration fee to fund the Local Road Improvement & Repair Program and other congestion relief, transportation technology, and pedestrian/bicyclist safety programs in Alameda County.
Revenues - In the Third quarter (Q3) of FY 2024-25, collections from Measure BB came in at $22.60 million, which is 24.2% of the Adjusted Budget of $93.43 million. The Sales tax collected for these funds is administered through the County and are submitted to the City in tranches.
Therefore, the Q3 trends may not be a linear representation of yearly revenues. Projected year- end revenues are $37.47 million, which is $55.95 million or 59.9% under the Adjusted Budget.
The Adjusted Budget for FY 2024-25 includes $16.16 million in use of fund balance to balance expenditures adopted in the budget and an extra $39.57 million from the fund balance to cover carry forwards from the previous fiscal year. Net of use of fund balance, Sales Tax from Measure BB are expected to be $34.20 million, which is $1.68 million or 4.7% under the Adjusted Budget, according to the most recent estimates from the Alameda County Transportation Commission (ACTC) as of December 2024.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 38
Finance and Management Committee
May 27, 2025
Table 23: FY 2024-25 Measure BB & F Fund Revenues ($ in millions) Revenue Category
FY 2024-25
Adjusted
Budget
FY 2024-25
Q3 YTD
Actuals
FY 2024-25
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Sales Tax 35.88 20.04 34.20 (1.68) (4.7) %
Interest Income — 1.54 1.54 1.54 — %
Service Charges — 0.09 0.09 0.09 — %
Grants & Subsidies 1.81 — — (1.81) (100.0) %
Miscellaneous Revenue — 0.92 1.64 1.64 — %
Transfers from Fund
Balance 16.16 — — (16.16) (100.0) %
Project Offsets &
Carryforwards 39.57 — — (39.57) (100.0) %
Total Revenue 93.43 22.60 37.47 (55.95) (59.9) % *The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2024-25 year-end expenditures are projected to come in at $80.17 million, which is a savings of $9.76 million, compared to the Adjusted Budget of $89.93 million. The savings is primarily due to underspending in personnel costs.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 39
Finance and Management Committee
May 27, 2025
Table 24: FY 2024-25 Measure BB/F Funds Expenditures ($ in millions) Agency / Department
FY 2024-25
Adjusted
Budget
FY 2024-25
Q3 YTD
Actuals
FY 2024-25
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 35.94 3.38 36.07 (0.13) (0.4) %
City Administrator 0.41 0.18 0.23 0.18 42.8 %
City Attorney 0.05 0.02 0.03 0.02 45.7 %
Department of
Transportation 43.15 20.50 34.62 8.53 19.8 %
Finance Department 0.01 — 0.01 — — %
Human Resources
Management
Department — — — — — %
Human Services
Department 6.96 1.89 6.37 0.59 8.5 %
Information Technology
Department — — — — — %
Mayor — — — — — %
Non Departmental and
Port 0.17 — 0.15 0.02 11.7 %
Oakland Public Works
Department 2.96 1.61 2.38 0.57 19.4 %
Police Department — 0.01 0.01 (0.01) 469.6 %
Total Expenditures 89.93 27.59 80.17 9.76 10.9 % *The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2024-25 revenue is projected to end the year at $37.47 million. Expenditures are projected to end the year at $80.17 million. This results in a current year estimated operating shortfall of $42.70 million, decreasing the estimated available fund balance in the Measure BB/F Funds from $57.73 million to $15.03 million in FY 2024-25.
Table 25: FY 2024-25 Measure BB/F Funds Year-End Available Fund Balance ($ in millions)
Measure B/BB and Measure F Funds (2211, 2212, 2213, 2215, 2216, 2217, 2218, 2219, 2220)
FY 2024-25 Q3 Year-
End Estimate
Beginning Fund Balance - Audited $ 57.73
Revenue 37.47
Expenditures 80.17
Estimated Current Year Surplus/(Shortfall) (42.70)
Estimated Ending Fund Balance 15.03
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 40
Finance and Management Committee
May 27, 2025
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 - In the Third quarter (Q3) of FY 2024-25, revenue collections in the Gas Tax funds came in at $16.58 million, which is 60.6% of the FY 2024-25 Adjusted Budget of $27.35 million.
