City of Oakland Amendments to Budget

8/9/2019 City of Oakland Amendments to Budget

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F G D I T Y O F O A K L A N DO F F I C E Of' THE ClT > C l E R f

O A K L A N D AGENDA REPORT

20I0HAR25 PM 8:32TO : Office of the City Adm inistratorATTN: Dan LindheimFRO M: Budget OfficeDATE: April 1,2010R E : R E S O L U T I O N A M E N D I N G THE G E N E R A L P U R P O S E F U ND B U D G E TF O R FY 2009-10 AND FY 2010-11, W H I C H THE C I T Y C O U N C I L

A M E N D E D P U R S U A N T TO RESO LUT ION NUMBERS 82235 CM .S . , 82335C.M.S., 82519 C.M.S. , 82582 C.M.S. , 82578 CM .S . AND CM.S.

S U M M A R YThis report presents amendments to the FY 2009-10 and FY 2010-11 City budget for the GeneraPurpose Fund, to address bud getary shortfalls as well as to approve budget-neutral "clean-up"- _items. The following key messages are contained in this document.

ContextThe severity ofthe City's fiscal crisis is truly unprecedented.Less than four years ago, in FY 2006-07, the City collected over $471 m ilhon inGenera! Purpose Fund (GPF) revenues, and by year-end had nearly $56 million inreserves. That year alone, the Real Estate Transfer Tax revenue was at $61.5 m illion.In FY 2010-11, the City is anticipated to have only $10.4 million in GPF reserves byyear-end, and is projected to collect just under $400 million in revenues by year-end.The R eal Estate Transfer tax collection is now at a low $28 million. Collectively, this


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Dan LindheimRE: Resolution Amending the Policy Budget for FY 2009-10 and Midcycle Policy Budget for FY 2010-11Page 2

^

discretionary budget is just 8 percent oft he total GPF appropriation; (b) the reservesare minimal; and (c) "easy" reven ue fixes, such as fee increases and uses of one-timeunrestricted fiands, have already been exhausted. At this point, balancing the budget .structurally will require a combination of new taxes and significant cuts to publicsafety departm ents. Public safety accounts for 66.5% oft he General Purpose Fundbudget, and if a 15% (as an example) across-the-board cut were to be applied to non-safety departments only (also excluding debt service), only $15 million in savingswould be generated w hile decimating key recreation, senior, library and internalprogra ms. Moreo ver, cuts to youth and library programs w ould violate localMe asures K/OO /D and Q. At the same time, a 15 % cut to public safety departmentswould generate an additional $42.6 m illion in savings, but would violate provisions ofMeasure Y.Proposed Balancing Measures

Th is bud get propo ses new taxes, sale and tran sfer of assets, use of restricted onetime fun ding , and limited re duc tions to spend ing. Further spending cuts wouldrequire a combination o f (a) policy decisions on shutting down certain key services;(b) changes to local measures that mandate minimal youth, library and violenceprevention spending; and (c) negotiations with the unions.

F I S C A L I M P A C TThe remaining budget shortfalls anticipated in the General Purpose Fund (net of previousCouncil actions) are $10.4 million in FY 2009-10 and $42.6 m illion in FY 2010-11. Theproposed balancing measures are presented in Exh ibit A-1 (for FY 2009-10) and Exhib it A-2(for FY 2010-11).Measures to resolve the remaining FY 2009-10 budget gap ($10.4 million)


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Dan LindheimR E : Resolution A men ding th e Policy Budget for FY 2009-10 and M idcycle Policy Budget for FY 2010-11Page 3M easures to ad dress th e FY 2010-11 budg et gap ($42.6 m ill ion)The FY 2010-11 budget shortfall is currently estimated at $42.6 million - an increase ofth e$11.2 million reported in the February 16, 2010 staff report. Components ofthe FY 2010-1J g apare: ,

- Revenue shortfall of $25.6 million, comprised primarily of Sales, Property, UtilityConsum ption, Transient Occupan cy and Parking Tax Revenue, as well as Fund Transfers.Of this amount, $11.2 million is the projected new revenue deficit.- An additional $9 million of budgeted, but unrealized, income from the Coliseum ticket

surcharge. ($4.5 million shortfall was accounted for in the FY 2009-10 budget gap.)- Additional Police Department spending of $5.5 million related to sworn recruitments,extended negotiated settlement contract and anticipated overtime over-expenditure. TheDepartment of Hum an Resources w ill expend an anticipated $1.2 m illion related tosworn recruitm ents. Projected spending for next year assumes that overtime spendingwill continue at the FY 2009-10 level and an increase in police academy costs (a fullversus a lateral academy is planned). The FY 2009-10 projected year-end Police

overspending is $3.7 million; no DH RM spending on police academies is assumed for thecurrent fiscal year.- $1.8 million in other departments, including $0.7 million in anticipated unrealized centraservices overhead recovery; $0.6 million in additional Self-hisurance Liability cost; $0.6m illion in anticipated unre alized recoveries and persoimel services budg eting error. FY2009-10 projected year-end spending assumes all ofth e foregoing except for theadditional Self-Insurance Liability cost.- Net benefit (fringe and retirem ent) rate savings of $0.5 million. iBalan cing pro po sals for FY 2010-11 totaling $43.1 million to address this projected year-end deficit, summarized generally below. Exhibits A-1 and A-2 p rovide detail of the proposed


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Dan LindheimRE: Resolution Amending the Policy Budget for FY 2009-10 and Midcycle Policy Budget for FY 2010-11Page]4will have operational savings for FY 2009-10; this office has informed staff of itsintention to seek a City Attorney opinion on minimum staffing levels for chartered Citydepartments prior to providing detailed reductions.

- Program reductions and eliminations, including the Linkages Grant Match and theHom eless Mobile O utreach programs in the Department of Human Services ($0.3million).- Grant reductions of varying levels ($ 1.9 million), including

- 25 % reductions to City institutions, including the Oakland Zoo , Chabot Space &Science Center and Children's Fairyland.

- 50 % reductions for City -affiliated entities (AIDS Prevention & EducationInitiative, Hacienda Peralta and the City/County Collaborative on C hildren &Youth) and non-profit organizations (Fam ily Bridges, Fruitvaie Senior Center,Vietnam ese Senior Services, Fam ily Bridges, Fruitvaie Senior Center, Cypress-Mandela Training Center, Symphony in the Schools, Women's Business Initiative,Jack London Aquatic Center, Oakland Asian Cultural Center, OUSD AcademiesProgram, Artists' Grants and the Day Laborers' Program).- 100% reduction for the Oakland School ofth e Arts.

- Propo sed new revenues and other financing, including a proposed new public safetyparcel tax and increased and expanded utility consumption tax; an increase in the parkingcitation rev enue expected from b etter collection rates); one-time and ongoing annualproceeds from the sale of billboard space to Clear Charmel, Inc. (which is the subject of aseparate staff report included on the April 1, 2010 special City Council agenda);anticipated new grant revenue to offset firefighter persoimel services costs; and stricterenforcement of false alarm fines ($24.1 million). Proposed new taxes would need to beapproved by the voters; this notion is discussed later in the report.


