City of Oakland FY Midcycle Budget June 7, 2016

 Aligns with the priorities & goals identified by City Council during FY budget deliberations and continues to invest in making Oakland:  A Safe City: that invests in Holistic Community Safety strategies.  A Vibrant City: that makes strategic investments in infrastructure, public works, and the arts to protect and enhance the quality of life for all neighborhoods.  A Just City: that promotes equitable jobs and housing that protects and nurtures a diverse and inclusive community that cares for its youth, elderly, families, and the vulnerable.  A Prosperous City: that values workers and fosters a diverse economy that creates equitable economic growth, jobs, and housing.  A Trustworthy Government: that provides quality municipal services, efficiency, transparency, and accountability, as well as respects municipal employees. 2 Proposed Mid-Cycle FY Budget FY Midcycle Budget - City Council Meeting - June 7, 2016

General Purpose Fund (GPF) AdoptedAmendmentTotal Revenue$ $18.16$ Expenditure$ $18.16$ Proposed Mid-Cycle FY Budget All-Funds AdoptedAmendment*Total Revenue$1,182.14$52.84$1, Expenditure$1,182.14$52.84$1, FY Midcycle Budget - City Council Meeting - June 7, 2016 *Proposed Amendments exclude changes to Fund 2128, which are pending further information regarding the City’s Head Start Grant Award.

GPF Revenues 4FY Midcycle Budget - City Council Meeting - June 7, 2016

General Purpose Fund - Highlights Revenue Adjustments 5 FY Midcycle Budget - City Council Meeting - June 7, 2016  Adjust total GPF Revenues by $18 million, through a $8 million decrease in ongoing revenues, and a $26 million increase in one-time revenues  Property Tax – Decrease by $13 million  Sales Tax – Decrease by $1 million  Business License Tax – Increase by $0.5 million  Real Estate Transfer Tax – Increase by $6.7 million  Transient Occupancy Tax – Increase by $1.8 million  Parking Tax – Increase by $1.6 million  Miscellaneous Revenue – Shift land sale totaling $4.4 million from to 16-17

GPF Expenditures 6 FY Midcycle Budget - City Council Meeting - June 7, 2016

General Purpose Fund - Highlights Technical and Cost Savings/Neutral Adjustments 7 FY Midcycle Budget - City Council Meeting - June 7, 2016  Continue implementation of the Information Technology Internal Service Fund cost allocation for license and maintenance costs  Baseline technical adjustments including Cost Of Living Adjustments, changes to fringe benefit rates, and increases in Central Services Overhead recoveries  Reduce Expenditures Associated with Tax & Revenue Anticipation Note (TRAN) Issuance  Projected savings resulting from the 2014 SAFER Grant  Transfer eligible Police positions to Measure Z  Use funds set aside for long-term obligations pay down Self Insurance Liability Fund

General Purpose Fund - Highlights Required and Pre-Authorized Adjustments 8 FY Midcycle Budget - City Council Meeting - June 7, 2016  Increase the Kids First! Set Aside per City Charter Requirements  Required Rainy Day Policy set asides for Long-term Obligations and the Vital Services Stabilization Fund per the Consolidated Fiscal Policy  Increased funds required to support 2016 election costs  Provide Capital Improvement Project funds for the Oakland Museum per the City’s agreement with the Museum Foundation  Add four Police Communications Supervisors in the 911 Center per labor MOU to civilianize these positions  Add 2015 Community Oriented Policing Services (COPS) Grant Matching Funds through unrestricted fund balance

General Purpose Fund - Highlights Other Recommended Adjustments 9 FY Midcycle Budget - City Council Meeting - June 7, 2016  Add & Upgrade City Attorney Positions to support labor legal issues for the Oakland Police Department  Additional Funding for Translation & Interpretation Services  Add a 3 rd Police Academy in FY  Add 4 Police Communications Operators to begin 911-mobile call intake and upgrade 4 Police Dispatchers to Police Dispatch Senior Positions  Add Engineer & Fire Captain for Fire Department Training & Support  Upgrade and Unfreeze Fire Inspection positions and implement a “one-step” inspection software system  Provide & Increase subsidies to Head Start, Meals on Wheels, Workforce Innovations & Opportunities Act, and other Grants  Implement new software for the Rent Adjustment Program

Non-General Purpose Fund - Highlights 10 FY Midcycle Budget - City Council Meeting - June 7, 2016  Use One-Time Funds in the OPR Self-Sustaining Fund to replace the Parks & Recreation reservation and revenue software system  Reduce budget allocation in the Affordable Housing Trust Fund based on revised “boomerang” projections  Recognize receipt of a new grant in to support rapid rehousing assistance to homeless families through the Family Front Door Program  Recognize receipt of a First Reponses grant to the Oakland Fire Departments from the County of Alameda  Add two Transportation Engineers funded through Measures B and BB to support improved traffic signal operations and the Neighborhood Traffic Safety Program; and add two Program Analysts to support the Bike Sharing Program and Bike Master Plan  Allocate additional projected Measure C Transient Occupancy Taxes to support cultural programs and institutions.  Utilize Federal & State Asset Forfeiture Funds to purchase and replace body worn cameras for Police Sworn Personnel.

One Time Revenues 11 FY Midcycle Budget - City Council Meeting - June 7, 2016 Fiscal Policy  Ordinance C.M.S. Is the City’s Consolidated Fiscal Policy which requires that excess Real Estate Transfer Tax be used to address long-term liabilities, support the City’s Vital Services Stabilization Fund, and pay for one-time expenses. It also states that one-time revenues may only be used for one-time expenditures unless the Council approves a separate resolution with a declaration of fiscal necessity. Impacts on the Midcycle Budget  The FY Adopted Budget balanced one-time revenues and one-time expenditures across both fiscal years.  The Midcycle Proposed Budget includes the use of one-time revenues to support ongoing expenditures (an increases of $12.5 million). This is largely due a decrease in ongoing Property Tax revenues of $13.4 million.  The Budget legislation includes a resolution that articulates the fiscal necessity for using one-time revenues for ongoing purposes.

Questions & Answers 12 FY Midcycle Budget - City Council Meeting - June 7, 2016