Year-end revenues project to come in at $26.41million, which is $0.94 million or 3.4% under the Adjusted Budget. The Adjusted Budget assumes $1.87 million in use of fund balance to balance the expenditures as adopted in the budget and $2.54 million in use of fund balance to support FY 2023-24 carryforwards. The actual Gas Tax projects to come in at $22.93 million which is $0.14 million or 0.6% above the Adjusted Budget estimate. The new projection is taken from the estimates for FY 2024-25 provided by the State of California, for the State revenue allocations to cities and counties for the Highway Users Tax Account (HUTA), and for the Road Maintenance and Rehabilitation Account (RMRA). Estimates are as of January 2025.
Table 26: FY 2024-25 State Transportation Gas Tax Fund Revenues ($ in millions) Revenue
Category
FY 2024-25
Adjusted
Budget
FY 2024-25 Q3
YTD Actuals
FY 2024-25 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Gas Tax 22.79 13.25 22.93 0.14 0.6 %
Interest Income — 0.37 0.37 0.37 — %
Service
Charges 0.01 — 0.01 — — %
Grants &
Subsidies 0.14 — 0.14 — — %
Miscellaneous
Revenue — 2.97 2.97 2.97 181366.5 %
Transfers from
Fund Balance 1.87 — — (1.87) (100.0) %
Project Offsets
& Carryforwards 2.54 — — (2.54) (100.0) %
Total Revenue 27.35 16.58 26.41 (0.94) (3.4) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2024-25 year-end expenditures are projected to come in at $19.05 million, which is a savings of $8.30 million, compared to the Adjusted Budget of $27.35 million. The savings is primarily due to underspending in personnel costs.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 41
Finance and Management Committee
May 27, 2025
Table 27: FY 2024-25 State Transportation Funds Gas Tax Expenditures ($ in millions) Agency / Department
FY 2024-25
Adjusted
Budget
FY 2024-25
Q3 YTD
Actuals
FY 2024-25
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 1.28 0.18 1.28 — — %
City Administrator 0.19 0.06 0.14 0.05 27.6 %
Department of
Transportation 25.77 15.20 17.61 6.16 23.9 %
Economic and
Workforce
Development
Department — — — — — %
Finance Department 0.10 0.01 0.01 0.09 86.9 %
Human Resources
Management
Department — — — — — %
Oakland Public Works
Department — — — — — %
Total Expenditures 27.35 15.46 19.05 8.30 30.3 % *The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2024-25 revenue is projected to end the year at $26.41 million. Expenditures are projected to end the year at $19.05 million. This results in a current year estimated operating surplus of $6.36 million, increasing the estimated available fund balance in the State Transportation Gas Tax Funds from $11.84 million to $18.20 million in FY 2024-25.
Table 28: FY 2024-25 State Transportation Funds Year-End Available Fund Balance ($ in millions)
State Transportation (Gas Tax) Funds (2230, 2232) FY 2024-25 Q3 Year- End Estimate
Beginning Fund Balance - Audited $ 11.84
Revenue 26.41
Expenditures 19.05
Estimated Current Year Surplus/(Shortfall) 6.36
Estimated Ending Fund Balance 18.20
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 42
Finance and Management Committee
May 27, 2025
Measure Q - Oakland Parks and Recreation Preservation, Litter Reduction, and 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 - In the Third quarter (Q3) of FY 2024-25, revenue collections in the Measure Q fund have come in at $21.00 million which is 36.5% of the Adjusted Budget of $57.59 million. Local Measure revenues are administered by the County, and they are remitted in tranches.
Therefore, the Q3 trends may not be a linear representation of yearly revenues Year-end revenues project to come in at $33.67 million, which is $23.92 million or 41.5% under the Adjusted Budget. The Adjusted Budget assumes $13.78 million in use of fund balance to balance expenditures as adopted in the budget and $10.81 million to support carryforward expenditures. The actual Measure Q Tax, net of use of fund balance, projects to come in at $33.01 million which is at budget.