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Dan LindheimRE: Resolution Amending the Policy Budget for FY 2009-10 and Midcycle Policy Budget for FY 2010-11Page 5- The second concerns rebalancing the GPF Golden Handshake savings acrossdepartmen ts. At the time the FY 2009-11 budget was adopted. Golden H andshakesavings were applied to agencies/departments based on eligible retirees' organizational' hom es. Eventual retiree s' actual organizational hom es differed - in some cases, widely -from home locations. This action seeks to re-allocate budgeted savings expectationsbased on the agencies/departments in which Golden H andshake retirements actuallyoccurred.

Both of these actions are budget neutral and are reflected in the attached legislation.

DISCUSSIONAdd itional Shortfalls Projected for Rem aind er of FY 2009-10 and FY 2010-11Lingering w eakness in the U .S. and California economies continues to play out in localgovernment revenues. Christopher Thom berg, principal economist at Beacon Econom ics andChief Economist for the California Department of Finance, offers a dim outlook for localgovernm ents: recovery will com e but revenues will be anemic and will not likely reach thelevels experienced in the mid-2000s. The City 's major GPF revenues - property tax, sales tax,real estate transfer tax , busin ess license tax, and services charges (parking me ters) - are drivenby the real estate market and consumer spend ing. Weakness in consumer spending is likely tocontinue. Although consum er spending rose, wage growth was stagnant. Jerry Nickelsburg ofthe UCL A A nderson F orecast expects to see unemployment to remain in the double-digitsthrough 2 012 . W hile there is Job growth anticipated this year and next throughout the state, realreductions in unemploym ent are not likely as discouraged workers (w ho've left the w orkforce)and delayed entrants (recent college graduates who sat out the recession) will rejoin theworkforce upon their realization of improved labor markets. Real estate has shown some signsof recovery, howeve r, the imderlying drivers of this recovery - federal and state government


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Dan LindheimRE: Resolution Amending the Policy Budget for FY 2009-10 and M idcycle Policy Budget for FY 2010-11Page 1

REVENUES

Property TaxSales TaxVehicle Lic^ense FeeBusiness TaxUtility Consumption TaxReal Estate TransferTa xTransient OccupancyTa xParking_TaxLicenses & PermitsFines & Penaltiesinterest IncomeService ChargesGrants & Subsidies.M]?.5SlSr.5.9iJ?Fund Transfers

FY 2006-07 through FY 2010-11 (projected)GENERAL PURPOSE FUND REVENUESA c t u a l

FY 06-07 FY 07-08 FY 08-09

' - iW i? i 3T 44 134"4746.69 53.10 46.122.27 1.81 1.2850.33 52.54 54.2951.43 52.52 52.7061.50 36.20 34.2711.82 12.20 10.46

8.89 8.52 7.651.06 1.61 1,2825.98 22.00 25.723.18 4.47 1.7145.37 44.10 43.86" 5 " 4 2 ~ " " 4 . 6 5 " " " 4 " 3 T12.38 4.09 11.44" " " 28 '6 2' ' " 2 5 . 76 " ' ~ W M 'TOTALENDING FUNDBALANCE. June 30(net of carryforwardsand encumbrances)

S 471.41 S 454.94 S 468.24

Proje

FY 09-10

"129.84"

Ctlon

FY 10-11

"{2"5"."l""533.44 36 ,141.09 1.1152"i'6 " ""5"0."8T"50.50 50.8028.49 28.49

8.44 8.647.16 7.521.29 1.3627.98 29.971,64 1,6446.03 46.530."38"" -"~"1.78 1.2016.46 11.88

$ 406.62 S 401.24

S 55.60 $ 7,10 S 10.24 $ 10.24

Shor t fa l l Ident i f iedth roughFebruary 16, 2010FY 09-10 FY 10-11

(0.36) (0.36)(8.291 i5291

1 : (1.48) (1.48)1.10

(1.66) (1.66)

Add i t iona l Shor t fa l lEst imated S inceFebruary 16, 2010FY 09-10 FY 10-11

(4.69)--(2.47) (2.62)

(1.11)-

p.gSJ (P-95J. _ . . . . . . ^ . ^ ^-X0,36i (p,36J ._.. n:6? }_ . -. .(p.75l (1.08J iX-^7)_ J1.62). . . . . . . ^ . . .i 3 .20 j 0 .34"(6"o 8i (o'b's) ip Te /" " " {b .96)

S (12.83) $ (14.46) $ (6.02) S (11.15)liirt ^HHProper ty Tax(F Y 2009-10: $0.4 m il l io n tot al sh ort fa l l ; no chanee from Feb 16'^ proie ct ionF Y 2010-11: $4. 7 mi l l io n new shor t fa l l - to ta l sho r t fa l l o f $5 .1 mi l l ion)

Tota l Shor t fa l l

FY 09-10 FY 10-11

(0.36) (5.05)(8.29^ (5,29)

(3.95) (4.10)11.10 (1.11)1(1.66) (1.66)1(0.95_1 (0.95)' "(o'Tsj" "(o.Vy(1.691 "(0.36_1 (0.36)(2,421 (2,70)0.38 - II0,34 (3,20)""(0"84j (1.04)

11S (18.85) $(25.61)II

Property tax revenue budg eted for FY 2010-11 w as $130.2 m illion. Current projections indicatea drop of $5.1 million to $125.2 m illion; of this amount, $4.7 million is the additional decline


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Dan LindheimRE: Resolution Amending the PoHcy Budget for FY 2009-10 and Midcycle Policy Budget for FY 2010-11Pageprope rty tax roll to the County Au ditor-C ontro llers' O ffice in July. Last year, the total decline inAlameda County valuation w as $4.5 billion. This year, due to incomplete data, they areestimating the decline to be $4 billion, about the same level of decline as last fiscal year. Staffwill report any revisions to this projection in the Third Quarter Revenue and ExpenditureAnalysis to be scheduled for late May 2010.Sales Tax(FY 2009-10: $8.3 million total shortfall: no chanee from Feb 16'^ proiectionFY 2010-11: $5.3 million tot al shor t fall: no chang e from Feb Id"" proiectio n)Sales Tax revenue is projected to be $36.1 million in FY 2010-11, reflecting a decrease of $5.3million from th e adopted budge t. The projection is based on the large declines in receiptsreported in FY 2009 -10 due to the weak econo my and slowing consumer expenditures. BeaconEconom ics forecasted in March 2010 that consumer spending would be positive only in 2010,partially due to the federal tax cuts, but will be flat in 2011. However, key drivers of consumerspending do not support continued strength in consum er spending. It is impo rtant to note thatsales tax revenue received by the City lags actual activity by three to six months; therefore,consumer spending increases will not immediately materialize in City coffers. Slow recovery oemployment, a closely related indicator of consumer spending, is also forecasted.Utility Consumption Tax(FY 2009-10: $2.5 million new shortfall - $4 million tota l shortfallFY 2010-11: $2.6 million new sh ortfall ~ $4.1 million to tal sh ortfall)Utility Consum ption T ax (UC T) revenue is projected to be $50.8 million for FY 2010-11, a totaldecrease of $4.1 m illion from the adopted FY 2010-11 budget. The latest collection data throughFebruary indicated a decline in UCT in the current fiscal year; falling natural gas prices, reduceddemand among commercial users and weak telecommunications growth were cited as causes.


