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City of Oakland Special City Council Meeting

April 30, 2013

Table of Contents

I. Mayor’s Priorities and Vision

II. Proposed FY 2013-15 Policy Budget Summary

III. Expenditure Reduction Restoration and Policy Tradeoffs

IV. Long-term Outlook

V. Budget Process and Timeline

Information presented is to the best of our knowledge as of April 2013 and subject to change.

City of Oakland - Special City Council Meeting - April 30, 2013 2

Proposed a “Fair Share” budget

Oakland is on the Rise

Significant Hard Work is Still Ahead

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Proposed FY 2013-2015 Policy Budget

City of Oakland - Special City Council Meeting - April 30, 2013

Mayor’s Priorities and Vision

Invest in public safety;

Create jobs and promote economic development;

Focus on job-training services so that Oaklanders are a competitive and thriving workforce;

Build and restore our infrastructure and the physical environment of Oakland;

Achieve long-term fiscal stability for the City; and,

Foster Oakland youth and care for our most vulnerable populations.

4 City of Oakland - Special City Council Meeting - April 30, 2013

Weathering the Storm

Thank you to employees for contributions, to residents for enduring cuts and to businesses and developers for investing in Oakland

All of these partners saw through the worst of the recession

In the last 10 years, the City has lost 21% of our staff capacity while maintaining services


______ (1) Projections

(2) Covered Payroll is based on FY 2014-2015.

(3) Net of Port’s payment (approximately 0.489%)

(4) Fire rate changed from 29.064% to 26.479% on 8/31/12

(5) Police rate change from 29.064% to 30.479% on 8/31/12

(6) Computed on baseline payroll, projected as of February 1, 2013

45.6% Increase

12.6% Increase

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

Total Annual Cal-PERS Cost

Total AnnualCal-PERS Cost

$67,294,160

$97,949,881

$390,000,000$400,000,000$410,000,000$420,000,000$430,000,000$440,000,000$450,000,000$460,000,000$470,000,000$480,000,000

Revenue

Revenue$422,060,109

$475,368,949

Proposed FY 2013-15 Policy Budget Summary


City’s Credit Rating

The City’s underlying ratings for its general obligation bonds are as follows:

These ratings reflect the City’s credit strengths which are embodied in:

Strong financial management practices, many of which are enshrined in council-adopted policy

Very deep and diversified economic base that contributes to and participates in the Bay Area regional economy

Positive views of budget actions that have allowed the City to retain a very strong general fund balance

Cash flows and liquidity levels that are closely monitored and managed throughout the fiscal year and management‘s emphasis on maintaining healthy general fund reserves

Very strong reserves

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Rating Agency Rating Action Date Rating Outlook

Moody’s 6/19/2012 Aa2 Stable Outlook

S&P 6/13/2012 AA- Stable Outlook

Fitch 8/20/2012 A+ Stable Outlook


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Audited FY 2011-12 General Fund Balance FY 2012-13 Undesignated Fund Balance Update

June 30, 2012 April 29, 2013

Un-Audited Audited & Budgeted

Gross ending Fund Balance $ 82,900,000 $ 84,600,000

FY 2012-2013 Balancing Measures: Early Recog. RPTT & Property Sales Used $ (14,282,521) $ (12,882,521)

FY 2012-2013 Carry Forward & Encumbrance $ (5,100,000) $ (5,100,000)

Net Available Ending Fund Balance: $ 63,517,479 $ 66,617,479

7.5% mandated reserved level (designated fund balance) $ (30,200,000) $ (30,200,000)

July 1, 2012 Beginning Fund Balance: $ 33,317,479 $ 36,417,479

Council approved action since July 2012-April 2013 & Recognized Revenue ($2.48M) $ - $ (3,627,987)

General Fund Balance w/Known Council Action: $ 33,317,479 $ 32,789,492

REQUIRED & PROPOSED MEASURES:

Reverse $12.88 M transfer from the fund balance in FY 2012-13 $ 12,882,521

Projected revenue growth by June 30, 2013 (Q2 report) $ 14,120,000

Reverse land sale subject to state review $ (32,500,000)

Litigation settlement $ (4,300,000)

Police Overtime in FY 2012-13 (per 2nd Q report) $ (7,700,000)

Increase Reserved Amount due to higher FY 2013-14 GPF Proposed Budget (7.5% of $430M) $ (2,084,743)

Used for FY 2013-15 Budget Balance Measures (updated 4/14/2013) $ (10,810,930)

