Deborah Edgerly
Cheryl Thompson
Niccolo De Luca
Ignacio De La Fuente
Henry Chang, Jr.
Jane Brunner
Pat Kernighan
Nancy Nadel
Jean Quan
Desley Brooks
Larry Reid
Ronald V. Dellums
P FY
CITY ADMINISTRATOR
City Administrator
Asst. City Administrator
Deputy City Administrator
CITY COUNCIL
President / District 5
Vice- Mayor / At- Large
District 1
District 2
District 3
District 4
District 6
District 7
MAYOR
FY2007- 09 Policy Budget
ADOPTED CITY OF OAKLAND
P FY
La Tonda Simmons
Claudia Cappio
Deborah Barnes
William Noland
Daniel Farrell
Andrea Youngdahl
Robert Glaze
Carmen Martinez
Lori Fogarty
Audree Jones- Taylor
Wayne G. Tucker
Raul Godinez, II
AGENCY / DEPARTMENT
DIRECTORS
City Clerk
Community & Economic
Development
Contracting & Purchasing
Finance & Management
Fire Services
Human Services
Information Technology
Library
Museum
Parks & Recreation
Police Services
Public Works
John Russo
Courtney Ruby
ELECTED OFFICERS
City Attorney
City Auditor
P FY
William Zenoni ( Interim)
Gilbert Garcia
Sarah Schlenk
Nila Wong
Kiran Bawa
Robert Davila
Myra Jew
Pat Petersen
Corey Neeld
Felicia Silva
Rowena Quindiagan
Rina Hernandez
Debbie Comeaux
Pauline Feng
Leslie Pham
BUDGET DIRECTOR
ANALYTICAL STAFF
Principal Financial Analyst
Financial Analyst
Budget & Operations
Analyst III
Budget & Grants
Administrator
BUDGET PRODUCTION
Assistant Budget Analyst
Special Assistant
ACCOUNTING SUPPORT
OFFICE OF THE CITY ADMINISTRATOR
BUDGET OFFICE
PREPARED BY
P FY
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.
CITY OF OAKLAND
MISSION
STATEMENT
May 3, 2007
City Council
City of Oakland, California
CITY OF OAKLAND BUDGET PROPOSAL FOR FY 2007- 09
Dear President De La Fuente and Members of the City Council:
I hereby transmit to you the proposed 07/ 09 budget. Details of the budget are discussed in the
accompanying letter from the City Administrator. This transmittal is a supplement to that letter.
The principal goal of the 07/ 09 budget process was to maintain fiscal prudence while avoiding
cuts in current program levels. This budget meets that goal. This is a balanced budget that
continues funding levels for most existing programs, but a budget severely constrained by rising
costs, stringent spending requirements, and limited revenues.
I would like to make the following additional points:
• Budgets are reflections of ones priorities. My priorities are to increase public safety and
reduce crime and violence; to foster sustainable economic growth and development for
the benefit of Oakland and Oakland residents; to create a sense of hope and
empowerment, especially among the youth; to give Oakland residents the opportunity to
lead a healthy life; and to deliver City services in an open, transparent, effective and
efficient manner.
While this budget touches on these priorities, it is neither a transformative budget nor an
expression of my vision of Oakland as a 21st Century Model city. There are simply too
few resources to address the magnitude of the problems facing Oakland.
• There is little flexibility in the allocation of Oakland’s budget. Because so much
spending is restricted, mandated, and pre- committed, almost no opportunity exists for
reallocating spending, let alone funding new, innovative, initiatives.
FY 2007- 09 Proposed Policy Budget – Mayor’s Transmittal Letter Page 2
To illustrate: In round numbers, 55% of the budget comes off the top for highly restricted
purposes. The remaining 45%, the General Purpose Fund, is restricted as well. Only
21% of the General Purpose Fund, or about 9% of the entire budget, is considered
“ discretionary”. Even this discretion is limited. Almost 40% of this “ discretionary”
amount supplements police and fire funding. This leaves only 13% of the General
Purpose Fund, or 5% of the entire budget. Even this 5% isn’t discretionary. After
funding key programs for parks, social services, library, recreation, as well as various
City departments out of that 5%, essentially nothing is left for new initiatives.
• With existing funds, we are not able to invest in our people or maintain our infrastructure.
To address Oakland's short- and long- term needs, we need to develop our local economy
to increase current revenue sources, as well as develop new sustainable revenue streams
and program- specific funds. This is not a new discovery, but it is important for the
residents of Oakland to understand that Oakland’s needs cannot be met solely through
Oakland’s current budget.
• Despite the budget constraints I have laid out, I would like to call your attention to two
types of initiatives in the budget: ( i) initial consolidations and reorganizations of critical
parts of City government; and ( ii) a very limited list of new program initiatives. These
are discussed below.
• It is important to note at the outset that it is my expectation that the 08/ 09 mid- cycle
budget review will entail a more comprehensive re- evaluation of the budget than was the
case for the 06/ 07 mid- cycle process.
Proposed Changes for FY07- 09
1. Reorganizations and Consolidations
The agency reorganizations are part of an effort to provide substantially more effective programs
and activities without increasing current funding levels. The City Administrator’s letter
discusses four reorganizations. I want to emphasize the importance of two of them: the police
department; and contracting and purchasing.
Police Department. Increasing public safety and reducing crime and violence are major
priorities. I recently announced a reorganization of the police department from a centralized,
" watch- commander" system to a more decentralized, geographically- accountable approach. I
reaffirmed my commitment to community policing, but a community policing model in which
the entire police force is involved in community policing, and not just a relatively few
" community- policing" officers working in a relatively few police beats. While this
reorganization is in its initial days, I believe that it will have important consequences for making
the police more effective and more responsive.
