Oakland Architecture

The architecture represented in this Budget for FY 2001- 03 spans the years from 1872 to 2001 with the Italianate Knox-

Buckley House in Preservation Park to the neo- Mediterranean “ The Landing” housing by the Oakland Estuary. Our

cityscape is as varied as our history and the people who choose to live here.

Cover Photograph

El Embarcadero Pergola and Colonnade

Lakeside Park

1912- 14

Walter T. Steilberg, architect

Lake Merritt has been the gem of the city from Oakland’s early days. From Victorian mansions to high- rise apartments and

office buildings, the Lake has always been a desirable location for living, working and playing.

As mayor of Oakland, Samuel Merritt had a dam built across this arm of the San Antonio Slough in 1869, creating the lake

and establishing the first National Wildlife Refuge in 1870. In 1906 Mayor Frank Mott began to develop Lakeside Park,

purchasing the Camron- Stanford House and adding the Boat House, the Canoe House, the McElroy Fountain, and the

Edoff Memorial Bandstand within the next 12 years.

The Embarcadero Pergola and Colonnade were designed by Walter Steilberg in 1912 in a Mediterranean style. The Lawn

Bowling Clubhouse, Necklace of Lights, Rotary Natural Science Center and Duck Islands and Children’s Fairyland are

later additions to the Lake’s wonderful amenities. Most recently, gondola rides on the lake offer a new Mediterranean

touch.

Gondola Servizio offers an authentic Italian experience during their cruises. Their charming gondoliers have learned

Venetian rowing, traditional songs, history and legends to combine both an informative and entertaining experience for all

passengers. The boats of Gondola Servizio are the real thing, not replicas. Each was built by hand in Venice and

christened in the traditional Venetian manner. Jeff Fischer and April Quinn are the husband- wife team responsible for the

gondolas on Lake Merritt. Visit Gondola Servizio at the Lake Merritt Boating Center or at their web site at

www. gondolaservizio. com.

— Historical information from the Oakland Cultural Heritage Survey, CEDA Strategic Planning Division and the Gondola Servizio web site

Photograph Credits

Marcia Nowak

Graphic Design Specialist

Community and Economic Development Agency

Marketing and Special Events

Oakland Convention and Visitors Bureau

475 14th Avenue

Oakland, CA 94612

510- 839- 9000

Todd L. Rydstrom

Acting Budget Director

City Manager’s Budget Office

Historical Information

Oakland Cultural Heritage Survey

Community and Economic Development Agency

Strategic Planning Division

Table of Contents

Table of Contents

City of Oakland

FY 2001- 03 Adopted Policy Budget

Jerry Brown

Mayor

Members of the City Council

Ignacio De La Fuente ( District 5)

President

Jane Brunner ( District 1)

Vice- Mayor

( At- large) Henry Chang, Jr. Danny Wan ( District 2)

( District 3) Nancy Nadel Dick Spees ( District 4)

( District 6) Moses Mayne Larry Reid ( District 7)

Robert C. Bobb

City Manager

Prepared by

Office of the City Manager

Dolores E. Blanchard

Assistant City Manager

Todd Rydstrom, Acting Budget Director

Principal Financial Analysts

Marianna Marysheva

J. Kelly Sessions

Budget & Financial Analysts

Myrna Bangloy

Robert Davila

Thomas DiSanto

Jeffrey Johnson

Kirby Smith

Cheryl Taylor

Table of Contents

Council Appointed Officers

Robert C. Bobb, City Manager

Ceda Floyd, City Clerk

Elected Officers

John Russo, City Attorney

Roland Smith, City Auditor

Assistant City Managers

Dolores E. Blanchard

George G. Musgrove

Agency Directors

Deborah Edgerly

Financial Services

Gerald A. Simon

Fire Services

Richard Word

Police Services

William Claggett

Community & Economic Development

Gail Waiters

Life Enrichment

Claudette R. Ford

Public Works

Table of Contents

Mission Statement

The City of Oakland is committed to the delivery of effective, courteous

and responsible service. 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.

Table of Contents

The Government Finance Officers Association of the United States and Canada ( GFOA) presented an

award of Distinguished Budget Presentation Award to the City of Oakland for its biannual budget for the

fiscal year beginning July 1, 1999.

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 year only. We believe our current budget continues to conform to

program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

Page 1

November 26, 2001

Honorable Mayor Jerry Brown

Oakland, California

Subject: The City of Oakland’s FY 2001- 03 Adopted Policy Budget

Dear Mayor Brown:

On June 19, 2001, the City Council unanimously adopted the City’s third two- year budget,

providing funding appropriations covering the period from July 1, 2001 through June 30, 2003.

This two- year budget is significant in several respects: it provides additional funding for the

Council’s, yours and my policy priorities and initiatives; increases

Fund Reserve by $ 7.0 million; and introduces a zero- net increase in staff policy.

BUDGET SUMMARY

The FY 2001- 03 Adopted Policy Budget reflects increased economic activity in the City of

Oakland and the needs of the citizens. The financial summaries on the following page outline the

two- year revenue and appropriation for All Funds and the General Purpose Fund. The FY 2001-

03 Adopted Policy Budget contains two- year revenue projections totaling $ 1.64 billion and

appropriations totaling $ 1.64 billion across all funding sources.

The array of funding sources contained in the FY 2001- 03 Adopted Policy Budget reflects the

City’s continued efforts to maximize opportunities through grants and other special revenue

sources. To the extent that the City continues to be successful in securing diverse funding

sources, a variety of program areas are more readily maintained and/ or expanded without

applying added pressure on the City’s General Purpose Fund.

Page 2

In the FY 2001- 03 Adopted Policy Budget, the citizens of Oakland will see a continued

commitment to making our city a World Class City. Particular attention was given to your goals,

with a focus on public safety, education, housing and the arts. The Council’s budget priorities

were also prominently woven throughout the appropriations proposed. These included:

Safe Neighborhoods

Clean and Livable Communities

Renewed Infrastructure

Support for Youth

Affordable Housing

Vital Neighborhood Commerce

ALL FUNDS REVENUES

FY 2001- 03 Adopted Budget

$ 1,641.28 Million

Fund Transfers

($ 301.71M)

18.4%

Other

($ 344.53M)

21.0%

Grants &

Subsidies

($ 150.20M)

9.2%

Service Charges

($ 202.29M)

12.3%

Local Taxes

($ 294.02M)

17.9%

State Taxes

($ 127.94M)

7.8%

Property Taxes

($ 220.57M)

13.4%

Page 3

Major New Initiatives for FY 2001- 03. The FY 2001- 03 Adopted Policy Budget goes beyond

providing additional funding to cover mandates and cost- covered programs and also funds major

new initiatives, including major efforts to upgrade the City’s infrastructure. Some of the Major

New Initiatives include:

q   Increased technology enhancements, including the replacement and upgrade

of the Computer Aided Dispatch System, the Permit and Code Enforcement

Tracking System and Oracle Application Upgrades;

q   Expanded commitment to Neighborhood Commercial Revitalization,

including International and MacArthur Streetscape Projects;

q   Increased resources to repair and resurface streets and sidewalks;

q   Increased commitment to the Oakland Zoo;

q   Renewed effort to acquire key Parks and Recreation open space, including

Joaquin Miller Lookout Point, Waterfront Trail Connections between Lake

ALL FUNDS APPROPRIATIONS

FY 2001- 03 ADOPTED BUDGET

$ 1,635.45 Million

Life

Enrichment

($ 153.28M)

9.4%

Non-

Departmental

($ 353.60M)

21.6%

Financial Services

($ 44.72M)

2.7%

General

Government

($ 86.17M)

5.3%

Fire

($ 161.39M)

9.9%

Police

($ 273.98M)

16.8%

Credits &

Transfers

($ 128.56M)

7.9%

Capital

Improvement

($ 115.32M)

7.1%

Community &

Econ. Dev't

($ 124.80M)

7.6%

Public Works

($ 193.63M)

11.8%

Page 4

Merritt, Channel Park and Estuary Park, Oakland/ Emeryville Cresent and the

San Leandro Bay Shore;

q   Equipment upgrades to make personnel more efficient and reduce non-productive

down time, including mechanized hand tools, cars, trucks, heavy

equipment and technology; and

q   Enhanced Vegetation Management.

FY 2001- 03 All Funds Appropriations, $ 1,635.45 Million

The FY 2001- 02 Adopted Budget reflects an increase of 266.34 FTEs ( i. e. 6.2 percent) from the

FY 2000- 01 Adopted Budget, with an additional increase of 69.33 FTEs ( i. e. 1.52 percent) in FY

2002- 03. A total of 4,555.51 FTEs was authorized for FY 2001- 02, and 4,624.84 FTEs were

included in the FY 2002- 03 Adopted Budget.

Changing Environment and Economic Revitalization in the City. When planning

commenced for this two- year budget, significant shortfalls were projected. However, with the

effects of the strong economy finally reaching Oakland, as well as the City’s efforts to encourage

development finally generating results, the City was able to realize increased revenue yield, and

identify sufficient resources to fund programs central to Mayoral and Council goals.

The improved revenues are broad- based, resulting from improving property values and property

turnover for property taxes and real estate transfer taxes, to improving sales taxes and business

taxes, to increasing collections fines, penalties, and services. Much of this improvement has been

realized during the course of the current two- year budget. Confidence in the economy remains

high; however, some recent weakening does indicate that growth may moderate in some areas of

the economy over the near term. Given the 7.5 percent reserve policy, the City of Oakland is on

solid financial ground to meet the needs of its citizens and weather an economic slowdown

should it occur.

Continuing City Manager Initiatives. Some of the turnaround of the City’s financial position

is attributed to the initiatives we have been able to bring to bear in upgrading the business and

Fund Category

FY 2001- 02

Appropriation

FY 2002- 03

Appropriation

General Purpose $ 356.42 $ 372.34

Other General $ 80.37 $ 83.76

Special Revenue $ 121.71 $ 119.68

Debt Service $ 103.53 $ 104.49

Internal Service $ 40.76 $ 42.34

Enterprise $ 26.75 $ 25.74

Capital $ 43.57 $ 35.65

Trust & Agency $ 40.05 $ 38.29

Total All Funds $ 813.16 $ 822.29

Page 5

customer client services within the City of Oakland. I have been with the City nearly four years,

and my initial visions as to the potential of the City have begun to be realized. My visions have

been focused on the reinvention of City government and included three major initiatives:

Banishing Bureaucracy, a comprehensive Public Safety Strategy, and Community- Oriented

Government.

Oakland’s Banishing Bureaucracy initiative was and is aimed at improving the way the City

conducts its business. It includes employee teams focused on improving efficiencies and

effectiveness of delivering City services and reducing or eliminating barriers to processing

routine activities.

The Public Safety Strategy has been focused on tackling the public safety issues of the City from

a comprehensive, coordinated, citywide approach. The strategy includes implementing a crime

and grime reduction strategy that focuses on the disparate efforts of individual agencies and

departments and brings together existing resources to create a safe and healthy City. Continued

emphasis on public safety, a central focus of both Mayor and Council goals and priorities, is

reflected in the FY 2001- 03 Adopted Policy Budget.

Community- Oriented Government is a vision that is bringing comprehensive, coordinated and

strategic services to the community and that addresses the long- term sustainability of the

community. The initiative was started by organizing the various City of Oakland services to

work in partnership with one another and with the collective voice of the community along

common geographic boundaries. These geographic- based teams are known as Service Delivery

Systems teams within the City and integrate with the public under the overall banner of the

Community Oriented Government Delivery System. The City has mobilized itself along 57

community- policing beats, six service districts and three broad management areas as a way to

provide this type of service delivery within manageable sized geographic areas.