Table 29: FY 2024-25 Preservation, Litter Reduction, Homelessness Support Act Fund Revenues ($ in millions)
Revenue
Category
FY 2024-25
Adjusted
Budget
FY 2024-25 Q3
YTD Actuals
FY 2024-25 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Local Tax 33.01 20.34 33.01 — — %
Interest Income — 0.68 0.68 0.68 — %
Miscellaneous
Revenue — (0.02) (0.02) (0.02) — %
Transfers from
Fund Balance 13.78 — — (13.78) (100.0) %
Project Offsets
& Carryforwards 10.81 — — (10.81) (100.0) %
Total Revenue 57.59 21.00 33.67 (23.92) (41.5) % *The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2024-25 year-end expenditures are projected to come in at $58.90 million, which is an overage of $0.1.31 million, compared to the Adjusted Budget of $57.59 million.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 43
Finance and Management Committee
May 27, 2025
Table 30: FY 2024-25 Measure Q - OPR Preservation, Litter Reduction, Homelessness Support Act Fund Expenditures ($ in millions)
Agency / Department
FY 2024-25
Adjusted
Budget
FY 2024-25
Q3 YTD
Actuals
FY 2024-25
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 4.93 0.40 4.93 — — %
City Administrator 4.67 1.78 4.52 0.15 3.2 %
City Auditor 0.04 — — 0.04 95.2 %
Economic and
Workforce
Development
Department 0.11 0.03 0.04 0.08 67.4 %
Finance Department 0.08 0.01 0.08 — — %
Human Services
Department 12.45 5.85 12.40 0.05 0.1 %
Non Departmental and
Port 1.29 0.28 1.29 — — %
Oakland Parks and
Recreation Department 0.13 — 0.13 — — %
Oakland Public Works
Department 33.89 17.61 35.52 (1.63) (4.8) %
Total Expenditures 57.59 25.96 58.90 (1.31) (2.3) % *The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2024-25 revenue is projected to end the year at $33.67 million.
Expenditures are projected to end the year at $58.90 million. This results in a current year estimated operating shortfall of $25.23 million, decreasing the estimated available fund balance in Measure Q Fund (2244) from $26.55 million into $1.32 million in FY 2024-25.
Table 31: FY 2024-25 Measure Q Year-End Fund Balance ($ in millions) MEASURE Q (2244) FY 2024-25 Q3 Year-
End Estimate
Beginning Fund Balance - Audited 26.55
Revenue 33.67
Expenditures 58.90
Estimated Current Year Surplus/(Shortfall) (25.23)
Estimated Ending Fund Balance 1.32
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 44
Finance and Management Committee
May 27, 2025
Landscaping and Lighting Assessment District (LLAD) Fund (2310)
The Landscaping and Lighting Assessment District (LLAD) Fund (2310) revenue is generated through a direct benefit assessment, or special assessment and is restricted by statue to be used for street lighting, landscaping, and public parks and recreation facility maintenance, and multi-use fields.
Revenues - In the Third quarter (Q3) of FY 2024-25, revenue collections in the LLAD fund have come in at $12.03 million which is 60.2% of the Adjusted Budget of $19.98 million. The FY 2024- 25 year-end revenues project to come in at $19.33 million, which is $0.65 million or 3.2% under the FY 2024-25 Adjusted Budget of $19.98 million. The Adjusted Budget assumes $0.22 million in use of fund balance to support carryforward expenditures. The actual LLAD Tax projects to come at $19.47 million which is at budget.
Table 32: FY 2024-25 Landscaping and Lighting Assessment District (LLAD) Fund Revenue ($ in millions)
Revenue
Category
FY 2024-25
Adjusted
Budget
FY 2024-25 Q3
YTD Actuals
FY 2024-25 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Local Tax 19.47 12.43 19.47 — — %
Licenses &
Permits 0.08 0.02 0.08 — — %
Interest Income — (0.14) (0.14) (0.14) — %
Service
Charges 0.21 — 0.21 — — %
Grants &
Subsidies — 0.04 0.04 0.04 — %
Miscellaneous
Revenue — (0.32) (0.32) (0.32) — %
Project Offsets
& Carryforwards 0.22 — — (0.22) (100.0) %
Total Revenue 19.98 12.03 19.33 (0.65) (3.2) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2024-25 year-end expenditures are projected to come in at $20.09 million, which is an overage of $0.11 million, when compared to the Adjusted Budget of $19.98 million.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 45
Finance and Management Committee
May 27, 2025
Table 33: FY 2024-25 Landscaping and Lighting Assessment District (LLAD) Fund Expenditures ($ in millions)
Agency / Department
FY 2024-25
Adjusted
Budget
FY 2024-25
Q3 YTD
Actuals
FY 2024-25
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Department of
Transportation 2.56 2.35 3.32 (0.76) (29.7) %
Finance Department 0.04 0.01 0.04 — — %
Non Departmental and
Port 3.27 1.83 3.27 — — %
Oakland Parks and
Recreation Department 9.87 9.87 9.87 — — %
Oakland Public Works
Department 4.24 4.47 3.59 0.65 15.3 %
Total Expenditures 19.98 18.54 20.09 (0.11) (0.05) % *The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2024-25 revenue is projected to end the year at $19.33 million.