Subsidize Head Start Partial Cuts (34 families, Eastmont Center) $ (300,000)

Compliance Director's Staff and Expenses (Court Order 4/17/13) (thru Dec. 2014) $ (900,000)

Compliance Director’s Remedial Plan & Budget (Court Order Doc #885, 12/12/12, p.7) TBD

Projected balance as of June 30, 2013 $ 1,196,340

Notes:

1 Some fund balance will be required for NSA/Compliance Director-Court Order ($TBD)

2 Fiscal impact of additional State actions regarding DOF/Controller's Office review ($TBD), additional ROPS review may have an additional fiscal impact ($TBD). There will be revenue associated with RPTT (est $7.5M).

Negative Other Fund Balance Summary

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(FYs 2009-10 through 2012-13)

Ending Ending Ending Estimated

Fund Balances Fund Balances Fund Balances Fund Balances

Negative Fund Category FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13

1 Negative Funds with Repayment Plan (98,175,474) (94,379,909) (78,766,947) (69,755,454)

2 Reimbursable Negative Funds (22,448,746) (13,525,732) (18,692,300) (14,629,751)

3 Non-Reimbursable Negative Funds without Repayment Plan (17,542,656) (13,441,408) (14,031,629) (14,531,629)

(138,166,876) $ (121,347,049) $ (111,490,876) $ (98,916,834) $

FY 2009-10 to FY 2012-13 repayment amount (39,250,042) $

Total Negative Funds

Negative Year-End Fund Balances Summary for FY 2009-10 through FY 2012- 13

Note: 1. Ending Fund Balances for FY 2011-12 in the amount of $111,490,876 is revised to actual per audit of the FY 11-12 Comprehensive Annual Financial Report (CAFR). Repayment Plan is about $10-13M per year.


Unfunded & Long-Term Liabilities Unfunded

Amount

Descriptions

$743K Oakland Municipal Employees Retirement System (OMERS), closed retirement system,

unfunded balance as of June 30, 2011

$743M California Public Employees Retirement System (Cal PERS), 75% funded. Unfunded

balance as of June 30, 2011

$216M Police and Fire Retirement System (PFRS), closed retirement system, unfunded balance

as of June 30, 2012 was $426M; issued a bond in July 2012, the current unfunded

balance is $216M, will start the payment in FY 2017-18, $24.24M

$520M Other Post-Employment Benefits (OPEB) has the unfunded actuarial accrued liability

(UAAL) of $520M as of June 30, 2011

$29.5M Accrued leaves are funded at 28.7% level, which leaves approximately $29.5M unfunded

as of June 30, 2012 (audited)

$111M Of the 173 funds, 54 has negative fund balance as of June 30, 2012 (audited). Of which,

$85M is in the repayment schedule, $26M is not.

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GASB Statement 45 requires government employers to measure and report other post-employment benefits (other than pension)


Proposed FY 2013-15 Policy Budget (in millions)

FY 2013-14 FY 2014-15

Revenues Expenditures Revenues Expenditures

General Fund $ 430.16M $ 430.16M $ $457.40M $ 457.40M

All Funds $ 1,052.69M $ 1,039.01M $ 1,071.70M $ 1,060.58 M

FTEs 3,833 FTEs 3,875.76 FTEs

Note: The revenue in all-funds exceed the all-funds expenditures due to Council’s

policy to amortize the repayment to negative funds.



Historical & Proposed Equivalent Staff Level 4,633 FTEs in FY 02-03 an all time low of 3,681 FTEs

3952 3993 4002

4227 4225

4564 4633

4248 4266 4325 4325

4401

4288

4124

3950

3755

3681

3834 3876

3000

3200

3400

3600

3800

4000

4200

4400

4600

4800

FY 1996-97FY 1997-98FY 1998-99FY 1999-00FY 2001-02FY 2002-03

Summary of Balancing Measures


Balancing Measures

FY 2013-14 FY 2014-15

Revised Projected GPF Revenues $429.50M * $438.12M*

Revised Baseline GPF Expenditures $433.63M $454.93M

Baseline GPF Shortfall ($ 4.13M) ($ 16.81M)

Non-Recovery of OH due to other funds cut ($ 1.13M) ($ 1.26M)

Increase in Expenditures ($ 7.02M) ($17.35M)

Total Shortfall: ($12.27M) ($35.42M)

Expenditure Reductions $11.63M $16.13M

Increase in Revenues $ 1.80M $ 7.32M

Utilized Fund Balance: ($ 1.16M) $11.97M

Net balance: $ -0- $-0-

*The projected GPF revenue in October 2012 was revised in March 2013 based on latest data available in property tax, sales tax, business

license tax, etc. FY 2013-14 projected GPF revenue increased by $11.51 million and $8.05 million increased for FY 2014-15.

