APPROVED AS TO FORM AND LEGALITY
___________________________
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
RESOLUTION NO. _______________ C.M.S.
RESOLUTION:
1. ADOPTING THE BIENNIAL BUDGET FOR FISCAL YEARS 2025-27
AND APPROPRIATING FUNDS TO COVER EXPENDITURES
APPROVED BY SAID BUDGET;
2. AUTHORIZING THE CITY ADMINISTRATOR TO TRANSFER
FUNDS BETWEEN DEPARTMENTS, PROGRAMS AND FUNDS AS
NECESSARY TO SUPPORT OPERATIONS AS SET FORTH IN THE
ADOPTED POLICY BUDGET FOR FISCAL YEAR 2025-27;
3. AUTHORIZING THE ESTABLISHMENT OF THE RIGHT OF WAY
REPAIR AND MAINTENANCE FUND AND SUCH FUNDS NEEDED
TO SUPPORT THE ISSUANCE OF BONDED INDE BTEDNESS
DURING THE 2025-27 BIENNIUM;
4. TAKING ALL STEPS NECESSARY TO APPLY FOR AND RECEIVE
ADDITIONAL FUNDS REQUIRED TO ADVANCE AND COMPLETE
THE PROJECTS IDENTIFIED IN THE CAPITAL IMPROVEMENT
PROGRAM AND ACCEPT AND APPROPRIATE ANY ADDITIONAL
FUNDS PROVIDED THAT SUCH ACCEPTANCE IS CONSISTENT
WITH AND DOES NOT OTHERWISE NEGATIVELY IMPACT THE
CITY’S CAPITAL IMPROVEMENT PROGRAM;
5. DECLARING A STATE OF EXTREME FISCAL NECESSITY AND
THE EXISTENCE OF A SEVERE AND UNANTICIPATED
FINANCIAL EVENT;
6. SUSPENDING FOR FISCAL YEAR S 2025-2027 THE CHARTER
MANDATED MINIMUM STAFFING BUDGET SET ASIDES FOR THE
OFFICE OF THE CITY AUDITOR;
7. SUSPENDING FOR FISCAL YEAR S 2025-2027 THE CHARTER
MANDATED MINIMUM STAFFING BUDGET SET ASIDES FOR THE
PUBLIC ETHIC COMMISSION; AND
2 8. SUSPENDING THE MINIMUM BUDGET SET ASIDES FOR THE
DEMOCRACY DOLLARS FUND AND FOR NON -STAFF COSTS
RELATED TO THE PUBLIC ETHICS COMMISSION’S
ADMINISTRATION OF THE OAKLAND FAIR ELECTIONS ACT’S
DEMOCRACY DOLLARS PROGRAM
WHEREAS, Section 801 of the Charter of the City of Oakland requires that the Oakland City Council adopt by resolution a budget of proposed expenditures and appropriations necessary for the ensuing year; and
WHEREAS, the City Council has a longstanding policy of adopting a two -year budget; and
WHEREAS, on June 26, 2023 the City Council passed Resolution No. 89804 C.M.S. adopting a two-year budget for Fiscal Year 2023 through Fiscal Year 2025, commencing on July 1, 2023 and ending on June 30, 2025; and
WHEREAS, consistent with the Council’s Consolidated Fiscal Policy Ordinance, the City Council has a longstanding policy of adopting a mid -cycle budget for the second year of the biennial budget; and
WHEREAS, Section 806 of the City Charter provides that all monies received by the City shall be deposited in the City Treasury, and no monies shall be disbursed from the treasury without the approval of the City Administrator or of another officer duly authorized by him/he r and that no expenditure of City funds shall be made except for the purposes and in the manner specified by an appropriation of the Council; and
WHEREAS, the City Council has reviewed departmental and non -departmental budgets in light of revenue estimates for Fiscal Years 2025-27 and has conducted multiple public budget hearings; and
WHEREAS, the City intends to apply for additional funds necessary to complete and offset costs of funded projects in the Capital Improvement Program (CIP), and leverage existing City fund sources to secure additional sources of funding for development of CIP projects that are approved but not funded; and
WHEREAS, City Charter section 403(4) provides that "[e]effective July 2023, the budget for the Office of the City Auditor shall be sufficient to hire at least fourteen full -time equivalent ('FTE') employees of relevant classifications", and further provides that "[t]he minimum staffing budget set-aside may be suspended, for a fiscal year or two -year budget cycle, upon a finding in the budget resolution that the City is facing an extreme fiscal necessity, as defined by City Council resolution or ordinance"; and
WHEREAS, Section 3.15.060(E) of the Oakland Fair Elections Act (codified as Oakland
3 Municipal Code Chapter 3.15) which the voters passed in November 2022 election, mandates a minimum budget set aside for the Oakland Democracy Dollars Fund ("Fund") and for non -staff costs for the Public Ethics Commission to administer the Fund, and allows the Council to suspend the aforesaid minimum budget set-asides for a fiscal year or two-year budget cycle, upon a finding in the budget resolution that the City is facing an extreme fiscal necessity as defined by City Council resolution, provided that the suspension is part of general reduction in expenditures across multiple departments; and
WHEREAS, the City was experiencing one of the largest General Purpose Fund shortfalls in its history prior to the balancing actions contained in this budget; and