FY 2007- 09 Proposed Policy Budget – Mayor’s Transmittal Letter Page 3
Contracting and Purchasing. My goal is to make Oakland’s contracting and purchasing process
more effective and more transparent. Oakland has many important policies governing the use of
city funds, but because of major funding cuts in prior years, the enforcement of these policies has
become problematical. We must enforce our policies promoting the hiring of, and contracting
with, Oakland residents. We must also make it easier for Oakland residents to know about
upcoming contracting opportunities and to be able to qualify for and apply for Oakland contracts.
We need to pay special attention to ensuring that small business ( particularly minority- and
woman- owned business) is able to increase their contracting with the city.
In this proposal, we have consolidated the various purchasing and contracting divisions
previously in various departments and have centralized this function in a single department. We
also propose hiring additional staff to monitor and enforce compliance with Oakland’s
purchasing and contracting policies. Finally, we propose software to facilitate more effective
and transparent purchasing and contracting.
Other reorganizations and consolidations are under discussion and will be forthcoming. In
particular, we need to expand the city’s ability to facilitate economic development both through
city programs and by better leveraging Redevelopment funds. We also need to give greater
priority to developing more sustainable and “ green” practices, and to more explicitly looking at
the health implications of City programs and development projects being undertaken in our city.
2. New Program Initiatives
As I have detailed above, spending constraints severely limit the possibility of proposing new
programs. That said, I want to call your attention to a very limited set of proposals in support of
children and youth, health, police, violence prevention, and human rights.
( 1) Support for 21 additional part- time ( afternoon/ evening) recreation staff to staff and support
after- school programs ($ 0.6M)
We need to expand after- school services to as many children as possible. These funds will
allow for part- time, after- school, staffing at City recreation centers. This is part of a larger
effort to better coordinate after- school programs and services.
( 2) Additional staff to Personnel to reduce barriers to ex- offenders finding City jobs. ($ 0.1M)
It is in our collective enlightened, self- interest to ensure that ex- offenders have access to
permanent employment. Most potential jobs will be in the private sector, but we can’t ask
the private sector to make a serious effort to hire ex- offenders if the City isn’t engaged in its
own real effort to do so as well.
( 3) Funds to support City/ County collaboration on Children, Families and Youth. ($ 0.4M)
We need to expand our collaboration with the County particularly in the provision of social
services and developing wrap- around services for our children and youth. This would set-
FY 2007- 09 Proposed Policy Budget – Mayor’s Transmittal Letter Page 4
aside funds for matching contributions to leverage new and expanded collaborations,
particularly those supported by external funders. This is in addition to support for the
current Safe Passages City/ County/ OUSD collaboration.
( 4) Providing funds to support a City/ County HIV/ AIDS initiative ($ 0.1M)
This would support HIV/ AIDS testing, counseling, and treatment efforts.
( 5) Adding 5 non- sworn staff positions to support geographic policing ($ 0.4M)
This provides staff support for the Police Department geographical reorganization.
( 6) Additional Mayor’s Office inter- governmental relations staff ($ 0.3M)
This additional allocation in inter- governmental relations staff is an investment in obtaining
increased funding from federal and state governments and philanthropic organizations.
( 7) Middle school sports program ($ 0.2M)
This was a Council funded program supported by one- time funds. This provides for a
continuation of these programs.
( 8) Increased support for Chabot Space and Science Center ($ 0.2M)
The Chabot Space and Science Center is an important Oakland resource deserving of our
support. This minimal increase is in line with proposed support for Fairyland and the Zoo.
( 9) Initial funding to support a Human Rights Commission ($ 0.1M)
We need to reestablish a city commission on human relations and human rights. The
amount proposed is seed funding to initiate the process.
To put this $ 2.4 million proposal in context, it should be noted that the list of unfunded Program
Changes contains over $ 50 million in proposals from the Mayor’s Office in addition to the
roughly $ 40 million in proposals proposed by members of the Council and by various
Departments.
The Magnitude of the Problem
It is important for Oakland residents to have a sense of the magnitude of the problems facing
Oakland and the scarcity of available resources to address these problems. Most budgets and
policies are designed based on the magnitude of available resources rather than the magnitude of
the problem. In that light, I asked each Department head to try to give me an accurate sense of
the specific requirements in their program areas. Knowing the magnitude of the problem allows
FY 2007- 09 Proposed Policy Budget – Mayor’s Transmittal Letter Page 5
us to engage in an informed advocacy based on real needs rather than simply based on available
resources. Following are three examples.
In Public Works, the 2006 Storm drainage Master Plan estimated $ 221 million in needed, though
still unfunded, improvements. Our streets are currently on an 85- year resurfacing cycle
( compared to a 25- 30 year standard). It would take over $ 500 million over 20 years to reach the
standard. While we have a 25- year capital improvement plan for sewers, much of the sewer
system is not even addressed by this program. Similarly, the list of unfunded capital projects for
the FY07/ 09 period is $ 113 million and this list excludes many critical projects that didn’t even
make the unfunded list including the development of needed sports fields throughout the city.
We are also are grossly underfunding the maintenance of our city buildings, electrical services,
parks and recreation areas, sidewalks and more. In addition, ABAG recently determined that
Oakland, along with San Francisco and San Jose, had to greatly increase their housing stock.
This may make sense for reasons of “ smart growth”, but it is only feasible if substantial new
resources are made available for the necessary infrastructure to support that new development.
The Fire Department has determined that their real needs over the next three years include some
$ 100 million in fire station construction and equipment, and an additional $ 23 million in
Wildfire district tree and vegetation removal.
DHS provides some $ 56 million annually in program services for low income and vulnerable
families ( the vast majority funded by grants and voter initiatives, not from the General Fund),
these efforts only reach a limited population of those in need. After a study of various programs,
DHS determined that to provide access and services to the most vulnerable residents, an
estimated additional investment of $ 125 million would be required. This $ 125 million excludes
important services such as mental health care, substance abuse treatment, comprehensive
housing needs and economic development to support family self- sufficiency for which estimates
have not yet been completed.