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Increased revenues in both one-time and on-going categories– about $11.5 M in Y1 and $8M in Y2

Resolves shortfalls of $12.27M in Y1 and $35.42M in Y2

79.5 FTE positions eliminated in Y1 and 86.5 FTE in Y2

Significant reduction in use of one time funds for ongoing expenditures: $10.83M

Continues pay down of Negative Fund Balance

Maintains strong fiscal management and controls



• Proposed budget invests in Capital Improvements

• $88M is recommended for investment in 27 Projects:

Buildings and Facilities — 7 projects, $1.4 million

Sewers — 12 projects, $29.1 million

Streets, Sidewalks — 10 projects, $19.6 million

Traffic Improvements — 5 projects, 4.5 million

Garage Improvements — 3 projects, $33.2 million (subject to State Approval of Redevelopment disposition)

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• Fiscal impact for State’s Review of RDA Dissolution and Reversal of Some Transactions (e.g., land sales, contracts, projects, etc.)

• ROPS denial of $3M+ staff/program expenditures & more reviews underway ($800K disputed with Department of Finance unresolved and unfunded)

• Cost of NSA mandates (May 1, Remedial Action Plan & Budget)

• CalPERS Rate Increase—50% increase over the next 6 years (FY 2015-2016)

• Medical Cost Increases @ 6% per year (conservative estimate)

• Modest economic recovery in the global, national and regional climate

• Sequestration • Head Start • Housing • Senior Programs

Budget Challenges Fiscal Uncertainties –Outside of Local Control

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• Gaps between available resources and service demands– Multi-Year Deficits and Service Reductions/Eliminations

• Modest Revenue Growth--Expenditures Exceed Pace

• Unfunded and long-term liabilities, Deferred Capital Investments/ Maintenance/Expenditures, Negative Fund Balances

• Key Ballot Measures Expire (Measure Y, Wildfire Assessment) – Planning underway in Current FY to stabilize future budgets

• Public Safety – Crime Rate AND Sworn Decrease

• Some projects do not have O&M Budgets (e.g. Lake Merritt, West Oakland Youth Center, transferred RDA projects/properties)

• Litigation settlements

Budget Challenges


All-Fund Revenue Forecast


Revenue Categories FY13-14 FY14-15

Property Tax $144,637,164 151,117,089

Sales Tax $57,964,798 $59,663,701

Gas Tax $6,637,535 $6,637,535

Business License Tax $58,486,270 $60,240,858

Utility Consumption Tax $50,588,732 $50,588,732

Real Estate Transfer Tax $39,453,990 $40,637,610

Transient Occupancy Tax $14,969,363 $15,209,489

Parking Tax $15,640,428 $15,967,449

Local Tax $109,945,104 $110,170,793

Licenses & Permits $14,406,356 $15,067,488

Fines & Penalties $28,219,589 $27,289,401

Interest Income $904,012 $894,012

Service Charges $149,247,715 $152,052,708

Internal Service Funds $52,045,217 $53,758,412

Grants & Subsidies $59,314,176 $63,348,963

Miscellaneous Revenue $41,793,137 $45,488,357

Interfund Transfers $142,333,740 $135,383,060

Transfers from Fund Balance $66,103,229 $68,181,204

Total $1,052,690,555 $1,071,696,861

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All-Fund Allocation by Department

