Cover page photo courtesy of the Oakland Convention & Visitors Bureau
Photograph by Barry Muniz
City of Oakland
FY 2005- 07 Adopted Policy Budget
Mayor
Jerry Brown
Members of the City Council
Ignacio De La Fuente ( District 5)
President
Jane Brunner ( District 1)
Vice- Mayor
Desley Brooks ( District 6) Nancy Nadel ( District 3)
Henry Chang, Jr. ( At- Large) Jean Quan ( District 4)
Pat Kernighan ( District 2) Larry Reid ( District 7)
City Administrator
Deborah Edgerly
Prepared by
Office of the City Administrator
Budget Office
Marianna Marysheva
Budget Director
Analytical Staff
Support Staff
Kirby Smith
Deborah Spaulding
Cheryl L. Taylor
Robert R. Davila
Donna Howell
Myra Jew
Sydney Oam
Debbie Comeaux
Pauline Feng
Leslie Pham
Rowena Quindiagan
Kinji Wooten
Elected Officers
John Russo, City Attorney
Roland Smith, City Auditor
Administration
Deborah Edgerly, City Administrator
Cheryl Thompson, Assistant City Administrator
Niccolo De Luca, Deputy City Administrator
City Clerk
LaTonda Simmons
Agency and Department Directors
Claudia Cappio & Dan Vanderpriem
Community & Economic Development
Dennis Power
Cultural Arts
William Noland
Finance & Management
Daniel Farrell
Fire Services
Andrea Youngdahl
Human Services
Carmen Martinez
Library Services
Audree Jones- Taylor
Parks & Recreation
Wayne G. Tucker
Police Services
Raul Godinez, II
Public Works
Mission Statement
The City of Oakland is committed to the delivery of effective,
courteous and responsive services. Citizens and employees
are treated with fairness, dignity and respect.
Civic and employee pride are accomplished through constant
pursuit of excellence and a workforce that values and reflects
the diversity of the Oakland community.
The Government Finance Officers Association of the United States and Canada ( GFOA)
presented a Distinguished Budget Presentation Award to the City of Oakland for its biannual
budget for the fiscal years 2003- 04 and 2004- 05.
In order to receive this award, a governmental unit must publish a budget document that meets
program criteria as a policy document, as an operations guide, as a financial plan and as a
communications device.
The award is valid for a period of one budget cycle only. We believe our current budget for fiscal
years 2005- 06 and 2006- 07, continues to conform to program requirements, and we are
submitting it to GFOA to determine its eligibility for another award.
August 19, 2005
Honorable Mayor Edmund G. Brown Jr.
Honorable President De La Fuente and Members of the Oakland City Council
Oakland, California
Subject: The City of Oakland’s FY 2005- 07 Adopted Policy Budget
Dear Mayor Brown, President De La Fuente and Members of the City Council:
I am pleased to transmit to you the Adopted Policy Budget for the City of Oakland, for
the period of July 1, 2005 through June 30, 2007. This budget was adopted by the City
Council on June 21, 2005, following a series of public hearings and extensive
discussions. The Adopted Policy Budget for Fiscal Years 2005- 2007 incorporates a
number of amendments made by the City Council to the Proposed Budget of the Mayor
and City Administrator. These amendments, totaling over $ 8 million in the first year of
the budget and over $ 7 million in the second year, are fully balanced by the additional
revenues, and can be found under the “ Legislation” tab of this document, following the
budget adoption resolution.
The Fiscal Year 2005- 07 budget is structurally balanced, addresses Council priorities,
and follows the fundamentals of the City’s financial management policies. This financial
plan effectively balances community needs and accomplishes City Council goals while
maintaining the City’s financial strength.
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 2
Budget Summary
The FY 2005- 07 Adopted Budget contains two- year appropriations of just over $ 2
billion, including $ 941 million for FY 2005- 06 and $ 1,061 million for FY 2006- 07, across
all funding sources:
FY 2005- 06 FY 2006- 07
General Purpose Fund $ 443.51 mill $ 464.80 mill
Other General Funds $ 106.65 mill $ 109.11 mill
Special Revenue Funds $ 147.13 mill $ 143.28 mill
Enterprise Funds $ 37.83 mill $ 39.26 mill
Internal Service Funds $ 42.55 mill $ 43.75 mill
Capital Projects Funds $ 16.19 mill $ 113.57 mill
Debt Service Funds $ 115.56 mill $ 115.11 mill
Trust and Agency Funds $ 32.07 mill $ 32.76 mill
TOTAL $ 941.50 mill $ 1,061.64 mill
The array of funding sources contained in the budget reflects the diversity of the City’s
resources, as well as our continued effort to maximize opportunities from grants and
special revenue sources. The programs included in this budget are intended to reflect
the Mayor and City Council goals and objectives for the City. The FY 2005- 07 Adopted
Budget is, in itself, the City’s strategic spending plan for the next two years.
The chart below illustrates that there are several distinct fund groups in the City, each
with a number of separate funds.
Composition of City's FY 2005- 07 Adopted Budget
( 2- Year Total Expenditure)
General
Purpose Fund
46%
Trust and
Agency
Funds
3%
Debt Service
Funds
12%
Capital
Projects
Funds
6%
Internal
Service
Funds
4%
Enterprise
Funds
4%
Special
Revenue
Funds
14%
Other
General
Funds
11%
The City’s various fund groups include:
• General Funds ( where the City’s General Purpose Fund resides, along with Self-
Insurance Liability, Workers Compensation, Kids First, and others)
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 3
• Special Revenue Funds ( mainly Federal and State grants/ reimbursements, pass-throughs
and donations, along with local voter- approved assessments such as
the Landscaping and Lighting Assessment District, Measure Y- Violence
Prevention, and Wildfire Prevention Assessment District)
• Enterprise Funds ( Sewer Service and Golf Courses)
• Internal Service Funds ( which account for internal service transactions such as
facility, fleet and radio replacement, repair and maintenance)
• Capital Projects Funds ( which include funding restricted to capital investments
and improvements and related expenditures)
• Debt Service Funds ( where income and payments related to City’s debt service
are tracked)
• Trust Funds ( such as retirement trusts, and the Oakland Redevelopment Agency
projects fund)
All of the City’s funds, with the exception of the General Purpose Fund ( GPF), are
considered restricted. Their revenues can only be spent on particular types of programs,
activities and purchases.
Budget Development Principles
Faced with projected shortfalls in the General Purpose, as well as other City funds, we
have adhered to three important principles during budget development.
Principle 1: Develop a budget that identifies the staffing and resources allocated to,
and revenues generated by, specific programs that support the Mayor and
City Council goals.
First and foremost, the City must remain strategic and continue focusing on goals and
priorities. The FY 2005- 07 Adopted Budget reflects the Mayor and Council goals and
priorities for the next two years, as listed below.
GOAL 1: DEVELOP A SUSTAINABLE CITY
1A Maximize socially and environmentally sustainable economic growth, including conserving
natural resources
1B Encourage and support social equity for all Oakland residents
1C Develop and institutionalize sound financial management policies and practices
GOAL 2: BUILD COMMUNITY AND FOSTER LIVABLE NEIGHBORHOODS
2A Reduce crime by implementing a comprehensive crime prevention/ reduction strategy
2B Facilitate the development of housing for all incomes
2C Reduce blight and nuisance
2D Provide for clean, well- maintained and accessible streets and sidewalks, facilities, amenities,
parks, recreational facilities and trees.
2E Encourage and support civic engagement
GOAL 3: ENSURE THAT ALL OAKLAND YOUTH AND SENIORS HAVE OPPORTUNITY TO BE
SUCCESSFUL
3A Provide effective community programs for seniors, youth, and people with disabilities
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 4
As in the last budget cycle, the FY 2005- 07 Adopted Budget is developed and
presented by program, showing how each program supports specific Council goals and
objectives. In proposing budget reductions for FY 2005- 07, we considered the Mayor
and Council priorities, and attempted to minimize the impact and, where possible, even
enhance programs deemed essential to the Mayor and Council and their constituents,
as reflected by the programs’ links to the FY 2005- 07 goals and objectives.
Principle 2: Incorporate input from the 2005 Community Survey.
A Community Survey of Oakland residents was conducted in February of 2005 to
determine the community’s priorities for the upcoming budget. The results of that survey
showed education and public safety as top priorities for most residents. In addition, the
survey revealed the following:
o Oakland residents continue to be highly pleased with the quality of life in the
community. Emergency services, safe neighborhoods and schools, and clean
environment are most important to Oaklanders’ quality of life.
o Among issue areas impacted by City services, crime, housing costs, and
unemployment are top- tier concerns for Oakland residents. Drugs, unsafe
driving, robberies and gang activity are residents’ top public safety concerns.
o Affordable housing, recreation programs for youth, and safe schools are the
areas where greatest gaps between the community’s priorities and satisfaction
with existing service levels have been identified.
o Overall satisfaction with City government’s performance has declined slightly, but
satisfaction with most individual services remains high. Residents continue to
perceive City employees as very helpful.
The FY 2005- 07 Adopted Budget incorporates the results of the survey by continuing
important public safety and community initiatives that help maintain the quality of life in
the City and reduce crime. Many of these initiatives will be enhanced and expanded
with the help of additional resources provided by Measure Y ( the Violence Prevention
Act of 2004).
Principle 3: Adhere to City’s financial policies, such as a requirement to maintain a 7.5
percent reserve level in the General Purpose Fund.
The City has a number of important financial policies; many were adopted just recently.
The policies impacting the development of the budget are listed below; copies of these
and other relevant policies are provided in the “ Supplemental” section of the budget
document.
Policy Name Council
Adoption Date
Adopting Council
Resolution / Ordinance #
Policy on Balanced Budgets July 15, 2003 Resolution 77922
Reserve Policy - General Fund and
Capital Improvement Fund
June 17, 2003 Ordinance 12502
Long- Term Financial Planning Policy July 15, 2003 Resolution 77923
Policy on Charges for Services July 15, 2003 Resolution 77924
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 5
The FY 2005- 07 Adopted Budget adheres to the key principles contained in the above
policies. Specifically:
o The FY 2005- 07 Adopted Budget is balanced, at an individual fund level. In
cases where insufficient revenues or excessive expenditures existed at the
baseline, measures are taken to bridge the gaps.
o The Adopted Budget maintains the 7.5% mandated reserve in the General
Purpose Fund.
o The Adopted Budget also maintains the $ 6 million reserve required for the
Capital Improvements Contingency Fund.
o The Adopted Budget is built on solid revenue and expenditure figures, which take
into account the analysis of economic and demographic data at the national,
local and state level, as well as legal, legislative and policy changes – both
actual and anticipated.
o The Adopted Budget includes revisions to the City’s Master Fee Schedule, to
reflect changes in the costs of services provided by the City.
Key Budget Considerations
GPF Budget Concerns
The General Purpose Fund accounts for 46 percent of the City’s budget. This is the
fund where a $ 32 million annual shortfall was initially projected. The key factors that
contributed to the GPF shortfall included:
a) Slightly lower than historical increases in some of City’s revenues, such as
the sales tax and the transient occupancy ( hotel) tax;
b) Discontinuation of one- time revenue sources, such as transfers from
discretionary fund balances and reimbursements from the Oakland
Redevelopment Agency ( ORA) and the Oakland Base Reuse Authority
( OBRA);
c) Negotiated employee salary increases and higher retirement plan premiums;
and
d) Increased medical costs reflected in personnel expenditures.
Budget Concerns in Other Funds
As part of the biennial budget process, staff had reviewed all of the City’s many funds.
In some, issues were noticed – related to low revenues and/ or high costs. The major
concerns were identified in the following funds:
• The Landscaping & Lighting Assessment District ( LLAD) Fund. LLAD revenues
are flat due to the fixed assessment levels. Yet continuing increases in personnel
expenses and utility costs have developed a structural gap. For FY 2005- 06, the
projected shortfall was $ 3.0 million, and for FY 2006- 07 it was $ 4.3 million.
