Finance and Management Committee
July 8, 2025
AGENDA REPORT
TO: Jestin D. Johnson FROM: Monica Davis
City Administrator Deputy City Administrator
SUBJECT: Fiscal Year 2026-30
Oakland Roadmap to Fiscal Health
DATE: June 20, 2025
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That City Council Receive An Informational Report On The Oakland Roadmap to Fiscal Health, A Plan To Address Mid- And Long-Term City Financial Challenges
EXECUTIVE SUMMARY
The Five-Year Financial Forecast (Forecast) for the City of Oakland (City) provided to the City Council on June 3, 2025, pr ojects significant fiscal challenges for the City through Fiscal Years (FY) 2029-30. The City’s Adopted Budget for FY 2025-27 makes progress to address shortfalls projected in that report, but additional financial challenges will remain in future fiscal years. The City Administrator has prepared the Oakland Roadmap to Fiscal Health (Roadmap), which is included as Attachment A, a report that outlines actions required to meet these challenges and restore the City to financial and operational health.
BACKGROUND / LEGISLATIVE HISTORY
The City Council approved an amended Consolidated Fiscal Policy ( Ordinance No. 13487
C.M.S.) on May 15, 2018, which directs staff to produce a Five-Y ear Financial Forecast as part of the biennial budget development process. The current Forecast was presented to the Finance and Management Committee on May 27, 2025, and received and filed by the City Council on June 3, 2025. The Oakland Roadmap to Fiscal Health (Roadmap) is a supplemental to this Forecast and establishes strategies proposed over the coming three fiscal years to address the City’s projected mid- and long-term financial challenges. The Roadmap builds upon and further details strategies initially presented in a budget balancing report to the City Council on December 17, 2024.
ANALYSIS AND POLICY ALTERNATIVES
Jestin Johnson (Jun 25, 2025 13:59 PDT)
Jun 25, 2025
Jestin D. Johnson, City Administrator
Subject: Fiscal Year 2026-30 Oakland Roadmap to Fiscal Health Date: June 20, 2025 Page 2
Finance and Management Committee
July 8, 2025
This report advances the Citywide priority of a responsive, trustworthy government by delivering current financial data, outward projections, and future proposed financial strategies, increasing transparency and empowering residents, stakeholders, and decision- makers with insights into the City’s fiscal health and initiatives to support prudent financial planning for future years.
The Forecast projects persistent shortfalls of approximately $130 million in the General Purpose Fund (GPF) for FY 2025-26 through FY 2030-31, driven by rising expenditures outpacing modest revenue growth during this period. The Forecast is a projection and does not include a number of factors that could worsen the projection during this period, including but not limited to the loss of federal or state resources, wage increases granted to employees in future labor contract negotiations, or increased investment required to meet various voter -adopted maintenance of effort (MOE) requirements.
The City Administrator has proposed a set of strategic initiatives to address these financial challenges and restore the City to fiscal health, outlined in the Roadmap. These initiatives seek to address mid- and long-term cost challenges driven by pension, fleet, capital, and other costs; improve revenues through improved collection practices, economic development strategies, and a 2026 voter -approved tax proposal; and improve City services by meeting voter -mandated service levels and improving performance management practices. The Plan includes expected timelines to meet each initiative.
FISCAL IMPACT
Pursuit of the Roadmap will allow the City to comply with the Consolidated Fiscal Policy (Ordinance No. 13487 C.M.S.) and provisions of the City Charter and various ballot measures.
PUBLIC OUTREACH / INTEREST
The biennial budget development process included various opportunities for community input, and that input was also considered in the development of this Roadmap. Additionally, a more concerted discussion with Measure advocates was held to solicit feedback as it relates to this Roadmap.
COORDINATION
This item was prepared in coordination with the Finance Department.
SUSTAINABLE OPPORTUNITIES
Economic: The path to fiscal health for the City of Oakland requires a sustained multi-year effort, moving beyond a focus on maintaining fiscal solvency to attaining the fiscal health necessary to provide quality services, support the City’s workforce, and achieve the financial resiliency necessary to weather future financial shocks.
Jestin D. Johnson, City Administrator
Subject: Fiscal Year 2026-30 Oakland Roadmap to Fiscal Health Date: June 20, 2025 Page 3
Finance and Management Committee
July 8, 2025
Environmental: There are no environmental opportunities associated with this informational item.
Race & Equity: This report does not directly impact race and equity but does support the long term ability to fund and support affordable housing and homelessness, jobs and economy, public safety and violence prevention, and clean, healthy and sustainable neighborhoods, all of which have equity considerations.
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That City Council Receive An Informational Report On The Oakland Roadmap to Fiscal Health, A Plan To Address Mid- And Long-Term City Financial Challenges
For questions regarding this report, please contact Monica Elise Davis, City Administrator’s Office, at 510-495-4810 or Bradley Johnson, Finance Department, at (510) 207-5730.
Respectfully submitted,
Monica Elise Davis
Deputy City Administrator
City Administrator’s Office
Prepared by:
Ben Rosenfield
Ben Rosenfield Consulting, LLC
Reviewed by:
Bradley Johnson
Budget Administrator, Finance
Attachment (1):
A: Oakland Roadmap to Fiscal Health
Monica Davis (Jun 25, 2025 11:06 PDT)