Department/Division FY 13-14 FY 14-15$2,237,505 $2,188,230

$3,547,574 $3,434,472

Administration* $16,056,347 $16,275,594

Contract Compliance $1,622,317 $1,659,977

CPRB $2,090,136 $2,104,580

Economic & Workforce Dev. $8,218,262 $8,261,629

Measure Y $537,690 $543,025

Neighborhood Investment $4,962,975 $5,103,403

Public Ethics $301,047 $308,010

$11,690,121 $11,748,002

$1,556,461 $1,510,761

$1,966,929 $1,923,619

$203,624,584 $218,214,087

$110,816,070 $125,303,768

Administration $1,126,910 $1,178,508

Controller's Office $5,484,674 $5,611,583

Revenue $16,771,814 $16,890,606

Treasury $6,409,115 $6,995,125

Human Resources $5,454,601 $5,562,302

Information Technology $14,169,783 $13,076,550

Community Services

Neighborhood Services $325,514 $332,264

Parks & Recreation $22,896,352 $23,426,163

Human Services $57,129,238 $57,645,725

Library $26,151,702 $27,402,539

Public Works $135,331,716 $136,896,877

Housing & Community Development $11,765,617 $11,616,614

Planning & Building $21,322,043 $21,648,739

Non-Departmental** $311,721,898 $307,145,900

Capital Improvement Projects $27,455,500 $29,208,000

GRAND TOTAL $1,032,744,495 $1,063,216,652

Mayor

City Council

City Administrator's Office

City Attorney

City Auditor

City Clerk

Police Department

Fire Department

Administrative Services

Note: * City Administrator’s Office Administration includes: Budget Office, Communications, Labor Relations, EOPD, Agenda Management, Special Permits, Nuisance Abatement, etc. ** Non-Departmental mainly includes: Misc. Debt Service, PFERS, Pension Override Tax Revenue, Sewer Service Fund , Taxable Pension Obligation , etc. Please see section E-69 in the Proposed Policy Budget for a complete listing.

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Fire $104.36 10.04%

Police $190.63 18.35%

Infrastructure $122.76 11.81%

Community Services $60.84 6.01%

Econ Devel, Housing

& Planning $45.00 4.45%

General Govt $239.37 23.04%

Debt Service $149.83 14.42%

Internal Service Funds $51.50 4.96%

Admin Services $4.13 0.40%

Kid's First $11.65 1.12%

Library $23.17 2.23%

CIP $27.46 2.64%

CAO Admin $8.33 0.80%

Other $74.73 7.19%

FY 2013-14 TOTAL ALL-FUNDS Allocation by Service Areas

($1,039.01 millions)


All Funds Budgeted Expenditures by Category in FY 2013-14

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Civilian Salaries

16%

Sworn Salaries

14%

Civilian Fringe

5%

Sworn Fringe

9%

Civilian Retirement

4%

Sworn Retirement

4%

Debt Service

9%

O&M 25%

Transfers & Overhead

10%


General Purpose Fund Revenue Forecast


Revenue Categories FY13-14 FY14-15

Property Tax $144,448,852 $150,928,777

Sales Tax $47,208,326 $48,624,575

Business License Tax $58,486,270 $60,240,858

Utility Consumption Tax $50,588,732 $50,588,732

Real Estate Transfer Tax $39,453,990 $40,637,610

Transient Occupancy Tax $12,006,316 $12,246,442

Parking Tax $8,531,028 $8,701,649

Licenses & Permits $1,386,726 $1,413,858

Fines & Penalties $23,498,995 $22,568,807

Interest Income $740,482 $740,482

Service Charges $43,662,137 $43,919,082

Miscellaneous Revenue $1,299,320 $4,824,320

Transfers from Fund Balance ($1,155,562) $11,966,492

Total $430,155,612 $457,401,684

General Purpose Fund by Department


Department FY13-14 FY14-15

Administrative Services $28,132,845 $27,111,004

Capital Improvement Projects $252,000 $252,000

City Administrator Admin $5,695,142 $5,837,471

City Administrator Other $7,842,586 $7,952,907

City Attorney $4,406,790 $4,289,481

City Auditor $1,556,461 $1,510,761

City Clerk $1,917,527 $1,873,031

City Council $3,547,574 $3,434,472

Community Services $18,189,843 $18,540,187

Fire Department $95,480,831 $109,836,720

Library $9,060,667 $9,060,466

Mayor $2,055,907 $2,002,220

Non-Departmental $72,070,114 $71,742,445

Police Department $178,790,549 $192,780,324

Public Works $1,156,776 $1,178,195

Grand Total: $430,155,612 $457,401,684

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Fire $95.48 22.20%

Police $178.79 41.56%

Library $9.06 2.11%

Admin Services $3.07 0.71%

General Govt $62.02 14.42%

Community Services $18.19 4.23%

Debt Service $35.95 8.36%

Kid's First $11.76 2.73%

Measure Y $2.18 0.51%

CAO Admin $6.00 1.39%

Economic Development $3.0

0.68%

Internal Service Funds $5.8

1.34%

Other $15.83 3.68%

FY 2013-14 TOTAL GENERAL FUND EXPENDITURES by Service Areas (in millions)

$430.15 million


General Purpose Fund Expenditure by Category in FY 2013-14

26

Civilian Salaries

15%

Sworn Salaries

30%

Civilian Fringe

5%

Sworn Fringe

9%

Civilian Retirement

4%

Sworn Retirement

8%

Debt Service, Transfers & Overhead O&M

16%


Service Impacts by Departments


Fire Department

Position Changes • Add 1 FTE – Fire Protection Engineer • Freeze 1 FTE – Fire Prevention Inspector

Service Impacts Positive

• By adding additional staff, OFD seeks to streamline the permitting process by decreasing the fire plan review turnaround time.