WHEREAS, the reductions in revenues available to the City due to economic circumstances warrant the declaration of a state of extreme fiscal necessity , which is defined as follows: "An intervening step of fiscal austerity, such as when total projected General Purpose Fund revenues will be less than the current year's revenues, where there is an actual or projected reduction in total General Purpose Fund revenues, or whe n expenditur e growth dramatically outpaces revenue growth, or when there is an actual or projecte d deficit exceeding 10% of the current fiscal year’s adopted budget. It is the lessor of a catastrophic situation where the City entity would need to suspend provisions of local laws related to enhanced public services, such as Maintenance of Effort provisions or to prevent a dramatic decrease in essential services, relating to health, safety, and welfare; may include using Vital Services, Stabilization Fund "Rainy Day Funds", suspension of use of One -time Revenues policy, or suspension of accelerated liab ility repayments, or layoffs to achieve cost savings must be considered, in order to sustain City Services but short of accessing emergency reserve monie s. A dramatic reduction is defined as a more pronounced de crease in City services characterized by substantial disruptions or limitation in service availability which may result in layoffs, and service closures to essential services that lead to noticeable hardships for residents and businesses.”; and the existence of such factors constitute a severe and unanticipated financial event; and
WHEREAS, the City Council adopts the following definition for Adverse Financial Condition: "The first stage of financial uncertainty, when there is an actual or projected deficit that exceeds 5% (but less than 10%) of the current fiscal year’s adopted budget, or in years when the City forecasts significant service reductions to existing service levels such that the implementation of a hiring freeze, or the enforcement of cost savings measures to prevent a significant decrease in essential services, are contemplated due to adverse financial conditions, use of the Vital Services Stabilization Fund "Rainy Day Fund" must be considered to maintain existing services. A significant decrease in essential services is defined as a level of reduction that may result in adjustments to service delivery methods, increased wait times, or minor disruptions to non - essential services, but essential services remain largely operational."; and
WHEREAS, in light of the extreme fiscal necessity the City is facing, the Council has determined it will be necessary to suspend the Charter -mandated minimum budget set-asides for the FY 2025 -2027 budget cycle for the (1) Office of the City Auditor, (2) The Public Ethics Commission, and (3) the Democracy Dollars Fund and non -staff costs for the PEC to administer the Democracy Dollars Program; and
4 WHEREAS, the City Council has carefully considered the proposed budget for Fiscal Year 2025-2027 as set forth in the FY 2025-27 Proposed Policy Budget document; and
WHEREAS, the City Council has agreed to the Mayor’s proposed budget and has noted any modification or amendments in Exhibits 1 and 2, which together with the proposed budget constitute the Fiscal Year 2025-2027 Adopted Policy Budget; now therefore be it
RESOLVED: That the City Council hereby adopts the proposed budget as modified by Exhibits 1 and 2 as the City of Oakland Adopted Policy Budget for Fiscal Year 2025-2027; and be it
FURTHER RESOLVED: That the City Administrator is authorized to expend City funds in accordance with the laws of the State of California and the City of Oakland , and the City of Oakland FY 2025-27 Adopted Policy Budget attached hereto; and be it
FURTHER RESOLVED: That the Council declares that the City is experiencing a severe and unanticipated financial event and state of extreme fiscal necessity; and be it
FURTHER RESOLVED : That the Council hereby suspends all Charter -mandated minimum staffing budget set -asides and suspends the minimum budget set -asides for the Democracy Dollars Fund and the non -staff costs related to the administration of the Democracy Dollars Program; and be it
FURTHER RESOLVED : That the City Administrator may transfer operating appropriations between activity programs during the fiscal year provided that such funds remain within the departments in which the funds were approved by City Council; and be it
FURTHER RESOLVED: That the City Administrator may transfer capital appropriations between the Capital Improvement Program and operating departments to the extent that such transfers are necessary to fund capital-related activities of the operating departments; and be it
FURTHER RESOLVED: That if additional grant funds become available to offset costs of Capital Improvement Program projects funded in the Capital Improvement Program, then the City Administrator is authorized to apply for accept and appropriate these additional grant funds consistent with the City’s Capital Improvement Program priorities so long as there are no additional costs associated with the City’s acceptance or appropriation of the additional funds beyond reserved grant matching funds, or negative impact on the City’s existing funding resources funds, or negative impact on the speed and capacity to deliver funded Capital Improvement Program projects; and be it
FURTHER RESOLVED: That if additional grant funds become available to fund Capital Improvement Program projects that are approved but not funded in the Capital Improvement Program, then the City Administrator is authorized to apply for accept and appropriate these additional grant funds consistent with the City’s Capital Improvement Program priorities so long as there are no additional costs assoc iated with the City’s acceptance or appropriation of the