Expenditures projected to end the year at $20.09 million. This results in a current year estimated operating shortfall of $0.76 million. There is a $1.95 million return of excess fund balance from the Equipment Fund (4100). As a result, the estimated available fund balance in the Landscaping and Lighting Assessment District Fund (2310) is projected to increase from negative $0.59 million to $0.66 million in FY 2024-25.
Table 34: FY 2024-25 Landscaping and Lighting Assessment District (LLAD) Fund Balance ($ in millions)
Landscaping & Lighting Assess. District Fund (LLAD) (2310) FY 2024-25 Q3 Year-End Estimate
Beginning Fund Balance - Audited (0.59)
Revenue 19.33
Expenditures 20.09
Estimated Current Year Surplus/(Shortfall) (0.76)
Estimated Ending Fund Balance (1.30)
Use of Fund Balance in FY 2024-25
Excess FB Return 1.95
Estimated Ending Fund Balance 0.66
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 46
Finance and Management Committee
May 27, 2025
LLAD Expenditures and Budget Compliance
Eligible expenditures under the LLAD fund typically include maintenance and operation costs for landscaping, street lighting and park facilities. This encompasses activities such as irrigation, mowing, trimming and lighting maintenance. Additionally, utility services, including the provision of water and electricity necessary for landscaping and lighting systems, are also permissible expenses under this fund, as well as administrative costs related to the administration of the LLAD, including engineering reports.
The current LLAD budget includes expenditures that align with these eligible uses. As noted in Table 35 below, the Finance Department allocation $40,000 annually primarily for engineering services to produce the necessary report for the LLAD, ensuring the district’s compliance with state requirements. Within the Oakland Public Works department, the budget includes funding for 1.99 FTE consisting of managers and administrative support the parks maintenance function, along with internal service fund (ISF) allocations. These ISFs, including city rental costs, support the maintenance of park-related equipment in the City’s fleet like trucks and trailers, and equipment (such as weeders, mowers, chainsaws, etc.) which are essential for park upkeep and other city infrastructure.
The Department of Transportation has an allocation of $2.4 million in its budget for street lighting utilities and supplies. This funding supports the operation and maintenance of street lighting systems within the LLAD.
The Parks and Recreation department’s total budget of $9.8 million for facilities ISF is a key component of the LLAD fund. This facilities ISF allocation covers custodial and facilities maintenance staff, as well as operations and maintenance (O&M) expenses, including utilities and materials to maintain parks and recreation centers. The funding also supports the upkeep of sports fields, and other spaces such as free-standing restrooms throughout the City. These restrooms, located in parks and at ball fields, are considered part of the services eligible under the LLAD. Lastly, the $3.2 million transfer to the Self-Insurance fund helps to cover the costs associated with claims and insurance for city facilities, including parks and recreation spaces.
Overall, these expenditures are fully aligned with the permissible uses of the LLAD fund.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 47
Finance and Management Committee
May 27, 2025
Table 35: FY 2024-25 Landscaping and Lighting Assessment District (LLAD) Fund Midcycle Budget
Department Category Classification
FY24-25
Midcycle
Adopted
Budget
FY 24-25
Adopted
Midcycl
e FTE
Finance Department O&M 38,492
ISF 2,168
Finance Department Total
40,660
Oakland Public Works Department
Personnel
& OH
Administrative Assistant
I.SS102
146,229
1.00 Personnel
& OH
Administrative Services
Manager I.MA103
75,589
0.25 Personnel
& OH
Manager, Park
Services.EM196
311,244
0.74 ISF
3,109,081
O&M
386,919
Oakland Public Works Department
Total
4,029,062
1.99 Department of Transportation ISF
5,165
O&M
171,580
Utilities
2,373,765
Department of Transportation
Total
2,550,510
Oakland Parks and Recreation
Department ISF
9,865,537
Oakland Parks and Recreation
Department Total
9,865,537
Non-Departmental O&M
3,265,529
Non-Departmental
3,265,529
Total
19,751,298
1.99 At the time of this report’s publication, the FY 2025-27 proposed budget increases the number of FTE funded by LLAD to 12.0 FTE in OPW department, including 3.0 FTE Custodian, 5.0 FTE Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 48
Finance and Management Committee
May 27, 2025
Park Attendant, PT, 1.0 FTE Park Supervisor I, 1.0 FTE Park Supervisor II and 1.0 FTE Tree Supervisor I, which will support the maintenance of the City’s green spaces and infrastructure.