• Complete two fire academies in FY 2013 – 2014 to fill 30 vacant firefighters positions and 10 fire paramedics positions. Twenty-four (24) of these positions funded through SAFER grant

Negative • Without restoration of Fire Prevention Inspector we will not be able to augment

services provided from the current level

FY 2013-14 FTEs FY 2014-15 FTEs

GPF $95,480,831 549.80 $109,836,720 550.80

Non-GPF $15,210,238 45.15 $15,339,100 45.15

Total: $110,691,069 594.95 $125,175,820 595.95

Oakland Police Department

Position Changes • Add 64 FTE Police Officers • Add 20 FTE Police Services Technician II, 1 FTE Latent Examiner, and 5 FTE Police

Communications Dispatchers (Council approved—Jan 2012) • Add 1 FTE Accountant III and 1 FTE Payroll Personnel Clerk III • Delete 1 FTE Accountant II and 1 FTE Administrative Analyst I • Freeze 2 FTE Account Clerk II and 1 FTE Animal Control Officer


• Improved response times to 911 calls and operations/ 697 Sworn by FY 2014-2015 • The added 20 PST II & 1 Latent Examiner positions will increase the level of support to

basic public safety functions

Negative • Some delays in processing of revenue-generating bills to third parties, resulting in negative

interest delays in processing invoices and impacts to ability to comply with prompt payment ordinance

• Response to animal related calls and care for animals at the Oakland Animal Shelter (positions vacant since March 2011) will remain as is: loss of ability to improve capacity

FY 2013-14 FTEs FY2014-15 FTEs

GPF $178,790,549 1,006.70 $192,780,324 1,071.21

Non-GPF $ 24,834,035 119.15 $ 25,433,763 106.64

Total: $203,624,584 1,125.85 $218,214,087 1,177.85

Department of Economic & Workforce Development

Position Changes • Add 1 FTE City Administrator Analyst for in Economic Development support • Delete 1.50 FTE administrative support/analyst positions in the Workforce unit (2195) • Delete 1 FTE Graphic Design Specialist position in Marketing unit


• Continues to invest in youth, adult and dislocated worker employment training • Allows additional support for business attraction and retention • Start construction at the Army Base (December 2013) • Start the Brooklyn Basin project (Spring 2014) • Many other potential projects in the pipeline/Projects exceed Staff capacity

Negative • Lack of administrative support for WIA system implementation undermines ability to

effectively administer Oakland Workforce Development System • Without Graphic Designer, City will need to assign additional resources for this service

or experience major challenges producing any citywide marketing materials • Alternative funding for walking tours needed for FY 2014-15


GPF $1,614,336 8.50 $1,646,798 8.50

Non-GPF $6,723,505 13.00 $6,737,314 13.00

Total: $8,337,841 21.50 $8,384,112 21.50

Neighborhood Investment (former Redevelopment)

Position Changes • None


• Project staff to continue wind down of former redevelopment projects, implement long-range property management plan & use of unobligated pre-2011 bond proceeds

Negative

• No new funding for Façade and Tenant Improvement or Neighborhood Project Initiative grants, and other former redevelopment programs

• Limited one-time funding for Army Base project staff

Note: Most of the General Purpose Fund is allocated to the Real Estate Unit.


GPF $ 392,592 0.78 $ 373,650 0.64

Non-GPF $4,570,383 26.22 $4,729,753 26.36

Total: $4,962,975 27.00 $5,103,403 27.00

Planning and Building

Position Changes • Freeze 1 FTE Engineer, Assistant II; 1 FTE Engineer, Civil Supervisor; 1 FTE Engineer, Civil; 1

FTE Process Coordinator II; 1 FTE Specialty Combination Inspector Senior; 4 FTE Specialty Combination Inspector; 1 FTE Public Service Representative; 1 FTE Administrative Analyst II; 1 FTE Planner I; and 1 FTE Planner II

• Administration can utilize the Ordinance that allows for hiring when fees cover costs