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Dan LindheimRE: Resolution Amending the Policy Budget for FY 2009-10 and Midcycle Policy Budget for FY 2010-11Page 8directly affected the hotel industry. W hile reports are that occupanc y is up, average daily roomrates are down. According to the 2009 S mith Travel Services, Inc. report published byCalifornia Tou rism, average daily room rates in Oakland dropped by 12.5 percent in January2010 from same period last year, while occupancy increased by 9.3 percent. The O aklandConvention Visitors Bureau projects the decline in hotel utilization/occupancy rate will continueinto the second quarter of 2010 (April-June), but staff is conservatively not counting on thisuptick in FY 2010-11 revenu es. Oak land 's hotel industry is largely driven by business travelers.Thomburg (Beacon Economics) suggests that any strength in Oakland's hotel industry indicatorswill portend a rebound in employment.Park ine Tax(FY 2009-10: $0.95 million total shortfall: no chanee from Feb 16*^ proiectionFY 2010-11: $0.95 million tota l shortfall; no ch anee from Feb U"* p roiection)Parking Tax revenue is projected to be $7.5 million in FY 2010-11, a decrease of $0.95 millionfrom the adopted bud get. The decline in Parking tax revenue is due to continuing weakness intravel and airport parking. Airport parking com prises about 50% of total parking tax revenue.Oakland Airport passenge r traffic generally declined through January 2010. The weak airportparking traffic, weak spending and business employment forecast, is forecasted to depressparking tax in FY 2010-11.Licenses & Permi ts(FY 2009-10: new sho rtfall of $0.15 millionFY 2010-11: new sh ortfal l of $0.15 million)Licenses & Perm its revenue is projected to be $1.4 million in FY 2010-11, a drop of $0.15million from the adopted budget. The decrease reflects flat growth from the current yearprojection and is dragged down by the sluggish economy.Fines & Penalties


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Dan LindheimRE: Resolution Amending the PoUcy Budget for FY 2009-10 and Midcycle Policy Budget for FY 2010-11Page 9For FY 2010-11 no shortfall is anticipated because the (a) roving patrol is expected to be frillystaffed for the entire fiscal year and (b) Paylock vehicle boot program will be fully operational.Interes t Income(FY 2009-10: $0.36 million total shortfall: no chanee from Feb 16'^ proiectionF Y 2010-11: $0.36 million total shortfall: no chanee from Feb 16'" proiection) \Interest Incom e is projected to decrease from $2 million to $1.6 million in FY 2010-11. Interestearnings depend on a variety of factors, including funds available for investm ents, the level of 'interest rates, and cash flow status of all the City's funds. Although some economists believethat interest rates will in crease in the nea r future, staff does not project this upside due to thesepotentially offsetting factors.Service Charees(FY 2009-10: SI. 7 million new shortfall - $2.4 million tota l sho rtfallFY 2010-11: $1.6 million new shortfa ll - $2.7 million total sho rtfall)Service Charges revenu e is projected to be $46.5 m illion in FY 2010-11, a decrease of $2.7million from the adopted budget.Parking Meter revenue ~ nearly one-third ofth e Service Charges category is projected to be$12.5 million in FY 2010-11, a decrease of $1.5 million from the adopted Budget. Severalfactors contribute to this decrease, including Council-approved cancellation of extended parkingmeter hours with n o replacement revenue identified ($0.33 million); meter vandalism, and thecontinuing weak economy ($1.19 million). Meter usage in parts of downtown /uptown Oaklandhas also declined as a result of meter jams caused by vandals, theft of coins from single spacemeters, and the sluggish econom y. As unemployment rem ains high and consumer spending isanticipated to w eaken, m eter usage has been neg atively affected by fewer people driving andparking downtown.Various other user fees declined by a total of $1.2 million, including the following fees: Parks


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Dan LindheimRE: Resolution A mending the Policy Budget for FY 2009-10 and M idcycle Policy Budget for FY 2010-11Page 10

Fu nd Transfer *(FY 2009-1 0: $0.8 million new shortf all - $0.8 million tot al sho rtfallFY 2010-11: $0.96 million new shortfall - $1.04 million total sh ortfall)Fund Transfer revenue is projected to reach $11.9 million in FY 2010-11, a decrease of $1.04million from the adopted budg et. The decre ase is attributed to declining assets associated withthe pension annu ity fiind. This is due to an updated calculation o fth e mem bership compositionofthe fiind. These calculations have resulted in less revenue transferred to the fund.Additionally, a smaller portion ofthe decline $0.08 million - is due to budgeted revenue fromPacific Renaissance residential nightly parking that will not m aterialize.

Proposed Balancing Measures for FY 2009-10Staff projects that a current-year budget gap of $10.4 million remains after Council balancingactions through A pril 1, 2010 . After closing a GP F budget deficit of $91-97 million as part ofFY 2009-11 budget approval, staff projected a mid-year shortfall totaling $23.7 million in FY2009-10 . Staff presented balancing m easures for FY 2009 -10, and Council approved all but $4.8million of solutions to this deficit. Th ese me asures included a com bination of budget transfersand spending reductions. The revised projection for a mandatory pass-through projection andCo unc il's April 1, 2010 approval of reductions to elected offices' GP F budgets provides apa rtia($0.4 million) offset to this remaining deficit (see table below).