• The Comprehensive Clean- Up Fund. The primary source of revenue into this
fund is the surcharge on garbage bills ( administered and collected through the
Waste Management of Alameda County), which compensates the City for the
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 6
costs of cleaning up litter and illegal dumping on streets and right- of- ways. The
revenues are projected to increase only 1.5 percent per year in FY 2005- 07,
while expenditures will grow almost 18 percent in the first year alone, mainly due
to the negotiated employee salary increases and higher retirement and medical
costs. As a result, an annual shortfall of approximately $ 3 million was projected
for this fund.
• The Head Start. Head Start program revenues from the federal government to
the City are not keeping up with the City’s increases in costs to provide these
services. Recent years show a trend of only 1.0 percent annual funding increase.
In previous years, the City has provided a $ 1.1 million annual subsidy to Head
Start to offset the difference between federal revenues and program costs –
however, this amount does not fully cover the gap. As a result, a $ 1.3 million
annual shortfall was projected for the Head Start program for FY 2005- 07, after
accounting for the City’s subsidy.
• Funds with Negative Balances. A number of City funds had accumulated
negative balances over the years due to revenue under- collection and/ or over-spending.
These negatives have been drawing resources from the General
Purpose Fund. Funds with the most significant issues include: 1100 – Self-
Insurance Liability, 1730 – Kaiser Convention Center, 1760 –
Telecommunications / Cable Franchise Fund, 1790 – Contract Compliance Fund,
4100 – Equipment Fund and 4400 – Facilities Fund. The outstanding negatives
in these funds must be addressed to avoid the exacerbation of problems. In the
last budget cycle ( FY 2003- 05), reductions to expenditures were made to help
address issues in most of these funds. In FY 2005- 07, each of these funds has
been placed on a 10- year repayment schedule; the schedules are presented in
the “ Non- Departmental” section of this Policy budget. The gradual repayments of
the negative balances will require contributions from the General Purpose Fund,
of over $ 3 million in FY 2005- 06 and $ 8 million in FY 2006- 07.
• The Capital Improvement Program ( CIP). The major concern on the CIP side for
the FY 2005- 07 budget cycle had to do with the discontinuation of the City’s
discretionary capital funding stream, the Municipal Improvement Capital fund
( MIC). The City has relied on this source for a number of years to implement
capital projects for which no other funding ( such as from the Federal and State
sources) was available. The Mayor’s and Council’s capital “ pay- go” accounts
have been funded out of this source, along with many streetscape projects and
major technology investments. After researching all potential options for capital
funding from City’s sources, staff have identified more than $ 16 million in one-time
funding sources that will support capital projects in the next two years.
Overall, our Capital Improvement Program reflects $ 315 million in capital projects
planned for implementation over the next five years, of which nearly $ 100 million
is for improvements to the waterfront, Lake Merritt and other projects funded by
Measure DD; well over $ 60 million is for street, sidewalk and traffic
improvements; and more than $ 41 million is for sewer replacements. The details
on the five- year CIP projects and funding are addressed in a separate budget
document, the 2005- 10 Capital Improvement Plan; a summary is included in the
“ Financial Summaries” section of this Policy Budget.
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 7
Budget Constraints
The FY 2005- 07 budget development was a challenging undertaking. First, our options
to reduce costs were constrained by the drastic cuts and position freezes already made
during the last four years. In addition to the constraints imposed by previous budget
reductions, there are limitations on the use of the existing General Purpose Fund
dollars.
As the chart below illustrates, the GPF budget must first satisfy the requirements of the
City Charter, voter mandates, and applicable federal and state legislation; as well as
long- term contractual obligations and debt service. More than two- thirds of the GPF
budget must be used to meet these requirements.
General Purpose Fund Discretion
( FY 2005- 06 Adopted Budget figures)
Mandated
Activities
57%
Debt / Lease
and
Contractual
Obligations
10%
Cost- Covering
programs
Fleet, Build. & 8%
Radio
4%
Discretionary
21%
Human
Services,
0.2%
Libra-ries
Recrea- 3%
tion
14%
Econ
Dev't,
0.3%
Museum,
1.0%
Parks
Mainte-nance
1%
Police,
Fire,
7.8%
Internal
Dept's,
8.1%
In addition, four percent is set aside to replace and maintain the City’s vehicles,
buildings and radio equipment, while another eight percent represents fee- for- service
programs that are normally self- sustaining. This leaves about 21 percent from which the
City Council can meet other priorities. Within this 21 percent “ discretionary” portion, 8
percent is allocated to public safety, leaving approximately 13 percent for other
priorities, including parks maintenance, human services, libraries, recreation programs,
community support and internal government functions such as human resources and
technology management.
Strong Local Economy
Despite some of the challenges listed above, Oakland continues to attract strong
interest and much needed growth from private development. For the past few years, we
have seen accelerated growth in the assessed valuation of residential, commercial and
industrial properties within the city as our private and non- profit partners continue to
build infill developments and replace non- productive properties with vibrant new
development.
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 8
The chart below reflects robust recent growth in the city’s assessed valuation, across
the entire city including the redevelopment areas. In the last five years, the annual
growth in city’s assessed valuation has ranged from 7.9 percent to 10.6 percent, with
the average increase of 8.7 percent. For the most part, this robust growth has been
fueled by new redevelopment activity within Oakland boundaries. Within redevelopment
project areas, the annual growth has ranged from 12.4 percent five years ago to over
27.6 percent in the most recent year.
-
5,000
10,000
15,000
20,000
25,000
30,000
2000- 01 2001- 02 2002- 03 2003- 04 2004- 05
Net Assessed Value Growth - 2000 through 2005
( in million dollars)
ORA
City
Additional housing and commercial projects are currently under construction or in
various stages of the approval processes. These include developments in the Jack
London Square area and in the Oak to Ninth corridor, the Uptown project, the Leona
Quarry development, and the new Wood Street project. In addition, the City continues
to pursue negotiations with national retailers to bring large new shopping opportunities
within Oakland’s borders.
As these retail and commercial projects are completed, they will add significant
numbers of jobs and tax revenues to Oakland’s economy. In addition, the growth of
passenger travel at the Oakland International Airport bodes well for hotel development
in the Hegenberger corridor and downtown. The future is indeed strong, and gives us
hope that our local revenues may become more robust toward the end of the current
fiscal cycle.
Budget Highlights
This budget reflects the careful evaluation of City’s priorities versus available resources,
and represents a sound and responsible funding strategy of which the City can be
proud. It restructures the City organization and provides more efficient use of the
resources that we are entrusted to manage. The detailed changes for FY 2005- 07 are
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 9
reflected in this document, with a summary of key budget adjustments provided in the
“ Financial Summaries” section.
Overall Budget Balancing
The FY 2005- 07 Adopted Budget contains a number of budget balancing measures,
both on the revenue and expenditure sides. On the revenue side, enhancements are
made possible due to new or increased fees, revenues from one- time land sales,
anticipated bond issuances, receipt of new grants, or identification of other funding
streams. Within the General Purpose Fund ( GPF), the revenue enhancements are over
$ 23 million annually, helping to close the $ 32 million budget gap. The GPF revenue
changes are discussed in detail further in this letter.
Expenditure reductions are also mainly taking place in the General Purpose Fund,
although balancing measures to eliminate shortfalls in other specific funds were
required as well. Overall, expenditure reductions are the outcome of a careful evaluation
of the City’s core functions, undertaken as part of the FY 2005- 07 budget process. As a
result of this analysis, a number of organizational restructuring changes are taking
place, certain facilities are being closed, and positions and functions are being
eliminated. These changes will restructure and flatten City government to maximize the
efficiency of delivering services while minimizing reductions in the services themselves.
Position Reductions
3,400
3,600
3,800
4,000
4,200
4,400
4,600
4,800
FY 1994- 95
FY 1995- 96
FY 1996- 97
FY 1997- 98
FY 1998- 99
FY 1999- 2000
FY 2000- 01
FY 2001- 02
FY 2002- 03
FY 2003- 04
FY 2004- 05
FY 2005- 06
FY 2006- 07
Citywide FTE Change - 13- Year History
The above chart illustrates that, in terms of staffing, the FY 2005- 07 budget takes the
City back to the pre-“ boom” years of late 1990s- early 2000s, with slight increases.
Overall, as a result of the FY 2005- 07 budget changes, over 126 full- time position
equivalents ( FTEs) are being eliminated during FY 2005- 07. These include over 115
FY 05- 07
Adopted
Budget
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 10
FTEs in the General Purpose Fund. In this budget, the layoffs are being minimized by
redeploying incumbents from the eliminated positions to other available vacancies.
Organizational Restructuring
A number of organizational changes are contained in the FY 2005- 07 Adopted Budget.
􀂙 A plan to consolidate key personnel functions, in the Personnel Division of the
Finance and Management Agency, is being crafted. This consolidation will reduce
duplication of effort that currently exists in the City, develop consistency in
recruitment, hiring, training and labor relations, and lead to efficiencies and financial
savings. This plan is under development and will be presented to the City Council
during the FY 2006- 07 Midcycle Review.
􀂙 A transfer of the Malonga Casquelourd Center of the Arts from the Cultural Arts
Department to the Office of Parks and Recreation is taking place. The transfer will
consolidate recreational, educational and cultural programs under one department.
A recent move of the Studio One into the Malonga Center makes this transfer even
more sensible.
􀂙 The Public Art and Cultural Funding programs are being moved from the Cultural
Arts Department ( CAD) to the City Administrator’s Office ( CAO). This transition
accompanies the recent transfer of the Marketing function from the CAD to the CAO;
and the two programs are being incorporated into the Marketing unit.
􀂙 The Street Sweeping Citation function is transferring from the Public Works Agency
to the Finance and Management Agency. This movement will consolidate all parking
citation functions in one agency, leading to efficiencies and increased revenue.
Facility Closures
The FY 2005- 07 Adopted Budget reflects the closure of two City facilities: the City Jail
and the Henry J. Kaiser Convention Center. The Jail was closed on July 1, 2005, to
address the health and safety issues related to the condition of the facility, and to return
sworn officers to front line policing. The Kaiser Convention Center will shut its doors on
January 1, 2006, allowing the City to honor the existing contracts with community
groups.
􀂙 The Jail closure will result in savings of $ 2.9 million in FY 2005- 06 and $ 2.2 million in
FY 2006- 07, after setting aside $ 3.5 million to $ 4.6 million per year, respectively, for
Alameda County booking fees and adjusting for the revenue loss of $ 1.7 million
currently generated through the prisoner maintenance fees. The closure of the Jail
leads to the elimination of 89.0 civilian FTEs and the reassignment of 5.0 sworn
positions ( one lieutenant and four sergeants) to patrol. The prisoners are now being
transported to Alameda County facilities.
􀂙 The Kaiser Convention Center closure will eliminate the growing annual City subsidy
to the facility of an estimated $ 0.3 million to $ 0.4 million per year, after accounting
for both expenditure reductions and the loss of current facility rental revenue. A little
over 20.0 FTEs will be eliminated as a result of the closure; most of them are part-time
positions.
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 11
Other Budget Reductions
In addition to the budget reductions as a result of organizational restructuring and facility
closures, the FY 2005- 07 Adopted Budget eliminates functions, positions and non-position
expenses across most City agencies and departments. The key reductions are
in the General Purpose Fund, as well as in the Kaiser Convention Center, the
Comprehensive Clean- Up fund, and the Head Start program. These budget balancing
measures are discussed further in this letter.