General Purpose Fund Overview

General Purpose Fund revenues and appropriations for FY 2001- 03 are projected to total $ 729.07

million and $ 728.76 million, respectively. Between the adopted budgets for FY 2000- 01 and FY

2001- 02, estimated revenues increased $ 38.10 million and appropriations increased $ 32.58

million. The increases are enabled by the healthy growth in most of the City’s ongoing revenue

sources resulting from economic expansion and improved collections.

The healthy revenue growth experienced in recent years is expected to continue albeit at slightly

lower levels if the Bay Area is affected by an economic slowdown. Some of the larger, new

revenue initiatives reflected for the FY 2001- 03 Adopted Policy Budget include:

q   $ 4.54 million in incremental Port Service Charge Revenue for Airport

Security;

q   $ 3.20 million in incremental Port Service Charge Revenue for Airport Water

Rescue;

Page 6

q   $ 1.52 million in Service Charge Revenue pertaining to Rent Arbitration Fees;

and

q   $ 1.00 million in incremental Parking Meter Revenue Through Additional

Repair Staff;

q   $ 0.80 million in Service Charge Revenue pertaining to Telecom Construction

Inspection Fees.

q   $ 0.50 million in incremental Parking Fine Revenue Through Additional Staff;

Some of the larger, new appropriations reflected for the FY 2001- 03 Adopted Policy Budget

include:

q   Fully fund 50 Police Officers and 6 Rangers previously funded through a

COPS grant;

q   Establishment of the Eastmont Police Precinct;

q   Increased Energy costs;

q   Increased staffing for Recreation Centers;

q   Increased resources for Grime Initiatives and Clean- up Programs

GENERAL PURPOSE FUND REVENUES

FY 2001- 03 Adopted Budget

$ 729.07 Million

Other

($ 118.26M)

16%

Service Charges

($ 105.27M)

14.4%

Local Taxes

($ 280.42M)

38.5%

State Taxes

($ 100.33M)

13.8%

Property Taxes

($ 124.79M)

17.1%

Page 7

q   Increased resources for Permit Processing, Planning & Zoning; and

q   Set- asides for projected salary and benefit increases.

FINANCIAL STABILITY

Prudent Reserve Levels. In conjunction with its decision to move to a two- year budget process

for FY 1997- 99, the Council approved staff’s recommendation to increase the General Fund

reserve policy from 5.0 percent to 7.5 percent. This increase in the City’s reserve level was

justified by the fact that a two- year budget cycle by definition is based on projections and

assumptions farther into the future, and are therefore inherently subject to greater volatility. By

increasing the reserve level in recognition of the greater degree of economic uncertainty, the

Council will be less likely to require mid- cycle revisions. In fact, it is intended that the mid- cycle

GENERAL PURPOSE FUND APPROPRIATIONS

FY 2001- 03 ADOPTED BUDGET

$ 728.76 Million

Other

7.6%

Life

Enrichment

($ 68.17M)

9.4%

Non-

Departmental

($ 104.8M)

14.4%

Financial Services

($ 27.50M)

3.8%

General

Government

($ 63.66M)

8.7%

Fire

($ 152.38M)

20.9%

Police

($ 256.93M)

35.3%

Credits and

Transfers

($ 6.03M)

0.8%

Capital

Improvement

($ 0.50M)

0.1%

Comm & Econ

Dev't

($ 48.55M)

6.7%

Public Works

($ 0.24M)

0.0%

Page 8

budget review be limited exclusively to significant variations in the City’s revenue projections

and changes in Federal and State mandates.

The Council’s reserve policy further stipulates a reserve for Self- Insurance in light of the City

being self- insured for liability. As a result of financial constraints over the past decade, this

aspect of the reserve policy has not been met. This budget, however, provides an appropriation

for projected payouts.

This increased reserve level represents a reaffirmation of the Council’s commitment to prudent

fiscal policies, which continue to be recognized and highlighted by our bond rating agencies. Our

most recent bond issues have reflected low borrowing costs resulting in long- term savings to

Oakland taxpayers. Prudent fiscal management is critical to the City’s current and future

financial stability.

Zero- Net Staffing Increase Policy. As part of the FY 2001- 03 Policy Budget adoption, the City

Council established a goal of zero net increase in full- time equivalents, with the exception of

public safety and cost- covered positions, by the end of FY 2002- 03, unless the Council

specifically authorizes additions during the FY 2001- 2003 budget cycle. Under this policy,

staffing increases are allowed in Fire and Police services to accommodate urgently needed

increases in public safety programs and services in the FY 2001- 2003 Policy Budget. Additions

and/ or increases are also allowed for fully cost- covered positions, i. e. positions that generate

revenues in excess of their total cost. Such additions/ increases, however, are contingent upon the

realization of the projected revenue ( for example, additional parking revenues to support increase

in parking staff). The remaining position increases included in the FY 2001- 03 Policy Budget are

proposed to be funded from the City’s General Purpose Fund or special revenue funds. Hiring of

these positions will be postponed until January 2002.

My budget staff will report on the increase in fee revenues and corresponding increases in

positions filled as part of quarterly reports on revenues and expenditures as well as during the

mid- cycle budget review. In cases where projected fee revenues are not realized, we will propose

deletions in fee- funded positions. My office will also propose a plan by the end of FY 2002- 03

to freeze the number of positions in the City at the FY 2000- 01 level, with the aforementioned

exceptions, through attrition, deletion of vacant authorized positions, or realignment and

reorganization of positions. During the mid- cycle budget review, I will present a list of current

vacant positions and propose a set of deletions of authorized positions.

Federal and State Funding. Events at both the Federal and State level can have a significant

impact on needs of our community as well as the resources available to the City to meet those

needs. Of particular note is the impact of the energy crisis on the State’s General Fund surplus.

While the City’s FY 2001- 03 Adopted Policy Budget includes increased Utility Consumption

Tax revenue and energy expenditure projections, until the State settles on a long- term strategy to

mitigate the energy crisis, the City will be subject to both revenue and expenditure risk.

Moreover, since other special and general revenues flow to the City from the State, depending on

how deep the energy crisis impacts the State, the City could be at increased risk on the revenue

Page 9

front, specifically with the MVL backfill, which is budgeted in Miscellaneous revenue in the

General Purpose Fund.

Reform of Local Government Finance. The “ system” of local government finance in

California is extremely complex, includes many features that serve as impediments to the fiscal

health of cities, and increases the complexity and uncertainty of the City’s budgeting. This

arrangement is the result of a tangled web of constitutional provisions and amendments, ballot

measures, legislation, and court decisions. The most recent example of this environment was the

passage, in November 1996, of Proposition 218. This initiative, which requires voter approval of

all new or increased general taxes, assessments and property- related fees, greatly restricts the

City’s ability to raise additional revenues

The passage of Proposition 218 heightens the need for statewide reform of local government

finance. Our efforts to restructure City government will have limited results unless we can also

restructure the fiscal environment in which the City operates. These issues have often been

discussed in Sacramento but little has been accomplished. Oakland, in concert with other cities

across the State, needs to continue to aggressively pursue its own agenda for fiscal reform at the

state and federal levels. The current state of the economy and the energy crisis makes progress in

Sacramento less likely over the near term. However, we will continue to be as innovative as we

can at the local level.

A WORLD CLASS CITY

Five major initiatives included in the FY 2001- 03 Adopted Policy Budget set the course for the

City of Oakland to continue its journey toward becoming a World Class City. These initiatives

include: Safer City, Cleaner City, Solid City, City of Caring and Culture, and Neighborhood

City.

A Safer City

City Council’s top priority – public safety – is a central component to quality of life, economic

develop and the education of our youth. Over the last several years, the City has dedicated itself

to making our streets and neighborhoods safe. Despite the recent crime reductions, the Oakland

Police Department is strengthening its efforts, focusing on breaking the cycle of violence that

leads to crime. The department will supplement assertive, efficient suppression efforts with

programs aimed at prevention and intervention such as the STOP Program and the City of Peace

initiative. This balanced approach will be implemented by a fully staffed police force that will

continue its aggressive recruitment of highly qualified officer candidates. The themes of

community policing, customer service, and professionalism will characterize each police

officer’s conduct. Continuing with efforts such as the Eastmont Town Center station and the

Neighborhood Crime Prevention Councils, the department is dedicated to increasing community

access and confidence.

Page 10

The department will employ technology in unprecedented levels, using up- to- the- minute

information to track crime and fashion responses. Two million dollars in State COPS Grants and

Technology Grants will soon permit the department to integrate its dispatch, records

management, and laptop services. As a result, a patrol officer in the field will be able to file

reports, access arrest records, and communicate with crime databases, allowing for more

efficient, more intelligent law enforcement.

Improving its overall effectiveness and response time, the department is expanding its 911

system. New dispatchers will permit the department to reach state guidelines of answering 90

percent of emergency calls within 10 seconds. Alternative, non- emergency numbers will also be

incorporated in order to manage calls for services more efficiently.

The Police Department will continue to look for ways to coordinate efforts with the Oakland

Unified School District. The Safe Passages Initiative epitomizes inter- agency collaboration to

reduce and prevent youth violence. Administered in a partnership of the City, County, and

School District, Safe Passages has developed a three- pronged strategy tailored to the Oakland

populations: ( 1) a comprehensive, six part middle school early intervention and prevention plan

to reach young people in the critical early adolescent years; ( 2) a Youth Offender plan to address

the issues of youth who have committed repeat offenses and are known to the juvenile justice

system; and ( 3) an emerging Early Childhood Intervention plan to reach very young children,

ages 0- 5, who have witnessed or experienced violence.

The Fire Services Agency will also play an important role in implementing the Safer City

initiative. Among the Fire Services Agency’s recent achievements during the last budget cycle

are:

q   a quadrupling of the amount of training conducted by the department;

q   an organizational restructuring resulting in more efficient and effective

allocation of personnel; and

q   an aggressive personnel program that resulted in a significant decrease in

workers’ compensation costs.

The agency has positioned itself to benefit from stronger inter- agency collaborations. To

increase efficiency and response time, a partnership has been formed with the Emeryville Fire

Department that permits the temporary closure of Station No. 8. Station 8’ s resources will then

be diverted to the Grass Valley and North Oakland Stations. In this way, fire personnel and

equipment can be deployed faster and with greater impact while the same physical area is

covered. Another important partnership is with the Port of Oakland that will allow the

development of a water rescue program at the Oakland International Airport. The Port- funded,

$ 3.2 million program will design and implement response strategies for emergencies in the bay.

Going forward into the 21st century, the Fire Agency’s program goals reflect its strong

commitment to professionalism through training, public education, technological innovation,

fire prevention and disaster preparedness. Importantly, the City’s vegetation management

service will be consolidated under the agency for greater impact. The agency’s community

outreach programs will continue to enable residents and business owners to take advantage of

Page 11

emergency preparedness and fire prevention efforts that include the distribution of smoke

detectors and seismic retrofit programs.

A Cleaner City

Quality of life, crime, and business attraction are just a few of the vital conditions affected by a

clean city. In as much as perception is reality, blighted areas, unkempt storefronts, and aged

corridors leave impressions on both residents and visitors. Understanding its critical impact on

Oakland, the Community and Economic Development Agency ( CEDA) is strengthening its war

against blight. Currently, the agency supports 28 Specialty Combination Inspectors dedicated to

ensuring a clean city. To this unit, CEDA is adding a special projects section in Building

Services. This new section will not only focus on crime and grime initiatives, but also serve to

address other key programs such as creek protection and noise enforcement.

