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Rules & Legislation Committee
March 5, 2026

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March 5, 2026
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Finance And Management Committee
April 21, 2026

AGENDA REPORT

TO: Jestin D. Johnson FROM: Bradley Johnson
City Administrator Finance Director
SUBJECT: Budget Advisory Commission (BAC)
Recommendations On The Proposed
June 2026 $40 Million Parcel Tax
Measure
DATE: January 5, 2026

City Administrator Approval Date:

RECOMMENDATION

Staff Recommends That The City Council Receive An Informational Report From The Budget Advisory Commission (BAC) On The Proposed June 2026 $40 Million Parcel Tax Measure to Support Essential City Services and Fiscal Stability.

EXECUTIVE SUMMARY

The Budget Advisory Commission’s (BAC) report Attachment A: BAC Recommendations on the June 2026 $40 million Tax Measure contains comments and recommendations pertaining to the proposed June 2026 $40 million parcel tax measure included in the FY2025-27 Adopted Budget.

The recommendations also consider the Informational and Supplemental reports A List Of Options To Raise An Additional $40 Million in General Purpose Fund Revenues presented by the City Administrator’s Office to the Finance and Management Committee on September 30, 2025, and October 16, 2025.

The BAC submits this report to the Finance and Management Committee for consideration on the structure and ballot language of the proposed June 2026 $40 million parcel tax measure.

BACKGROUND / LEGISLATIVE HISTORY

On June 11, 2025, the City Council adopted the FY 2025-27 Biennial Budget 90827 C.M.S which included the $40 million in new ongoing General Purpose Fund revenue beginning in FY 2026-27 from a tax measure to be placed on the June 2026 ballot.

On September 30, 2025, the Finance and Management Committee received an Informational Report With A List of Options To Raise An Additional Ongoing $40 Million in General Purpose Fund Revenues.

Jestin Johnson (Apr 13, 2026 13:46:30 PDT)
Apr 13, 2026
Jestin D. Johnson, City Administrator
Subject: Budget Advisory Commission Recommendations On The Proposed June 2026 $40 Million Parcel Tax Measure
Date: January 5, 2026 Page 2
Finance And Management Committee
April 21, 2026

Section 2, Item (A) of the Ordinance Establishing the BAC 13337 C.M.S. requires the Budget Advisory Commission to submit reports on items affecting the City’s fiscal health to the Finance & Management Committee and City Council. This report is included as Attachment A: BAC Recommendations on the June 2026 $40 million Tax Measure.

ANALYSIS AND POLICY ALTERNATIVES

The BAC makes the following recommendations, as detailed in Attachment A: BAC Recommendations on the June 2026 $40 million Tax Measure.

1. Adopt a progressively tiered parcel tax structure

2. Establish independent oversight and accountability mechanisms

3. Leverage the tax measure process to increase civic engagement and public education

4. Allow lead-based paint abatement as an eligible use of funds

5. Exclude accessory dwelling units (ADUs) from unit counts for parcel tax assessment purposes

This report supports the Citywide priority of a responsive, trustworthy government by providing timely and up-to-date financial information affecting the fiscal health of the City, encouraging public participation in fiscal decision-making, and enhancing transparency and accountability of City fiscal information and processes.

RELATED PLANNING EFFORTS

The BAC’s tax measure recommendations support the Fiscal Year 2026-30 Oakland Roadmap to Fiscal Health item 3. Diversify the revenue base with a new voter-adopted revenue proposal in 2026 by providing detailed policy recommendations for the proposed $40 million voter measure. The agenda report also supports the City’s broader strategy to achieve structural balance by diversifying revenue for long-term fiscal sustainability.

FISCAL IMPACT

There are no direct fiscal impacts in the acceptance of this report

PUBLIC OUTREACH / INTEREST

No public outreach was necessary in the preparation of this staff report. The Budget Advisory Commission discussed their comments and recommendations to the Proposed $40 Million Parcel Tax Measure at public and noticed meetings of that body prior to adoption.

Jestin D. Johnson, City Administrator
Subject: Budget Advisory Commission Recommendations On The Proposed June 2026 $40 Million Parcel Tax Measure
Date: January 5, 2026 Page 3
Finance And Management Committee
April 21, 2026

COORDINATION

An ad hoc working group of the Oakland Budget Advisory Commission coordinated with the full Oakland Budget Advisory Commission, the Department of Finance’s Budget Bureau, and the City Administrator’s Office to produce this report and agenda item.

RACE AND EQUITY

The BAC finds that a progressively tiered parcel tax would improve equity outcomes by better aligning the tax burden with property size and capacity to pay, while reducing disproportionate impacts on small businesses. Additionally, allowing lead-based paint abatement as an eligible use of funds would advance racial and health equity, that affect Black and Latino households. Excluding ADUs from the tax would further support equitable housing production. These considerations are discussed in detail in Attachment A: BAC Recommendations on the June 2026 $40 million Tax Measure.

ACTION REQUESTED OF THE CITY COUNCIL

Staff Recommends That The City Council Receive An Informational Report From The Budget Advisory Commission (BAC) On The Proposed June 2026 $40 Million Parcel Tax Measure to Support Essential City Services and Fiscal Stability.

For questions regarding this report, please contact Tiffany Kirkpatrick. Budget & Management Analyst, at 510-238-2366.

Respectfully submitted,

Pooja Shrestha
Pooja Shrestha (Apr 1, 2026, 16:53:25 PDT)

POOJA SHRESTHA
Acting Director of Finance

Prepared by:

Tiffany Kirkpatrick, Budget and Management
Analyst
Finance Department, Budget Bureau

Attachments (1):

A: BAC Recommendations on the June 2026 $40 million Tax Measure

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