Budget Enhancements
While the FY 2005- 07 budget necessitated reductions, a careful review of the existing
distribution of City’s resources vis- à- vis Mayoral and Council priorities has revealed the
need to make improvements to particular programs and functions. As a result, this
budget contains the following enhancements:
􀂙 Addition of a Citywide Grants Coordinator position, to be responsible for the
identification of outside funding sources to supplement City’s limited resources; this
function will reside in the City Administrator’s Budget Office.
􀂙 Addition of a Police Psychologist position, to support the development,
implementation and clinical coordination of an " early warning system" designed to
identify sworn employees who may be in need of help, for early intervention. The
system – Personnel Information Management System, or PIMS – is required by the
Negotiated Settlement Agreement that followed the Riders’ case. Research shows
that those police agencies that have employed the help of a qualified mental health
professional have been successful in providing intervention to those who need it,
and actually helped to avert career ending misconduct. This position is essential to
ensure the success of the Police Department – and the City – in our mission to
identify officers in need of professional help early enough to help them, and to
significantly reduce liability.
􀂙 Addition of three systems/ IT FTEs to support the IPSS, PIMS and In- Car Videos
functions in the Police Department; these positions will be housed in the Information
Technology Division of the Finance and Management Agency.
􀂙 Increase in the City’s subsidy to the Oakland Zoo by $ 500,000 per year ( in addition
to the baseline $ 172,414 subsidy and an estimated $ 40,000 for the zookeeper
position), and to the Children’s Fairyland by $ 100,000 per year ( above the baseline
$ 83,000 annual subsidy). These additional subsidies will provide essential support to
the facilities and programs that benefit many Oakland residents, especially children
and youth, and help to maintain and improve the quality of life in our City.
The above enhancements will be funded by the General Purpose Fund ( GPF).
Additional budget adjustments will be possible outside of the GPF due to the receipt of
grants or identification of other special- purpose revenue streams. Measure Y ( the
Violence Prevention Act) is a good example of a new, voter- approved funding source
that will enhance and add to the City’s existing violence reduction, prevention and
intervention efforts. The Measure Y budget is summarized in the “ Financial Summaries”
section of this budget, along with other local assessments.
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 12
General Purpose Fund Balancing
To balance the General Purpose Fund ( GPF) budget for FY 2005- 07, this Adopted
Budget includes measures on both the revenue and expenditure sides. Overall,
balancing measures include increases in revenues of over $ 23 million and expenditure
reductions of nearly $ 9 million, creating a slight surplus in each of the next two budget
years. These balancing measures are discussed in detail below.
Revenue Changes
Revenue enhancements in the GPF total $ 23.55 million in FY 2005- 06 and $ 23.75
million in FY 2006- 07.
Revenue Type
REVENUE CHANGES
( in million dollars)
FY 2005- 06 FY 2006- 07
VEHICLE LICENSE FEE 6.30 -
LICENSES & PERMITS 0.81 0.74
FINES & PENALTIES 1.00 1.16
SERVICE CHARGES 0.03 0.45
MISCELLANEOUS 3.01 0.50
FUND TRANSFERS 12.40 20.90
Total Revenue 23.55 23.75
􀂙 Vehicle License Fee ( One- Time enhancement): This additional revenue is the
recently confirmed repayment of the VLF “ backfill” loan from the State, taken in FY
2003- 04. In FY 2003- 04, the State of California failed to make $ 1.1 billion of VLF
payments to local governments, and the State has agreed to repay these funds to
cities and counties by August 15, 2006 ( the " VLF gap loan"). The recently approved
FY 2005- 06 State budget contains the full repayment of the VLF loan to cities. The
exact amount or timing of the repayment from the State is not yet known; however,
the City is expected to receive at least the $ 6.3 million included in our budget.
􀂙 Licenses & Permits ( Ongoing enhancements): Revenue enhancements in this
category are due to fee increases and/ or new fees by the Community and Economic
Development Agency ($ 0.6 million per year in additional revenue), Animal Shelter
( by $ 0.12 million), Fire ($ 30,000 revenue increase per year), and the Citizens Police
Review Board ($ 16,000 in new revenue).
􀂙 Fines & Penalties ( Ongoing enhancements): Revenue enhancements in this
category are due to fines/ penalties increases by the Community and Economic
Development Agency ($ 60,000 to $ 80,000 per year in additional revenue); renewed
Police Beat Feet project fines ($ 0.3 million to $ 0.4 million revenue increase per
year); and anticipated increases in the parking fine revenue collection due to the
transfer of the street sweeping citation function from the Public Works Agency to the
Finance & Management Agency ($ 0.7 million per year).
􀂙 Service Charges ( Ongoing enhancements): Revenue enhancements in this category
are due to fee increases and/ or new fees by the Community and Economic
Development Agency ($ 0.8 million to $ 1.1 million per year in additional revenue), the
Oakland Police Department ($ 0.4 million revenue increase per year) and the Animal
Shelter ( by $ 0.13 million); as well as the anticipated parking meter revenue increase
( of $ 0.4 million annually) due to additional meter replacement efforts funded in this
budget. The revenue enhancements are offset by the revenue loss of $ 1.7 million
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 13
per year due to the closure of City Jail. Note that the Adopted Budget does not
contain an increase in the metered parking charge for FY 2005- 06. However, a 25
cent per hour increase on all meters that currently charge $ 1 per hour is assumed
beginning July 1, 2006, to bring the hourly charge on all meters in the City to $ 1.25.
The Service Charges revenue has been increased accordingly for FY 2006- 07.
􀂙 Miscellaneous ( One- Time enhancements): The revenue enhancements in this
category include the proposed sale of surplus land which will generate net proceeds
of $ 2.6 million during FY 2005- 06; additional reimbursements to the City from the
Oakland Base Reuse Authority of $ 0.3 million to $ 0.4 million per year; and a $ 0.14
million annual recovery for the CEDA Real Estate costs.
􀂙 Fund Transfers ( Ongoing but Decreasing enhancements): Transfers are proposed
from the Pension Annuity Fund ($ 14 million per year); the General Purpose Fund ( at
$ 1.60 million per year, using the $ 3.2 million net available surplus from FY 2004- 05);
and Mandatory Garbage Fund ($ 1 million annually for the next two years, from the
discretionary balance). The first transfer is possible as a result of the anticipated
refinancing of the Joint Powers Financing Authority 1998 Lease Revenue Bonds.
This refunding enables the City to pledge excess Pension Tax Override revenues to
servicing the new 2005 bonds. Revenues from a Pension Annuity, purchased by the
City in 1985 and which formerly serviced the 1998 Lease Revenue Bonds, will be
used to offset General Fund payments for accrued pension liability for employees.
It should be noted that the first year Fund Transfers revenue is $ 4.3 million lower
than the sum of the transfers listed above, while the second year revenue is higher
by that same amount. This is due to delaying $ 4.3 million of an annual, recurring
repayment from the Municipal Capital Improvement Fund to the General Purpose
Fund to ensure budget balancing between the two years. This delay is reflected as
one of the budget “ technical adjustments”, following the budget adoption resolution
under the “ Legislation” tab in this Policy document.
Expenditure Adjustments
Expenditure reductions to balance the GPF budget total $ 9.2 million in FY 2005- 06 and
$ 8.8 million in FY 2006- 07. The reductions are summarized in the table below, followed
by the highlights for each department.
Agency / Department
EXPENDITURE ADJUSTMENTS
( in million dollars)
FTE
Changes FY 2005- 06 FY 2006- 07
CITY ADMINISTRATOR 3.92 0.6 0.6
CITY CLERK ( 1.00) ( 0.2) ( 0.2)
CITY ATTORNEY ( 0.75) ( 0.3) ( 0.3)
FINANCE & MANAGEMENT ( 5.00) ( 0.8) ( 0.9)
POLICE SERVICES ( 85.00) ( 3.8) ( 2.8)
FIRE SERVICES ( 3.00) ( 1.8) ( 1.8)
PUBLIC WORKS 6.81 0.4 0.5
PARKS & RECREATION ( 2.69) 0.6 0.6
LIBRARY SERVICES ( 4.52) ( 0.4) ( 0.4)
CULTURAL ARTS ( 16.12) ( 1.6) ( 1.7)
HUMAN SERVICES ( 2.92) ( 0.4) ( 0.4)
COMM & ECON DEVELOPMENT ( 5.00) ( 0.6) ( 0.8)
NON- DEPARTMENTAL - ( 0.9) ( 1.2)
Total ( 115.27) ( 9.2) ( 8.8)
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 14
􀂙 City Administrator. In the City Administrator’s Office ( CAO), reductions in operations
and maintenance ( O& M) of $ 0.14 million are being made, and will limit the office’s
ability to purchase supplies and materials as well as utilize various contract services.
The Intergovernmental Affairs Director’s position ( currently vacant) is being
eliminated and will be replaced with a contract, saving $ 0.1 million annually. In
addition, a total of 1.08 Full- Time Equivalents ( FTEs) dedicated to capital projects /
issues will be transferred out of the General Purpose Fund ( GPF) to other, more
appropriate funding sources, reducing the GPF burden by $ 0.13 million per year.
The reductions and transfers are offset by the addition of a Citywide Grants
Coordinator position in the Budget Office, which will cost $ 0.15 million annually. A
transfer of the Public Art and Cultural Funding units from the Cultural Arts
Department will add 5.5 FTEs and $ 0.8 million annually to the CAO’s budget within
the GPF ( and another 0.5 FTE and $ 0.06 million within the 1.5% Public Art
Assessment Fund).
􀂙 City Clerk. In the Clerk’s Office, a budgetary set- aside for the closed captioning
contract is being reduced by $ 70,000, to align the FY 2005- 07 budget with the
current cost of the offsite captioning contract. In addition, a Comcast Contract
administration position, costing approximately $ 90,000 per year, is transferred to the
Information Technology Division of the Finance and Management Agency.
􀂙 City Attorney. The Office of the City Attorney ( OCA) is transferring positions to align
the distribution of staff with the services they actually provide. A total of 1.75 attorney
positions costing approximately $ 0.4 million annually are being moved to the
Oakland Redevelopment Agency. At the same time, a position costing approximately
$ 0.1 million annually is being transferred from the Contract Compliance Fund into
the GPF.
􀂙 Finance & Management. In the Finance and Management Agency ( FMA), 9.0
positions are being eliminated, of which 4.0 are vacant. In addition, recoveries for
Treasury’s staff costs related to debt issuance and portfolio management are being
increased. Collectively, these actions result in an estimated $ 1.2 million to $ 1.3
million in annual savings to the GPF. At the same time, a Comcast Contract
administration position costing $ 90,000 annually is being transferred from the City
Clerk’s Office, as stated above. Furthermore, three technology FTEs to support the
IPSS, PIMS and In- Car Video functions in the Police Department are being added,
with an annual cost of $ 0.3 million.
􀂙 Police Services. In the Oakland Police Department, the sworn positions and
essential public safety functions are being preserved and enhanced, in line with the
Mayor and Council goals, residents’ priorities ( as reflected in the 2005 Community
Survey), and the Measure Y ( Violence Prevention) mandates related to minimum
Police staffing.
However, to reduce costs, increase efficiency and address other concerns such as
safety, a number of reduction/ restructuring measures are being taken in this budget.
( 1) Due to the closure of the City Jail on July 1, 2005, a total of 89 non- sworn
positions are being eliminated, with incumbents redeployed elsewhere
throughout the City. The 5 sworn officers currently assigned to the Jail are being
moved to patrol. The Jail closure results in savings of $ 2.9 million in FY 2005- 06
and $ 2.2 million in FY 2006- 07, after setting aside $ 3.5 million and $ 4.6 million,
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 15
respectively, for booking fees with Alameda County, and accounting for the $ 1.7
million annual revenue loss ( discussed in the “ Service Charges” section above).
( 2) In the Park Ranger Unit, 2 vacancies are being eliminated to save nearly $ 0.3
million annually, leaving a total of 8 Ranger positions in place.