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Dan LindheimRE: Resolution Am ending th e PoHcy Budget for FY 2009-10 and Midcycle Policy B udget for FY 2010-11Page 11FY 2009-10 Proposed General Purpose Fund Balanc ing Measures

in $ mil l ionsFY 09-10Pre-December 17th Budget DeficitBalancing Measures Approved by Council onDecember 17, 2009

Post-December 17th Budget DeficitAdditional Anticipated Shortfalls

$

February 16, 2010 Anticipated Budget Deficit

Revenues/Other FinancingSale of AssetsNew revenueSubtotalExpendituresPosition Ch anges:

ReductionsTransfers

Grant reductionsProgram reductionsUse of One-Time FundsSubtotalTotal Proposed Balancing MeasuresTotal Surplus/(Deficit)

(18.87)8.44(10.43)

(4.83)$ (15.26)

7.750.508.25

0.260.080.000.001.872.20

10.45


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Dan LindheimRE: Resolution Amending the Policy Budget for FY 2009-10 and Midcycle Policy Budget for FY 2010-11Page 12

To balance the remaining FY 2009-10 deficit, staff proposes (a) restructuring the C ity's pensionobligations using $5.5 million deferred pension credits and (b) either selling or bonding againstthe Medical Hill Garage to generate an additional $5 m illion. These proposals are describedbelow and presented in Exhibit A-1 attached to the legislation.- Re stru ctu ring o f pen sion obligation s using deferred pension credits; these are comprisecof non-General Purpose funds that exist for the sole purpose of paying the City'sretirement obligations. Staff is currently researching how these funds could be used by

the City to pay its pension ob ligations.- M edic al H ill Ga rag e was built in 1985. It is a five-level, 143,600 square-foot concreteparking structure with 47 7 marked parking stalls. The Alta Bates Medical Centercurrently operates the garage, and the City receives no revenuefi-om he facility. Staffhave been marketing the facility for sale; sealed bids for the garage are due March 31,2010, with a minimum bid of $5 million. If no desirable bids are received by thedeadline, the C ity can take over the garage operations, realize net annual reve nue, andbond against such reve nue to generate an upfi^ont amount of som e $5 million. Aninformafional report discu ssing asset sales for FY 20 09-11 is presented as a separate itemon the April 1, 2010 special City Council m eeting agenda.Proposed Balancing Measures for FY 2010-11For FY 2010-11, $43.1 million in asset sales; new revenues; grant reductions and eliminations;and additional staff reductions and transfers w ould be necessary to balance next year 'santicipated deficit and allow for a miniscule addition to reserves. Ex hib it A-2 details thisproposal and they are summ arized in the table below.


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Dan LindheimRE: Resolution Am ending the Policy Budget for FY 2009-10 and M idcycle Policy Budget for FY 2010-11Page 13

The deta i ls o f th

FY 2010-11 Proposed General Purpose Fund Balancingin $ mi l l ions

Total of Fiscal Chal lenges to Add ress $Revenues/Other F inanc ingSale of AssetsNew revenuePossible Ballot MeasuresSubtotal $Expend i tu res

Position Changes:ReductionsTransfers

Grant reductionsProgram reductions and eliminationsUse of One-Time FundsSubtotal $

Total Propo sed Balancing Measures $Total Surplus/{ Def ic i t ) $e proposed ba lanc ing measures are as fo l low s:

R e v e n u e s / O t h e r F i n a n c i n gB a l l o t me a s u re

J. r - . 1

MeasuresFY 10-11(42.57)

12.753.4820.6236.85

2.350.271.880.980.746.22

43.07

1

^ ^ K iW i *

s to ra ise add it iona l revenues are sim ply una voidab le. W e can not solve thecurrent fiscal crisis with one-time measures and program cuts alone, unless significant reductions


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Dan LindheimRE: Resolution Amending the PoUcy Budget for FY 2009-10 and Midcycle Policy Budget for FY 2010-11Page 14is a surcharge on utility consum ption such as cable, energy, and telecommunicationservices. The City of Oakland currently collects the UUT on electricity, natural gas,cable television and telephone; with vo ter approval, it could be imposed on water usageas well. C ha rg in g U UT on w at er se rvice is esfimated to bring in an additional $0.3million. Combined, addifional revenuefi-oma temporary 0.5% U UT rate hike andexpansion to w ater service would be $ 2.4 million annually.According to the California Local Government Finance Almanac (sponsored by theLeague of California Cities), several localities placed measures to change their UUTs ontheir respective Nove mber 2009 ballots with generally positive results. In Pomona andHuntington Park (Los Angeles C ounty) voters approved increases and/or expansions oftheir cities' UU Ts of 9% or greater. Comparable rates in some neighbo ring cities are asfollows:

- Berkeley: 7.5%- Richm ond: 10% (gas & electric) and 9.5% (telecom 8 L cable)- ElC errito: 8%

c. Public Safety Parce l Ta xA new parcel tax could be implemented to help the City fund essential services, such aspublic safety. If approved, the parcel tax wou ld generate $18.2 million annually (beginningin FY 2010-11).

The parcel tax revenue would not be generated until FY 2011-12 due to the timing ofth eNovem ber election and the August deadline for any new parcel item to be recorded bythe Coun ty for collection in that fiscal year. To address this cash flow issue, staffrecomm ends the issuance of a tax anticipation note that would securitize thefixtureparce


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Dan LindheimRE: Resolution Amending the Policy Budget for FY 2009-10 and Midcycle Policy Budget for FY 2010-11Page 15- Ad dition al rev enu e from the citation management contract is expected to be $1.75million based on impro ved collection efforts. Staff also anticipates one-time revenue to

be $0.3 million in FY 2009-10 (revised downwardfi-om$0.5 m illion). Separately, staff ispresenting a report and legislation that could yield $1 millionfi"om he sale of billboardspac e. Finally, the Fire Departm ent anticipates its successful a pplication for a $0.5million gr an t to offset firefighter perso nne l expense and $0.24 million from stricter false^alarm enforcement.Expenditures

- G ran ts to City Inst itutio ns an d Lo cal No n-Pro fits: GPF support of City institutions andlocal non-profits, including the O akland Zoo and Chabot Space and Science Center totalsnearly $4.5 million in FY 2010-11. Council approved 20% reductions to many of theseinstitutions as part of budget adoption in June and July 2009; now, further reducfions arenece ssary. Staff contem plated a few different scenarios for such reduc tions, recognizingthat any level of reduction to these organizations would be difficult to absorb.Non etheless, additional reductions are unavoidable to balance the anticipated shortfall.The option proposed b y staff leaves intact between 50 to 75 % of most grantees'subsidies; the only exception is the O akland School for the Arts, whose subsidy isrecomm ended to be eliminated in FY 2010-11 (see table below).


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Dan LindheimRE: Resolution Amending the Policy Budget for FY 2009-10 and Midcycle Policy Budget for FY 2010-11Page 16FY 2010-11 Genera l Purpose Fund (^ n t s and Subsidiesopt ion s Considered and RECOMMENDED(in $ mil l ions)

Organizat ionCity InstitutionsOaidand ZooChabot Space & Science CenterChildren's FairylandSubtotalRelate d City Ir^stitutionsAIDS Prevention & Education InitiativeHacienda PeraltaCity/County Collab. on Children & YouthSubtotalNon-profit OrganizationsVietnamese Senior ServicesFamily BridgesFniitvale Senior CenterCypress-Mandela Training CenterSymphony in the Schools

W omen's Business InitiativeJack London Aquatic Center*Oakland Asian C ultural CenterHuman Services - Academ ies ProgramArt GrantsDay Laborers ProgramSubtotal

Other Prior GranteesOakland School for the Arts

GRAND TOTAL

CurrentSubsidy$ 0,850.480.181.50

0.100.140.300.54

Option 1Considered25-50-75-100% reductionRevisedSubsidy Savings25% reduction5 0 . 641 $ o le "0.36 0.120.14 0.051.13 0.32

50% reduction0.05 0.050.07 0.070.15 0.150.27 0.2775% reduction

Option 2COMMENDE

0.16

^0-50-100% reductionRevisedjSubsidy Savin,25% reduction0.64 r$0.36 0.120.14 0.051.13 0.3250% reduction0.05 0.050.07 0.070.15 0.150.27 0.27

0.37i

Option 3Considered50-50-75-100% reductionRevisedSubsidy Savings50% reduction$ 0.42 I $0.24 0.24;0.09 0.090.75 0.70

50% reduction0.03 0.050.04 0.07]0.15 0.150.21 0.271


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Dan LindheimRE: Resolution Amending the Policy Budget for FY 2009-10 and Midcycle Policy Budget for FY 2010-11Page 17budgeted in the ORA Projects Fund. The GPF savings are estimated to be $0.08million in the current year and $0.49 milhon in FY 2010-11.