The Public Works Agency has several new initiatives underway. Infrastructure repair and

maintenance is a top priority. The agency is committed to improving the quality of life for

Oaklanders by replacing the City’s aging sewer lines on an ongoing basis. Adding staff to the

storm drainage maintenance detail will support our City’s efforts to renew existing infrastructure.

Furthermore, enhancing the City’s Energy Management Program will net several positive results,

not the least of which shall be the development of a citywide plan to better manage energy usage

and utility costs. Toward the goal of cleaner and more livable communities, the agency continues

to move forward with its Illegal Dumping Enforcement Unit which will be trained and fully

operational this fall. The Unit will aggressively investigate illegal dumping and assess the

effectiveness of penalties. Video cameras have also been obtained to strengthen the initiative.

Several other program priorities have been realized in the Public Works Agency’s efforts to

abate blight and to improve the physical appearance, livability and integrity of the City’s

neighborhoods. Downtown cleanup crews will continue to maintain public rights of ways.

Pedestrian pathways will be repaired and replaced.

A Solid City

Just as roads and drainage systems are vital components to Oakland’s infrastructure, so is the

information superhighway – the Internet, connectivity, and computer networks – requisite to a

competitive modern city. The Office of Information Technology’s chief goal is the

implementation of the Information Technology Vision 2000. This strategic plan includes re-engineering

and re- constructing the City’s existing IT environment to provide better, faster

customer service. Supporting programs such as E- Government, Citywide GIS and Crime Watch

GIS, the Office of Information Technology will oversee the migration of City applications to a

reliable platform while improving community access to important resources. Through the

development of the stable, high- performance system infrastructure, the Office of Information

Technology will not only immediately improve Oakland’s core business operations, but provide

future capacity as well.

The City Clerk's Office is an example of the importance of technolgy's impact on open

government. The Legistar Electronic Agenda Management System has made weekly City

Page 12

Council agendas and other supporting materials available on the Internet; video streaming has

made it possible to watch Council and Committee meetings from anywhere in the world. In

addition, the passage of the Telecommunication Licensing and Lease Agreement Ordinance and

the successful negotiation of the Cable Franchise Transfer Agreement will ensure quality

technology infrastructure that all Oakland residents can enjoy.

The Office of the City Attorney continues to excel in claims management and litigation

management. The Office has significantly reduced the number of cases in litigation by

aggressively identifying those cases that could be resolved through other means. Currently, the

City Attorney’s Office is developing citywide procedures and training in risk management in an

effort to limit the City's liability exposure. This emphasis is part of the City Attorney's overall

goal of building- in those services needed by its customers — the City departments. As the City

Attorney offers more services in- house, the City's reliance on outside counsel will be reduced.

A City of Caring and Culture

Youth programs will be emphasized in acknowledgment of the role that the younger generation

plays in Oakland’s present and future. Not only do strong youth programs add to the quality of

life for Oakland residents, they also are an important component to business attraction. Central

among the City’s youth services is the Department of Parks and Recreation. Recently, the

Department has focused on leveraging its resources through partnerships with private

corporations and public agencies. Sponsorships with companies such as Microsoft Corporation

and Major League Baseball have enhanced Measure K – Kids First! programming.

Collaboration with the Oakland Housing Authority will establish six targeted OHA sites where

direct services can be provided children. Equally important are the Department’s efforts to

develop computer labs and training programs at Parks and Recreation facilities in order to help

bridge the digital divide.

With both cultural and youth programs, the Oakland Museum will also continue its march

towards Bay Area prominence. Over the last two years, the Museum has hosted 32 exhibitions at

its main site, including the celebrated Forbidden City collection. Building upon this success, the

Museum is currently formulating an Exhibition Master Plan that will update the permanent

exhibitions in the three main galleries and provide the basis for launching a capital campaign in

2003.

Just as important, however, the Museum has focused its resources on Oakland youth. Early next

fiscal year, construction will begin on an education center in the museum that can be used by

teachers, instructors, and docents. With the transfer of the Alice Arts Center to its portfolio, the

Museum will also promote an active youth arts program.

Administering programs such as Head Start, Welfare- to- Work, and the Multipurpose Senior

Services Program, the Department of Aging, Health, and Human Services will continue to be a

central resource for all Oaklanders. Expanded funding opportunities are being assessed, and

partnerships with key players such as the County of Alameda and the Oakland Unified School

District will leverage resources and increase product. There are three important new programs to

the department:

Page 13

1. The Community Action Agency ( CAA). The purpose of the program is to

reduce poverty, revitalize low- income communities and empower low- income

families and individuals to become self- sufficient. Initiatives supported from

the CAA include Project Choice, ASSETS Senior Employment program, and

the One- Stop Career Center.

2. Project Choice. Project Choice is a crime prevention and intervention

program that seeks to partner with non- profit groups, governmental agencies

and private industry to create wrap- around services for at- risk populations,

particularly ex- offenders and truants.

3. Youth Services/ Kids First! Transferred from the Life Enrichment Agency,

these two initiatives are currently developing the next four- year strategic plan

of promoting youth programs and services through partnerships with

community- base organizations and governmental agencies.

The Library maintains its fundamental commitment to the community and ensures access to our

Main Library as well as its many branch libraries. This budget includes an expansion of hours at

all libraries and additional days at certain locations to ensure better access to this vital public

resource.

The Oakland Public Library will remain committed to our city’s young people through the

continued operation of after school learning centers, pre- school and toddler story times, regular

visits by Children’s Services librarians to Oakland School classrooms, and the establishment of

several programs for teens and the annual Summer Reading programs. For the next two years,

the Library is committed to providing state- of- the- art information services as well as quality

educational, literacy and cultural programs to citizens. The programmatic emphasis shall be on

expanding and maintaining general library operations and library youth programs. Increased

circulation and collaborative efforts with the OUSD will result in higher numbers of classes and

students using these facilities.

A Neighborhood City

Oakland is one of the hottest real estate markets in the Bay Area, and the Community and

Economic Development Agency ( CEDA) is taking advantage of this momentum to steer

investment towards our major corridors. Already involved in major streetscape projects along

International Boulevard, MacArthur Boulevard, 98th Avenue and Hegenberger Boulevard, the

agency will target two new redevelopment areas – West Oakland and East MacArthur

Boulevard. Furthermore, the newly adopted Broadway / MacArthur / San Pablo Redevelopment

Project Area will receive additional, dedicated staffing.

Ensuring community pride, CEDA will also concentrate efforts on expanded public participation

and façade improvement projects. To its Planning and Zoning Department, the agency is adding

positions dedicated to providing notification to property owners 300 feet from all proposed

projects. Positions will also be added to review development plans with the goal of producing

higher quality projects. In terms of development’s integration with neighborhoods, CEDA is

Page 14

launching a new initiative, the Neighborhood Property Revitalization Program ( N- Prep), that will

offer pre- development assistance to key sites on commercial corridors. The agency will also

dedicate an additional $ 400,000 to the Neighborhood Commercial Revitalization program to

stimulate development in underutilized, often blighted areas.

Affordable housing is one of the most pressing challenges in the Bay Area. With Oakland’s

soaring rent prices, affordable housing and rent arbitration cases are backlogged. To respond to

the rising demand, CEDA is adding eight new positions to the newly created Residential Rent

Arbitration program. In addition, the agency is adding two new positions to support the Housing

Task Force while extending two positions in Housing Development to support the expenditure of

the 2000 Affordable Housing Bond. Finally, the Housing Community Services ( hunger and

homeless programs) will be reorganized to better serve its customers and administer the

Homeless Mobile Outreach program.

CONCLUSION

Altogether the above provides a roadmap for the City of Oakland to becoming a World Class

City. The strategic path outlined above is operationalized through performance- based budgeting.

The FY 2001- 03 Adopted Policy Budget reflects the City’s continued efforts to address the

funding needs of the City and its citizens. In so doing, difficult choices between competing needs

are made that limit capacity. This budget is based on the fundamental premise of providing core,

infrastructure services to ensure the City’s continued ability to deliver the same or enhanced

level of responsive services into the future to an expanding business community, as well as an

increasingly informed, educated and demanding community. This budget endeavors to respond

to your and the Council’s priorities and budgetary principles. This budget provides for public

safety enhancements, infrastructure needs, economic development initiatives, arts, and continued

sound financial management.

The FY 2001- 03 Adopted Policy Budget lays the foundation for a brighter future, with major

emphasis on preparing the City for the continued economic growth that lies ahead, and to take

advantage of that growth by preparing Oakland residents to fulfill the job demands that will be

required in the 21st century and to further the image of Oakland as a desirable place to live and

visit, a community that exhibits the cultural diversity and vitality of the world around us.

Staff will continue to support the Mayor and Council energetically and creatively in achieving

these goals.

Respectfully submitted,

ROBERT C. BOBB

City Manager

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget I

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Cover Page

Index

Table of Contents

TABLE OF CONTENTS

II FY 2001- 03 Adopted Policy Budget

Click on Topics Below to Access Information

Cover Page

Index

Letter of Transmittal

Mayor/ Council Priorities ................................................................................ A - 1

Mayor’s Goals ............................................................................................................................... A - 3

City Council Budget Priorities ........................................................................................................ A - 3

General Purpose Fund Reserve Policy ......................................................................................... A - 4

Zero Net Increase in Staff Policy ................................................................................................... A - 4

Budget Guide.................................................................................................. B - 1

Two- Year Budget .......................................................................................................................... B - 2

Two- Year Budget Calendar ........................................................................................................... B - 3

Two- Year Budget Process ............................................................................................................. B - 4

Budget Amendment Process ......................................................................................................... B - 6

Format of Budget Document ......................................................................................................... B - 7

Format of Agency and Department Budgets .................................................................................. B - 10

Glossary of Budgetary Terminology .............................................................................................. B - 11

Abbreviation Guide ........................................................................................................................ B - 14

Demographics ................................................................................................ C - 1

About the City of Oakland ............................................................................................................. C - 3

Statistical Profile ........................................................................................................................... C - 11

Miscellaneous Construction Activity .............................................................................................. C - 12

Demographic Statistics.................................................................................................................. C - 13

Port of Oakland Activity ................................................................................................................. C - 14

Retail Sales Tax and Total Sales by Major Business Group .......................................................... C - 15

Financial Summaries ..................................................................................... D - 1

Summary of Adopted Budget ......................................................................................................... D - 3

Fund Groups ............................................................................................................................... . D - 4

Fund Balance Summary by Fund Group ....................................................................................... D - 5

FY 2001- 02 Adopted Revenues and Transfers In by Fund Group ................................................. D - 6

FY 2001- 02 Adopted Appropriations by Fund Group ..................................................................... D - 7

FY 2002- 03 Adopted Revenues and Transfers In by Fund Group ................................................. D - 8

FY 2002- 03 Adopted Appropriations by Fund Group ..................................................................... D - 9

The City’s Five- Year Financial Plan .............................................................................................. D - 10

Summary of the Major General Purpose Fund Revenues ............................................................. D - 11

All Funds Revenues ...................................................................................................................... D - 24

All Funds Appropriations ............................................................................................................... D - 26

General Purpose Fund Revenues ................................................................................................. D - 28

General Purpose Fund Appropriations .......................................................................................... D - 30

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget III

Click on Topics Below to Access Information

Cover Page

Index

Landscape and Lighting Assessment District ................................................................................ D - 33

Capital Improvement Program ....................................................................................................... D - 38

FY 2001- 02 Adopted Appropriations by Fund ................................................................................ D - 52