( 3) A transfer of one officer to a special fund – to support and be reimbursed by a
local Homeland Security office – will save another $ 0.2 million per year in the
General Purpose Fund.
Along with the above reductions, this budget also contains enhancements for the
OPD, including the addition of a Police Psychologist position and two Police
Services Technicians for the Abandoned Vehicle Unit. A total of $ 0.25 million
annually ( including 5.0 FTEs and operations & maintenance funding) is also being
added to the Animal Shelter’s budget, and funding is being restored for the Beat
Feet program. The last two enhancements are fully offset by additional revenues
generated by these programs.
As in prior years, we also looked closely at Police overtime as part of this budget.
Police overspending in this area has been an issue in past years, leading to difficult
budget adjustments during the course of the year. Prompted by the heightened
attention to this matter after the release of the First Quarter Revenue & Expenditure
Analysis for FY 2004- 05, the Public Financial Management ( PFM) group was hired
to perform an in- depth analysis of Police overtime. Their recommendations were
presented to the City Council on May 3, 2005.
This budget contains overtime of $ 11.7 million for FY 2005- 06 and $ 12.4 million for
FY 2006- 07 ( including $ 11.2 million and $ 11.8 million in the GPF, respectively).
These figures represent reductions of $ 0.7 million in year one and $ 0.5 million in
year two. Overtime has been reduced mainly due to the closure of the Jail and the
elimination of its associated overtime, as well as the transfer of the five sworn Jail
officers into patrol. In addition, the Police Services overtime budget assumes
strengthening of internal controls to stay within the allotted amounts.
􀂙 Fire Services. In the Fire Department, the essential fire safety and prevention
functions are being preserved in this budget, in agreement with the Mayor and
Council goals, 2005 Oakland Community Survey results, and the Measure Y
mandates. At the same time, measures are taken to make the Fire Department more
efficient in the delivery of its functions, to reduce costs, and to increase recoveries
for services. Specifically, this budget contains the elimination of a Deputy Fire Chief
after it is vacated due to retirement, a vacant Fire Captain, and a filled Program
Analyst, resulting in the annual savings of $ 0.6 million. In addition, redeployment of a
Battalion Chief will reduce overtime by $ 0.2 million per year; and reimbursements for
paramedic services from Alameda County will reduce costs by another $ 0.9 million
annually.
􀂙 Cultural Arts. This budget contains the reorganization of the Cultural Arts
Department to better align functions and increase the efficiency in service delivery.
The Public Art and Cultural Funding programs ( including 6.0 FTEs and a $ 0.86
million budget across all funds, of which 5.5 FTEs and $ 0.8 million are in the
General Purpose Fund) are being transferred to the City Administrator’s Office,
joining the Marketing Division. At the same time, the Malonga Casquelourd Center
for the Arts ( 8.95 FTEs, $ 0.6 million budget) is being moved to the Office of Parks
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 16
and Recreation. Budget balancing measures for the Cultural Arts Department
include the elimination of mostly filled exhibit and fiscal oversight positions totaling
1.67 FTE, to save $ 0.2 million annually.
􀂙 Library Services. For the Oakland Public Library, all branches will remain open and
service hours will not be impacted. However, librarian and administrative positions ( a
total of 4.52 FTE, 4.00 of which are filled) are being eliminated to save $ 0.4 million in
the General Purpose Fund. Additional reductions are taking place in the Measure Q
fund.
􀂙 Human Services. In the Department of Human Services, the key concern for this
budget was a continuing reduction in federal support for the Head Start program,
which is discussed under “ Other Funds” further in this letter. In the General Purpose
Fund, a number of budget balancing measures are taken, to save over $ 0.4 million
per year. These include a transfer of 2.31 positions to other ( mainly grant) funds,
elimination of a filled Youth Leadership position ( 0.61 FTE), and reduction in
operations and maintenance dollars.
􀂙 Parks & Recreation. This budget preserves the essential Parks and Recreation
programs and services. However, measures required to balance the budget include
the elimination of 8.64 vacant positions to save $ 0.5 million annually, and a transfer
of 3.0 positions totaling $ 0.1 million per year to the self- sustaining fund. On the other
hand, as discussed above, 8.95 positions ( and a budget of $ 0.6 million per year)
associated with the Malonga Center are being brought from the Cultural Arts
Department into the OPR. Moreover, annual subsidies for the Oakland Zoo and
Children’s Fairyland – whose contracts are administered by OPR – are being
increased by $ 0.5 million and $ 0.1 million, respectively.
􀂙 Public Works. The Public Works Agency has a General Purpose Fund budget of
$ 1.2 million to $ 1.3 million, which mainly pays for custodial and facility maintenance
services ( including parks facilities). Changes made to the PWA budget within the
GPF include a reduction of two vacant part- time mechanics, offset by a transfer of a
custodian from Fire. The net impact of these changes is a slight reduction in the
GPF annual costs.
In addition, per the City Council amendments to the FY 2005- 07 budget, a Parks
Maintenance crew of seven is being added to the PWA, including 1.0 Public Works
Supervisor II, 4.0 Part- Time Park Attendants and 2.0 Gardener Crew Leaders. The
annual cost of the crew is over $ 0.4 million, and will be funded through the additional
one- time revenues, including the prior year GPF surplus and funding from the
recently completed pension debt refinance.
􀂙 Community & Economic Development. In the Community & Economic Development
Agency ( CEDA), increases in fees will generate additional revenues ( mainly in the
Service Charges and Licenses & Permits categories) to offset the increased costs of
providing these services. These revenue enhancements were discussed in the
“ Revenue” section of this letter. The proposed fee increases are based on the
analysis of the actual costs as well as comparisons to other similar jurisdictions.
CEDA will perform a more formal “ nexus study” in the next budget cycle, and
$ 100,000 in one- time funding has been set aside for this purpose in FY 2006- 07. In
addition to the fee increases to cover the costs, surplus property sales will take place
in FY 2005- 06, bringing a net of $ 2.6 million to the GPF. As part of this budget,
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 17
CEDA is also eliminating 5.0 administrative and support FTEs, 3.0 of which are
filled, to realign and streamline functions, resulting in annual savings of $ 0.9 million.
􀂙 Non- Departmental. This category, representing 12 percent of the overall GPF
budget ($ 55 million in FY 2005- 06 and $ 56 million in FY 2006- 07), has limited
discretion due to the nature of expenditures it funds. More than $ 37 million is for
debt and lease obligations, and over $ 19 million are transfers to other funds,
including the Self- Insurance Liability and Kids First. It must be noted, however, that a
recovery for the central services costs, which comes into Non- Departmental at over
$ 10 million annually, partially offsets expenditures in this category. Balancing
measures within Non- Departmental include applying a 10 percent cut to all
discretionary categories, and reducing some items by a slightly higher amount.
These reductions are offset by the additional Head Start waiver of $ 0.3 million. The
overall net savings to the GPF budget are nearly $ 1.0 million per year.
In addition, the FY 2005- 06 Non- Departmental budget includes a $ 222,750 set aside
for the Limited Public Financing Program ( one- time, for the June 2006 election),
pursuant to the City Council action on June 7, 2005, also confirmed during the
budget adoption.
Balancing Other Funds
The Landscaping & Lighting Assessment District ( LLAD) Fund
The current assessment rate structure for the LLAD has been in place since FY 1993-
94, the year that the voters confirmed the existence of the LLAD. With the rates held
constant, revenues have been flat at about $ 17 million annually, and expenditures have
outpaced revenues. Recently, the gap has widened for several key reasons: ( 1) addition
of new and redeveloped parks, park facilities and park- related maintenance projects; ( 2)
addition of new trees and landscaped streetscapes; ( 3) aging park and recreation
facilities; ( 4) higher utility costs; and ( 5) increasing personnel costs, mainly due to
retirement and medical components. When combined with static revenues, all of the
above factors institutionalize the revenue/ expenditure gap faced by the LLAD. In past
fiscal years, the LLAD structural deficit has been bridged by using up the LLAD reserve
and by shifting eligible expenditures to healthier funds, including the General Purpose,
State Gas Tax, Multipurpose Reserve and Comprehensive Cleanup. However, in FY
2005- 07 these funds are no longer able to absorb such transfers.
During the budget development, the LLAD fund was facing a shortfall of $ 3 million for
FY 2005- 06 and $ 4.3 million for FY 2006- 07. To balance this fund in FY 2005- 07, the
Council opted to use one- time revenues, as follows:
( 1) In FY 2005- 06, a General Purpose Fund surplus from the prior fiscal year ( FY
2004- 05) will be used to bridge the $ 3.0 million gap.
( 2) In FY 2006- 07, the $ 4.3 million shortfall will be closed using: a $ 1.0 million
repayment from the Oakland Redevelopment Agency to the City ( from the Oak
Center project area, per an outstanding note); $ 1.5 million in unallocated interest
from the 2000 equipment lease bond; and to- be- determined one- time sources
totaling $ 1.8 million. These will be identified and authorized by the Council during
the mid- cycle budget review.
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 18
The above one- time sources will bridge the shortfall in the LLAD fund for the FY 2005-
07 budget cycle. Longer term, after FY 2006- 07, more sustainable measures would be
necessary. As discussed with the City Council during the FY 2005- 07 budget
development, these measures may include seeking voter approval to supplant the
existing LLAD and approve a new LLAD. A new LLAD could generate additional
revenue to not only maintain existing service levels, but also to provide service
enhancements for the City’s parks, trees, sidewalks and citywide electrical services.
Approval of a new LLAD would require a “ yes” vote from 50 percent of responding
property owners, weighted by the size of their potential property assessments. The
process to secure approval for a new LLAD would take up to twelve months.
The Comprehensive Clean- Up Fund
To eliminate the gap between revenues and expenditures in the Comprehensive
Cleanup Fund, a number of measures were taken this budget cycle, including: ( 1) the
elimination of two frozen, vacant Litter Enforcement Officer positions; ( 2) a transfer of a
Program Manager to the Recycling Fund; ( 3) a transfer of a portion of the street
sweeping parking citation function to the General Purpose Fund ( GPF), and ( 4) a
reduction in operations and maintenance budget by $ 0.4 million in each of the two
years. The total savings realized from these measures are over $ 1.4 million annually.
Additional funding to bridge the $ 3 million annual gap will come from the available fund
balance ( which will be depleted after FY 2006- 07).
The Head Start Program
To balance the Head Start program funding during FY 2005- 07, a total of 13.59 FTEs
( representing 17 positions) are being eliminated, including Family Advocates, vacant
Head Start Center Directors, a vacant Food Service Worker, filled Account Clerks and
vacant Administrative Assistants. These reductions are being absorbed without any
reduction in number of children and families served by the program.
􀂙 9 out of 25 Family Advocates ( representing 6.93 FTEs, of which 3.0 are vacant) are
eliminated. With this reduction, the number of families assigned to each Family
Advocate increases from the current average caseload of 44 to 68. In order to help
address this added caseload, the following changes are being made: ( a) enrollment
functions, which are a significant part of the Family Advocate’s responsibilities, will
be temporarily removed as a responsibility, and managed by the central office; ( b)
Family Advocates will receive additional assistance with parent involvement
activities from the Head Start Family Services Coordinator ( their immediate
supervisor); ( c) the Family Services Coordinator will also work closely with the
Family Advocates to solicit their participation in developing more efficient procedures
to meet families’ needs in a timely manner; ( d) Head Start management staff will
seek community partners and resources to provide additional support; and ( e) fund
raising projects will be removed from the Family Advocate job description.
􀂙 Due to changing demographics, 68 childcare slots were transferred to the Head
Start delegate agency, the Unity Council. This resulted in the closure of two Head
Start centers in February 2005. At the time of the closures, the program had two
vacancies for Head Start Center Director positions due to staff retirement. These
positions – along with two other vacancies in the same classification, representing a
total of 3.08 FTEs – are being eliminated in FY 2005- 07.
