APPROVED AS TO FORM AND LEGALITY
DRAFT
___________________________
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
RESOLUTION NO. _______________ C.M.S.
RESOLUTION:
1. AUTHORIZING THE USE OF ONE-TI ME REVENUES TO BALANCE THE FISCAL YEAR 2026-27 MIDCYCLE BUDGET PURSUANT TO
SECTION 1, PART D OF THE CITY OF OAKLAND CONSOLIDATED
FISCAL POLICY
2. DECLARING A STATE OF EXTREM E FISCAL NECESSITY AND THE
EXISTENCE OF A SEVERE AND UNANTICIPATED FINANCIAL EVENT
THAT HAS ADVERSELY IMPACTED THE GENERAL PURPOSE FUND
SUCH THAT THE CITY IS UNABLE TO BUDGET AT THE REQUIRED
MINIMUM NUMBER OF 700 SWORN POLICE PERSONNEL PURSUANT
TO “THE OAKLAND COMMUNITY VIOLENCE AND EMERGENCY
RESPONSE ACT OF 2024” (MEASURE NN)
3. DECLARING A STATE OF EXTREME FISCAL NECESSITY, TO
PROVIDE FOR THE TEMPORARY SU SPENSION OF THE ‘PARK
MAINTENANCE’ MAINTENANCE OF EFFORT REQUIREMENTS,
PURSUANT TO THE 2020 OAKL AND PARKS AND RECREATION
PRESERVATION, LITTER RED UCTION, AND HOMELESSNESS
SUPPORT ACT (MEASURE Q)
4. DECLARING A STATE OF EXTREM E FISCAL NECESSITY FOR THE
MIDCYCLE BUDGET, ALLOWING FOR THE MINIMUM BUDGET SET-
ASIDE FOR PUBLIC CAMPAIGN FI NANCING TO BE SUSPENDED,
PURSUANT TO THE OAKLAND FAIR ELECTIONS ACT
5. DECLARING A STATE OF EXTREM E FISCAL NECESSITY FOR THE MIDCYCLE BUDGET, AND TEMPORAR ILY SUSPENDING 1) THE
REQUIREMENT TO CONS IDER ADVISORY BOARD
2 RECOMMENDATIONS PRIOR TO APPROPRIATING SUGAR-
SWEETENED BEVERAGE TAX REVENUE
6. DECLARING A STATE OF EXTREM E FISCAL NECESSITY FOR THE
MIDCYCLE BUDGET, AUTHORIZING THE USE OF FUNDS
DEPOSITED INTO THE AFFORDABLE HOUSING TRUST FUND (FUND
1870) TO BALANCE THE FISCAL YEARS 2026-27 MIDCYCLE BUDGET
7. ESTABLISHING THE INTENTION OF THE CITY COUNCIL TO
PRIORITIZE RESTORATION OF SERVICES TO MEET THE
MAINTENANCE OF EFFORT REQUIREMENTS
WHEREAS, the City’s local economy and ongoing tax and fee revenues were severely and negatively impacted by the COVID-19 pandemic causing an ongoing reduction to available resources; and
WHEREAS, the current high infla tion and high interest rate environment is further negatively impacting City revenues; and
WHEREAS, the City Council desires to provide to the residents the highest service level possible with existing ongoing and one-time revenues; and
WHEREAS, on May 15, 2018, the Consolidated Fiscal Policy was amended to establish and modify the financial policies and budgeting pract ices of the City of Oakland (Ordinance No. 13487 C.M.S.); and
WHEREAS, the Consolidated Fiscal Policy sets forth, among other things, guidelines for the use of one-time revenues; and
WHEREAS, Section 1, Part D of the Consolidated Fiscal Policy provides that the use of unrestricted one-time revenues for any purpose other than those se t forth in Part D must be authorized by City Council resolution and the resolution shall explain the need for using the one- time revenues and include steps the City will take to return to using one-time revenues pursuant to the Consolidated Fiscal Policy; and
WHEREAS, it is necessary to use approximate ly $13.1 million in one-time revenues to fund ongoing expenses in the General Purpose Fund and $367.5 million in one-time revenues to fund ongoing expenses in the Non General Pur pose Funds in order to balance the FY 2026-27 Midcycle Budget; and
WHEREAS, the Oakland Community Violence and Emergency Response Act of 2024 (Measure NN) requires the declaration of a state of extreme fiscal necessity and the existence of severe and unanticipated financial event that has adversely impacted the General Purpose Fund such that the City in unable to budget at the required minimum number of 700 sworn police personnel; and
3 WHEREAS, the City is aggressively planning for and budgeting sworn police academies to increase the count of sworn police personnel, and is developing proposals to reduce the rate of sworn police attrition in order to meet the full staffing requirements under Measure NN; and
WHEREAS, to realistically meet the sworn police officer count requirement of Measure NN the City plans to continue aggressive action to increase hiring and reduce attrition beyond the FY 2026-27 mid-cycle; and
WHEREAS, the 2020 Oakland Parks and Recreati on Preservation, Litter Reduction, and Homelessness Support Act (Measure Q) passed by the voters in 2020 requires the declaration of a state of extreme fiscal necess ity, to provide for the temporary suspension of the ‘Park Maintenance’ maintenance of effort requirements, pursuant to Section 4; and