FY 2002- 03 Adopted Appropriations by Fund ................................................................................ D - 78

Fund Descriptions ......................................................................................................................... D - 104

Article XIII B Appropriations Limit ................................................................................................... D - 112

Organization Summary .................................................................................. E - 1

City Organization Chart ................................................................................................................. E - 2

Full- Time Equivalents .................................................................................................................... E - 3

Chart: Personnel Costs Across All Funds per Capita .................................................................... E - 7

Chart: Number of FTE Employees per 10,000 Population ............................................................. E - 7

Chart: Change in City of Oakland Workforce ................................................................................ E - 8

Chart: Number of Sworn & Total Workforce per 10,000 Population ............................................... E - 8

General Government...................................................................................... F - 1

Organization Chart ........................................................................................................................ F - 3

Appropriation History ..................................................................................................................... F - 4

Appropriation History by Fund ....................................................................................................... F - 5

Position Titles ............................................................................................................................... F - 7

Mayor ............................................................................................................................... ............ F - 9

City Council ............................................................................................................................... ... F - 17

City Manager ............................................................................................................................... F - 35

Department of Craft & Cultural Arts ............................................................................................... F - 67

Office of Personnel ....................................................................................................................... F - 81

Office of Information Technology ................................................................................................... F - 105

City Attorney ............................................................................................................................... . F - 127

City Auditor ............................................................................................................................... ... F - 145

City Clerk ............................................................................................................................... ...... F - 153

Financial Services Agency ............................................................................ G - 1

Organization Chart ........................................................................................................................ G - 3

Goals ............................................................................................................................... ............ G - 3

Appropriation History ..................................................................................................................... G - 4

Appropriation History by Fund ....................................................................................................... G - 5

Significant Budget Changes .......................................................................................................... G - 6

Staffing History........................................................................................................................ ..... G - 7

Position Titles ............................................................................................................................... G - 8

Agency Budget by Division ............................................................................................................ G - 12

TABLE OF CONTENTS

IV FY 2001- 03 Adopted Policy Budget

Click on Topics Below to Access Information

Cover Page

Index

Police Services Agency ................................................................................. H - 1

Organization Chart ........................................................................................................................ H - 3

Goals ............................................................................................................................... ............ H - 3

Appropriation History ..................................................................................................................... H - 4

Appropriation History by Fund ....................................................................................................... H - 5

Significant Budget Changes .......................................................................................................... H - 6

Staffing History........................................................................................................................ ..... H - 7

Position Titles ............................................................................................................................... H - 8

Agency Budget by Division ............................................................................................................ H - 12

Fire Services Agency ..................................................................................... I - 1

Organization Chart ........................................................................................................................ I - 3

Goals ............................................................................................................................... ............ I - 3

Appropriation History ..................................................................................................................... I - 4

Appropriation History by Fund ....................................................................................................... I - 5

Significant Budget Changes .......................................................................................................... I - 6

Staffing History........................................................................................................................ ..... I - 7

Position Titles ............................................................................................................................... I - 8

Agency Budget by Division ............................................................................................................ I - 12

Life Enrichment Agency ................................................................................ J - 1

Organization Chart ........................................................................................................................ J - 3

Appropriation History ..................................................................................................................... J - 4

Appropriation History by Fund ....................................................................................................... J - 5

Significant Budget Changes .......................................................................................................... J - 6

Staffing History........................................................................................................................ ..... J - 7

Agency Administration ................................................................................................................... J - 10

Parks and Recreation ................................................................................................................... J - 13

Library Services ............................................................................................................................ J - 35

Museum Services....................................................................................................................... .. J - 57

Aging, Health & Human Services .................................................................................................. J - 85

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget V

Click on Topics Below to Access Information

Cover Page

Index

Public Works Agency ..................................................................................... K - 1

Organization Chart ........................................................................................................................ K - 3

Goals ............................................................................................................................... ............ K - 3

Appropriation History ..................................................................................................................... K - 4

Appropriation History by Fund ....................................................................................................... K - 5

Significant Budget Changes .......................................................................................................... K - 7

Staffing History........................................................................................................................ ..... K - 8

Position Titles ............................................................................................................................... K - 9

Agency Budget by Division ............................................................................................................ K - 14

Community and Economic Development Agency........................................ L - 1

Organization Chart ........................................................................................................................ L - 3

Goals ............................................................................................................................... ............ L - 3

Appropriation History ..................................................................................................................... L - 4

Appropriation History by Fund ....................................................................................................... L - 5

Significant Budget Changes .......................................................................................................... L- 6

Staffing History........................................................................................................................ ..... L - 7

Position Titles ............................................................................................................................... L - 8

Agency Budget by Division ............................................................................................................ L - 14

Non- Departmental .......................................................................................... M - 1

Appropriation History ..................................................................................................................... M - 2

Appropriation History by Fund ....................................................................................................... M - 3

Budget Notes ............................................................................................................................... M- 6

Insurance and Liability................................................................................................................... M - 7

Debt Service ............................................................................................................................... . M - 8

Statement of Direct and Overlapping Debt ........................................................................... M - 10

Debt Service Schedule ........................................................................................................ M - 11

Public Support........................................................................................................................ ...... M - 18

Appropriation History by Organization ........................................................................................... M - 20

Contingency Accounts................................................................................................................... M - 26

Housing Rehabilitation Loans ....................................................................................................... M - 27

Index ................................................................................................................ i

TABLE OF CONTENTS

VI FY 2001- 03 Adopted Policy Budget

Click on Topics Below to Access Information

Cover Page

Index

Notes

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget A- 1

Table of Contents

Mayor and Council Priorities

The City of Oakland is committed to the delivery of effective, courteous and responsible

service. 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.

MAYOR/ COUNCIL PRIORITIES

A- 2 FY 2001- 03 Adopted Policy Budget

Table of Contents

Notes

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget A- 3

Table of Contents

Mayor and City Council Goals & Priorities

Mayor’s Goals

Public Safety: To implement a crime reduction strategy based on geographic accountability and numerical goals; to

increase the number of Oaklanders serving as police officers; and to continue forging close ties between police officers

and the people of Oakland.

Education: To create a sound working relationship between City government and Oakland’s schools; support the

establishment of Charter Schools as options for all students; and expand choice and foster healthy competition.

10K: To attract 10,000 people to live in downtown Oakland to support retail businesses and restaurants.

Arts: To encourage artistic expression and craft through public grants and civic festivals and establish a school for the

performing arts.

City Council Budget Priorities

Safe Neighborhoods: Achieve crime reduction through community policing and other strategies that emphasize prevention.

Clean and Livable Communities: Create clean and livable neighborhoods by combating blight, litter and illegal dumping

through strategies that build pride in our city. Support the development of open space and a pedestrian- friendly city.

Renewed Infrastructure: Repair and maintain the City’s infrastructure, including streets, sidewalks, sewers and storm

drains, buildings and vegetation management.

Support for Youth: Provide quality recreational and after- school programs for children and youth at schools and recreation

centers.

Affordable Housing: Support the development of affordable housing opportunities in all areas of the City. Projects and

programs should emphasize the importance of diversity of incomes in housing development.

Vital Neighborhood Commerce: Facilitate and coordinate City services in order to attract and support businesses

emphasizing sustainability in neighborhood commercial areas and downtown.

MAYOR/ COUNCIL PRIORITIES

A- 4 FY 2001- 03 Adopted Policy Budget

Table of Contents

City Council Budget Policies

7.5 Percent Reserve Policy

General Purpose Fund Reserve Policy

The City of Oakland established its General Purpose Fund Reserve as additional insurance against unforeseen expenditures,

such as temporary revenue shortfalls, one- time expenditures and economic downturns. Reserves are non- obligated fund

balances that are available at the end of each budget year.

In conjunction with its decision to move to a two- year budget process starting FY1997- 99, the Council approved staff’s

recommendation to increase the General Purpose reserve policy from five to 7.5 percent. The two- year budget cycle is

based on projections and assumptions further into the future than a single- year budget and is therefore inherently subject

to greater volatility; a 2.5 percentage point increase in the General Purpose Reserve attempts to mitigate this added

unpredictability. By increasing the reserve level in recognition of the greater degree of economic uncertainty, the Council

will be less likely to require mid- cycle revisions. In fact, it is intended that the mid- cycle budget review be limited

exclusively to significant variations in the City’s revenue projections and changes in Federal and State mandates.

Zero- Net Increase in Staff Policy for the

FY 2001 – 2003 Policy Budget

As part of the FY 2001- 03 Policy Budget adoption, the City Council established a goal of zero net increase in full- time

equivalents, with the exception of public safety and cost- covered positions, by the end of FY 2002- 03, unless the Council

specifically authorizes additions during the FY 2001- 2003 budget cycle.

Public Safety Positions. Staffing increases are allowed in Fire and Police services to accommodate urgently needed

increases in public safety programs and services in the FY 2001- 2003 Policy Budget.

Cost- Covered Positions. Additions and/ or increases are allowed for fully cost- covered positions, i. e. positions that

generate revenues in excess of their total cost. Such additions/ increases, however, are contingent upon the realization of

the projected revenue ( for example, additional parking revenues to support increase in parking staff). The City Manager

will report on the increase in fee revenues and corresponding increases in positions filled as part of quarterly reports on

revenues and expenditures as well as during the mid- cycle budget review. Moreover, the City Manager will propose

deletions in fee- funded positions to the extent that projected fee revenues are not realized.

Other Positions. The remaining position increases included in the FY 2001- 03 Policy Budget are proposed to be funded

from the City’s General Purpose Fund or special revenue funds. Hiring of these positions will be postponed until January

2002. The City Manager will propose a plan by the end of FY 2002- 03 to freeze the number of positions in the City at the

FY 2000- 01 level, with the aforementioned exceptions, through attrition, deletion of vacant authorized positions, or realignment

and reorganization of positions. During the mid- cycle budget review, the City Manager will present a list of current vacant

positions and propose a set of deletions of authorized positions.

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget B- 1

Table of Contents

Budget Guide

BUDGET GUIDE

B- 2 FY 2001- 03 Adopted Policy Budget

Table of Contents

The Two- Year Budget

This is the City of Oakland’s third biennial budget document. The two- year budget is intended to improve the City’s long-term

planning and enhance funding stability. The adoption of a two- year budget is intended to contribute to savings in

Mayor, Council and staff time and energy by reviewing full operating budgets once every two years rather than annually.

During the off- year of the two- year budget cycle, the Mayor and Council will conduct a Mid- Cycle review limited to

significant variances in estimated General Fund revenue and/ or revised mandates arising from Federal, State or Court

actions. The Mayor and Council also plan to use the first year of the two- year budget cycle to review, refine, and enhance

the utility of agency/ departmental performance measures. In turn, the validation and collection of improved and meaningful

performance measures, along with comparative benchmarks, will be utilized for continuous improvement.

Although appropriations are adopted for a 24- month period, they are divided into two one- year spending plans. Agencies/

Departments ending the first year with budgetary surpluses, according to Council Policy, will be allowed to carry- forward

1/ 3 for their operating budget, 1/ 3 for their capital spending, and 1/ 3 for reverting to the General Fund balance.