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 19
The above reductions result in annual savings of $ 1.0 million, not fully covering the $ 1.3
million budget gap. To continue the viability of this important program, this budget
increases the amount of the City’s annual support by $ 300,000, from the current $ 1.1
million to $ 1.4 million. The City’s contribution appears in the Non- Departmental portion
of the budget, and will continue to be funded from the General Purpose Fund.
Funds with Negative Balances
A number of the City’s funds have carried negative balances for a number of years,
using the General Purpose Fund’s resources and “ owing” it a repayment. The following
funds have been identified as having chronic, and significant, fund balance issues:
1100 – Self- Insurance Liability
1730 – Kaiser Convention Center
1760 – Telecommunications / Cable Franchise Fund
1790 – Contract Compliance Fund
4100 – Equipment Fund
4400 – Facilities Fund
The City began to address the negative balances in the above funds during FY 2003-
05, mainly reducing expenditures, and raising revenues where possible. However,
further balancing measures are necessary. For the internal services funds ( Equipment
and Facilities), payments from departmental users for facility and equipment
maintenance are being increased gradually, to align them with the true costs of
providing these services. For all other funds, additional transfers from the GPF will be
made.
In this budget, the above negative funds have been put on a 10- year “ repayment”
schedule. The repayment schedules appear in the Non- Departmental section of the FY
2005- 07 Policy Budget document.
Changes in Other Funds
Key changes in a few other funds are made as part of this budget, including the Kaiser
Convention Center fund ( due to the center’s closure), the Library Enhancement –
Measure Q fund, the Gas Tax fund, and others. These changes are reflected in the
“ Financial Summaries” section, under “ Significant Budget Adjustments”, and are
detailed in individual departmental sections.
Budget Alignment with Mayor and Council Goals
This budget reflects the goals and priorities of the Mayor and City Council. For FY 2005-
07, three Citywide goals and nine objectives have been established – these are listed in
the “ Budget Development Principles” section of this letter.
The charts on the following page reflect the breakdown of the FY 2005- 07
appropriations and positions by Mayor/ Council goal. A large portion of our budget ( in
terms of both dollars and positions) is allocated to “ Building Community and Fostering
Livable Neighborhoods.”
FY 2005- 07 Adopted Policy Budget – Transmittal Letter Page 20
This budget provides a detailed analysis of the revenues, expenditures and positions by
goal, at Citywide and individual department levels. Such breakdowns are contained
within the “ Financial Summaries,” “ Organizational Summary” and individual
departmental sections.
Conclusion
This budget reflects the City’s continued efforts to address funding shortfalls while
maintaining core City services. It incorporates organizational improvements brought
about by the necessity to close significant funding gaps and protect the City’s fiscal
integrity. With the Mayor and City Council’s goals clearly in mind, we have strategically
focused on preserving the most effective programs and services that directly further
those goals. We have attempted to preserve core infrastructure services, and to
reorganize internal processes and systems, so that we are well positioned to expand
service delivery when economic conditions improve.
The Administration will continue to support the Mayor and the City Council with
creativity, energy and commitment as we work to achieve these goals.
Respectfully submitted,
Breakdown of FY 2005- 07 ( 2- Year Total)
FTEs by Goal
1 - Sust City
23%
2 - Comm &
Neighb
66%
3 - Youth &
Seniors
11%
Breakdown of FY 2005- 07 ( 2- Year Total)
Expenditures by Goal
2 - Comm
& Neighb
51%
3 - Youth
& Seniors
6%
1 - Sust
City
43%
FY 2005- 07 ADOPTED POLICY BUDGET i
CITY OF OAKLAND
TABLE OF CONTENTS
LETTER OF TRANSMITTAL
MAYOR/ COUNCIL PRIORITIES ............................................................................................................... A- 1
Mayor / Council Goals and Citywide Objectives .............................................................................. A- 1
Citywide Program Structure ............................................................................................................ A- 2
BUDGET GUIDE ............................................................................................................................... ...... B- 1
City’s Two- Year Budget ................................................................................................................... B- 1
Five- Year Financial Plan .................................................................................................................. B- 1
Budget Process........................................................................................................................ ...... B- 2
Format of Budget Document ........................................................................................................... B- 5
Format of Agency and Department Budgets ................................................................................... B- 6
Glossary of Budgetary Terminology ................................................................................................. B- 7
Abbreviation Guide ......................................................................................................................... B- 10
CITY FACTS.......................................................................................................................... ................... C- 1
General Information ........................................................................................................................ C- 1
All- America City .............................................................................................................................. C- 1
Government ............................................................................................................................... .... C- 2
Commercial Sectors ...................................................................................................................... C- 2
Demographics ............................................................................................................................... C- 3
Labor Force and Employment ........................................................................................................ C- 3
Climate ............................................................................................................................... ........... C- 4
History ............................................................................................................................... ............ C- 4
Port of Oakland........................................................................................................................ ...... C- 5
Oakland International Airport ........................................................................................................... C- 5
Transportation and Mass Transit .................................................................................................... C- 6
Education ............................................................................................................................... ....... C- 6
Health Care ............................................................................................................................... .... C- 7
Public Safety ............................................................................................................................... .. C- 7
Parks and Recreation ..................................................................................................................... C- 7
Arts and Attraction .......................................................................................................................... C- 8
Chabot Space and Science Center ................................................................................................ C- 9
TABLE OF CONTENTS
ii FY 2005- 07 ADOPTED POLICY BUDGET
CITY FACTS ( continued)
Professional / Amateur Sports ........................................................................................................ C- 9
Media ............................................................................................................................... .............. C- 9
Key Facts ............................................................................................................................... ..... C- 10
Statistical Profile ........................................................................................................................... C- 12
Miscellaneous Construction Activity .............................................................................................. C- 13
Demographic Statistics ................................................................................................................ C- 14
Port of Oakland Activity ................................................................................................................. C- 15
Sales Tax Statistics ...................................................................................................................... C- 16
FINANCIAL SUMMARIES ......................................................................................................................... D- 1
Introduction ............................................................................................................................... ........ D- 1
Introduction to Financial Summaries .............................................................................................. D- 1
Revenue and Expenditure Forecast Methodology .......................................................................... D- 2
Basis of Budgeting ........................................................................................................................ D- 6
Planning for Two- Year Budget ........................................................................................................ D- 7
Summary Tables ............................................................................................................................... . D- 9
Summary of Significant Budget Changes .................................................................................... D- 10
Summary of Budget by Council Goal ........................................................................................... D- 18
Summary of Budget by Fund Group ............................................................................................. D- 19
Revenue Tables ............................................................................................................................... D- 21
Revenue by Fund Group: FY 2005- 06 .......................................................................................... D- 22
Revenue by Fund Group: FY 2006- 07 .......................................................................................... D- 24
All Funds Revenue by Type .......................................................................................................... D- 26
General Purpose Fund Revenue by Type ..................................................................................... D- 28
Discussion of the General Purpose Fund Revenues ................................................................... D- 30
Expenditure Tables ......................................................................................................................... D- 43
Expenditures by Fund Group: FY 2005- 06 ................................................................................... D- 44
Expenditures by Fund Group: FY 2006- 07 ................................................................................... D- 46
All Funds Expenditures by Agency / Department .......................................................................... D- 48
General Purpose Fund Expenditures by Agency / Department .................................................... D- 50
FY 2005- 06 Budget Summary by Fund ........................................................................................ D- 52
FY 2006- 07 Budget Summary by Fund ........................................................................................ D- 79
FY 2005- 07 ADOPTED POLICY BUDGET iii
CITY OF OAKLAND
FINANCIAL SUMMARIES ( continued)
Funds and Fund Balances ............................................................................................................ D- 105
Fund Balance Summary by Fund Group .................................................................................... D- 106
Fund Groups .............................................................................................................................. D- 107
Fund Descriptions ...................................................................................................................... D- 108
Local Assessments ........................................................................................................................ D- 123
Landscaping and Lighting Assessment District .......................................................................... D- 125
Wildfire Prevention Assessment District .................................................................................... D- 128
Library Services Retention and Enhancement Act (“ Measure Q”).............................................. D- 130
Emergency Medical Services Retention Act (“ Measure M”) ....................................................... D- 132
Paramedic Services Act (“ Measure N”) ...................................................................................... D- 134
Violence Prevention and Public Safety Act (“ Measure Y”) .......................................................... D- 136
Capital Improvement Program Summary ..................................................................................... D- 139
Capital Improvement Program ( CIP) Discussion ....................................................................... D- 140
2005- 2010 CIP Summary by Source.......................................................................................... D- 141
2005- 2010 CIP Summary by Program ....................................................................................... D- 144
2005- 2010 CIP Summary by Category....................................................................................... D- 145
Buildings & Facilities Category ................................................................................................... D- 146
Parks & Open Space Category .................................................................................................. D- 148
Sewers & Storm Drains Category .............................................................................................. D- 149
Streets & Sidewalks Category .................................................................................................... D- 150
Traffic Improvements Category .................................................................................................. D- 151
Technology Enhancements Category ......................................................................................... D- 152
Miscellaneous Category ............................................................................................................. D- 153
Unfunded Projects ...................................................................................................................... D- 154
Other Budget Information ............................................................................................................. D- 157
Program Financials .................................................................................................................... D- 159
Discretionary Budget Analysis for the General Purpose Fund .................................................... D- 166
Analysis of Funding Stability: Summary by Department ............................................................. D- 168
Contracts Funded in FY 2005- 07 ............................................................................................... D- 177
TABLE OF CONTENTS
iv FY 2005- 07 ADOPTED POLICY BUDGET
ORGANIZATION SUMMARY ..................................................................................................................... E- 1
City’s Organizational Chart .............................................................................................................. E- 1
Summary of Positions by Agency/ Department ................................................................................ E- 2
Summary of Authorized Positions by Council Goal ......................................................................... E- 4
Position Charts ............................................................................................................................... E- 5
AGENCY / DEPARTMENTAL BUDGETS
Mayor.......................................................................................................................... ......................... F- 1
Goals ............................................................................................................................... ............... F- 1
Organizational Chart by Program .................................................................................................... F- 2
Organizational Chart by Division ..................................................................................................... F- 2
Programs Included in FY 2005- 07 Budget ....................................................................................... F- 3
Summary of Historical Expenditures and Adopted Budget by Fund ................................................ F- 4
Summary of Authorized Positions by Classification ........................................................................ F- 5
Summary of Authorized Positions by Program................................................................................ F- 6
Summary of Revenue and Expenditures by Program ..................................................................... F- 7
Program Detail ............................................................................................................................... F- 8
City Council ............................................................................................................................... ........ G- 1
Duties and Responsibilities ............................................................................................................ G- 1
Goals ............................................................................................................................... .............. G- 1
Organizational Chart by Program ................................................................................................... G- 2
Organizational Chart by Division .................................................................................................... G- 2
Programs Included in FY 2005- 07 Budget ...................................................................................... G- 3
Summary of Historical Expenditures and Adopted Budget by Fund ............................................... G- 4
Summary of Authorized Positions by Classification ....................................................................... G- 5
Summary of Authorized Positions by Program............................................................................... G- 6
Summary of Revenue and Expenditures by Program .................................................................... G- 7
Summary of Revenue and Expenditures by District ....................................................................... G- 8
Program Detail ............................................................................................................................... G- 9
District Budget Detail ..................................................................................................................... G- 11
City Administrator ............................................................................................................................... H- 1
Mission Statement ........................................................................................................................... H- 1
Business Goals ............................................................................................................................... H- 1
FY 2005- 07 ADOPTED POLICY BUDGET v
CITY OF OAKLAND
City Administrator ( continued)
Organizational Chart by Program .................................................................................................... H- 2
Organizational Chart by Division ..................................................................................................... H- 3
Programs Included in FY 2005- 07 Budget ....................................................................................... H- 4
Summary of Significant Budget Changes ....................................................................................... H- 6
Summary of Historical Expenditures and Adopted Budget by Fund ................................................ H- 7
Summary of Authorized Positions by Classification ........................................................................ H- 8
Summary of Authorized Positions by Program.............................................................................. H- 10
Summary of Revenue and Expenditures by Program ................................................................... H- 11
Program Detail .............................................................................................................................. H- 12
City Attorney ............................................................................................................................... ......... I- 1
Mission Statement ............................................................................................................................ I- 1
Business Goals ............................................................................................................................... I- 1
Organizational Chart by Program ..................................................................................................... I- 2
Organizational Chart by Division ...................................................................................................... I- 2