INTERNAL SERVICE FUNDS (4xxx)
The use of internal service funds as a component of the City's cost allocation framework is an acceptable practice provided that the City complies with Federal guidelines, Generally Accepted Accounting Principles (GAAP), audit standards, and maintains a positive balance. Per federal cost allocation guidelines and regulations, internal service fund cannot be used for the acquisition of capital assets, nor can the City use them to build significant capital or operating reserve balances.
The Electronic Code of Federal Regulations (eCFR), specifically 2 CFR 200.439, governs Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. These regulations dictate that capital acquisition costs cannot be included as an indirect cost to federal grants. These funds represent a cost allocated charge under these federal regulations. As such, capital acquisitions, such a land acquisition, building improvements that materially increase the building's value or useful life, or vehicle purchases; must be directly funded from eligible sources.
Below are links to regulatory guidelines and audit findings on this matter.
Guidance regarding direct and indirect cost is located here:
https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group- ECFRd93f2a98b1f6455
Specific Guidance for Local Governments is here:
https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group- ECFRd41a10959e1acab
Guidance regarding Capital Acquisitions is here:
§ 200.439 Equipment and other capital expenditures
This City has had past Audit Findings of Material Weakness its use of Internal Service Funds.
The 2009 Single Audit Report notes the following from the City's Independent Financial Auditor.
"If it is determined that the City does not intend to or cannot recover the full cost of providing goods or services within a reasonable period of time, then the use of internal service funds is no longer appropriate under GAAP and should not be used…" This finding relates to accumulated negative fund balances in Internal Services Funds.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 49
Finance and Management Committee
May 27, 2025
The linked negative funds report produced in Fall 2009 indicated that by June 2008, the City had accumulated negative balances in its exceeding $52 million in its Internal Service Funds.
This is especially notable especially given these negative balances existed prior to the Great Recession of 2008 and substantially impaired the City's ability to deal with that fiscal crisis. As of this report, City’s Internal Service Funds are projected to close with a collective positive balance of just over $6 million which reflects the positive diligent work of policymakers, administrators, and finance staff since 2008. The City must maintain compliance with Federal guidelines and fiscal best practices going forward.
Section intentionally left blank
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 50
Finance and Management Committee
May 27, 2025
Equipment Fund (4100)
The Equipment Fund (4100) is reported on a modified full accrual basis to reflect current assets and liabilities. The Fund supports the Citywide function for maintenance of City-owned equipment.
Revenues - In the Third quarter (Q3) of FY 2024-25, revenue collections in the Equipment Fund have come in at $32.46 million or 71.7% of the Adjusted Budget of $45.27 million. The FY 2024- 25 year-end revenues project to come in at $17.53 million, which is $27.73 million or 61.3% under the FY 2024-25 Adjusted Budget. The Adjusted Budget assumes $2.87 million in use of fund balance to balance expenditures as adopted in the budget, and $13.09 million in use of fund balance to balance carryforward expenditures. Net of use of fund balance, the actual internal service fund revenues are expected to come in at $16.97 million. The lower year end projection is because any amount of revenue received in excess of the expenditures incurred during this fiscal year is being returned to the source.
Table 36: FY 2024-25 Equipment Fund Revenues ($ in millions) Revenue Category
FY 2024-25
Adjusted
Budget
FY 2024-25 Q3
YTD Actuals
FY 2024-25 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Licenses & Permits 0.07 — 0.07 — — %
Internal Service
29.23 30.77 16.97 (12.26) (42.0) %
Miscellaneous
— 0.18 0.18 0.18 — %
Transfers from Fund
2.87 — — (2.87) (100.0) %
Project Offsets &
13.09 — — (13.09) (100.0) %
Total Revenue 45.27 32.46 17.53 (27.73) (61.3) %
Expenditures - FY 2024-25 expenditures are projected to end the year at $44.93 million, which is a savings of $0.34 million, compared to the Adjusted Budget of $45.27 million. The savings are primarily due to underspending in personnel costs.