In fiilfillment of the City Cou ncil's directive, the City Atto m ey's Office intends toeliminate 2.0 FTE D eputy City Attorney Ills and savefi^omfillinga vacantDep uty City Attorney II at the lower end ofth e pay range (both actions continuedfi-om FY 2009 -10 to FY 2010-1 1); and eliminate 1.0 FT E Paralegal beginning inFY 2010-11.Reductions in departm ents already approv ed: As part of FY 2009-10 budget balancing,'Council approved position eliminations totaling $2.2 m illion or 8.0 FTE positions in FY ,2010-11. Positions eliminated include:

Info rm ation Technology: eliminations of 2.0 FTE Microcom puter SystemsSpecialist Is and 1.0 FTE Microcomputer Systems Specialist III for a total savingsof $0.34 million. Fi na nc e an d M ana gem ent: elimination of 1.0 FTE Revenue Assistant, saving$0.08 million. Pe rson nel Resou rce M anag em ent: elimination of 1.0 FTE AdministrativeAnalyst II saving $0.1 m illion Po lice : restructuring of persoimel managem ent ($0.09 million) by eliminating 1.0FTE Adm inistrative A nalyst II; elimination of Rangers (2.0 FTEs saving $0.28million). In addition Council approved the transfer ofth e Cadet Program to theAsset Forfeiture Fund (9.0 PTs saving $0.27 million).

Reductions in departm ents to be approved total $1.67 million. A portion of thesepreliminary b alancing measures w ere presented to Council in the February 16, 2010


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Dan LindheimRE: Resolution Amending the PoHcy Budget for FY 2009-10 and Midcycle Policy Budget for FY 2010-11Page 18Idays per week. This grant is part ofth e PA TH program to conduct outreach to 'encourage hom eless people in work activities and access to housing. j

SUSTAINABLE OPPOR TUN ITIES IThere are no direct sustainable opportunities associated with this report.

1DISABILITY AND SENIOR ACCESS \There are no direct disability and senior access opportunities associated with this report.R E C O M M E N D A T I O N SStaff requests City Council direction and possible action on the following:1. FY 2009-10 General Purpose Fund balancing measures presented in Exhibit A-1 oftheattached legislation.2. FY 2010-11 General Purpose Fund balancing measures presented in Exhibit A-2 ofthe

attached legislation.3. Declare a fiscal emergency to use one-time fiands to balance the anticipated $10.4 millionremaining FY 2009-10 shortfall and $42.6 million FY 2010-11 shortfall in the GeneralPurpose Fund (an action required by the City 's financial policy, ordinance 12946 C .M.S.),AND declare such one-time General Purpose Fund s restricted to be used only for balancingsaid shortfall.


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Dan LindheimR E : Resolution Am endin g th e Policy Budget for F Y 2009-10 and M idcycle Policy Budget for FY 2010-11Page 19I

Attachment A: Letterfi-omCity Auditor Co urtney Ruby to Mayor D ellums, City Council andCity Adm inistrator Dan Lindheim; City Attorney Opinion (April 2006)


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ATTACHMENT ACITY OF OAKLAND

C I T Y H A L L ONE F R A N K H. O C A W A P L A Z A, 4TH F L O O R O A K L A N D , C A L I F O R N I A 9 4 6 1 2Office of the City Auditor (510)23 8-33 78Courtney A. Ruby, CPA FAX (510) 238-7640City Auditor TDD (510) 238-3254www.oaklandauditor.com

April 1,2010OFFICE OF THE MAYORHONORABLE CITY COUNCILCITY ADMINISTRATOR DAN LINDHEIMOAKLAND, CALIFORNIAR E : R E Q U E S T E D 15% B U D G E T R E D U C T I O N

Dear Mayor Dellums, President Brunner, Members ofthe Council, andCity Administrator Lindheim:In the spirit of cooperation, the City Auditor's Office has worked with the Administrationand the City Council to implement previously requested budget reductions. W hile it hasbeen very difficult for the Office, we have taken a 12.3% cut to date, including areduction in staff. As the Office with the City's smallest departmental budget and staff,
http://www.oaklandauditor.com/http://www.oaklandauditor.com/


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Mayor DellumsHonorable City CouncilCity Adm inistrator LindheimRequested \ 5 % Budget ReductionApril 1,2010Page 2 of 2

1 have asked the C ity Attorney to prioritize my request given its FY 2010-11 budgetimplications. It is my hope that the City Attorney will be able to provide an opinionbefore the end ofthe current fiscal year.Respectfully submitted.

COURTNEY A. RCity Auditor

cc : City Attorney John Russo


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CITY OF OAKLANDOffice of the City A ttorne yLegal Op inion

To: Roland Sm ith, City AuditorFrom: Office of the City AttorneyDate: Ap ril 25, 2006RE: Crty Aud itor B udge t Cuts

QuestionDoes the Charter require the City Council to provide minimum funding for staff ofthe City Auditor's Office?

II. Summary ConclusionThe City Council must provide minimum funding so that the City Auditor mayperform, without material inipairment, his Charter mandated duties.


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April 25, 2006Re: City Auditor Budget CutsPage'2of4However this general rule yields to the exception that the budget cuts may notprevent the performance of a city official's duties as enumerated by a city charter, (ScottV. Common Council,-supra, at 695 .) The Scott court recognized that in "ra re" casesjudicial interference with the legislative process is justified. A city counc il cann ot violateits own charter. The City Coun cil, by a budgetary act, could not ignore a charterofficer's charter mandated duties.

\t is weW settled that a charter city may not act in con flict with itscharter. Any act that is violative of or not in compliance w ith thecharter is void. The city council cannot relieve a charter officer of thecity from the duties devolving upon him by the charter .. (Id., internalquotations and citations omitted, emphasis added.))n Scott, the trial court found that elimination of all of the city attomey'sinvestigators "materially impaired" the city attorney in the performance of his chartermandated prosecutorial duties. The investigators were "absolutely necessary" fo r theperformance of the city attorney's city charter func tions. The work o ft h e investigatorswas "inseparable",from the, city attorney's prosecutorial function, The San Bernardinocouncil's budgetary actions rendered the city attorney "unable to perform his statutoryfunctions" and "eliminate[d] [the city attorney's] ability to carry out the sworn statutoryand.charter requirements and duty mandated by the people of this city and the State ofCalifornia." (Id. at 694-695.)