Programs Included in FY 2005- 07 Budget ........................................................................................ I- 3
Summary of Significant Budget Changes ........................................................................................ I- 4
Summary of Historical Expenditures and Adopted Budget by Fund ................................................. I- 5
Summary of Authorized Positions by Classification ......................................................................... I- 6
Summary of Authorized Positions by Program................................................................................. I- 7
Summary of Revenue and Expenditures by Program ...................................................................... I- 8
Program Detail ............................................................................................................................... . I- 9
City Auditor ............................................................................................................................... .......... J- 1
Mission Statement ........................................................................................................................... J- 1
Business Goals ............................................................................................................................... J- 1
Organizational Chart by Program .................................................................................................... J- 2
Organizational Chart by Division ..................................................................................................... J- 2
Programs Included in FY 2005- 07 Budget ....................................................................................... J- 3
Summary of Historical Expenditures and Adopted Budget by Fund ................................................ J- 4
Summary of Authorized Positions by Classification ........................................................................ J- 5
Summary of Authorized Positions by Program................................................................................ J- 6
Summary of Revenue and Expenditures by Program ..................................................................... J- 7
TABLE OF CONTENTS
vi FY 2005- 07 ADOPTED POLICY BUDGET
City Auditor ( continued)
Program Detail ............................................................................................................................... J- 8
City Clerk ............................................................................................................................... ............ K- 1
Mission Statement ........................................................................................................................... K- 1
Business Goals ............................................................................................................................... K- 1
Organizational Chart by Program .................................................................................................... K- 2
Organizational Chart by Division ..................................................................................................... K- 2
Programs Included in FY 2005- 07 Budget ....................................................................................... K- 3
Summary of Significant Budget Changes ....................................................................................... K- 4
Summary of Historical Expenditures and Adopted Budget by Fund ................................................ K- 5
Summary of Authorized Positions by Classification ........................................................................ K- 6
Summary of Authorized Positions by Program................................................................................ K- 7
Summary of Revenue and Expenditures by Program ..................................................................... K- 8
Program Detail ............................................................................................................................... K- 9
Finance and Management .................................................................................................................. L- 1
Mission Statement ........................................................................................................................... L- 1
Business Goals ............................................................................................................................... L- 1
Organizational Chart by Program .................................................................................................... L- 3
Organizational Chart by Division ..................................................................................................... L- 3
Programs Included in FY 2005- 07 Budget ....................................................................................... L- 4
Summary of Significant Budget Changes ....................................................................................... L- 5
Summary of Historical Expenditures and Adopted Budget by Fund ................................................ L- 6
Summary of Authorized Positions by Classification ........................................................................ L- 8
Summary of Authorized Positions by Program.............................................................................. L- 11
Summary of Revenue and Expenditures by Program ................................................................... L- 12
Program Detail .............................................................................................................................. L- 13
Police Services ............................................................................................................................... .. M- 1
Mission Statement .......................................................................................................................... M- 1
Business Goals .............................................................................................................................. M- 1
Organizational Chart by Program ................................................................................................... M- 2
Organizational Chart by Division .................................................................................................... M- 3
Programs Included in FY 2005- 07 Budget ...................................................................................... M- 4
FY 2005- 07 ADOPTED POLICY BUDGET vii
CITY OF OAKLAND
Police Services ( continued)
Summary of Significant Budget Changes ...................................................................................... M- 5
Summary of Historical Expenditures and Adopted Budget by Fund ............................................... M- 6
Summary of Authorized Positions by Classification ....................................................................... M- 8
Summary of Authorized Positions by Program............................................................................. M- 10
Summary of Revenue and Expenditures by Program ................................................................... M- 11
Program Detail ............................................................................................................................. M- 12
Fire Services ............................................................................................................................... ...... N- 1
Mission Statement ........................................................................................................................... N- 1
Business Goals ............................................................................................................................... N- 1
Organizational Chart by Program .................................................................................................... N- 2
Organizational Chart by Division ..................................................................................................... N- 3
Programs Included in FY 2005- 07 Budget ....................................................................................... N- 4
Summary of Significant Budget Changes ....................................................................................... N- 5
Summary of Historical Expenditures and Adopted Budget by Fund ................................................ N- 6
Summary of Authorized Positions by Classification ........................................................................ N- 7
Summary of Authorized Positions by Program................................................................................ N- 9
Summary of Revenue and Expenditures by Program ................................................................... N- 10
Program Detail .............................................................................................................................. N- 11
Cultural Arts ............................................................................................................................... ........ O- 1
Mission Statement .......................................................................................................................... O- 1
Business Goals .............................................................................................................................. O- 1
Organizational Chart by Program ................................................................................................... O- 2
Organizational Chart by Division .................................................................................................... O- 2
Programs Included in FY 2005- 07 Budget ...................................................................................... O- 3
Summary of Significant Budget Changes ...................................................................................... O- 4
Summary of Historical Expenditures and Adopted Budget by Fund ............................................... O- 5
Summary of Authorized Positions by Classification ....................................................................... O- 6
Summary of Authorized Positions by Program............................................................................... O- 8
Summary of Revenue and Expenditures by Program .................................................................... O- 9
Program Detail ............................................................................................................................. O- 10
TABLE OF CONTENTS
viii FY 2005- 07 ADOPTED POLICY BUDGET
Library ............................................................................................................................... .................. P- 1
Mission Statement ........................................................................................................................... P- 1
Business Goals ............................................................................................................................... P- 1
Organizational Chart by Program .................................................................................................... P- 2
Organizational Chart by Division ..................................................................................................... P- 2
Programs Included in FY 2005- 07 Budget ....................................................................................... P- 3
Summary of Significant Budget Changes ....................................................................................... P- 4
Summary of Historical Expenditures and Adopted Budget by Fund ................................................ P- 5
Summary of Authorized Positions by Classification ........................................................................ P- 6
Summary of Authorized Positions by Program................................................................................ P- 8
Summary of Revenue and Expenditures by Program ..................................................................... P- 9
Program Detail .............................................................................................................................. P- 10
Parks and Recreation ........................................................................................................................ Q- 1
Mission Statement .......................................................................................................................... Q- 1
Business Goals .............................................................................................................................. Q- 1
Organizational Chart by Program ................................................................................................... Q- 2
Organizational Chart by Division .................................................................................................... Q- 3
Programs Included in FY 2005- 07 Budget ...................................................................................... Q- 4
Summary of Significant Budget Changes ...................................................................................... Q- 6
Summary of Historical Expenditures and Adopted Budget by Fund ............................................... Q- 7
Summary of Authorized Positions by Classification ....................................................................... Q- 8
Summary of Authorized Positions by Program............................................................................. Q- 10
Summary of Revenue and Expenditures by Program .................................................................. Q- 11
Program Detail ............................................................................................................................. Q- 12
Human Services ............................................................................................................................... . R- 1
Mission Statement .......................................................................................................................... R- 1
Business Goals .............................................................................................................................. R- 1
Organizational Chart by Program ................................................................................................... R- 2
Organizational Chart by Division .................................................................................................... R- 2
Programs Included in FY 2005- 07 Budget ...................................................................................... R- 3
Summary of Significant Budget Changes ...................................................................................... R- 4
Summary of Historical Expenditures and Adopted Budget by Fund ............................................... R- 5
FY 2005- 07 ADOPTED POLICY BUDGET ix
CITY OF OAKLAND
Human Services ( continued)
Summary of Authorized Positions by Classification ....................................................................... R- 6
Summary of Authorized Positions by Program............................................................................... R- 8
Summary of Revenue and Expenditures by Program .................................................................... R- 9
Program Detail ............................................................................................................................. R- 10
Public Works ............................................................................................................................... ........ S- 1
Mission Statement ........................................................................................................................... S- 1
Business Goals ............................................................................................................................... S- 1
Organizational Chart by Program .................................................................................................... S- 2
Organizational Chart by Division ..................................................................................................... S- 3
Programs Included in FY 2005- 07 Budget ....................................................................................... S- 4
Summary of Significant Budget Changes ....................................................................................... S- 6
Summary of Historical Expenditures and Adopted Budget by Fund ................................................ S- 7
Summary of Authorized Positions by Classification ........................................................................ S- 9
Summary of Authorized Positions by Program.............................................................................. S- 13
Summary of Revenue and Expenditures by Program ................................................................... S- 14
Program Detail .............................................................................................................................. S- 15
Community and Economic Development ......................................................................................... T- 1
Mission Statement ........................................................................................................................... T- 1
Business Goals ............................................................................................................................... T- 1
Organizational Chart by Program .................................................................................................... T- 2
Organizational Chart by Division ..................................................................................................... T- 3
Programs Included in FY 2005- 07 Budget ....................................................................................... T- 4
Summary of Significant Budget Changes ....................................................................................... T- 8
Summary of Historical Expenditures and Adopted Budget by Fund ................................................ T- 9
Summary of Authorized Positions by Classification ...................................................................... T- 11
Summary of Authorized Positions by Program.............................................................................. T- 14
Summary of Revenue and Expenditures by Program ................................................................... T- 15
Program Detail .............................................................................................................................. T- 17
Non- Departmental................................................................................................................... .......... U- 1
Overview ............................................................................................................................... ......... U- 1
Programs Included in FY 2005- 07 Budget ....................................................................................... U- 2
TABLE OF CONTENTS
x FY 2005- 07 ADOPTED POLICY BUDGET
Non- Departmental ( continued)
Summary of Significant Budget Changes ....................................................................................... U- 4
Summary of Historical Expenditures and Adopted Budget by Fund ................................................ U- 5
Summary of Revenue and Expenditures by Program ..................................................................... U- 7
Program Detail ............................................................................................................................... U- 8
Debt Burden and Debt Capacity .................................................................................................... U- 16
City’s Debt Issuances ................................................................................................................... U- 18
Debt Service Schedule .................................................................................................................. U- 22
Ten- Year Negative Fund Rebalancing Schedule............................................................................ U- 24
SUPPLEMENTAL................................................................................................................... ............ V- 1
Listing of Contents ........................................................................................................................... V- 1
Reserve Policy - General Fund and Capital Improvement Fund...................................................... V- 2
Policy on Balanced Budgets ............................................................................................................ V- 5
Long- Term Financial Planning Policy............................................................................................... V- 7
Policy on Charges for Services ....................................................................................................... V- 9
Investment Policy .......................................................................................................................... V- 12
Debt Management Policy............................................................................................................... V- 32
Summary of the 2005 Community Survey Results ....................................................................... V- 39
INDEX ............................................................................................................................... .................. W- 1
BUDGET- RELATED LEGISLATION ................................................................................................... X- 1
FY 2005- 07 ADOPTED POLICY BUDGET A - 1
CITY OF OAKLAND
Goal 1: Develop A Sustainable City
Objectives:
1A. Maximize socially and environmentally sustainable economic growth, including conserving natural
resources
1B. Encourage and support social equity for all Oakland residents
1C. Develop and institutionalize sound financial management policies and practices
Goal 2: Build Community and Foster Livable Neighborhoods
Objectives:
2A. Reduce crime by implementing a comprehensive crime prevention/ reduction strategy
2B. Facilitate the development of housing for all incomes
2C. Reduce blight and nuisance
2D. Provide for clean, well- maintained and accessible streets and sidewalks, facilities, amenities,
parks, recreational facilities and trees.