WHEREAS, Resolution No. 90586 C.M.S. provides th at upon a declaration of extreme fiscal necessity by the City Council, the City Council may suspend the requirement to consider the Sugar-Sweetened Beverage Distribution Tax Community Advisory Board’s recommendation prior to appropriating Sugar-Sweetened Beverage Distribution Tax general tax revenue; and
WHEREAS, Oakland Municipal Code sec tion 15.62.040.E provides that upon a declaration of extreme fiscal necessity by the City Council, the Council may appropriate certain funds deposited into the Affordable Housing Trust Fund from the set-aside of funds distributed to the City as a taxing entity under the laws dissolving redevel opment agencies for any lawful purpose, and in any given fiscal year the amount the Council may appropriate for any purpose shall not exceed fifty percent of the estimated revenue budgeted from said fund; now therefore be it
RESOLVED: That the City Council finds and deter mines that the foregoing recitals are true and correct; and be it
FURTHER RESOLVED: That the City Council hereby au thorizes the us e of one-time revenues in the amount of $13.1 million to fund ongoi ng expenses in the General Purpose Fund and $367.5 million to fund ongoing expenses in the Non General Purpose Funds in order to balance the FY 2026-27 Midcycle Budget; and be it
FURTHER RESOLVED: That the City plans to return to using one-time revenues for the purposes set forth in Section 1, Part D of the Consolidated Fiscal Policy once the City’s revenues have recovered and the City undertakes a concerte d fiscal planning process to address long term sustainability of services; and be it
FURTHER RESOLVED: That the Council herby declares that the City is experiencing a severe and unanticipated financia l event and state of extreme fisc al necessity, and for the Fiscal Year 2026-2027 Midcycle budget, th e Council hereby suspends the re quirement to budget at the required minimum number of 700 sworn police personne l pursuant to Part 1 Section 6 (C)(2) of The Oakland Community Violence and Emergency Response Act of 2024 (Measure NN); and be it
4 FURTHER RESOLVED: That the Council hereby declares that the City is experiencing a severe and unanticipated financial event and state of extreme fiscal necessity, and for the Fiscal Year 2026-2027 Midcycle budget, the Council he reby suspends the ‘Park Maintenance’ maintenance of effort requirements, pursuant to Section 4 of “The 2020 Oakland Parks and Recreation Preservation, Litter Reduction, and Homelessness Support Act (Measure Q); and be it
FURTHER RESOLVED: That the Council hereby declares that the City is experiencing a severe and unanticipated financial event and state of extreme fiscal necessity, and for the Fiscal Year 2026-2027 Midcycle budget, the Council he reby suspends all restrictions on the appropriation of Sugar-Sweetened Beverage Tax revenue in the Sub-Fund to allow the Council to appropriate said funds for any lawful purpose; and be it
FURTHER RESOLVED: That the Council hereby declares that the City is experiencing a severe and unanticipated financial event and state of extreme fiscal necessity, and for the Fiscal Year 2026-2027 Midcycle budget, the Council hereby suspends the required restrictions on the use of certain funds in the Affordable Housing Trust Fund (1870); and be it
FURTHER RESOLVED: That the Council hereby declares that it is the priority of the City of Oakland to restore f unding and services to meet th e Maintenance Of Effort (MOE) Requirements of the various measures that are waived by this resolution; and be it
FURTHER RESOLVED: That in the event that any new ongoing unrestricted resources become available in the course of the mid-cycle budget that are not needed to resolve a projected deficit or preserve the planned level of service and staffing cont ained in the adopted budget, the Council shall consider a ppropriating such resources for restor ing waived maintenance of effort funding requirements before the funding of new services or enhancements to existing services; 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