The appellate court upheld the trial court and held that the city could onlyeliminate charter mandated duties after it had eliminated non-charter mandatedprograms first. (Id. at 698, fn . 11.)Can the City Councit Cut Positions in the City Auditor's Office?


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( J

April 25, 2006Re: City Auditor Budget CutsPage 3 of 4procedures for maintaining the accounts and accounting systemthroughout all departments, o ffices and agencies of the CityThe City Audttor shall conduct surveys, reviews, and audits as the Auditordeems to be in the best public interest or as required by the Council orMayor. (Charter, section 403 , emphasis added,)

The Charter goes on to define that the "public interest" "shall include, but no t be limitedto":(1) Reviewing and appraising the soundness, adequacy and application ofaccounting, functional, an d operating controls an d reliability and timelinessof accounting and other data generated within the organization,(2) Evaluating the city's internal controls to ensure that the City's assetsand resources are reasonably safeguarded from fraud, waste, andmismanagement.(3) Ascertaining compliance with Council's resolutions and policies andthe Mayor's Administrative Instructions and Directives, as well asapplicable State and Federal laws and regulations.(4) Providing assistance to City Departments to enhance theeffectiveness, efficiency and economy of their operations.(5) Preparing an impartial financial analysis of all ballot measures,pursuant to the provisions of the Municipal Code.


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Apri l 25,2006R(?: City Auditor Budget CutsPage 4 of 4Charter Section 403 includes "responding to requests for audit and review" as "in

the public interest." The Charter also requires tha t the City Auditor perform audits "asrequired by the Council." Several ballot measures authored and p laced on the ballot byCity Council direct the City Auditor to perform an annual audit of disbursementsauthorized by the measures. Those measures include Measure fvl (Special Tax to FundEmergency Medical Services); Measure N (Special Tax to Fund Paramedic Services);Measures 0 (Library Service Retention Act of 1994) and Measure Q (Library ServicesRetention and Enhancement Act).So long as the City Council funds any non-Charter mandated expenditures, theCity Council must provide minimum funding so that the City Auditor may perform,without material impairment, his Charter mandated duties.

Very truly yours.

John RussoCity Attorney

Attorney assigned: M, MorodomiMTIVl:ww


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DRAFTFILED

OFfiOE Of- THE c n - , ClEf?>c KL.HD O A K L A N D C ITY C O U N C IL2010 MAR 25 PM 8:32R E S O L U T I O N N O . CM.S.

Approved as to Form and Legality

City Attorney

RESOLU TION AMENDING THE GENERAL PUR POSE FUND BUDGET FOR FY2009-10 AND FY 2010-11, WH ICH THE CITY COUNCIL AMENDED PURSUANT TORE SOL UT ION NUM BER S 82235 C.M.S., 82335 C.M.S., 82519 C.M.S., 82582 C.M.S.,82578 CM.S. AlVD CM.S.W H ER E A S, on Jun e 30, 2009, in accordance with City Charter section 80 0, the City Counciladopted the biennial policy budget by passing Resolution No. 82102 C.M.S.; andW H E R E A S, on July 28 , 2009, October 6, 2009, December 17, 2009, February 16, 2010, March2, 2010 and March 16, 2010, the City Council approved amendm ents to the adopted budget, viaResolutions No . 82235 C .M.S., No. 82335, No . 82519 C.M.S., No . 82582 C.M .S., No. 82578C.M.S., and No . C M .S . respectively; andWHEREAS, the annual mandatory payments to the Alameda County Local Agency FormationCommission are critical to preserving the City of Oaklan d's property tax revenues; andWHEREAS, while Citywide Golden Handshake early retirement program savings wereachieved, actual program savings differed from budgeted program savings by agency/departmentin Fiscal Year 2009-10 ; andWH EREA S, due to continued wealaiess in the local economy and real estate market andadditional pressures in public safety service provision, a $10.4 million shortfall is anticipated in


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Fiscal Year 2010-11 projected General Purpose Fund shortfall; and be itFU RT HE R R ES OL VE D : That oneM me monies used to balance the Fiscal Year 2009-10 andFiscal Year 2010-11 General Purpose Fund projected deficits are restricted revenues to be usedonly for the purpose of budget b alancing; and be itFU RT HE R RE SO LV ED : That annual mandatory payments to the Alameda County LocalAgency Formation Comm ission of approximately $60,000 be paid from the Citywide City 'Council contingency allocation in the General Purpose Fund; and be it 'FU RT HE R RE SO LV ED : That Fiscal Year 2009-10 budgeted General Purpose Fund savings;from the Golden Handshake early retirement program be re-allocated to reflect actual retirementsby agency/department in Fiscal Y ear 2010-11; and be it ;FU RT HE R RE SO LV ED ; That the City Council directs the City Administrator to implementthe aforementioned with all deliberate speed.IN COUN CIL, OAKLAND, CALIFORNIA, , 2010 |PASSED BY THE FOLLOWING VOTE:AYES - BROOKS, DE LA FUENTE, KAPLAN, KERNIGHAN, NADEL, QUAN, REID, and PRESIDENTBRUNNER IN O E S -A B S E N T -ABSTENTION -

ATTEST: LaTonda SimmonsCity Clerk and Clerk ofthe Council


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EXHIBIT A-1

FY 2009-10 Proposed General Purpose Fund Balancing Measuresin $ mil l ions

FY 09-10Pre-December 17th Budget Def ic i tBalancing Measures Approved by Council onDecember 17, 2009Post-December 17th Budget DeficitAdditional Anticipated Shortfalls

$

Febru ary 16, 2010 Ant ic ipated Bu dget Def ic i t

Revenues/Other F inanc ingSale of AssetsNew revenueSubtotalExpend i tu resPosition Changes:

ReductionsTransfers

Grant reductionsProgram reductionsUse of One-Time FundsSubtotalTotal Proposed Balancing MeasuresTotal Surplus/(Def ic i t )

(18.87)8.44(10.43)

(4.83)$ (15.26)

7.750.508.25

0.260.08

1.872.20

10.45


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Exhibit A-2

R E V E N U E SFY 2010-11 GENERAL PURPOSE FUND

DELINEATION OF PROJECTED YEAR-END DEFICITPrev ious l y , Add i t i on a l To ta l De f i c i t

Iden t i f ied Def ic i t FY 10-11FY 10-11 FY 10-11E x p l a n a t i o n

Property Tax

Sales Tax

Vehic le L icense Fee

(0 .36 ) (4.69) (5 .05) P er March 17th County prel iminary est imate, assessed valuat ion (AV) todecl ine by -3 .2% based on the expected wave of addi t ional loweredassessments . AB 1290 pass-through f rom ORA is a lso projected to dec l ine by1 1 % .