Table 37: FY 2024-25 Equipment Fund Expenditures ($ in millions) Agency /
Department
FY 2024-25
Adjusted
Budget
FY 2024-25 Q3
YTD Actuals
FY 2024-25 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Fire Department 0.05 — 0.05 — — %
Non
2.37 2.32 2.37 — — %
Oakland Public
42.84 25.46 42.50 0.34 0.8 %
Total 45.27 27.78 44.93 0.34 0.7 %
Fund Balance - FY 2024-25 revenue is projected to end the year at $17.53 million. Expenditures Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 51
Finance and Management Committee
May 27, 2025
ended the year at $44.93 million. This results in a current year estimated operating shortfall of $27.40 million. $1.11 million of the fund balance will be used to balance the GPF in FY 2024-25.
A review of the Equipment Fund was conducted for FY 2022, FY 2023, and FY 2024. This reconciliation identified excess fund balance that had been received from contributing funds.
The excess amount will be returned to the respective funds and has been incorporated into the fund balance calculation. Therefore, the estimated available fund balance in the Equipment Fund (4100) is expected to decrease to zero in FY 2024-25. A detailed breakdown of the amounts returned to each fund is provided in Table 39.
Table 38: FY 2024-25 Equipment Fund Year-End Available Fund Balance ($ in millions) Equipment Fund (4100) FY 2024-25 Q3
Year-End Estimate
Beginning Fund Balance - Audited 46.24
Revenue 17.53
Expenditures 44.93
Estimated Current Year Surplus/(Shortfall) (27.40)
Subtotal Fund Balance 18.84
Use of Fund Balance in FY 2024-25
GPF Balancing (1.11)
Return of Excess Fund Balance in Equipment Fund (17.73) Estimated Ending Fund Balance —
Table 39: Fund Balance Return from Equipment Fund
FY21-22 FY22-23 FY23-24
Beginning Fund Balance 9,361,320 25,229,953 27,345,262 Ending Fund Balance 25,229,953 27,345,262 40,361,180 Overage to Redistribute 15,868,633 2,115,309 13,015,918 Less: Restricted Funds (4,424,014) (4,424,014) (4,424,014) Net Overage to Redistribute 11,444,619 (2,308,705) 8,591,904 Fund Balance Redistribution by Fund
1010 - General Fund: General Purpose 5,718,469 (1,128,927) 3,872,173 1710 - Recycling Program 5,317 (1,041) 4,119
1720 - Comprehensive Clean-up 2,555,347 (511,949) 1,683,667 1760 - Telecommunications Reserve 3,278 (647) 2,388 1870 - Affordable Housing Trust Fund 13,806 (2,727) — 2108 - HUD-CDBG — — —
2128 - Department of Health and Human
Services 66,589 (13,227) 3,666
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 52
Finance and Management Committee
May 27, 2025
FY21-22 FY22-23 FY23-24
2211 - Measure B: Local Streets & Roads 2,927 — —
2218 - Measure BB - Local Streets and Roads 9,467 (2,631) 8,964 2230 - State Gas Tax 178,585 (35,258) 119,691
2232 - Gas Tax RMRA 517,589 (155,199) 582,830
2244 - Measure Q - Parks & Recreation
Preservation, Litter Reduction, and
Homelessness Support Act 196,977 (38,134) 261,604
2270 - Vacant Property Tax Act Fund 39,928 — —
2310 - Lighting and Landscape Assessment
District 797,524 (157,229) 1,059,274
2332 - Gateway Industrial Park 87 (87) 830
2411 - False Alarm Reduction Program 2,587 (510) —
2415 - Development Service Fund 143,388 (28,834) 98,515 2416 - Traffic Safety Fund 10,583 (2,089) —
3100 - Sewer Service Fund 774,289 (152,892) 571,286 3200 - Golf Course 2,915 (576) 2,127
4100 - Equipment 126,224 (24,922) 111,387
4200 - Radio / Telecommunications 12,183 (2,405) 12,340 4400 - City Facilities 186,125 (32,986) 140,371
4500 - Central Stores 2,302 (454) 1,677
7760 - Grant Clearing 78,132 (15,978) 54,996
Total 11,444,619 (2,308,705) 8,591,904
Regulatory Compliance and Use of Funds
As stated above, the Equipment Services Fund covers the costs associated with the maintenance, upkeep, and fueling of the City's motorized fleet. This includes staff salaries and benefits, maintenance and fueling equipment, and parts and supplies. However, per federal cost allocation guidelines and regulations, this fund cannot be used for the acquisition of capital assets such as vehicles.