This gross mis- match between the magnitude of the issue and the magnitude of available
resources repeats itself through every City department.
New Revenues
As I have indicated, we need to develop our local economy to increase current revenue sources,
as well as develop new sustainable revenue streams and program- specific funds. It is primarily
through leveraging public/ private partnerships, philanthropy, and inter- governmental cooperative
relationships, that we can begin the process of stimulating development and addressing the
challenges confronting Oakland and Oakland's residents.
To that end, on the day the budget reaches the Council, we are holding a joint public sector,
private sector, community, economic summit in which economic development strategies and
public/ private partnerships will be the main topics of discussion. This summit will be the kick-
FY 2007- 09 Proposed Policy Budget – Mayor’s Transmittal Letter Page 6
off of a joint public/ private venture to help define specific measures for furthering the economic
development in Oakland.
The Mayor’s Office, together with the City Administrator and staff, is working with the state
legislature to ensure that Oakland receives its share on Prop 1 bond funds. Also, substantial
funding requests have been submitted at the federal level, which require continuous follow- up to
increase our chances for obtaining additional funding. In addition, grant and funding
possibilities are being explored at all legislative levels and with various philanthropic
organizations.
Finally, it is important to note that it was only possible to cover the FY 07/ 08 $ 3.5 million
shortfall in the LLAD through the use of one- time revenues and by fund reallocations. This will
not be possible in FY08/ 09 when the one- time sources are no longer available and when the
shortfall is estimated at $ 6 million. Moreover, the shortfall estimate assumes continuing current
service levels when the reality is that substantially greater resources are needed for street
lighting, parks, fields, medians and trees. There seems to be little choice but to go back to the
LLAD voters for an increased LLAD assessment.
I look forward to working with you over this next budget cycle as we unite around the common
objective of moving towards making Oakland a 21st Century model city.
Sincerely,
Ronald V. Dellums
Mayor
August 31, 2007
Honorable Ronald V. Dellums
Honorable President De La Fuente and
Members of the Oakland City Council
Oakland, California
Subject: The City of Oakland’s FY 2007- 09 Adopted Policy Budget
Dear Mayor Dellums, President De La Fuente and Members of the City Council:
I am pleased to transmit to you the Adopted Policy Budget for the City of Oakland for the
period of July 1, 2007 through June 30, 2009. This budget was adopted by the City
Council on June 21, 2007 following a series of public hearings and extensive discussions.
The Adopted Policy Budget for Fiscal Years 2007- 2009 incorporates a number of
amendments made by the City Council to the Proposed Budget of the Mayor and City
Administrator. These amendments totaling $ 8.2 million in the first year and $ 5.4 million in
the second year are balanced by additional revenues, and can be found under the
“ Legislation” tab of this document, following the budget adoption resolution.
The FY 2007- 09 Budget is a balanced budget which addresses the Mayor/ Council
priorities, and follows the fundamentals of the City’s financial management policies.
While the City of Oakland has realized a growth in revenues over the past several years,
which has allowed the City to make improvements in public safety, playgrounds and
parks, as well as improvements to the City’s aging infrastructure, there has also been a
significant increase in the demands placed on the City’s limited financial resources.
Looking forward, this increase in revenues will not keep pace with the projected increase
in expenses. One of the major challenges facing the Mayor, City Council and staff is to
look beyond this two year budget period and begin to identify alternative revenue sources
and cost containment measures to ensure the future financial stability of the City.
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 2
Budget Summary
The FY 2007- 09 Budget contains two- year appropriations totaling $ 2.1 billion, across the
following funding sources:
($ Millions)
FY 2007- 08 FY 2008- 09 TOTAL
General Purpose Fund $ 476.7 $ 491.1 $ 967.7
Other General Funds $ 123.4 $ 124.2 $ 247.7
Special Revenue Funds $ 186.0 $ 191.7 $ 377.7
Enterprise Funds $ 31.7 $ 34.0 $ 65.6
Internal Service Funds $ 45.4 $ 46.4 $ 91.8
Capital Projects Funds $ 7.9 $ 4.5 $ 12.4
Debt Service Funds $ 136.0 $ 136.7 $ 272.8
Trust & Agency Funds $ 58.9 $ 50.8 $ 109.7
TOTAL BUDGET $ 1,066.0 $ 1,079.4 $ 2,145.4
The array of funding sources contained in the budget reflects the diversity of the City’s
resources, as well as continued efforts to maximize opportunities from grants and special
revenue sources. The FY 2007- 09 Budget represents the City’s strategic spending plan
for the next two years and includes programs that reflect the Mayor and City Council
goals and priorities.
The chart below illustrates the City’s distinct fund groups, each containing a number of
individual funds.
Composition of City’s 2007- 09 Adopted Budget
( 2- Year Total Expenditure)
General Purpose
Fund
45.1%
Debt Service
12.7%
Capital Projects
0.6%
Internal Service
4.3%
Other General
Funds
11.5%
Enterprise
3.1%
Special Revenue
17.6%
Trust & Agency
5.1%
The City’s various fund groups include:
• General Funds: General Purpose Fund, Self- Insurance Liability Fund, Workers’
Compensation Fund, Kids First Fund, and others.
• Special Revenue Funds: Federal and State grants/ reimbursements, pass- throughs
and donations, local voter- approved assessments such as the Landscaping and
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 3
Lighting Assessment District, Measure Y- Violence Prevention, and Wildfire
Prevention Assessment District.
• Enterprise Funds: Sewer Service and Golf Courses.
• Internal Service Funds: Internal service transactions such as: facilities, vehicle
fleet and communication equipment maintenance, repair and replacement.
• Capital Projects Funds: Funding restricted to capital investments, improvements
and related expenditures.
• Debt Service Funds: Where income and payments related to the City’s debt
service are recorded.
• Trust and Agency Funds: Retirement trusts and the Oakland Redevelopment
Agency Projects Fund.