(5.29) (5 .29) C ont inuing dec l ine in consumer spen ding. FY09-10 est imated short fa llincluded the approximately $3M triple fl ip negative adjustment, not occuring inF Y10-11 .Business TaxUt i l ity Consum pt ion Tax (1.48) (2.62) (4.10) Fall ing natural gas prices resulting in lower gas bil l ings; reduced demand, andlack luster growth in Telecom revenues.Real Estate Transfer Tax

Transient Occupancy Tax (1.66)

(1 . 1 1 ) (1 .11) R eal estate has shown some s igns of recovery, however, the under ly ingdrivers of this recovery - federal and state govem men t credit for first-timebuye rs, low interest rates and available credit - may not continue for muchlonger.

(1.66) C ont inuing dec l ine in consumer spending reducing average dai ly room rates.Park ing Tax (0.95) (0.95) Continuing decline in consumer spending affecting travel and airport parking.L icenses & Permi tsFines & PenaltiesInterest incomeServ ice Charges

Grants & Subsid iesfvl isceilaneousFund Transfers

Sub to ta l

(0 . 36 )J^ lP l {^-15) Reduced demand for.errTii ls^

(0.36) Projected shortfal l Is due fo the tow interest market and low cash balance forinvestment .(1.08) (1.62) (2 .70) S lowdown in consumer spending af fect ing park ing meter usage, and var ious

user charges. Adjustm ent in 10-11 also includes a $33 0k reduction in meterrevenue due to the cancellation of extended parking meter hours with noreplacement revenues identif ied.

(3 .20) (3.20) Revenue of $3.2M was included in the 10-11 amended budget, but is yet to beidentif ied.(0.08) (0.96) (1.04) Adjustments due to lower pension annuity revenue attributed to highermortality rate in 09-10; and Pacific Renaissance nightly residential parking{$80K) that wil l not actualize.

(14.46) $ (11.15) $ (25.61)

1 of 2


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Exhibit A-2

EXPENDITURES

Doubtful collection of entertainmentsurchargeProjected departmental overspending:

PoliceFull police academy

Alameda County sherifTs academyAnticipated overtime overspending

Set aside necessary for the new NBAmonitorinq contractOther D epartmentsFinance & Management

Non-Departmental UnitIncrease in Self-Insurance Liability cost basedon the Phoenix Model analysisNet adjustment of fringe and retirement rates(for Civilian and Sworn em ployees)

PrevlouslvIdentifiedFY 10-11. _

(3.13)

(0.55)(2.20)

(0.80)

(0.59)

(0.64)(0.56)(0.80)

AdditionalDeficitFY 10-11

-

-

-"

1.30

Total Deficit ExplanationFY 10-11(9.00) Entertainment surcharge applied to Coliseum ticket sales has not beenapplied in FY 2009-10 and may not be applied in FY 2010-11.

--

(3.13) Reflects a cost of a full academy, including Police Department's and HumanResource Management Department's recruiting and training expenses.(0.55)(2.20) Reflects anticipated FY 2009-10 year-end spending of $14 m illion, a reductionof $13 million from the high of $27 m illion just a couple of years ago.(0.80) Approved by resolution 8244 8 C M. S. on December 8, 2009; total approved$1.5 m illion, with $0.7 m illion appropriated in FY 2009 -10.-(0.59) T reasury recoveries were mistakenly inflated in the budget; continued from FY2009-10. Personnel services appropriation mistakenly shorted in FY 2010-11.(0.64) Reflects lower central services overhead recovery rate from eliminatedpositions in non-GPF.(0.56) Report on increased cost presented to Finance & Management Committee onFebruary 23, 2010.0.50 Savings due to downward revision of fringe and retirement benefit rates on allsalaries.

Subtotal % (18.26) $ 1.30 $ (16.96)TOTAL $ (32.72) $ (9.85) $ (42.57)

2 of 2

EXHIBIT A-2


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F Y 2 0 1 0 - 1 1 G E N E R A L P U RB a l a n c i n a M e a s u rFTEs Al readyAppr ov edFi l led Vac Total FY 10-11

REVENUES/OTHER FINANCING

3 0 S E F U N De s

To BeAppr ov edFY 10-11

Sale/Lease of AssetsLease of Scotlan to ORA /Centra l District or Sale of 2.00Other FacilitiesSale of Grandview Lots 0.15Sale of Sriviera property

Sale of Henry J. Kaiser Convention Center

--0.60

10.00Su btot al - - - $ 2.15 $ 10.60

New Revenues and Other Financ ingIncreased parking citation revenu e 1.75

Proceeds from sale of billttoard spaceNew ^rant revenue to offset personnel costsStr icter False Alarm Enforcement Revenue

Su bto tal - - $ 1.75 S

1.000.490.241.73

Poss ible Ba l lot Measure Al ternat i ves - Requi res Counc i l ac t ion by las t meet ing in July (7/20/2010) for the November 2010bal lot (deadl ine for Clerk to submi t req ui red paperw ork to Cou nty i s Augus t 8, 2010).Public Safety parcel tax

Utility Users' Tax - te mpora ry 0.5% increase andpossible expansion to other utilities

Sub t o t a l $ $

18.19

2.43

20.62TOTAL REVENUES/OTHER FINANCING $ 3 .90 $ 32.95EXPENDITURESReduc e g r an t s and s ubs i d i es :City Institutions - 25% reduction

Oakland ZooChabot Space & Science CenterChildren's FairylandSubtotal

0.160.120.050.32::::::::::;:.:.::::::::::;:;::::;;::::::::::.::::::;:::::::.:.:.:: : z : : : : : z : : : : : : " : : : : : ; : : : : : : : : : : : : : : : : : z ^ ^ ^

TOTALFY 10-11

2.000.150.60

10.00s 12.75

1.75

1.000.490.24$ 3.48

18.19

2.43

. . ? .s

20.6236.85

0.160.120.05U M

Imoac ts

The property is being sold to Hill Side Homes. The Councilapproved the Ordinance on March 16.

Reflects anl idpa led add it ional revenue from the newcontract due to an inaease d col lect ion rate.

One-time proceeds from sale of billboanJ space, along with$0.15 mil l ion per year is ant ic ipated from arrangement withClear Channel Inc.

Special tax levy requires 2/3 vote of electorate. Single familyresidential parcel assessment would be approximately $180annual ly, or $15.00 per month . Value reflects 70% of fullyear revenue based on conservat ive TR AN-able est imate.General tax requires a majority affirmative {'yes") vote forapproval.