2E. Encourage and support civic engagement
Goal 3: Ensure that all Oakland Youth and Seniors Have the Opportunity to be Successful
Objectives:
3A. Provide effective community programs for seniors, youth, and people with disabilities
Mayor / Council Goals and Citywide Objectives
MAYOR AND COUNCIL PRIORITIES
A - 2 FY 2005- 07 ADOPTED POLICY BUDGET
Citywide Program Structure
Goal
Objectives
Programs
Develop A Sustainable City
Maximize socially and
environmentally sustainable
economic growth, including
conserving natural resources
Encourage and support
social equity for all
Oakland residents
Develop and institutionalize
sound financial management
policies and practices
Coliseum ( CEDA)
Broadway/ MacArthur/
San Pablo ( CEDA)
Watershed and
Waterways ( PWA)
Business Creation,
Attraction, Retention,
and Expansion
Services ( CEDA)
Neighborhood Commercial
Revitalization ( CEDA)
Historical Preservation
( CEDA)
Fire Prevention Bureau
( Fire)
Commercial Lending
( CEDA)
Community Development-
CDBG ( CEDA)
Recycling and
Solid Waste ( PWA)
OARB - Bay Bridge
Gateway ( CEDA)
Downtown Development
( CEDA)
Environmental Compliance
and Remediation ( PWA)
West Oakland
Redevelopment ( CEDA)
Contract Compliance
Program & Employment
Service ( CAO)
Equal Access Office
( CAO)
Equal Opportunity
Program ( CAO)
Fostering Safe and
Healthy Communities
( DHS)
Oaklanders Assistance
Center ( Mayor)
Residential Rent
Adjustment ( CEDA)
Workforce Development
( CEDA)
Administration ( CAO)
Advisory Services ( OCA)
Auditing ( Auditor)
Budget, Analysis and
Operations Support ( CAO)
CEDA's Director's Office
( CEDA)
Central Administration
( OPR)
Central Reservations
( OPR)
Fire Department
Administration ( Fire)
Fiscal Management
( N- D)
Financial Management
( FMA)
Human Resource
Management ( FMA)
Legal Support
& Operations ( OCA)
Library System
Wide Services ( OPL)
Litigation Services
( OCA)
Mayor's Support
( Mayor)
Parking Management
( FMA)
Technology Management
( FMA)
Central City East ( CEDA)
Development Permit
Inspection ( CEDA)
Development Permit
Processing and Engineering
Approval ( CEDA)
Major Projects/ Strategic
Planning & Implementation
( CEDA)
Debt/ Lease Payments
( N- D)
Citywide Activities
( N- D)
Contract Management
( OPR)
Safety and Liability ( PWA)
Agency- Wide Admin
( PSA)
Policy Analysis
( Council)
Fire Department
Safety, Education
& Training ( Fire)
Good Government
( Auditor)
Personnel, Safety &
Liability ( Fire)
Cultural Arts Oversight
( CAD)
ORGANIZATIONAL LEGEND:
CAD Cultural Arts Department
CAO City Administrator’s Office
CEDA Community & Economic Development Agency
CIP Capital Improvement Program
DHS Department of Human Services
FMA Finance & Management Agency
N- D Non- Departmental
OCA Office of the City Attorney
OPL Oakland Public Library
OPR Office of Parks and Recreation
PSA Police Services Agency
PWA Public Works Agency
FY 2005- 07 ADOPTED POLICY BUDGET A - 3
CITY OF OAKLAND
Citywide Program Structure
Goal
Objectives
Programs
Build Community And Foster
Livable Neighborhoods
Reduce crime by
implementing a
comprehensive crime
prevention/ reduction strategy
Facilitate the
development of
housing for
all incomes
Reduce blight
and nuisance
911- Dispatch
Communication
( Fire)
Communications
( PSA)
Criminal
Investigations
( PSA)
Criminalistics
( PSA)
Citizens Police
Review Board
( CAO)
Provide clean,
well- maintained
and accessible
streets & sidewalks,
facilities,
amenities, parks,
recreational
facilities and trees
Encourage and
support civic
engagement
Emergency
Medical Services
( Fire)
Emergency
Response Support
Services ( Fire)
Fire Suppression/
Field Operations
( Fire)
Homeland
Security ( CAO)
Measure
Y- Prevention
( DHS)
Patrol
( PSA)
Emergency Servs /
Homeland Sec’y
( Fire)
Records
( PSA)
Research, Plan’g
& Crime Analysis
( PSA)
Special
Operations
( PSA)
Special Op’s-
Emergency
Response ( Fire)
Vice/ Narcotics
( PSA)
Home Ownership
& Rehabilitation
( CEDA)
Development
Review/ Zoning
( CEDA)
Housing
Development
( CEDA)
Keep Oakland
Clean and
Beautiful ( PWA)
Livable
Neighborhood
Code Enforcement
Services ( CEDA)
Ballfields ( OPR)
Electrical and
Energy Efficiency
( PWA)
Engineering
Planning and
Design ( PWA)
Facilities
Management and
Develop. ( PWA)
Fleet Management
and Maintenance
PWA)
Grounds ( PWA)
Museum Visitor
Services ( CAD)
Project Delivery
( PWA)
Real Estate
( CEDA)
Sanitary & Storm
Sewer Mgmt and
Maintenance
( PWA)
Streets and
Sidewalks Mgmt
and Maintenance
( PWA)
Trees ( PWA)
African American
Museum & Library
at Oakland ( OPL)
Community
Promotion ( N- D)
Cultural Funding
( CAO)
Election &
Political
Compliance ( Clerk)
Henry J. Kaiser
Convention Center
( CAD)
Malonga
Casquelourd Center
for the Arts ( OPR)
Marketing and
Special Events
( CAO)
Public Art
( CAO)
Public Ethics
Commission ( CAO)
False Alarm
Program ( Fire)
Training
( PSA)
Neighborhood
Law Corp
( OCA)
Camps ( OPR)
Recreational Ctrs
and Programs
( OPR)
Agenda
Management
( Clerk)
Port Security
( PSA)
Pedestrian Safety
( PWA)
Transportation &
Pedestrian
Safety ( PWA)
Traffic Operation
( PWA)
Customer Svcs/
Records Mngt
( Clerk)
Constituent Affairs
( Council)
Museum Curatorial
and Exhibition Svcs
( CAD)
Museum Education
Services ( CAD)
ORGANIZATIONAL LEGEND:
CAD Cultural Arts Department
CAO City Administrator’s Office
CEDA Community & Economic Development Agency
CIP Capital Improvement Program
DHS Department of Human Services
FMA Finance & Management Agency
N- D Non- Departmental
OCA Office of the City Attorney
OPL Oakland Public Library
OPR Office of Parks and Recreation
PSA Police Services Agency
PWA Public Works Agency
Cultural Arts
( OPR)
Internal Affairs
( PSA)
Custodial Services
( PWA)
MAYOR AND COUNCIL PRIORITIES
A - 4 FY 2005- 07 ADOPTED POLICY BUDGET
Citywide Program Structure
Objective
Programs
Goal Ensure that all Oakland Youth and Seniors
Have Opportunity to be Successful
Provide effective community
programs for seniors, youth,
and people with disabilities
After- School Sports
( OPR)
Americans with
Disabilities Act
Programs ( CAO)
Aquatics – Boating
( OPR)
Self- Sustaining Program
( OPR)
Branch Library
Services ( OPL)
Oakland Fund for
Children and Youth
( DHS)
Empowering Seniors
and People with
Disabilities ( DHS)
Literacy Programs
( OPL)
Main Library
Services ( OPL)
Adult Sports
( OPR)
Strengthening Children,
Youth & Their Families
( DHS)
Davie Tennis &
Citywide Tennis ( OPR)
Aquatics – Pools
( OPR)
Automated Systems
( OPR)
ORGANIZATIONAL LEGEND:
CAD Cultural Arts Department
CAO City Administrator’s Office
CEDA Community & Economic Development Agency
CIP Capital Improvement Program
DHS Department of Human Services
FMA Finance & Management Agency
N- D Non- Departmental
OCA Office of the City Attorney
OPL Oakland Public Library
OPR Office of Parks and Recreation
PSA Police Services Agency
PWA Public Works Agency
FY 2005- 07 ADOPTED POLICY BUDGET B - 1
CITY OF OAKLAND
City’s Two- Year Budget
Local governments use budgets for a variety of reasons, but most importantly for accountability, planning, information and
evaluation. The City of Oakland is on a two year budget cycle, with FY 2005- 07 being Oakland’s fifth biennial budget. The
two- year budget is intended to improve the City’s long- term planning and enhance funding stability, and operational continu-ity
and efficiency.
The City of Oakland adopted a program- based budget format in FY 2003- 05. The advantage of a program- based budget is
that it focuses on the product of the budgeting effort rather than the line items that go into those programs. The various
programs in the City’s budget are linked to the overarching goals and priorities of the Mayor and City Council as well as to
the specific Citywide objectives. At a program level, not only the budget is developed and actual financials are captured ( for
revenues, expenditures and positions), but also performance measures and targets are set and actual performance is
tracked. Therefore, the City’s program- based budget provides a good transition to a performance- based budget.
The City’s budget is adopted for a 24- month period; however, the appropriations are divided into two one- year spending
plans. During the second year of the two- year budget cycle, the Mayor and Council conduct a Midcycle budget review
limited to significant variances in estimated revenue and / or revised mandates arising from Federal, State or Court actions.
The Mayor, Council and staff also use the first year of the two- year budget cycle to review, refine, and enhance the utility of
agency/ departmental performance measures.
The Five- Year Financial Plan
The City also develops a Five Year Financial Plan. The Plan is an indication of management’s best assessment of future
revenues, expenditures and operating results over the five- year forecast period. The plan draws upon the experience of the
City’s Economic Advisory Panel, which convenes annually to review staff’s revenue projections and recommend changes.
The compilation and review of the Plan provides an opportunity to put current funding decisions in context with longer- term
economic conditions while affording City management a realistic projection of the ongoing financial impact of policy deci-sions.
Major goals of the Five- Year Financial Plan include the following:
1. To put the City’s two- year budget making process into a five- year planning horizon to facilitate prudent financial
management.
2. To provide an environment for setting revenue and expenditure targets and for evaluating budget priorities in light of
projected fiscal conditions.
3. To present a picture of the longer- term strategic financial issues facing the City, while highlighting funding priorities
for budget planning.
4. To identify potential structural budget imbalances, surpluses or shortfalls.
5. To demonstrate to the policy- makers the likely impact of the short- term capital investment and financing decisions
on the City’s longer- term financial capacity.
6. To provide a useful framework for reviewing and refining the City’s financial forecasts, as well as its financial
management goals and priorities.
In preparing the Plan, City staff takes into account historical experience, as well as the economic uncertainties underlying
the revenue outlook and growth in expenditures during the five- year period. The Plan also accounts for major demographic
and legislative changes.
BUDGET GUIDE
B - 2 FY 2005- 07 ADOPTED POLICY BUDGET
The Budget Process
The budget process is the formal method through which the City establishes its goals, program priorities and desired
service levels for the upcoming fiscal period, and identifies the resources necessary to achieve them. Essentially, it is a
process through which policy is made, programs are articulated and resources are identified in order to put them into effect.
The chart below summarizes the process, with details provided on the following pages.