All of the City’s funds, with the exception of the General Purpose Fund, are considered
restricted. Their revenues can only be spent on particular types of programs, activities
and purchases.
Budget Development Principles
Two significant principles were followed during the development of this budget.
Principle 1: Development of a budget that identifies the staffing and resources allocated
to, and revenues generated by, specific programs that support the Mayor
and City Council goals.
The FY 2007- 09 Budget reflects the Mayor and Council goals and priorities for the next
two years, as listed below:
Healthcare
Economic
Development
Youth through
Seniors Public Safety
Sustainable
City
Efficiency &
Responsiveness
to Residents
Infrastructure
STRATEGIC
GOALS
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 4
Principle 2: Adherence to the City’s financial policies, such as a requirement to maintain
a 7.5 percent reserve level in the General Purpose Fund.
The City has a number of important financial policies; many which were adopted in
previous funding cycles. The policies impacting the development of the budget are listed
below:
Policy Name Council
Adoption Date
Adopting Council
Resolution / Ordinance #
Policy on Balanced Budgets July 15, 2003 Resolution 77922
Reserve Policy - General Fund and
Capital Improvement Fund June 17, 2003 Ordinance 12502
Long- Term Financial Planning Policy July 15, 2003 Resolution 77923
Policy on Charges for Services July 15, 2003 Resolution 77924
The FY 2007- 09 Budget adheres to the key principles contained in the above policies.
Specifically:
• The FY 2007- 09 Budget is balanced at an individual fund level.
• The Budget maintains the 7.5 percent required reserve in the General Purpose
Fund.
• The Budget maintains the $ 6.0 million mandated reserve for the Capital
Improvements Contingency Fund.
• The Budget is built on solid revenue and expenditure projections, which take into
account the analysis of economic and demographic data at the national, state
and local level, as well as legal, legislative and policy changes.
• The Budget includes approved revisions to the City’s Master Fee Schedule and
reflects changes in the costs of services provided by the City.
Key Budget Considerations
General Purpose Fund Budget Concerns
The General Purpose Fund accounts for 45 percent of the City’s total budget. During the
budget development process a potential funding gap was identified in the General
Purpose Fund. This projected shortfall was resolved through a combination of updated
revenue projections and cost cutting efforts. Nevertheless, the demands being placed on
the General Purpose Fund’s limited resources are increasing at a rapid pace and include
( among other things):
a) Increased labor costs of $ 6.8 million for FY 2007- 08 due to negotiated salary
increases. Labor negotiations scheduled during this budget period may further
impact this figure.
b) Fringe benefit and retirement costs increased $ 3.8 million in FY 2007- 08. As
employee medical costs continue to increase, staff plans to explore various
options to help control these rising costs.
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 5
c) Increased interfund transfer of $ 5 million per year in order to reduce the
negative fund balance in other City funds.
Strong Local Economy
Oakland continues to attract strong interest and growth via private development. In recent
years, the City has seen significant growth in the assessed valuation of residential,
commercial and industrial properties within the City as our private and non- profit partners
continue to replace non- productive land with infill development.
The chart below reflects recent growth in the City’s assessed valuation ( across the entire
City territory, and including the redevelopment areas). In the last five years, the annual
growth in the City’s assessed valuation has ranged from 8 percent to 11 percent, with an
average increase of 9 percent. For the most part, this vigorous growth has been fueled by
new redevelopment activity within Oakland’s boundaries. Within redevelopment project
areas, the annual growth has ranged from 18 percent five years ago to over 42 percent
with an average annual increase of 27 percent.
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2000/ 01 2001/ 02 2002/ 03 2003/ 04 2004/ 05 2005/ 06 2006/ 07
Net Assessed Value Growth - 2000 through 2007 ( in million
dollars)
ORA
City
Additional housing and commercial projects are currently under construction or in various
stages of the approval process. For the Redevelopment areas, these include
developments in the Broadway/ MacArthur District, Coliseum District, Central City and
Central District. In addition, the City has numerous projects underway for infrastructure
improvements, tenant improvements, facade and streetscape improvements, and is
targeting key sites for redevelopment. As these retail and commercial projects are
completed, they will yield a significant number of jobs and tax revenues for Oakland’s
economy. In addition, with recent renovations to the Oakland International Airport,
passenger travel will continue to increase.
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 6
Budget Highlights
The detailed changes to the FY 2007- 09 Budget are reflected in this document, with a
summary of key revenue enhancements and expenditure adjustments provided in the
“ Financial Summaries” section.
Overall Budget Balancing
The FY 2007- 09 Adopted Budget contains a number of budget balancing measures
including revenue enhancements and expenditure reductions. Revenue enhancements
include new or increased fees, revenues from one- time land sales, and interfund
transfers. Within the General Purpose Fund, revenue enhancements total $ 40.5 million
over the two year budget period and are discussed in more detail further in this letter.
Expenditure reductions to eliminate shortfalls in various City funds were implemented
only after careful evaluation of the City’s core functions, undertaken as part of the FY
2007- 09 budget process. As a result of this analysis, the budget includes several
organizational changes, which will restructure and streamline the City government to
maximize the efficiency of delivering services.
Position Reallocation
The chart below illustrates staffing changes over a twelve year period. A net of 93 full
time equivalent positions will be added during the FY 2007- 09 budget period. These
positions are deemed necessary in order to support the Mayor/ Council goals of providing
public safety, addressing concerns of youth and seniors and becoming more efficient and
responsive to Oakland residents.
3,600
3,700
3,800
3,900
4,000
4,100
4,200
4,300
4,400
4,500
4,600
4,700
FY 1997- 98
FY 1998- 99
FY 1999- 2000
FY 2000- 01
FY 2001- 02
FY 2002- 03
FY 2003- 04
FY 2004- 05
FY 2005- 06
FY 2006- 07
FY 2007- 08
FY 2008- 09
Citywide FTE Change - 12- Year History
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 7
Organizational Restructuring
The following organizational changes are included in the FY 2007- 09 Adopted Budget:
• Department of Information Technology: A centralized Department of
Information Technology will facilitate the City’s goal of effectively using technology
to improve operations and provide improved service. This new department’s goal
is to put technology to its maximum use in order to improve the execution of City
programs and services. The Department of Information Technology will work
collaboratively with other City departments to align business and technology
objectives and to implement cost- effective solutions that enhance business
transactions with the City’s internal and external customers.