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget B- 3

Table of Contents

Two- Year Budget Calendar

Year One Sept - Oct Nov - Dec Jan - Feb Mar - Apr May - June

Mayor/ Council Budget Retreat Receive

CMO/ Mayor

Proposed Mid-

Cycle Revisions

Budget

Deliberations;

Approve

Revisions to 2 nd

Year Budget

City Manager

& Staff

Review Program

Objectives & 1st

Quarter

Performance

Measures

Review

Revenue

Projections & 2 nd

Quarter

Performance

Prepare Mid-

Cycle Proposed

Budget

Revisions

Community Public Comment

on Performance

Measures

Public Comment

in Conjunction

with Council

Hearings

Year Two Sept - Oct Nov - Dec Jan - Feb Mar - Apr May - June

Mayor/ Council Budget Retreat Review of

Council Goals &

Objectives

Receive

Proposed

Budget

Budget

Deliberations;

Approved

Adopted Budget

City Manager

& Staff

Staff

Development of

Projected

Targets

Develop &

Present

Mayor/ City

Manager

Proposed

Budget

Community Public Comment

in Conjunction

with Council

Hearings

Internal Budget Hearings

Participation in Council Goal Setting

Process

BUDGET GUIDE

B- 4 FY 2001- 03 Adopted Policy Budget

Table of Contents

The Two- Year 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 budgets of governmental funds ( General Funds, Special Revenue Funds, Debt Service Funds and Capital Projects

Funds) are prepared on a modified accrual basis where revenues are recognized when they become measurable and

available, and expenditures are recorded when the related liability is incurred; except that principal and interest payments

on general long- term debt are recognized when due. Revenue availability criteria are defined as collectible within the

current period or soon enough thereafter to be used to pay liabilities of the current period ( i. e., sixty days after fiscal year-end).

Budgets for proprietary funds ( Internal Service Funds and Enterprise Funds) are prepared on a full accrual basis where

revenues are recognized when earned, and expenses are recorded when incurred.

The fund types used by the City are as follows:

Governmental Funds

General Funds The General Funds are the general operating funds of the City. All general tax revenues

and other receipts that are not allocated by law or contractual agreement to some other

fund are accounted for in the General Fund. Expenditures include the general operating

expenses and capital costs which are not paid through other funds. The General Purpose

Fund is the largest City fund in the General Funds group.

Special Revenue Funds Special Revenue Funds are used to account for specific revenues that are legally

restricted to expenditure for particular purposes.

Debt Service Funds Debt Service Funds are used to account for the accumulation of resources and payment

of principal and interest on general long- term debt.

Capital Projects Funds Capital Projects Funds are used to account for the acquisition, construction and

improvement of capital facilities other than those financed by proprietary funds.

Proprietary Funds

Enterprise Funds Enterprise Funds are used to account for operations that are financed and operated in

a manner similar to a private business enterprise, where the intent of the governing

body is that the costs of providing goods or services to the general public on a continuing

basis be financed or recovered primarily through user charges.

Internal Service Funds Internal Service Funds are used to account for the financing of services provided by

one department to other departments of the government, on a cost reimbursement

basis, including depreciation.

The City of Oakland adopts a budget on Generally Accepted Accounting Principles ( GAAP) basis ( modified accrual for

governmental funds and accrual for proprietary and pension trust funds).

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget B- 5

Table of Contents

Budget Development Process:

This document represents the third Biennial Budget presentation for the City of Oakland. The process for this cycle began

in the fall of 2000 with staff developing broad guidelines for the FY 2001- 03 budget development plan based upon

preliminary projections of citywide revenue and expenditures. The financial projections were presented to and discussed

with the City Council during its retreat last fall. Subsequently, a workshop was conducted for agencies and departments to

provide instruction regarding the plan, including reviewing policy guidelines, explaining any changes in process and

distributing required materials.

Upon receipt of agency and departmental budget submittals in January, the Budget Office provided an in- depth analysis to

the City Manager’s Office of each budget request. Internal budget hearings were held among the City Manager’s Office,

Agency Directors and the Budget Office, wherein discussions occurred about program priorities and resource requirements

for the next two years. The Budget Office then prepared the Proposed Budget in conjunction with discussions between the

City Manager and Mayor’s Office for the Mayor’s presentation to the City Council in April for deliberation.

Upon presentation of the Proposed Budget, the City Council conducts a series of public hearings to review each Agency

budget as well as the Capital Improvement Program. The City’s budget is also reviewed by the Budget Advisory Committee

( BAC), consisting of Oakland residents appointed by City Councilmembers and the Mayor to staggered terms. 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.

The City Charter requires that the City Council adopt 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

appropriations for the Five- Year Capital Improvement Program. The appropriations are outlined in annual spending

plans. The budget’s development is based upon a modified cash basis, acknowledging expense encumbrances and

revenue accruals.

Mayor

Recommendations and

Proposed Budget

Presentation

City Council

Deliberations and

Budget Approval

ADOPTED

BUDGET

Budget Office Provides

Budget Development

Guideline to

Agencies/ Departments

Mayor and Council Goals &

Priorities Reviewed &

Operationalized

Mayor Outlines

Budgetary Goals &

Priorities

Agency/ Department

Budget Submittals

City Manager Budget

Preparation

Budget Office Analysis

and Recommendations

Public

Input

BAC

BUDGET GUIDE

B- 6 FY 2001- 03 Adopted Policy Budget

Table of Contents

Adopted Budget Adjusted Budget Actual Budget

Budget Change

Requests

Prior Year

Encumbrances

Council

Resolutions

Carryforwards

July 1

June 30

Budget Amendment Process

The budget is a flexible document which provides a comprehensive framework of resource allocations for implementation

of the City’s goals, priorities and program activities covering the two- year fiscal period. The two- year appropriations are

apportioned to one of two sequential annual ( July through June) spending plans.

Amendments to the budget may be made throughout the two- year period. Appropriation of new money or transfers

between funds and Agencies requires formal action through Council resolution. Transfers between departments within an

agency, divisions, accounts or projects may be made at the administrative level. These transfers can be authorized by the

City Manager, Budget Office or Agency Directors, depending on the nature of the transfer.

The diagram below illustrates how the budget is applied during the two- year period. The Adopted Budget constitutes the

appropriations approved by the City Council in June. The Adjusted Budget is the status of appropriations during the fiscal

period between July 1 and June 30. It identifies any amendments to the budget, prior year encumbrances, carryforwards,

and transfers between accounts, departments and divisions. The ability to make adjustments to the Adopted Budget during

the fiscal period gives the organization the flexibility to meet changing program needs and priorities. The Actual Budget

reflects expenditures as of June 30th ( the end of the fiscal period). Like the Adopted Budget, the Actual Budget captures

the authorized spending plan for the organization as of a fixed- date. The annual performance evaluation of each Agency

director and department head includes staying within their Actual Budget, including revenue realization where appropriate.

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget B- 7

Table of Contents

Format of Budget Document

This section provides the reader with a brief explanation of the format and content of this document as it presents the FY

2001- 03 Adopted Policy Budget.

This budget document is prepared and presented consistent with the organizational structure of the City. The City is

comprised of a cluster of six General Government departments and six Agencies; Non- Departmental activities are also

presented separately. Each of the Agencies is comprised of a number of departments and/ or divisions for which budgetary

information is provided within this document. The operational structure is summarized as follows:

General Government

Mayor

City Council

City Manager

Administration

Citizens’ Police Review Board

Intergovernmental Affairs

ADA Programs

Contract Compliance and Employment Services

Public Ethics Commission

Budget Office

Communications & Mass Media

Equal Employment Opportunity

Risk Management

Department of Craft & Cultural Arts

Office of Personnel

Office of Information Technology

City Attorney

Office of the City Auditor

Office of the City Clerk

Financial Services Agency

Administration

Accounting

Revenue

Treasury

Parking

Police Services Agency

Office of the Chief of Police

Bureau of Investigations

Bureau of Services

Bureau of Field Operations

Fire Services Agency

Office of the Fire Chief

Support Services

Fire Prevention

Field Operations

Management Services

Education & Testing

Emergency Services

Technical Services

Emergency Medical Services

Life Enrichment Agency

Agency Administration

Office of Parks and Recreation

Library Services

Museum Services

Aging, Health & Human Services

Public Works Agency

Agency Administration

Design and Construction Services

Maintenance Services

Support Services

Community & Economic Development

Agency

Office of the Executive Director

Planning & Zoning

Building Services

Economic Development

Redevelopment

Housing & Community Development

Non- Departmental

Insurance and Liability

Debt Service

Public Support

Contingency Accounts

Housing Rehabilitation Loans

* The first two years of the Five- Year Capital Improvement Program are summarized as part of Financial Summaries. The

Five- Year Capital Improvement Program is a separate, detailed budget document.

BUDGET GUIDE

B- 8 FY 2001- 03 Adopted Policy Budget

Table of Contents

The major sections of this document, with an explanation of content, are as follows:

Letter of Transmittal This is the City Manager’s budget message to the Mayor and City Council. It outlines

the FY 2001- 03 overall budgetary plan of the City, the budget process, goals and

objectives, program initiatives and a summary of the financial position of the City.

Mayor/ Council Priorities This section summarized goals and priorities of the Mayor and City Council. The section

includes a summary of the 7.5 Percent Reserve and the Zero- Net Staff Increase Policies

of the Council. Mayor and Council priorities and policies are reflected in the allocation

of departmental resources as well as translate into the City’s financial policies.

Budget Guide This section provides the reader with 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.

Demographics This section provides the reader with general information about the City, including a

comprehensive description of the City’s history, form of government, transportation

modes, attractions and miscellaneous statistics about construction activity, demographics

and the Port of Oakland activity.

Financial Summaries This section provides the reader with numerical tables and graphs summarizing current

and historical data on the City’s expenditures, revenue and staffing levels. Descriptions

of the City’s funding sources and the basis for revenue projections are also included.

Organizational Summary This section presents the citywide organization chart and a comprehensive view of

historical and current staffing levels by agency and department.

Agency Operating Budgets The agency and department operating budgets are one of two major components of the

City’s total budget. The other major component is the Capital Improvement Program

budget. Each agency budget begins with a summary and is followed by individual

department budgets which comprise the respective agency. The Agency Budgets

presented include Financial Services, Police Services, Fire Services, Life Enrichment,

Public Works and Community and Economic Development. In addition, the General

Government and the Non- Departmental sections present data for departmental and

miscellaneous spending categories not included within specific Agencies.

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget B- 9

Table of Contents

Notes

BUDGET GUIDE

B- 10 FY 2001- 03 Adopted Policy Budget

Table of Contents

Format of Agency and Department Budgets

The budget proposals submitted by each agency and respective department( s) of the City have been prepared to provide

a large amount of information in a brief and easily understandable format. This section outlines the information presented

by each agency and department.

Agency Summary Each Agency budget begins with a summary which includes the mission of the Agency,

listing of departments or divisions which comprise the Agency, organization chart and

four- year history of the Agency’s expenditure and staffing levels. In addition, the

FY 2001- 03 Adopted Budget is presented in two annual spending plans.

Department Summary Following each Agency summary is a presentation of the budget for each department( s)

within the Agency. The first part of each department budget provides a chart illustrating

the history of appropriations and full- time equivalents ( FTE).

Organization 2001- 03 Goals The second page of each agency/ department begins with an organization chart which

depicts the relationship among each operating unit of the agency/ department. Also on

the second page is a list of departmental goals for FY 2001- 03. Typically, goals represent

the mission or purpose of a department. Each department in the City fulfills particular

needs of the community, and this section outlines those responsibilities.

Expenditures The next page displays the expenditure table representing historical and adopted costs

associated with operating the agency/ department. Expenditure categories represented

in these summary tables are by Division, Character, and Fund.

Expenditures by Division list each division within the agency/ department with

comparative financial data.