Service Impacts • Implementation of the new Accela system will be compromised given the high time-

demand – required of all inspectors and plan checkers – to test the new system and to provide the proper training

• Longer waiting time for permits issued “over the counter” or within the “1-2 day” period for minor permits (30% reduction)

• Plan check reviews and permit issuance, for major projects, delayed by two or more weeks (25% reduction)

• Less inspections conducted within a 24-hour period – for new construction activity (20% reduction)

• Less inspections conducted within 1-week period for Code Enforcement complaints (70% reduction)


GPF 0 0 0 0

Non-GPF $21,322,043 114.75 $21,648,739 111.75

Total: $21,322,043 114.75 $21,648,739 111.75

Department of Housing & Community Development

Position Changes

• Delete 1 vacant Development/Redevelopment Program Manager from HOME Fund (2109) • Delete 3 vacant Housing Development Coordinator positions and 0.50 Student Trainee • Shift remaining affordable housing project staff to other funds (some use of one-time funds)

for FY13-14, and eliminate 7.0 positions in FY14-15

Service Impacts

Positive • Potential use of “triple-flip” administrative funds, paid to the County and anticipated

for return to the City, for affordable housing, which will minimize the service reduction

Negative • There has been approximately 85% reduction in funding for affordable housing

programs (from $13M to $2M) due to dissolution of Redevelopment Agency • Impact is compounded since developers less likely to leverage loans without local funds • Continued reduction in both CDBG and HOME grants of at least 5% • ROPS staffing for Housing still disputed: Approximately $800K unfunded potential

impact


GPF $ 0 0.00 $ 0 0.00

Non-GPF $11,765,617 46.25 $11,616,614 39.25

Total: $11,765,617 46.25 $11,616,614 39.25

Library

Position Changes

• FY 2013-14 & FY 2014-15 • Transfer 3 Supervising Librarians, 3 Librarian IIs, 3 Library Assistants, 1 Sr.

Librarian, and 1 Office Assistant I from GPF to Measure Q in FY 2013-14 • Additional Changes in FY 2014-15

• Transfer 1 FTE Sr. Librarian from GPF to Measure Q • Transfer 1 FTE Sr. Library Asst. from GPF to Measure Q


• Transferring positions to Measure Q will allow the Library to absorb a 13.5% GPF Fund reduction while maintaining Library services at current levels.

Negative • Although transferring funding of positions will not result in any service impacts in

FY2013-15, the additional 13.5% burden added to Measure Q may result in negative service impacts required to balance Measure Q in future years.


GPF $9,060,667 67.61 $9,060,466 65.61

Non-GPF $17,091,035 148.18 $18,342,073 150.18

Total: $26,151,702 215.79 $27,402,539 215.79

Human Services

Position Changes • 1 FTE Senior Services Supervisor in FY 2013-14 and additional Supervisor in FY 2014-15 • Various Head Start FTEs (12.47FTE) due to flat grant funding and sequestration • Absorb staff support for Youth Commission by Adding a position assigned to support: Youth

Commission, Public Ethics, and Measure Y (Program Analyst I position)—all which have an interest in engaging youth

• Housing Development Coordinator III (.40 FTE) and Accountant II (.50 FTE) due to reduction of CDBG fund, vacant positions, loss ability to improve capacity


• Restores 32 Head Start slots and a Family Advocate eliminated due to sequestration and flat grant funding.

• Preserves Senior Center hours and services

Negative • Loss of 68 Head Start slots for new families in FY 2013-14 due to sequestration. • Elimination of Senior Companion/Foster Grandparent program in Year 2 • Reducing community housing services for low income residents due to CDBG

reductions. • Staff support, to be absorbed by DHS, for Youth Commission, which is a new service

model


GPF $ 5,077,316 28.25 $ 5,150,220 27.66

Non-GPF $52,010,492 268.94 $52,455,499 268.53

Total: $57,087,808 297.19 $57,605,719 296.19

Parks and Recreation

Position Changes • 5.54 FTEs ($390K) transferred from the GPF to OPR’s Self-Sustaining Fund • Add 1.00 FTE Student Trainee, PT • 10% reduction in the subsidy for Oakland Zoo, Chabot Space & Science Center, Hacienda Peralta

and the Asian Cultural Center • 3.24 FTEs reduction ($110K) will allow for flexibility in recreation center closures


• Recreation Centers that generate revenue will opt not to reduce hours during high rental days