• Department of Contracting and Purchasing: A separate Department of
Contracting and Purchasing will allow the City to more effectively provide
consistent, economical and timely procurement support to all City departments.
This new department will encourage an environment of transparency that will
highlight the City’s equal opportunity, fairness, honesty and integrity with
customers and suppliers. In addition, the Department of Contracting and
Purchasing will ensure that the City receives the greatest return on the investment
of its tax dollar by carefully reviewing and selecting the “ best value” in a full and
open competitive environment.
• Transfer of Engineering Design and Construction Services from Public
Works Agency to Community and Economic Development Agency: The new
Engineering, Planning and Design Division within the Community and Economic
Development Agency will allow the City to provide more efficient development and
planning services. By consolidating engineering services, the Community and
Economic Development Agency will be able to re- design and streamline work
processes in areas such as entitlement and capital improvement projects. With
more efficiencies in place, business transactions with potential developers will be
improved, thereby encouraging additional development and investment within the
City.
Budget Enhancements
The FY 2007- 09 Adopted Budget includes funding from the General Purpose Fund for
enhancements to various programs and functions including the following:
• Addition of part- time positions for Recreation Centers at a cost of $ 1.2 million over
two years.
• Implementation of a Citywide AIDS Prevention and Education initiative at a cost of
$ 100,000 per year.
• Providing $ 400,000 in funding for the City/ County Collaboration on Children and
Youth each year.
• Addition of fifteen Police Service Technician positions to assist with criminal
investigations and geographic policing activities.
• Re- assignment of six existing police officer positions to criminal investigations.
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 8
• Increasing financial support for the City’s cultural institutions including the Oakland
Zoo, Children’s Fairyland, Chabot Space and Science Center, the Oakland
Symphony, Peralta Hacienda, the Oakland Asian Cultural Center and Vietnamese
Senior Services. This additional financial support will enable these cultural
institutions to provide essential support to the facilities and programs that benefit
many Oakland residents, especially children, youth and seniors.
• Enhancing the Radical Roving Recreation program focusing on recruiting,
redirecting and guiding youth.
• Providing funding for a 311 system, which will provide citizens with one telephone
number for inquiries and requests for City services and contributing to a county-wide
211 system, which will provide citizens with access to referrals to social
services and other needs.
• Providing funding for the Human Rights Commission.
• Providing financial support for the Safe Passages program.
• Providing funding for joint City- County Initiatives for Re- entry program.
.
Revenue Changes
General Purpose Fund Revenues – FY 2007- 09 Forecast
Revenue during the FY 2007- 08 portion of the two- year budget has been forecasted to
grow at 5.8 percent, with growth for FY 2008- 09 forecasted at 3.0 percent. This revenue
forecast is consistent with economists’ forecasts of moderate economic growth with no
indication of recession in the near future. The chart below summarizes changes to
General Purpose Fund revenues ( FY 2007- 08 compared to FY 2006- 07 Midcycle and FY
2008- 09 compared to FY 2007- 08).
Revenue Type Revenue Changes
( in million dollars)
FY 2007- 08 FY 2008- 09
Property Tax 12.6 7.1
Sales Tax 4.5 1.7
Vehicle License Fee 0.9 0.2
Business License Tax 0.1 1.2
Utility Consumption Tax 0.7 0.6
Real Estate Transfer Tax 4.0 3.4
Transient Occupancy Tax 2.4 0.6
Parking Tax 0.5 0.3
Licenses & Permits ( 0.1) 0.2
Fines & Penalties 1.3 0.0
Service Charges 4.0 1.2
Miscellaneous 1.2 ( 0.7)
Interfund Transfers ( 6.0) ( 1.4)
Total Revenue $ 26.1 $ 14.4
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 9
The major revenue categories that account for most of the growth projected during these
two years include Property Tax, Sales Tax, Real Estate Transfer Tax, Transient
Occupancy Tax, Fines & Penalties, Service Charges, Miscellaneous Revenues and
Interfund Transfers.
• Property Tax is projected to grow by $ 12.6 million ( 11.5 percent) in FY 2007- 08,
and by $ 7.1 million ( 5.8 percent) in FY 2008- 09. The high growth in FY 2007- 08 is
due to the large number of units projected to be completed, which will result in
increased assessed valuation and property tax revenue. Property Tax revenues
are projected to be $ 121.7 million in FY 2007- 08 and $ 128.8 million in FY 2008- 09.
• Sales Tax revenue is projected to increase by $ 4.5 million ( 10.2 percent) in FY
2007- 08 and by $ 1.7 million ( 3.4 percent) in FY 2008- 09. Employment trends in
the East Bay are positive, and are expected to support spending growth. Sales
Tax revenues are projected to be $ 49.0 million in FY 2007- 08 and $ 50.6 million in
FY 2008- 09.
• Real Estate Transfer Tax revenue is projected to increase by $ 4.0 million ( 6.3
percent) in FY 2007- 08, and $ 3.4 million ( 5.0 percent) in FY 2008- 09. This growth
projection is based on the anticipated sale of new residential units to be completed
during the next two years. Real Estate Transfer Tax revenues are projected to be
$ 67.2 million in FY 2007- 08 and $ 70.6 million in FY 2008- 09.
• Transient Occupancy Tax revenue is projected to grow by $ 2.4 million ( 23.5
percent) in FY 2007- 08, and by $ 0.6 million ( 5.4 percent) in FY 2008- 09. Revenue
from the Transient Occupancy Tax has steadily increased since FY 2004- 05. This
growth is attributed to increases in average room and occupancy rates. Transient
Occupancy Tax revenue is estimated to be $ 12.4 million in FY 2007- 08 and $ 13.0
million in FY 2008- 09.