Expenditures by Character are listed by Personnel Services, Operations and

Maintenance, and Capital Outlay. Personnel Services are costs associated with

employees, such as salaries and fringe benefits. Operations and Maintenance includes

commodities and supplies, services provided to the City by outside vendors, utilities

and repairs. Also in this category is the cost of maintaining City facilities. Capital

Outlay represents the purchase of replacement or additional assets necessary for the

operation of the City.

Expenditures by Fund outline which funds ( i. e., revenue source) 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.

Authorized Staffing This section provides a listing of the classifications and number of employees that work

for the department. As used in this budget, a staff- year is equivalent to one full- time

employee. For example, two employees who work one- half time are considered as one

staff year. The use of total staff years helps the City understand the level of personnel

resources used by each department.

Expenditures by Division Expenditures by Division are presented following the departmental expenditures, which

is in the same format as that provided at the departmental level.

Division Summary In addition to an overall report on each department, information presented by division,

divisions are sub- units of departments and focus on a particular area of service.

Services Provided Each division includes a description of its service and highlights achievements over the

past fiscal period and plans for FY 2001- 03, a description of significant budget

adjustments and the performance measures selected by Council for review.

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FY 2001- 03 Adopted Policy Budget B- 11

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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 Actual refers to the expenditures and/ or revenues realized in a past fiscal year.

Adjusted Budget The status of appropriations between July 1 at the beginning of the fiscal period and

June 30 at the end of the period. Includes the adopted budget, budget amendments,

prior year encumbrances, approved carryforwards, and transfers between objects,

divisions and departments.

Adopted Budget Revenues and appropriations approved by the City Council in June immediately

preceding the new fiscal period.

Agency A major unit of the organization which is managed by an Agency Director and comprised

of a number of department( s) which are related to one another by their function area.

Appropriation An authorization made by the City Council which permits the City to incur obligations

and to make expenditures of resources.

Appropriation Resolution The official enactment by the City Council to establish legal authority for City officials to

obligate and expend resources.

Budget A financial plan for a specific period of time ( fiscal period) that matches all planned

revenues and expenditures with various municipal services.

Budget Adjustment A legal procedure utilized by City staff to revise a budget appropriation. City staff has

the prerogative to adjust expenditures within or between departmental budgets. Council

approval is required for additional appropriations from fund balance or new revenue

sources.

Budget Calendar The schedule of key dates or milestones which the City follows in the preparation,

adoption and administration of the budget.

Budget Document The instrument used by the City Manager to present a comprehensive program stated

in financial terms to the City Council.

Budgetary Control The control or management of a governmental unit or enterprise in accordance with an

approved budget for the purpose of keeping expenditures within the limitations of available

appropriations and available revenues.

Capital Improvement Program A plan for capital expenditures to provide for the acquisition, expansion or rehabilitation

of an element of the City’s physical plant to be incurred over a fixed period of several

future years.

Capital Outlay Expenditures relating to the purchase of equipment, facility modifications, land, and

other fixed assets.

Carryforward Appropriations brought forward from a previous fiscal year to continue or complete a

specific program or activity.

Department A major administrative segment of the City which indicates overall management

responsibility for an operation or a group of related operations within a functional area.

All operating departments report to an Agency.

Division A unit of organization which reports to a department.

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B- 12 FY 2001- 03 Adopted Policy Budget

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Glossary of Budgetary Terminology ( continued)

Encumbrance Obligations in the form of purchase orders, contracts or salary commitments which are

chargeable to an appropriation and for which a part of the appropriation is reserved.

They cease to be encumbrances when the obligations are paid or otherwise terminated.

Enterprise Fund A governmental accounting fund in which the services provided are financed and

operated similarly to those of a private business. The rate schedules for these services

are established to ensure that the revenues are adequate to meet all necessary

expenditures.

Expenditure The actual outlay of funds from the City Treasury.

Expenditure Category A basis for distinguishing types of expenditures. The major expenditure categories

used by the City of Oakland are personnel services; operations and maintenance; and

capital outlay.

Fiscal Year A twelve- month time period signifying the beginning and ending period for recording

financial transactions. The City of Oakland has specified July 1 through June 30 as its

fiscal year.

FTE ( Full- Time Equivalent) An FTE or full- time equivalent is defined as a staff year. For example, two employees

who work one- half time are considered as one full- time equivalent.

Fund An accounting entity that has a set of self- balancing accounts and that records all

financial transactions for specific activities or government functions. The City uses

different funds to account for expenditures and various revenue sources. Restricted

funds may be expended for purposes specified by law or grantor regulations.

Discretionary or unrestricted funds may be spent for any lawful purpose designated by

the City Council.

Fund Balance The net effect of assets less liabilities at any given point in time.

Fund Group A group of funds with similar restrictions and accounting treatment. Eight commonly

used fund groups in public accounting are: general funds; special revenue funds; debt

service funds; capital projects funds; enterprise funds; trust and agency funds; internal

service funds; and special assessment funds.

Grant A contribution by a government or other organization to support a particular function.

Grants may be classified as either categorical or block, depending upon the amount of

discretion allowed the grantee.

Internal Service Fund Funds used to account for the financing of goods or services provided by one department

to another department on a cost reimbursement basis.

Letter of Transmittal The opening section of the budget which provides the City Council and the public with

a general summary of the most important aspects of the budget, changes from the

current and previous fiscal years, and the views and recommendations of the City

Manager.

Operating Budget A financial plan for the provision of direct service and support functions that provide

basic governmental services. The operating budget contains appropriations for such

expenditures as personnel services, fringe benefits, commodities, services and capital

outlay. It does not include Capital Improvement Project expenditures.

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FY 2001- 03 Adopted Policy Budget B- 13

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Glossary of Budgetary Terminology ( continued)

Operations and Maintenance Expenditures related to operating costs including supplies, commodities, contract

services, materials, utilities and educational services.

Personnel Service Expenditures related to employee compensation including wages and salaries, fringe

benefits, retirement and special pay such as shift differential.

Program Category Program codes are created to approximate each of the Mayor and Council Priority

Objectives, as well as some subcategories of the primary programs. These codes were

in turn used to identify appropriations and will be used to record expenditures. This

provides the Mayor and Council an idea as to how much is being committed and/ or

spent to achieve their priority objectives.

Reserve An account used to indicate that a portion of a fund’s balance is legally restricted for a

specific purpose and is, therefore, not available for general appropriation.

Revenue Funds that the City receives as income. It includes such items as taxes, licenses, user

fees, service charges, fines and penalties and grants.

Service Delivery System The Service Delivery System is designed to provide Oaklanders with improved services.

It is a system that provides quality customer service delivery, builds community

partnership, enhances community- oriented governance, and promotes full cooperation

among all City agencies and their employees. Community meetings are the mechanism

used to establish and build upon the partnership with our residents and to prioritize

district issues.

Transfer A budgetary entry indicating the movement of money from one fund to another or from

one fiscal year to the next. Transfers between funds appear as an appropriation in one

fund and estimated revenue in the other. Transfers between fiscal years represent the

carryforward of funds received in previous years to be expended in the new year and

appear as a revenue in the new year.

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B- 14 FY 2001- 03 Adopted Policy Budget

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Abbreviation Guide

AAMLO African American Museum & Library at Oakland

ABAT Alcohol Beverage Action Team

ACS Automated Collection System

ADA Americans with Disabilities Act

AHHS Office of Aging, Health and Human Services

BAC Budget Advisory Committee

BART Bay Area Rapid Transit

BBAC Business Budget Advisory Committee

BCR Budget Change Request

BID Business Improvement District

BRASS Budget Reporting and Analysis Support System

CAFR Comprehensive Annual Financial Report

CAO City Attorney’s Office

CC City Council

CD Community Development

CDBG Community Development Block Grant

CEDA Community and Economic Development Agency

CEDAC Community and Economic Development Advisory Committee

CIP Capital Improvement Program

CMO City Manager’s Office

COIN Caring for Oaklanders in Need

CORE Citizens of Oakland Respond to Emergencies Program

CPRB Citizen’s Police Review Board

CRP Community Restoration Program

CSO Central Service Overhead

DBO Dedicated Beat Officer

DEAF Deaf Education Artistic Frontier

EAMS Electronic Agenda Management System

EBMUD East Bay Municipal Utilities District

EDI Employment Development Initiative

EEC Enhanced Enterprise Community

EEO Equal Employment Opportunity

EI/ MCS Environmental Illness/ Multiple Chemical Sensitivities

EIR Environmental Impact Report

EMT Emergency Medical Technician

EOC Emergency Operations Center

FEMA Federal Emergency Management Assistance

FMS Financial Management System

FSA Financial Services Agency

FSA Fire Services Agency

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FY 2001- 03 Adopted Policy Budget B- 15

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Abbreviation Guide ( continued)

FTE Full- Time Equivalent

GAAP Generally Accepted Accounting Principles

GIS Geographic- based Information System

GOB General Obligation Bond

HAAD Housing Advisory and Appeals Board

HEW Federal Department of Health, Education & Welfare

HHS Health & Human Services

HJK Henry J. Kaiser

HJKCC Henry J. Kaiser Convention Center

HMIP Home Maintenance & Improvement Program

HOPWA Housing Opportunities for Persons with AIDS

HR Human Resources

HUD Federal Department of Housing and Urban Development

HVAC Heating, Ventilation & Air Conditioning

IAFF International Association of Firefighters

IMMS Integrated Maintenance Management System

ISTEA Intermodal Surface Transportation Efficiency Act

IT Information and Technology

JTPA Job Training Partnership Act

KTOP TV Channel 10— Oakland’s Government Channel

LAN Local Area Network

LBE Local Business Enterprise

LEA Life Enrichment Agency

LLAD Landscape and Lighting Assessment District

MBE Minority Business Enterprise

Measure B Voter- approved county- wide sales tax increment restricted to traffic and

transportation projects ( 1986 & 2000)

Measure I Voter- approved property tax override for bonds restricted to enhance recreational,

cultural and life enrichment facilities ( 1996)

Measure K Voter- approved property tax override for bonds restricted to open space

acquisition, recreational and cultural projects ( 1990)

MIC Municipal Improvement Capital Fund

MIERS Measure I ( 1992) Emergency Response System

MSC Municipal Service Center ( 7101 Edgewater Drive)

MTC Metropolitan Transportation Commission

MVL/ MVIL Motor Vehicle In- Lieu

NCR Neighborhood Commercial Revitalization

NEH National Endowment for the Humanities

NSC Neighborhood Service Coordinator

OBRA Oakland Base Re- use Authority

OHEC Oakland Higher Education Center

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B- 16 FY 2001- 03 Adopted Policy Budget

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Abbreviation Guide ( continued)

OIT Office of Information Technology

OMCF Oakland Museum of California Foundation

OMERS Oakland Municipal Employees Retirement System

OMF Oakland Museum Foundation

OPACT Oakland Police and Clergy Together

OP Office of Personnel

OPED Oakland Paratransit for the Elderly & Disabled

OPFRS Oakland Police and Fire Retirement System

OPR Office of Parks and Recreation

OPS Oakland Public Schools

ORA Oakland Redevelopment Agency

OSCAR Open Space, Conservation and Recreation

OSCS One- Stop Capital Shop

OSHA Occupational Safety & Health Administration

OSV Oakland Sharing the Vision

OUSD Oakland Unified School District

PAL Police Athletic League

PERS Public Employees’ Retirement System

POB Pension Obligation Bond

PSA Police Services Agency

PTS Permit Tracking System

PWA Public Works Agency

RLF Revolving Loan Fund

SBE Small Business Enterprise

SCDI Sustainable Community Development Initiative

SDS Service Delivery System

THP Transitional Housing Program

UBC Uniform Building Code

UCR Uniform Crime Report

URM Unreinforced Masonry

USAR Urban Search and Rescue

UPRR Urban Parks & Recreation Rehabilitation Program

WBE Women Business Enterprise

Y2K Year 2000

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget C- 1

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Demographics

DEMOGRAPHICS

C- 2 FY 2001- 03 Adopted Policy Budget

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Notes

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget C- 3

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General Information

The City of Oakland (“ City”) is located on the east side of the San Francisco Bay in the County of Alameda. Oakland is

bordered by 19 miles of coastline to the west and rolling hills to the east, which provide unparalleled vistas of the Bay and

the Pacific Ocean. In between are traditional, well- kept neighborhoods, a progressive downtown, and superior cultural and

recreational amenities. Oakland serves as the administrative hub of the County of Alameda, the regional seat for the

federal government, the district location of primary state offices, and the center of commerce for the Bay Area.