1 of 6

EXHIBIT A-2


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Related City Insti tut ions - 50% reduct ionAIDS Prevention & Education InitiativeHacienda P eraltaCityCounty Col lab. on Chi ldren & Youth

SubtotalNon-Prof i t Organizations ~ 5 0% reduct ion

Vietnamese Senior ServicesFamily BridgesFruitvaie Senior CenterCypress-Mandela Training CenterSymphony in the SchoolsWo men's B usiness Ini t iat iveJack London Aguatic CenterOakland Asian Cultural CenterHuman Services - Academies ProgramArt GrantsDa_y Laborers ProgramSubtotal

Other Prior Grantees - 100% reduct ionOakland School for the ArtsSub t o t a l

MayorEliminate Mayor's PSE 14Reduce operat ions and maintenance budget.Sub t o t a l

Ci ty Counc i lCo un ci l : El iminate Senior Counci l Pol icy Analysts(Legislative Analysts)

Sub t o t a lc i t y A t t omeyEliminate Deputy City Attomey II IEliminate Paralegal

Savings from paying Deputy City Attomey II lower thanbudgeted amountSub t o t a l

Ci ty Audi tor15% reduction ~ detail to be providedSub t o t a l

Fi l l ed

2.00

2.00

4,05

4 .05

2.001.00-3^00

-

FTEsVa c

.-

; . --

-

-

Total

2.00

2.00

4.05

_ _ 4 . 0 5 _

2.001.00

3.00

-

Al readyAppr ov edFY 10-11

----------

-$

0.220.05% 0.27

0.49

$ 0.49

0,420.110.02

$ 0.55

0.20$ 0.20


$

$

$

$

$

0.050 . 0 7 "0,150.27

0.020.050,110.110,040.060.060.040.08" 0 . 4 9 "0.080.68

0.141.88

---

---

- .-

TOTALFY 10-11

0,050.070.150.27

0,020.050.110.110.040.060,060,040,080,49 "0.080.68

0.14$ 1.88

0.220,05$ 0.27

0,49

$ 0.49

$

0,42b'Ti"0,020.55

0,20$ 0.20

Imoac ts

'

1.95 FTE Legis lat ive Analysts funded by the O akland.Redevelopme nt Agency Projects fund were also appnaved byCounci l for el iminat ion.

City Council approved the reduction target of $0.55 million atits March 16th meeting and asked elected offices to relumwith specific reductions for the April 1st special meeting.

._

EXHIBIT A-2


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I n f o rma t i on Tec hn o l ogyDelete Microcomputer S ystems Special ist 1

Delete Miaocomputer Systems Special ist 1

Delete Microcomputer Systems Specialist III

Fi l led

1.00

1,00

1.00

FTEsVac Total

1.00

1.00

1.00


0.10

0.10

0.14


Subtotal 3 .00 - 3.00 S 0.34 $Finance and ManagementEl iminate Revenu e Assistant

Sub t o t a l1,00

1.00 -1,00

1.00 $0.080.08

-$

Personnel Resource ManagementEl iminate Adm in Analyst 11 1.00 1.00 0.10 -Sub t o t a l - 1.00 1.00 $ 0.10 $

Pol ice Serv icesRes t r uct u r e Per s onne l Managem entEl iminate Admin A nalyst I I

OtherEl iminate Ran gersTransfer Cadet Program to Asset Forfei ture fund

-2.009.00

1.00-

1.002.009.00

"~0.090.280.27

--

Sub t o t a lMus eum

Reduction through revised public/private partnershiparrangement between the City and the OaklandMuseum of Cal i fomia Foundation.

11.00 1 0 0 ^ _ 12.00 $ 0.64 $0.60

Sub t o t a lL ibraryUtilize available Measure Q fund balance

- - s $ 0.600,54 .

" " - i - ^ ^ 1 1 , . ^ - . , _ *,

TOTALFY 10-11

0,10

0.10

0.14

s 0.340.08

$ 0.080.10

s 0.100,090.280.27

s 0.64. 0,60

S.... 0.60 0,54 .

Impac ts

There will be a significant delay in repladng and ortroubleshooting dam aged software or hardware for computerequipment c i tywide, Documental ion of computer equipmentinventory wi l l be affected as wel l .There will be a significant and severe delay in the responseto failures on systems used by the Libraries and the Museumwhich wou ld negatively impact downtime. There wi l l also besignificant delay in computer replacments and ontroubleshooting damaged computers.There will be a significant delay on the response to networkrelated issues. Dai ly logs wi l l not be mo nitored as frequent asthey should be, possibliy on a weekly rotation. Coordinationof network services related to relocation of staff and officereanrangements will be delayed significantly as well.

Slowdown in collections

Loss of bill-paying, payroll, other fiscal functions

Ini t ial .analysis shows adequate fund balance remainino for - -FY 10-11

3 o t 6

EXHIBIT A-2


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FTEsFilled Va c Total

AlreadyApprovedFY 10-11Suijtatat

To BeApprovedFY 10-11$0.54

TOTALFY 10-11

JftS4Impacts

4ofS

EXHIBIT A-2


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Parks and Recreat ionTransfer revenues to GPF from Golf Fund

Fi l ledFTEsVa c To t a l


-


0.20Sub t o t a l - - - - $0.20

Human Serv icesEliminate Linkages Grant Match

Eliminate Homeless Mobi le O utreach/Cali fornia Hotelgrant match

0.19

0,14

Sub t o t a l - - - $0.00 $0.33ITOTAL SOLUTIONSSubtotal 5urplu5/(deficit)

24.05 2.00 26.05 $ 6.57 $ 36.50

TOTALFY 10-11

0.20$0.20

0.19

0.14

$0.33

$ 43.070 . 50

Imoac ts

Added revenue from Lake Chabot & Montclair Courses,

State grant funding of $200k annually is proposed forelimination in FY 10-11 as part of State budget balancing.Elimination of the local grant match would terminate baseprogram services for adults vnth disabilities, which currentlyserves approximately 372 cl ients. With Cit / GPF funding theprogram could cont inue serving a base number of c l ienls.Reduces outreach efforts by 2 (two) days fnam the current 5(f ive) days. Cun-ent ly part of PA TH program to do outreach toencourage and engage homeless people in work activitiesand access to housing. Wo uld need 30 days not ice tomodify the contract.

1 $ 0.00

E X H I B I T A - 2


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FiVfedF T E sy a c T o t a f

A l r e a d yA p p r o v e dF Y t O - M

T o B eA p p r o v e dF V - 1 0 - l t

T O T A LF Y 1 0 - 1 1 f m p a c t s

F=TE SUMMARYEliminateTransferDowngradeAd dTola;

15,059,00

24.05

2.00 17,059,00

2.00 26.05

2.350,27

2.62

2,350,27

2.62OlherRevenueBallol MeasuresGrant elimination/reductiont.arr>^orwarOSale of AssetsProgram elirninationNon personnel transfers

0,051,75--2.15--6.57

0.601.7320.62

1.8810.600.33 ,0.74

36 .50

0,653,48

20.621,68

12.750,330,74

43.07

6 o t 6

Documents

City of Oakland Amendments to Budget