• Fines & Penalties are projected to grow by $ 1.3 million ( 4.9 percent) in FY 2007-
08 due to a $ 0.6 million increase in citation fee revenue, the collection of $ 0.5
million in additional delinquent accounts and an additional $ 0.2 million from other
miscellaneous revenues. Revenue from Fines & Penalties is forecasted to be
$ 27.7 million in both FY 2007- 08 and FY 2008- 09.
• Service Charge revenue is expected to increase by $ 4.0 million ( 8.4 percent) in FY
2007- 08, and by an additional $ 1.2 million ( 2.4 percent) in FY 2008- 09. This
anticipated increase in revenue is mainly attributable to the following: Booking Fee
reimbursements of $ 1.3 million per year from the State are a new source of
revenue; Franchise Tax revenue is projected to increase by $ 0.6 million in FY
2007- 08 and $ 0.6 million in FY 2008- 09; Parking Meter Revenue is expected to
increase by $ 1.4 million in FY 2007- 08 due to full implementation of parking meter
enhancements; and other miscellaneous service charge revenue increases of $ 0.2
million in FY 2007- 08 and $ 0.6 million in FY 2008- 09 are anticipated. Service
Charge revenue is projected to total $ 51.3 million in FY 2007- 08 and $ 52.5 million
in FY 2008- 09.
• Miscellaneous Revenue is budgeted at $ 2.2 million in FY 2007- 08 and $ 1.5 million
in FY 2008- 09. This revenue category includes proceeds from the sale of surplus
assets of $ 0.7 million in FY 2007- 08 and $ 0.3 million in FY 2008- 09; Oakland
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 10
Redevelopment Agency Oak Center loan repayments of $ 0.7 million in FY 2007-
08 and $ 0.4 million in FY 2008- 09; revenue of $ 0.4 million per year from the City’s
Bedroom Tax; and other miscellaneous revenue of $ 0.4 million per year.
• Interfund Transfers to the General Purpose Fund will total $ 31.4 million in FY
2007- 08 and $ 29.9 million in FY 2008- 09. These transfers include a transfer from
the Pension Annuity Fund, which is an on- going but declining revenue source, of
$ 13.2 million in FY 2007- 08 and $ 12.8 million in FY 2008- 09. Additional transfers
to the General Purpose Fund will total $ 18.2 million in FY 2007- 08 and $ 17.1
million in FY 2008- 09 and include transfers from: the Discretionary Mandatory
Garbage Fund ($ 1.0 million per year); the Development Services Fund to
reimburse the General Purpose Fund for past overhead and administrative costs
($ 3.0 million in FY 2007- 08 and $ 2.3 million in FY 2008- 09); the Deferred Pension
Credits Fund resulting from the defeasance of the Oakland Joint Powers Financing
Authority, 1998 Lease Revenue Bonds of $ 1.5 million per year; the Workers
Compensation Fund due to the reduction of accrued workers' compensation
liabilities ($ 5.1 million in FY 2007- 08 and $ 5.3 million in FY 2008- 09); the Sewer
Service Fund to fund administrative support costs ($ 0.6 million per year); and the
General Purpose Fund fund balance ($ 7.0 million in FY 2007- 08 and $ 6.4 million
in FY 2008- 09).
Expenditure Adjustments
The FY 2007- 08 General Purpose Fund budget reflects an increase of $ 26.2 million ( 5.8
percent) over the FY 2006- 07 Midcycle Budget and the FY 2008- 09 General Purpose
Fund budget reflects an increase of $ 14.4 million ( 3.0 percent) over the FY 2007- 08
budget. The adjustments to the General Purpose Fund are summarized in the table
below, and are followed by a listing of the most significant changes.
General Purpose Fund
Agency/ Department
FTE Change
FY 2007- 08
FTE Change
FY 2008- 09
Expenditure Changes
( in million dollars)
FY 2007- 08 FY 2008- 09
Mayor 7.30 - 1.1 0.1
City Council 4.00 - ( 1.3) 0.1
City Administrator ( 1.72) - ( 0.1) 0.3
City Clerk 0.50 - 0.4 ( 0.2)
City Attorney 4.77 - 0.9 0.4
City Auditor - - 0.1 0.1
Finance and Management ( 55.95) 5.00 ( 5.0) 1.5
Police Services 17.18 - 6.9 7.2
Fire Services 2.00 - 4.1 3.0
Public Works ( 1.20) - 0.1 0.1
Contract and Purchasing 20.00 - 2.3 0.1
Information Technology 74.75 - 11.0 0.4
Parks and Recreation 16.06 8.11 1.6 0.8
Library Services ( 4.91) 2.27 0.6 0.6
Oakland Museum ( 0.49) 0.05 0.5 0.2
Human Services 1.95 0.27 ( 0.1) 0.4
Comm and Econ Development ( 0.42) - 0.1 0.0
Non- Department - - 5.0 ( 0.2)
Capital Improvement Program - - ( 2.0) ( 0.5)
Total: 83.82 15.70 $ 26.2 $ 14.4
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 11
􀂙 Mayor. In the Mayor’s Office, various staffing changes are being implemented
including the addition of Intergovernmental Affairs staff and the reallocation of the
Mayor and Chief of Staff salary from the General Purpose Fund to the Oakland
Redevelopment Agency Fund.
􀂙 City Council. The budget for the City Council includes the addition of four Senior
Legislative Policy Analyst positions and the elimination of one- time priority project
funding for each Council District from FY 2006- 07.
􀂙 City Administrator. In the City Administrator’s Office, budget changes include the
transfer of the Contract Compliance function to the newly created Department of
Contracting and Purchasing, the addition of one position to provide support for
enforcement of code violations, the addition of one Program Analyst and one part-time
Management Intern position, the elimination of the Web Master function in the
Marketing Office and the shift of several positions from the General Purpose Fund to
other funds.