Oakland is the eighth largest city in the State of California, with an estimated population of 405,300.1 The City boasts a

wealth of vast resources and opportunities including being home to the fourth busiest maritime port, the Port of Oakland,

which is located adjacent to the Jack London Square and the Oakland Marina. The City is also engaged in ongoing

redevelopment. For example, the Oakland International Airport is undergoing a $ 1.2 billion expansion, the Oakland Army

Base is engaged in a $ 400 million revitalization/ redevelopment process, and $ 115 million worth of improvements will be

made in the Oakland City Center, to name just a few.

In concert with ongoing redevelopment efforts, the City strives to maintain a balance between old and new. Historic

structures continue to be preserved and revitalized while new buildings are constructed. The City has completed its part in

a $ 350 million revitalization effort to create a multifaceted government center that will link major historical landmarks with

new developments. Major corporate headquarters, including Clorox and Kaiser Permanente, are in close proximity to

businesses and small shops in the downtown area.

Oakland has grown rapidly since World War II; yet it has been able to preserve its abundant natural beauty and resources.

The City has 106 parks ( totaling over 2,000 acres) within its borders as well as several recreational areas along its

perimeter. Lake Merritt, the largest saltwater lake within a U. S. city, borders the downtown area. Its shoreline is a favorite

retreat for joggers, office workers and picnickers. At dusk, the area sparkles as the Lake is lit with the “ Necklace of

Lights.” Lake Merritt is the oldest officially declared wildlife sanctuary in the United States, dating back to 1870.

All- America City

There are approximately 150 neighborhood, community and merchant organizations in Oakland, an unusually large

number for any city. What soon becomes apparent to people passing through Oakland is the richness of its diversity,

consisting of individuals and groups of varied ethnic backgrounds who work quietly, often voluntarily, to improve living

conditions for everyone.

In recognition of these activities, in 1993, the City and its residents were awarded the National Civic League’s prestigious

All- America City designation. Ten cities from among 151 applicants were selected to receive this designation. Each city

had to demonstrate: broad- based citizen involvement reflecting the community’s demographics, decision- making shared

among its public and private sectors, creative mobilization of community resources, and willingness to confront critical

local issues and achieve results that have a lasting impact.

Government

The City of Oakland has a Mayor/ Council form of government. The Mayor is elected at- large for a four- year term, and can

be re- elected only once. The Mayor is not a member of the City Council; however, he or she has a right to vote as one if

the Council members are evenly divided. The City Council is the legislative body of the City and is comprised of eight

Council members. One Council member is elected “ at large,” while the other seven Council members represent specific

districts. All Council members are elected to serve four- year terms. Each year the Council members elect one member as

President of the Council and one member to serve as Vice Mayor.

The City Manager is appointed by the Mayor and is subject to the confirmation by the City Council. The City Manager is

the Chief Administrative Officer of the City and is responsible for day- to- day administrative and fiscal operations of the

City.

1 Estimate for 2000. Association of Bay Area Governments.

DEMOGRAPHICS

C- 4 FY 2001- 03 Adopted Policy Budget

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Commercial Sectors

Oakland has made significant gains in diversifying its economic base over the past few decades. Although manufacturing

jobs have somewhat decreased since 1990, the economy now offers a healthy mix of trade, government, financial,

medical, information technology, publishing and service- oriented occupations. It also has a growing skilled- crafts sector.

Oakland offers abundant resources to its businesses and residents: state- of- the- art transportation, law enforcement, and

utility facilities keep the City running smoothly. Several new office and retail buildings, public facilities, hotels, convention

facilities, park enhancements and outdoor art have created a cosmopolitan environment in the downtown area. Waterfront

restaurants and shops at Jack London Square, as well as business districts in the Rockridge and Piedmont areas provide

lively nighttime attractions. The City’s increasingly robust neighborhood retail areas are expanding. Abandoned warehouses,

foundries and long silent cigar, macaroni and tent factories have been converted into live/ work studios for crafts people.

City departments have taken a more proactive approach and streamlined processes to better serve the needs of the

business community. A variety of incentives are available to companies located in the City’s Enterprise, Foreign Trade,

and Recycling Market Development Zones. The Business Support Center links businesses with the many services available

to them throughout the area and serves as an ombudsman for companies dealing with the City. Neighborhood Commercial

Specialists work with merchants in each commercial district to promote the district, obtain loans, expedite permits and

arrange for City services.

Oakland plays a pivotal role in the East Bay Trade Area; it is a city of rich history, impressive growth and a promising

future. Located within one of the nation’s largest metropolitan areas, California’s eighth most populous city is strategically

positioned to serve as the economic heart of the East Bay. Oakland has the infrastructure and economic base to support

and attract a diverse mix of advanced industries and value- oriented retail.

Downtown Oakland offers competitive office space, a fiber optic infrastructure and the amenities for both traditional and

emerging enterprises. The well- maintained freeways, the mass transit systems and the ferry service make getting to and

from downtown Oakland a relatively quick and easy process— travel times to San Francisco, San Jose and other Bay

Area cities are surprisingly short.

The Oakland Metropolitan Area ( Alameda and Contra- Costa Counties) is one of the highest spending markets in the

nation, with an effective buying income of over $ 61.15 billion and an average household income of $ 71,644.2 In the City of

Oakland itself, some 145,720 households earn, on average, $ 54,000 per year, resulting in an effective buying income of

$ 7.87 billion that generates over $ 4.0 billion in annual taxable sales. 3

Demographics

Oakland is a cultural Mecca, rich in diversity and encompassing a community of people from all over the world working

together to build a progressive City. At the same time, it has maintained a rich heritage of ethnic backgrounds and

traditions. Oakland is home to 405,300 residents. 4 The City’s population has grown at a steady pace of approximately one

percent per year over the last ten years and is projected to increase by another seven percent by 2005.5

2 Estimates for 2000. Association of Bay Area Governments.

3 Population and income data are estimates for 2000 ( Source: Association of Bay Area Governments); retail sales data estimates are

based on the sales tax projections for the City for FY 2000- 01.

4 Estimate for 2000. Association of Bay Area Governments.

5 Association of Bay Area Governments.

CITY OF OAKLAND

FY 2001- 03 Adopted Policy Budget C- 5

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As of today, the City has about 145,720 households, with an average of 2.78 persons per household. 6 The largest single

ethnic group is African American ( 41.7 percent), followed by White ( 33.9 percent) and Asian ( 16.3 percent). Hispanics

constitute 17.0 percent of the total population. The median age of the City’s population is 33.4.7

Of the total City’s population, 171,600 are employed. The average household income is $ 54,000 per year. 8

Labor Force and Employment

The Oakland Metropolitan Area is an academic environment where approximately 100,000 students attend local universities

and colleges, including the University of California- Berkeley, California State University at Hayward, Mills College, Laney

College and others. The labor pool in the Oakland Metropolitan Area is one of the most educated in the nation. It ranks sixth

in the United States in educational achievement. Nearly one- third of the area’s residents have a college degree.

Oakland’s well- educated and highly skilled labor force is one of the key factors that make the City attractive to various

businesses. As part of the fourth largest economy in the United States, Oakland has a strong and diverse business

environment. More than 32,000 businesses flourish in the area. Oakland’s leading industry sectors include business

services, health care services, transportation, food processing, light manufacturing, government, arts, culture and

entertainment.

The high- tech industry also rapidly develops in Oakland; more than 300 such companies are now based in the City.

Biotech leader Double Twist, the key internet portal for human genomics research, recently invested $ 15 million for their

downtown Oakland office, and is renovating another property which will house all of its operations and staff, including 150

new downtown workers. Another biotech leader, Rainin Instruments Company, recently broke ground for a new headquarters

and manufacturing facility in the City’s Coliseum Redevelopment Project Area. Zhone Technologies is yet another Internet-based

company located in Oakland.

Total employment in the City is more than 188,940 jobs, of which 39.8 percent are in the service sector. Over the next five

years, 17,140 new jobs are projected to be created in Oakland; the service sector will account for 47.6 percent of this job

growth. 9

Climate

Oakland is fondly referred to as “ the bright side of the Bay” because the sun shines over bright, clear skies almost 365

days a year. Rand McNally has ranked Oakland No. 1 for climate, perhaps because the sun shines during 73 percent of

daylight hours, temperatures range in the low 50’ s and upper 60’ s during the winter months and the 70’ s and low 80’ s

during the summer, while average annual rainfall is 20 inches for the City as a whole.

History

Oakland’s first inhabitants, the Ohlone Indians, arrived about 1200 B. C. and lived in small tribal groups on the shores of the

hills surrounding the Bay. The Ohlone Indians were a stocky hunting and gathering group who lived in such harmony with

nature that they left no permanent mark on the landscape. They maintained such a peaceful attitude with each other that

they had no word for war.

6 Association of Bay Area Governments.

7 Projections 2000. Association of Bay Area Governments, 2000.

8 Projections 2000. Association of Bay Area Governments, 2000.

9 Projections 2000. Association of Bay Area Governments, 2000.

DEMOGRAPHICS

C- 6 FY 2001- 03 Adopted Policy Budget

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Spanish explorers first entered the area that is now Oakland by land in 1772. They reported the natural geography as

possibly the most perfect on earth. Near the shore were magnificent oaks; on the hills stood acres of giant redwoods. In

the spring, wildflowers filled the valley with golden poppies and purple iris. Deer, rabbit, bear and wildcat roamed the

woods. Creeks tumbled into a Bay filled with salmon, crab, sturgeon, smelt, lobsters, clams and mussels. The marsh that

would become Lake Merritt was alive with wildfowl.

Spain established a Presidio and Mission on the west side of the Bay in 1776 and Mission San Jose ( south of Oakland) in

what is now Fremont in 1797. Mission San Jose had jurisdiction over Oakland, the area the Spaniards called Encinal,

“ grove of evergreen oaks.” European diseases and settler hostility obliterated the Ohlones and most of their culture within

a few years.

Oakland’s development as a commercial and transportation center began with the California Gold Rush of 1849, when

Oakland became the mainland staging point for passengers and cargo traveling between the Bay and the Sierra foothills.

Oakland was chartered as a city in 1852, and construction of shipping wharves began immediately. Ferry service between

Oakland and San Francisco had existed for years, but by building large wharves and dredging a shipping channel,

Oakland became an independent destination.

Oakland grew steadily through the 20th century. After the devastating earthquake in 1906, many people and businesses

chose to relocate from San Francisco to Oakland; consequently, Oakland’s population more than doubled between 1900

and 1910. Oakland benefited from the general prosperity of the area through the 1920’ s. California farms expanded their

markets, contributing to canning, processing and shipping companies based in Oakland. Auto makers and steel companies

led the industrial expansion throughout the East Bay. Construction businesses had plenty of work as homes went up south

and east of the inner city, and new high- rise office buildings were built in downtown Oakland.