Budget Process Flowchart – FY 2005- 07
Mayor / Council Outline
Budget Priorities, Set
Goals for FY 2005- 07
Develop Citywide
Objectives Based on
Mayor / Council Goals
NOV 29, 2004
NOV 2004 - DEC 2004
Budget Office Provides
Training to Agencies /
Departments on FY
2005- 07 Budget
Development
NOV 2004 - DEC 2004
Agencies / Departments
Develop FY 2005- 07
Budget Proposals, in
Programmatic Linked to
Citywide Terms, Linked
to Citywide Objectives
and Mayor / Council
Goals
DEC 2004 - JAN 2005
Budget Office Reviews
Agency / Departmental
Budget Proposals for FY
2005- 07, Provides
Program / Funding
Recommendations to City
Administrator/ Mayor
FEB - MAR 2005
City Administrator Holds
Internal “ Budget
Hearings” With Agencies
/ Departments, Makes
Program / Funding
Recommendations to
Mayor
MAR - APR 2005
Mayor Follows Up with
City Administrator,
Budget Office and
Departments; Makes
Final Decisions on FY
2005- 07 Proposed Budget
APR 2005
Mayor’s / City Manager’s
FY 2005- 07 Proposed
Budget Finalized, Budget
Document Printed
APR 2005
Mayor’s / City
Administrator’s FY 2005-
07 Proposed Budget
Document Submitted to
Council / Public
MAY 2005
Council Members Hold
Community Meetings for
Input from Constituents
on FY 2005- 07 Budget
MAY 2005
Budget Advisory
Committee Develops
Recommendations on FY
2005- 07 Budget for City
Council
APR - MAY 2005
Council Deliberates on
FY 2005- 07 Proposed
Budget, Makes
Adjustments
MAY - JUN 2005
Council Makes Final
Budget Augmentation
Decisions, Adopts FY
2005- 07 Budget
JUN 21, 2005
Council Makes Midcycle
Adjustments to
FY 2006- 07 ( Second
Year) Budget
MAY- JUN 2006
( BUDGET IMPLEMENTATION)
( BUDGET IMPLEMENTATION)
NEXT BUDGET CYCLE
START
FINISH
FY 2005- 07 ADOPTED POLICY BUDGET B - 3
CITY OF OAKLAND
The budget process consists of several important stages: 1) Budget Development, 2) Budget Adoption, and 3) Budget
Amendment.
Budget Development
Nov 2004:
Priority Setting The Budget Development process for the FY 2005- 07 cycle began in the fall of 2004,
when the Mayor and the City Council established their goals for FY 2005- 07 at the
November Retreat. Also at the retreat, staff presented to the Mayor and Council the
City’s preliminary revenue and expenditure projections for FY 2005- 07, with the empha-sis
on key anticipated issues.
Nov 2004- Dec 2004:
Development of Objectives Following the Council retreat, Citywide Objectives, based on the goals by the Mayor/
Council, were developed. These goals and objectives link to Programs in the City’s FY
2005- 07 budget.
Nov 2004- Dec 2004:
Departmental Training During November– December 2004, comprehensive training was provided to all Agen-cies
/ Departments on the development of the FY 2005- 07 budget. The key compo-nents
of the budget instructions provided to Agencies / Departments at the training
sessions were: a) budget development by program, with built- in performance informa-tion;
and b) two- year financial outlook and actions necessary to balance the FY 2005-
07 budget.
Dec 2004- Jan 2005:
Departmental Budget
Development Agencies/ Departments began the development of their budget proposals for FY 2005-
07 in December, following budget training in November. Budget proposals were devel-oped
in programmatic terms, with anticipated revenues and requested appropriations
presented by programs, with linkages to Citywide Objectives and Mayor/ Council Goals.
In addition, throughout the budget document, revenues, expenditures, and positions
are reflected by goal, objective and program.
Feb 2005:
Community Survey The City conducted a community survey, to gauge citizens’ satisfaction with city ser-vices
and to help the Council determine what the City’s budget priorities should be.
Feb- Mar 2005:
Budget Office Analysis Upon receipt of Agency / Departmental budget submittals, the Budget Office provided
an in- depth analysis of each budget request. Based upon the initial analysis and sub-sequent
follow- up with departments to resolve issues and answer questions, recom-mendations
were provided to the Mayor and City Administrator regarding the proposed
programs, new initiatives, new funding requests, and budget balancing measures.
Mar- Apr 2005:
Internal Budget Hearings Internal budget hearings were held by the City Administrator, City Administrator Staff,
and the Budget Office with Agency Directors and their program / fiscal staff. At these
internal meetings, discussions occurred about program priorities and resource require-ments
for the next two years; budget recommendations and questions from the Mayor,
City Administrator and Budget Office were also discussed. Based on the outcomes of
the internal budget hearings, follow- up discussions with Agencies / Departments when
necessary and additional analysis by staff, preliminary budget decisions were made by
the Mayor and City Administrator.
BUDGET GUIDE
B - 4 FY 2005- 07 ADOPTED POLICY BUDGET
Apr 2005:
Proposed Budget Finalized Based on the decisions following the internal budget hearings, subsequent discus-sions
with the Agencies / Departments, additional analysis by the Budget Office, and a
series of wrap- up meetings with the Mayor and City Administrator, the FY 2005- 07
Proposed Budget was finalized in April of 2005. Following technical changes in the
budget system, the Budget Office prepared the Proposed Budget document for presen-tation
to the City Council in May.
May- Jun 2005:
Council Budget Deliberations Both in preparation for and following the May 6th release of the FY 2005- 07 Proposed
Budget, City Council members held community meetings to obtain input from constitu-ents
on the FY 2005- 07 budget priorities, and to understand questions and concerns
pertaining to the Administration’s budget proposal. At the same time, the City’s budget
was reviewed by the Budget Advisory Committee ( BAC), consisting of Oakland resi-dents
and business community members appointed by City Council members and the
Mayor. The BAC holds meetings throughout the year and may review the City’s overall
budget, or specific topics as requested by the City Council. The BAC also convenes
public meetings to encourage citizen input on the budget and presents its findings and
recommendations to the City Council during hearings on the budget.
On May 17, 2005, the Mayor and City Administrator presented their FY 2005- 07 Pro-posed
Budget to the City Council. Upon presentation of the Proposed Budget, the City
Council conducted a series of public hearings to review each Agency / Department
budget.
Budget Adoption
Jun 21, 2005:
Council Budget Adoption As required by The City Charter, the City Council adopted a balanced budget by June
30, preceding the start of the fiscal year commencing July 1. The Adopted Budget
provides two- year appropriation authority for all funds and first- and second- year appro-priations
for the Five- Year Capital Improvement Program. The appropriations are out-lined
in two annual spending plans for FY 2005- 07.
Budget Amendment
May- Jun 2006:
Midcycle Budget Amendment At the close of the first year of the two- year budget cycle, the Mayor and Council
conduct a Midcycle budget review limited to significant variances in estimated General
Fund revenue and/ or revised mandates arising from Federal, State or Court actions. For
the FY 2005- 07 budget cycle, the Midcycle Review will take place in May- June 2006,
and will pertain to revenues and expenditures for FY 2006- 07 ( i. e. the second year of
the biennial budget).
Year- Round
Budget Amendments The budget is a flexible document that provides a comprehensive framework of re-source
allocations for implementation of the City’s goals, priorities and program activi-ties
covering the two- year fiscal period. Amendments to the budget may be made
throughout the two- year period. Appropriation of new money or transfers between funds
and Agencies/ Departments requires formal action through Council resolution. Trans-fers
between divisions within an Agency/ Department, accounts or projects may be
made at the administrative level. These transfers can be authorized by the City Admin-istrator,
Budget Office or Agency Directors, depending on the nature of the transfer.
FY 2005- 07 ADOPTED POLICY BUDGET B - 5
CITY OF OAKLAND
Format of Budget Document
This section provides the reader with a brief explanation of the format and contents of the FY 2005- 07 Adopted Policy
Budget document. The budget document is presented in two dimensions: 1) consistent with the organizational structure of
the City ( i. e., by Agency / Department), and 2) according to the Mayor / Council goals. A description of major sections of this
document, with an explanation of contents, is provided below.
Letter of Transmittal This is the City Administrator’s budget message to the Mayor and City Council. It
outlines the FY 2005- 07 overall budgetary plan of the City, including major budget /
program changes and anticipated challenges.
Table of Contents This section outlines the order and page number of each section of the budget docu-ment.
Mayor/ Council Priorities This section summarizes goals and priorities of the Mayor and City Council and illus-trates
linkages to departmental programs.
Budget Guide This section contains an overview of the budget process. In addition, it outlines the
organization of the budget and contains a Glossary of Budgetary Terminology and an
Abbreviation Guide.
City Facts This section provides general information about the City, including a description of the
City’s history, form of government, transportation modes, attractions and miscella-neous
statistics about construction activity, demographics and the Port of Oakland
activity.
Financial Summaries This section provides tables and graphs summarizing current and historical data on the
City’s expenditures, revenue and staffing levels. Summaries of the Five- Year Capital
Improvement Program are included in the Financial Summaries; however, the project
details are published in a separate document called the 2005- 10 Capital Improvement
Program. Descriptions of the City’s funding sources and the basis for revenue projec-tions
are also included.
Organizational Summary This section presents the citywide organization chart and a summary of historical and
current staffing levels by agency and department.
Agency Programmatic Budgets The agency and department programmatic budgets are one of two major components
of the City’s total budget. The other major component is the Capital Improvement Pro-gram
budget. Each agency/ department budget contains both summaries and detailed
budgets, including details by program.
Supplemental Information This section includes budget and financial policies, including the City’s policy on bal-anced
budgets, reserves, long- term planning, investment, and debt management. In-formation
from the 2005 Community Survey is also provided in this section.
Index This section serves as a reference guide.
Legislation Copies of the legislation approved by the City Council to adopt the FY 2005- 07 Budget
are included in this section.
BUDGET GUIDE
B - 6 FY 2005- 07 ADOPTED POLICY BUDGET
Format of Agency and Department Budgets
This section outlines the information included in the Agency/ Departmental budget sections.
Agency/ Department Summary Each agency/ department budget begins with its mission statement and organization
chart.
Business Goals The second section lists the agency/ departmental goals for FY 2005- 07. Typically,
these goals represent the business purpose of an agency/ department, in support of its
mission statement. Each department in the City fulfills particular needs of the commu-nity,
and this section outlines those responsibilities.
Programs Included
in the FY 2005- 07 Budget This section describes all programs for each agency/ department.
Significant Changes to Budget Following the Business Goals is a table highlighting major changes to the agency/
department’s appropriations included in the FY 2005- 07 Policy Budget.
Appropriations The next several pages display summary information for revenues, expenditures, and
positions, both historical and adopted for FY 2005- 07, associated with operating the
agency/ department.
Summary of Historical Expenditure by Fund outlines which funds ( i. e., revenue
sources) will be used to pay the expenses of the department. The sources and uses of
the City’s various funds are described in the Financial Summaries section.
Position Summary by Classification lists all positions within the agency/ depart-ment
by classification title, and provides the number of full- time equivalents ( FTE)
appropriated for the classification.
Position Summary by Program summarizes all positions by program.
Summary of Budget by Program summarizes revenue and expenditures by pro-gram.
Program Budget Details Following the summary pages are program budget details including a description of
each program and its relation to the Mayor/ Council Goals. A financial table displays
information on FY 2005- 07 approved revenues, expenditures and FTEs. Lastly, perfor-mance
measures for the program are articulated along with performance targets.
FY 2005- 07 ADOPTED POLICY BUDGET B - 7
CITY OF OAKLAND
Glossary of Budgetary Terminology
The City’s Policy Budget contains specialized and technical terminology that is unique to public finance and budgeting. To
assist the reader of the Policy Budget document in understanding these terms, a glossary of budgetary terminology is
included as follows:
Actual Actua