􀂙 City Clerk. In the Office of the City Clerk, funding has been provided for a major
outreach and public education effort to prepare Oakland citizens for the new voter
approved Ranked Voting System.
􀂙 City Attorney. The Office of the City Attorney’s budget restores funding for existing
Deputy City Attorney positions providing legal support for the Negotiated Settlement
Agreement and Deemed Approved programs and also reflects the transfer of the
Neighborhood Law Corps to the General Purpose Fund and the transfer of a portion
of the Vehicle Seizure appropriation from the Police Services Agency budget.
􀂙 Finance and Management. In the Finance and Management Agency, a total of twelve
positions will be added over a two year period. These positions include one Deputy
City Auditor, one limited term Project Manager II ( through June 30, 2009) to serve as
Chief Negotiator and ten positions to support the human resources function. This
budget also reflects the transfer of Information Technology positions to the newly
created Department of Information Technology. Finally, the Finance and
Management Agency budget includes funding for the lease payments and operating
costs of new parking meters. It is anticipated that the cost of the new parking meters
will be offset by additional parking meter revenue.
􀂙 Police Services. The General Purpose Fund portion of the Police Services Agency
budget includes funding for fifteen additional Police Service Technician positions –
five to assist with geographic policing activities and ten to assist with criminal
investigations, the reassignment of six officers to assist with criminal investigations,
as well as the creation of an Assistant Chief of Police position. These positions will
support additional efforts to fight crime and improve public safety. The Police Services
Agency budget also reflects a reduction in the booking fee appropriation based upon
historical spending as well as continued funding of two positions and the use of
annuitants for accelerated hiring and recruiting activities, which is funded 60 percent
from the General Purpose Fund and 40 percent from the Measure Y Fund.
􀂙 Fire Services. The Fire Services Agency budget reflects the addition of three
positions: two civilian Fire Prevention Bureau Inspectors and one Office Assistant II to
the Fire Prevention Bureau. It is anticipated that the cost of these positions will be
offset with additional revenue. This budget also reflects the transfer of one position to
the newly created Department of Information Technology.
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 12
􀂙 Public Works. The Public Works Agency budget for FY 2007- 08 totals $ 115.7 million
and for FY 2008- 09 totals $ 118.7 million. Of this total amount, only $ 2.4 million
( approximately 2 percent) each year is funded from the General Purpose Fund. The
General Purpose Fund portion of the Public Works Agency budget funds mainly
custodial and facility maintenance services and reflects a reduction of 1.2 Museum
Guard positions.
􀂙 Contracting and Purchasing. The newly created Department of Contracting and
Purchasing was formed by transferring the Contract Compliance and Employment
Services function from the City Administrator’s office, the Contract Administration
function from the Public Works Agency and the Purchasing function from the Finance
and Management Agency. This budget also includes the addition of five new positions
for Contract Compliance and Employment Services in order to increase the capacity
and effectiveness of the certification, contract compliance monitoring, and local
employment functions.
􀂙 Information Technology. The newly created Department of Information Technology
was formed by transferring the Information Technology positions and associated costs
from the Finance and Management Agency, Fire Services Agency, Library, and Office
of Parks and Recreation. The Department of Information Technology budget also
includes the addition of four new positions to provide improved systems support.
􀂙 Parks and Recreation. Included among the changes to the FY 2007- 09 budget for the
Office of Parks and Recreation are the enhancement of the Radical Roving Program
focusing on recruiting, redirecting and guiding youth, the addition of part- time
positions to staff the City’s Recreation Centers, additional operating subsidy for the
Oakland Zoo and Children’s Fairyland and the transfer of Information Technology
positions to the Department of Information Technology.
􀂙 Library Services. For the portion of the Oakland Public Library funded by the General
Purpose Fund, a reduction of 2.9 positions will be implemented as well as the transfer
of two Information Technology positions to the Department of Information Technology.
􀂙 Human Services. In the Department of Human Services, funding has been provided
for reuse of the California Hotel for transitional housing for the homeless, as well as
additional General Purpose Fund support for the Senior Companion Program and the
reallocation of funding for 1.2 positions to the General Purpose Fund to more
accurately reflect the support provided.
􀂙 Community and Economic Development. In the Community and Economic
Development Agency, funding for a Real Estate Agent position has been transferred
from the General Purpose Fund to the Telecommunications Land Use Fund.
􀂙 Non- Departmental. The Non- Departmental budget is comprised of those expenditures
which are Citywide in nature and which cannot be assigned to one specific
agency/ department. The most significant changes to the Non- Departmental budget for
FY 2007- 09 include: a decrease in the transfer to the Kids First Fund in FY 2008- 09
due to the completion of the reconciliation approved during FY 2006- 07 Midcycle
budget review; funding for the AIDS Prevention & Education Initiative; transfer of
Intergovernmental Affairs funding from the City Administrator's Office to Non-
Departmental and funding the balance of the cost for a State lobbyist contract; an
increase in labor negotiation funding for arbitration costs related to the Oakland Police
Officers Association; establishment of a transfer to the Comprehensive Clean- up
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 13
Fund based upon additional parking fine revenues to be collected; an increase in the
transfer from the General Purpose Fund to the Self Insurance Liability Fund, the
Henry J. Kaiser Convention Center Fund, the Telecommunications Reserve Fund,
and the Contract Administration Fee Fund to address accumulated negative balances
in those funds; subsidy funding for the Safe Passages program; funding for the
City/ County Collaboration on Children and Youth; increased funding for cultural
institutions including Hacienda Peralta, Chabot Space and Science Center,
Symphony in the Schools Program, Vietnamese Senior Services, and the Oakland
Asian Cultural Center; funding for job and business training including the Cypress-
Mandela Training Center and the Women’s Business Initiative; funding for
contribution to County- wide 211 system which will provide citizens with access to one
telephone number for referrals to social services and other needs; and funding for a
311 system which will provide citizens with access to one telephone number for
inquiries and requests for City services.