World War II brought tremendous changes to Oakland. Huge numbers of workers moved to the Bay Area to work in local

shipyards, and many of these people, as well as large numbers of military personnel who mustered out at Treasure Island

and the Oakland Army Base, chose to remain in the Bay Area. As a result, the City’s population increased by nearly one

third between 1940 and 1950.

Oakland has a rich literary and cultural heritage. Such historical notables as writers Bret Harte, Jack London, Joaquin

Miller, Ina Donna Coolbrith, Jessica Mitford, Narman Jayo, Ishmael Reed and Gertrude Stein, architect Julia Morgan, and

dancer Isadora Duncan are just a few who have left their cultural mark on the City. It is also the birthplace of the West

Coast Blues.

Transportation

Located in the geographical center of the Bay Area, Oakland has been recognized as a vital transportation hub for more

than 100 years. The combination of train, bus, marine, aviation, freeway and the Bay Area Rapid Transit ( BART) system

guarantees ease of travel for local residents and efficient channels of commerce for businesses relying on the City’s easy

access. Oakland’s Port is a primary sea terminal for transporting cargo between the Western United States and the

Pacific Rim, Latin America and Europe. Access to air cargo services is minutes away at the Oakland International Airport.

Port of Oakland

The Port is located on the east ( or mainland) side of San Francisco Bay, one of the most beautiful natural harbors in the

world. The Port is the fourth- largest container port in the United States, after Long Beach, Los Angeles, and New York/ New

Jersey; and is among the top 20 in the world. It is served by two railroad companies: Burlington Northern Santa Fe and

Union Pacific.

The Port handles 98 percent of all containerized cargo that passes through the Golden Gate. Oakland’s cargo volume also

ranks San Francisco Bay among the three principal Pacific Coast gateways for U. S. containerized cargoes, along with

San Pedro Bay in Southern California and Puget Sound in the Pacific Northwest.

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FY 2001- 03 Adopted Policy Budget C- 7

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The Port has technically advanced facilities available not only for containers but also for break bulk, heavy- lift and other

specialized cargo. The Port has 450 acres of container terminal facilities, 29 container cranes, and an additional 100

acres of storage for general cargo and special commodities. It is well on its way to building a “ super- intermodal” facility—

a hub of cargo transport activity with container ship docks, truck arteries and three railroads converging into the only

facility of its kind on the West Coast.

The Port is currently undergoing a massive expansion which will add a new 50- foot channel to accommodate new

container ships, and will include construction of new container terminals and berths at the former Navy FISCO property

( Berths 55- 59) and the Joint Intermodal Terminal ( JIT). 10 The Port of Oakland is developing a Joint Intermodal Terminal with

three major rail lines designed to lower the time and cost of transporting goods.

The Port of Oakland will soon expand even further as the result of acquiring a portion of the Army Base property as a no-cost

transfer estimated to take place in FY 2002- 03. The Oakland Base Reuse Authority and the Port of Oakland are

currently working on finalizing the transfer and developing a reuse plan.

Oakland International Airport

The Oakland International Airport is the fastest growing airport in the Bay Area. It has two terminals with 22 gates, which

serve 10 airline carriers who carried over 10.6 million passengers in 2000. The Airport is projected to serve 12 million

passengers by the end of 2002.

Oakland International Airport handles more than 80 percent of all Bay Area domestic air cargo, annually moving more than

one billion pounds of air freight and over 76 million pounds of air mail. The major cargo carriers based at Oakland

International Airport include Federal Express, United Parcel Service, Airborne Express, Emery Worldwide, Ameriflight,

Burlington Air Express and Evergreen.

The amount of air freight that the Airport handles nearly tripled in the last ten years, increasing from 227,930 tons in 1990

to 671,691 in 2000. During the next decade, over one million metric air cargo tons will be handled through the Airport. In

addition to an 11,000 square- foot international import clearance facility at the airport, the airport also serves as FedEx’s

designated Pacific gateway. United Parcel Service and the United States Postal Service also operate domestic sort

facilities at the Airport.

The Port of Oakland and the Oakland International Airport, along with their tenants and maritime and aviation companies,

provide 23,500 direct jobs, 13,000 induced jobs, and 6,200 indirect jobs. In addition, 91,400 visitor industry jobs and

498,500 related jobs are being generated. The total economic impact induced by the Port and the Airport- related activities

total at $ 6.215 billion. 11

Mass Transit

Local bus service is offered by AC Transit, which serves 13 cities and adjacent unincorporated communities in 390

square miles along the eastern shores of San Francisco, Oakland and San Pablo Bays. AC Transit serves approximately

230,000 daily riders using 152 routes in the East Bay, 148 of which connect with BART. AC Transit buses also serve the

Oakland Airport, the newly constructed Amtrak Station, the ferry terminal, downtown San Francisco and other major Bay

Area attractions.

The Bay Area Rapid Transit ( BART) is a 95- mile, automated rapid transit system serving over 3 million people in the three

BART counties of Alameda, Contra Costa, and San Francisco, as well as northern San Mateo County. Trains traveling up

to 80 mph connect 17 Bay Area cities and 39 stations. Travel time between Oakland and San Francisco averages only 20

minutes on BART. People in the Bay Area ride BART because it is a safe, reliable, economical, and energy- efficient

means of transportation.

10 Port of Oakland, September 2000.

11 Port of Oakland, December 2000.

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Other modes of transportation available to Oakland residents include the Alameda/ Oakland Ferry Service that also links

Oakland with San Francisco. Nine major U. S. and California highways pass through Oakland. Daily service to rail destinations

throughout the U. S. is offered at the Oakland Amtrak Station. Greyhound Bus Lines also offers daily bus service to cities

throughout the United States.

Education

Over 170 public and private schools in Oakland provide elementary, middle, special and secondary education. There are

two community colleges and four four- year institutions within the City boundaries, with the world- renowned U. C. Berkeley

campus located nearby. In addition, a variety of evening extension courses are offered in Oakland by other Bay Area

colleges, including U. C. Berkeley. A wide array of nonprofit, county and City- sponsored skills enhancement training

programs are provided to Oakland residents, and career development is successfully encouraged at the area’s high

school academies.

Health Care

Oakland’s medical facilities are among the best in the nation. The medical community provides the latest and most

sophisticated medical technology for the diagnosis and treatment of disease. Over 1,500 physicians, 250 dentists and

eight hospitals are located within the City. Overall, the health care industry in Oakland employs approximately 14,000

people.

Public Safety

Oakland uses a variety of aggressive and innovative approaches to increase public safety and lessen the levels of

violence. These efforts are paying off, especially as more and more business owners and residents become involved.

Recent statistics indicate that overall crime in Oakland continues to decrease, including a 19.4 percent reduction in Part I

crime in 2000.12

Parks and Recreation

There are over 79,000 acres of wilderness and parklands in the nearby East Bay Regional Park District, including 53

parks and 20 regional trails in Alameda and Contra Costa Counties. Sports, performing arts, boating, camping, gardens

and many other leisure activities are available at more than 140 parks, playgrounds, community centers and other

recreational facilities operated by the City. There are two public golf courses and a third driving range. Six outdoor pools

offer seasonal lap and recreational swimming, instruction and showers. The Parks and Recreation Department operates

more than 50 tennis courts. It also operates Oakland’s Feather River Camp, a family camp located in the Plumas National

Forest. Instruction in sailing, wind surfing and kayaking are available at Lake Merritt. Over 100 boats are available for rent,

including paddleboats, kayaks, rowboats, canoes and sailboats. The City provides public boat launches at its seven- acre,

waterfront park on the estuary and at Lake Merritt. The Port of Oakland owns and operates three marinas with berths. The

Oakland City Stables, managed by the Wildcat Canyon Ranch Program, provides horse riding lessons, year- round after

school programs, an alternate education site for the school district, and summer internships for Oakland Youths. The

program serves 3,000 Oakland youth annually.

12 Part I crime includes murder, rape, robbery, assault, burglary, larceny and vehicle theft. ( Source: Crime Analysis Division, Oakland

Police Department, 2001).

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Arts and Attractions

Oakland is a city of art and has one of the largest artist communities in the West. It is the site of performing arts, festivals,

concerts, gallery exhibitions and events for every season. The City’s Alice Arts Center is a multi- cultural and multi-disciplinary

performing arts complex, which presents local, regional and national theater, dance and music productions.

The Oakland East Bay Symphony features programs that showcase the work of California composers as well as a

classical repertoire. The 35- year- old Oakland Ballet has grown in reputation by leaps and bounds and performs both

traditional and experimental music and dance year- round throughout the City.

Both the Symphony and the Ballet use the Paramount Theater. This fabulous art deco 1931 movie palace was authentically

restored in 1973 and has since served as Oakland’s premier live performance facility. The Paramount Theater hosts an

impressive variety of popular attractions, including Broadway shows, R & B concerts, gospel performers, comedy, and

special engagements such as the Black Film Makers annual award ceremony.

Oakland also has a history with the California Music Awards ( formerly the Bammies). BAM Magazine publisher, Dennis

Erokan, conceived the show in the Rockridge district as the “ Bammies,” and many Oakland- based artists have either

received awards or performed on stage. In April 2001, the City of Oakland co- hosted the 24th Annual California Music

Awards gala event, which took place in the Henry J. Kaiser Center.

The City of Oakland is also home to the Oakland Museum of California, which is known as one of the finest regional

museums in the country. Together with rotating national art exhibits, it houses an outstanding permanent collection of

California artists, including fine art and photography. One of the museum’s recent main attractions was the Forbidden City

exhibition showcasing precious objects and stories from China’s Imperial Palace.

Oakland’s Western Aerospace Museum, located at the Airport’s North Field, showcases aviation history through special

exhibits, multimedia presentations, hands- on displays incorporating 13 planes, photographs, replicas and other artifacts,

and classes for students of all ages.

Chabot Space and Science Center

The City of Oakland is also home to the Chabot Space & Science Center ( CSSC), an 86,000 square- foot, state- of- the- art

science and technology education facility. CSSC was formed as a Joint Powers Agency with the City of Oakland, the

Oakland Unified School District, and the East Bay Regional Park District, in collaboration with the East Bay Astronomical

Society, and in 1992 was recognized as a nonprofit organization. CSSC is an innovative teaching and learning center

focusing on astronomy, space sciences and the interrelationships of all sciences. It is the continuation and expansion of a

public observatory that has served San Francisco Bay Area schools and citizens with astronomy and science education

programs for over 115 years. CSSC offers programs for students, teachers and general public.

Professional Sports

Oakland is a magnet for sports fans of all types. Whatever the season, Oakland pro and amateur games often garner

broad national media coverage. In the last two decades, Oakland’s professional sports teams have won six world

championships in three major sports. The Oakland Athletics have won six American League Championships and four

baseball World Series titles. The City’s fine sports reputation has made it a natural home for key events such as the 1987

and 2000 NBA All- Star games, the 1988, 1989 and 1990 World Series, the 1989 Masters Rowing Regatta, the 1991

Summer Police Games, the 1992 World Figure Skating Championships, and the 1996 Olympic Boxing Team Trials.

The Oakland Coliseum complex is home to the Oakland Athletics, the Golden State Warriors and the Oakland Raiders. The

Oakland Ice Rink located in downtown City Center area provides recreational skating, practice facilities for amateur and

professional figure skaters, as well as a venue for ice hockey team and tournament play.

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Media

Oakland has its own daily and weekly regional newspapers, radio stations and a television station with daily award- winning

newscasts. Its neighborhoods distribut