The Electronic Code of Federal Regulations (eCFR), specifically 2 CFR 200.439, governs Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. These regulations dictate that capital acquisition costs cannot be included as an indirect cost to federal grants. This fund, which generates charges (e.g. master lease debt service or outright vehicle purchases) billed to other funds, represents an indirect charge under these federal regulations. As such, capital acquisitions, such a vehicle purchases, must be directly funded from eligible sources.
Below are links to regulatory guidelines and audit findings on this matter.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 53
Finance and Management Committee
May 27, 2025
• eCFR :: 2 CFR 200.439 -- Equipment and other capital expenditures. • Oakland Single Audit Report (with citation and findings)
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 - In the Third quarter (Q3) of FY 2024-25, revenue collections in the City Facilities Fund have come in at $52.44 million or 89.7% of the Adjusted Budget of $58.48 million. The FY 2024-25 year-end revenues project to come in at $52.44 million, which is $6.04 million or
10.3% under the FY 2024-25 Adjusted Budget. The Adjusted Budget assumes $7.43 million in use of fund balance to balance carryforward expenditures. The actual internal service fund revenues are expected to come in at $50.14 million which is at budget since the cost recovery of the ISF funds is built into the budget.
Table 40: FY 2024-25 City Facilities Fund Revenues ($ in millions) Revenue
Category
FY 2024-25
Adjusted
Budget
FY 2024-25 Q3
YTD Actuals
FY 2024-25 Q3
Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Interest Income — 0.24 0.24 0.24 — %
Service
Charges 0.55 0.58 0.58 0.03 4.7 %
Internal Service
Funds 50.14 50.14 50.14 — — %
Miscellaneous
Revenue 0.36 1.48 1.48 1.12 313.2 %
Project Offsets
& Carryforwards 7.43 — — (7.43) (100.0) %
Total Revenue 58.48 52.44 52.44 (6.04) (10.3) %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2024-25 expenditures are projected to end the year at $54.80 million, which is a savings of $2.96 million, compared to the Adjusted Budget of $58.12 million. The savings are primarily due to underspending in personnel costs.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 Q3 R&E Report
Date: May 14, 2025 Page 54
Finance and Management Committee
May 27, 2025
Table 41: FY 2024-25 City Facilities Fund Expenditures ($ in millions) Agency / Department
FY 2024-25
Adjusted
Budget
FY 2024-25
Q3 YTD
Actuals
FY 2024-25
Q3 Year-End
Estimate
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 1.84 0.12 1.84 — — %
City Administrator 0.43 0.21 0.30 0.13 30.2 %
Human Resources
Management
Department — — — — — %
Human Services
Department 0.68 0.43 0.61 0.07 10.4 %
Non Departmental and
Port 1.72 0.06 (0.15) 1.88 108.8 %
Oakland Parks and
Recreation Department — 0.37 — — — %
Oakland Public Works
Department 53.44 34.95 52.18 0.90 1.7 %
Police Department 0.01 0.01 0.02 (0.01) (78.9) % Total 58.12 36.16 54.80 2.96 5.1 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2024-25 revenue is projected to end the year at $52.44 million. Expenditures are projected to end the year at $54.80 million. This results in a current year estimated operating shortfall of $2.36 million. $1.59 million of the fund balance will be used to balance the GPF in FY 2024-25. Therefore, the estimated available fund balance in the Facilities Fund (4400) is projected to decrease from $4.16 million to $0.51 million in FY 2024-25.
Table 42: FY 2024-25 Facilities Fund Year-End Available Fund Balance ($ in millions) City Facilities Fund (4400) FY 2024-25 Q3
Year-End Estimate
Beginning Fund Balance - Audited 4.16
Revenue 52.44
Expenditures 54.80
Estimated Current Year Surplus/(Shortfall) (2.36)
Estimated Ending Fund Balance 1.81
Use of Fund Balance in FY 2024-25
GPF Balancing (1.59)
Return of Excess Fund Balance in Equipment Fund 0.29
Estimated Ending Fund Balance 0.51