• Transfer of 5.54FTE positions to enterprise fund will allow continued critical programming (e.g., OPR marketing, continuance of outdoor educational programs and the oversight of fee based programs)

• “One size does not fit all” fiscal reduction target specific service need patterns and preferences

Negative • Recreation Centers will reduce hours of operations; the hours will be reduced to limit

impacts on children and youth • Fee Increases for self-sustaining programs


GPF $12.79M 120.55 $13.06M 120.55

Non-GPF $10.40M 109.59 $10.66M 109.59

Total: $23.19M 230.14 $23.72M 230.14

Public Works Agency

Position Changes • Add: 2.00 FTE Painters for Graffiti Abatement Team • Add: $1.0M in Year 1 and $1.25M in Year 2 for Minor CIP in the Facilities Fund • Eliminate 2.75 FTE Various Positions (technical clean up on vacant positions, Clean

Community Supervisor, Recycling Specialist, Main. Mechanic, and Stationary Engineer)


• Faster response for graffiti abatement • Funding for minor capital funding & equipment

Negative • No additional funds provided for street paving, parks, trees, illegal dumping, litter

and maintenance of former redevelopment parcels. • The 140.00 FTE eliminated in the last 5 years (18.5% of workforce) have not been

restored (e.g. Plumbers, Park Maintenance, Tree, Illegal Dumping, and Litter staff)


GPF $ 1,156,776 8.25 $ 1,178,195 8.25

Non-GPF $134,723,708 723.58 $136,010,178 723.58

Total: $135,880,484 731.83 $137,188,373 731.83

Administration Services Department Admin., Revenue, Controller, and Treasury

Position Changes

• Delete 1 Accountant III, 1 Administrative Assistant II, 1 Administrative Services Manager II, 1 Executive Assistant to the Agency Director, and 1 Human Resources Manager

• Add 1 Buyer and 1 City Administrator Analyst to support core service functions

• Freeze 1 Administrative Services Department Director, and 1 Accounting Supervisor

• Transfer Office Assistant II from Fund 4450 to 1010 and Treasury Manager – split funding net transfer 0.15 FTE to various fund

Service Impacts • Adding the City Administrator Analyst position to pursue and manage grants

• Changing Admin. Assist II to Buyer position to better align with operational needs

• Reductions listed above will result in reduced responsiveness to the general public and internal administrative support services, which have already been significantly impacted

• Invest in technology to increase efficiency and effectiveness for revenue collection

• Allocate $150K for Hearing Officers to meet state mandated due process timeline


GPF $16,790,207 100.38 $16,882,195 100.38

Non-GPF $13,225,132 41.62 $14,015,723 41.62

Total: $30,015,339 142.00 $30,897,918 142.00

Administrative Services – Information Technology

Position Changes • Delete 1.0 FTE – Telecommunications System Engineer • Freeze 1.0 FTE Micro-computer Systems Specialist in Fund 2241

Service Impacts

Positive • Stabilize funding for software license renewal and maintenance since the since the

dissolution of Redevelopment Agency • Increased service level should the furlough discontinue

Negative • Elimination of Telecommunications Engineer position will have a direct impact on

Telecommunications and Network support at a time when are proposing the upgrade of the Integrated Public Safety Network (IPSS), City Telephone System and Enterprise City Services Network

• Freezing the Micro-Computer Systems Specialist position will reduce service levels in the areas of problem resolution and PC and software deployments


GPF $7,928,774 44.65 $6,748,750 44.65

Non-GPF $6,241,009 22.35 $6,327,800 22.35

Total $14,169,783 67.00 $13,076,550 67.00

Administrative Services– Human Resources

Position Changes

• None

Service Impacts • Funded the 168th police academy.

• Proposed 169thand 170th police academies

• 2 fire academies

• On-going recruitment for civilian positions and an OPD Civilian Staffing Plan.

• For HR, the workload for recruitments will increase and delays will take place in less priority recruiting areas