5 additional funds beyond reserved grant matching funds, or negative impact on the City’s existing funding resources funds, or negative impact on the speed and capacity to deliver of funded Capital Improvement Program projects; and be it
FURTHER RESOLVED: That this resolution serves as a “resolution of local support” to facilitate grant application acceptance and execute restricted grant agreements for named Capital Improvement Program projects that are funded or are approve but not funded when required by external funding agencies, including but not limited to the California Department of Transportation, the United States Department of Transportation, the Metropolitan Transportation Commission, the Alameda County Transportation Commission, etc.; and be it
FURTHER RESOLVED: That the abatement and subdivision funding received by the City of Oakland pursuant to the National Opioid Settlement Agreements, California State - Subdivision Agreements, and California Mallinckrodt Statement Abatement Agreement (“Opioid Remediation Funds ”) (see Resolution Nos. 88980, 89534, and 89609 C.M.S.) in Fiscal Years 2025-2026, and 2026-2027, will be appropriated to the Medical Services Division of the Oakland Fire Department as included in the proposed budget to be used consistent with the terms of the settlement and bankruptcy agreements; and be it
FURTHER RESOLVED: That the City Administrator, through the Medical Services Division of the Oakland Fire Department or as otherwise designated, will oversee the appropriate use of the Opioid Remediation Funds consistent with the terms of the settlement and bankruptcy agreements, including but not limited to annual reporting requirements, applicable guidance from the California Department of Health Care Services, and timely encumbrance within five years of receipt (or seven years for capital outlays) to ensu re that monies do not revert to the State of California; and be it
FURTHER RESOLVED: That funds awarded pursuant to the National Opioid Settlement Agreements and California State-Subdivision Agreements through the Litigating Subdivision Cost Fund, Joint Global Subdivision Cost and Expense Fund, and/or the California Subdivision Fund for the reimbursement of the City Attorney’s Office costs and fees incurred in its significant role in the opioid litigation and settlement negotiations will be appropriated to a project account designated for the Office of the City Attorney as included in the proposed budget; and be it
FURTHER RESOLVED: That the City Council authorizes the City Administrator to establish the Right of Way Repair and Maintenance Fund and such funds necessary to administer bonded indebted ness contained within the Capital Improvement Program, for voter-authorized bond measures; and be it
FURTHER RESOLVED : That the City Administrator may transfer operating appropriations between the Non-Departmental Organization and the City’s Operating Departments to implement the services provided for in this Budget; and be it
FURTHER RESOLVED : That the City Administrator is hereby authorized to periodically transfer funds between Departments and completed projects as needed in order to clean-up negative budget balances within the same Fund; and be it
6 FURTHER RESOLVED: That the City Administrator is hereby authorized to use cost savings from vacant positions within a Department to procure internal or contract services to facilitate the speedy hiring of positions within that same Department; and be it
FURTHER RESOLVED : That the City Administrator may periodically transfer unexpended funds from the Unclaimed Cash Fund (Fund 7440) to the General Purpose Fund (Fund 1010); and be it
FURTHER RESOLVED: That the City Administrator is hereby authorized and directed to calculate all required set -asides and make appropriate adjustments, based on the final adopted budget amendments and accompanying legislation, as legally required, such as Kid’s First!, the Vital Services Stabilization Fund, internal service allocations & distributions, and the 7.5 percent Emergency Reserve; and be it
FURTHER RESOLVED: That the City Administrator must obtain approval from the City Council before (1) substantially or materially altering the relative department allocations of funding set out in the Adopted Policy Budget, (2) substantially or materially changing the levels of service expressly prioritized and funded by the Adopted Policy Budget including but not limited to layoffs that would substantially or materially (a) change levels of service, or (b) affect programs, or (3) eliminat ing or suspending entire programs funded by the Adopted Policy Budget , unless such actions are deemed necessary to maintain the fiscal health of the City; and be it
FURTHER RESOLVED: That this Resolution shall take effect immediately upon its passage.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES - BROWN, FIFE, GALLO, HOUSTON, RAMACHANDRAN, UNGER, WANG, AND
PRESIDENT JENKINS
NOES –
ABSENT –
ABSTENTION –
ATTEST:
ASHA REED
City Clerk and Clerk of the Council of
the City of Oakland, California