GPF $3,711,524 28.10 $3,790,743 28.10

Non-GPF $1,743,077 8.60 $1,771,559 8.60

Total: $5,454,601 36.70 $5,562,302 36.70

Expenditure Reduction Restoration & Policy Tradeoffs


Restoration of Services & Policy Tradeoffs

42

Fire Prevention Inspector $104K

Recreation Center Service Hours $107K

Subsidies to Community-Based Organizations $100K

Directors for Administrative Services & Comm. Serv. $572K

Unfreeze/restore positions in Finance and IT $655K

Restore Reductions in Elected Offices Y1:$600K/Y2:$1.2M

Illegal Dumping Mitigation $1M

Y1:$720K/Y2:$600K

Head Start Early Childhood Development $1.5M

Graffiti Enforcement/Abatement $1M

Y1: $1.5M/Y2: $1.5M

DACA and W. Oakland Teen Center Staffing $340K

Taxicab Vehicle Permit $144K

Y1:$2.6M/Y2:$3.4M

Additional Police Sworn Staffing TBD/Various Scenarios

Additional Police Civilian Staffing TBD/Various Scenarios

Maintain Former Redevelopment Agency Properties $516K

Additional City Attorney’s Office Staff Y2: $1.4M

Additional Repair/Replacement City Facilities TBD/Various Scenarios

Additional Information Technology TBD/Various Scenarios

Additional City Vehicles TBD/Various Scenarios

Policy Tradeoffs/ Additional Desired Services

Restore Proposed Reductions

Affordable Housing

Street Patching

Litter Mitigation

Five-Year GPF & All-Fund Revenue & Expenditure Projection (as of March 2013)

43

Note: (a) Assumes one police academy per year in FY 2015-16, FY 2016-17, and FY 2017-18; (b) The police and fire services supported by Measure Y do not have to be backfilled by the General Purpose Fund; and (c) Salaries are assumed to grow at 1% due to step increases (d) FY 2013-2014 surplus is for Negative Fund Balance Repayment


General Purpose

Fund

FY 2013-14

Proposed

FY 2014-15

Proposed

FY 2015-16

Forecast

FY 2016-17

Forecast

FY 2017-18

Forecast

Revenue $ 430,155,612 $ 457,401,684 $ 449,405,499 $ 460,300,547 $ 475,368,929

Expenditures $ 430,155,612 $ 457,401,684 $ 461,600,000 $ 474,300,000 $ 502,100,000

Surplus/(Shortfall) $ - $ - $ (12,194,501) $ (13,999,453) $ (26,731,071)

Expenditures -

Deferred

$ 99,000,000 $ 100,400,000 $ 101,700,000

Surplus/(Shortfall) $ - $ - $ (111,194,501) $ (114,399,453) $ (128,431,071)

All Funds FY 2013-14

Proposed

FY 2014-15

Proposed

FY 2015-16

Forecast

FY 2016-17

Forecast

FY 2017-18

Forecast

Revenue $ 1,052,690,555 $ 1,071,696,861 $ 1,013,617,005 $ 1,030,810,812 $ 1,052,534,461

Expenditures $ 1,039,006,929 $ 1,060,583,969 $ 1,059,300,000 $ 1,079,300,000 $ 1,115,300,000

Surplus/(Shortfall) $ 13,683,626 $ 11,112,892 $ (45,682,995) $ (48,489,188) $ (62,765,539)

Expenditures -

Deferred

$ 135,000,000 $ 136,300,000 $ 137,600,000

Surplus/(Shortfall) $ 13,683,626

(dO

$ 11,112,892 $ (180,682,995) $ (184,789,188) $ (200,365,539)

(d) (d)

Conclusion

• This is a fare-share, balanced budget allocating limited resources in line with those services that a full-service City provides

• Oakland is on the rise, yet significant challenges lie ahead

• Long-term strategies and shared-solutions are needed from all stakeholders

• Many of the areas are policy matters and, ultimately tradeoffs between competing priorities

• We look forward to working with all stakeholders from here to adopt the policy budget

City of Oakland - Special City Council Meeting - April 30, 2013 44

FY 2013-15 Budget Process & Timeline

• May: Budget Town Hall Meetings Citywide

• May 9: District 7, Thursday, 6:30-8:30 pm, Oakland Zoo, Zimmer Auditorium

• May 13: District 5 & At Large, 6-8 pm, Patten College (location is tentative)

• May 18: District 1 & 3, Saturday, 12 – 2 pm, Beebe Memorial

• May 19: District 2 & 4, Sunday, 3:30-5:30 pm, Edna Brewer Middle School, 3748 13th Ave.

• May 20: District 6, Monday, 6:30-8 pm, Frick Middle School, 2845-64th Ave.

• May 23: City Council Budget Hearing, 6:30 p.m. City Council Chambers

• June 13: City Council Budget Hearing, 6:30 p.m. City Council Chambers

• June 27: Final City Council Budget Hearing/Adoption, 6:30 p.m. City Council Chambers

• July 1: Implementation of FY 13-15 Adopted Budget


Questions & Answers


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