Balancing Other Funds
As part of the biennial budget process, staff reviewed all of the City’s funds. During this
review process, issues related to revenues and/ or expenditures were identified in the
Landscaping & Lighting Assessment District Fund, the Comprehensive Clean- Up Fund
and the Head Start Fund. In addition, there are a number of City funds which have, over
time, accumulated negative balances. A discussion of the issues impacting these funds
follows.
The Landscaping & Lighting Assessment District Fund
The current assessment rate structure for the Landscaping and Lighting Assessment
District ( LLAD) has been in place since its inception in 1993. With the rates held
constant, revenues have been flat at about $ 17.0 million annually. Meanwhile, personnel,
utilities and other costs have steadily increased. During the last budget cycle, the LLAD
incurred shortfalls totaling $ 3.0 million in FY 2005- 06 and $ 4.3 million in FY 2006- 07.
These funding shortfalls were covered by one- time funding from the General Purpose
Fund. The City Council proposed to increase the annual assessments in FY 2006- 07. A
majority of property owners, however, did not support the assessment increase.
Continuing increases in personnel expenses and utility costs have resulted in a structural
funding gap. The shortfall for FY 2007- 08 was originally projected to be $ 6.5 million and
was reduced to $ 3.5 million through the utilization of Measure B funds to fund median
landscape/ maintenance costs, additional revenue that will be generated from the phase-out
of the subsidy for private schools, churches and hospitals, and utilization of the
remaining fund balance in the LLAD Fund. The City Council approved funding this $ 3.5
million shortfall for FY 2007- 08 with one- time funds available in the General Purpose
Fund. For FY 2008- 09, the funding shortfall, which is projected to be $ 5.5 million, is
unfunded. In order to fund this deficit, consideration should be given to generating the
additional revenue needed through increased assessments or planning for the
implementation of significant service level reductions in FY 2008- 09.
The Comprehensive Clean- Up Fund
The primary source of revenue to the Comprehensive Clean- Up Fund is a surcharge on
garbage bills which is administered and collected by Waste Management of Alameda
County. This surcharge reimburses the City for the cost of litter clean- up and illegal
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 14
dumping on streets and rights- of- way. Revenue to the Comprehensive Clean- Up Fund is
projected to increase only 1.5 percent per year during FY 2007- 09, while expenditures
will increase at a rate of nearly 18 percent during the first year alone, due mainly to the
negotiated employee salary increases and higher retirement and medical costs. To
reduce the gap between revenues and expenditures, funding for median and landscape
maintenance costs has been transferred to the Measure B Fund. Staff will continue
efforts to balance this fund without cutting services, and will propose a solution to the
funding gap during the midcycle budget process.
The Head Start Fund
Head Start program revenues received by the City from the federal government have not
kept pace with the City’s increased costs to provide these services. Currently, the City
provides an annual subsidy to Head Start of approximately $ 0.75 million, as well as
overhead waivers of more than $ 1 million, to offset the gap between federal revenues
and program costs. As a result of the recent announcement by the federal grantor of a
1.5 percent cost of living increase, the General Purpose Fund’s FY 2008- 09 contribution
to the Head Start Fund will be $ 106,310 over the current annual subsidy. The cost of
living increase is expected to bring the Department of Human Services an additional
$ 215,000 in FY 2007- 09, based on current funding of $ 14.4 million. Of this amount, the
City will retain 68 percent, with the remaining 32 percent allocated to the Unity Council,
which is the Department of Human Services’ delegate agency.
The Department of Human Services budget includes staffing changes to more
appropriately reflect program operations Including the addition of a Center Director
position for the new 26th Avenue Head Start site, increasing the part- time Early Childhood
Instructor positions from 4.5 to 6.0 FTE, and adding one Food Service Worker. These
additions were offset by the elimination of several vacant positions. Other normal
personnel cost increases will be covered by receipt of an anticipated grant of $ 1.0 million
from the State of California for the Pre- Kindergarten Family Literacy Program of which
80% will be allocated to existing personnel costs with the remaining 20% providing
additional services for children and families currently served by Head Start.
Funds with Negative Balances
Several City funds have accumulated negative fund balances over the years due to
revenue under- collection and/ or over- spending. Included among those funds are the
following:
– Self- Insurance Liability Fund
– Kaiser Convention Center Fund
– Telecommunications / Cable Franchise Fund
– Contract Compliance Fund
– Equipment Fund
– Facilities Fund
These negative fund balances have been drawing resources from the General Purpose
Fund. The City began to address the negative balances in the above funds during the FY
2003- 05 budget process by reducing expenses and raising revenues where possible. The
FY 2005- 07 Budget included a rebalancing plan to gradually eliminate the deficit in these
funds However, further balancing measures are necessary. For the Equipment and
Facilities funds ( internal service funds), payments from departmental users for facility and
FY 2007- 09 Adopted Policy Budget – Transmittal Letter Page 15
equipment maintenance must be increased to reflect the actual cost of providing these
services, with the City also identifying ways to lower the cost of these services through
efficiencies realized on the most productive utilization of technology and staffing. For all
other funds, continued transfers from the General Purpose Fund will be required. The
gradual repayment of the negative balances will require an increase in the General
Purpose Fund contribution of approximately $ 5 million during each year of this two- year
budget cycle.
Capital Projects Fund Group
A concern regarding the Capital Improvement Program is the depletion of the City’s
discretionary capital funding stream, the Municipal Improvement Capital Fund, which
occurred during the FY 2003- 05 budget cycle. The City relied on this funding source for a
number of years to implement capital projects when no other funding such as federal and
state funds was available. Many streetscape projects and major technology investments
have been funded from this fund. The City does not currently have an on- going source of
funding for discretionary capital improvement spending. After researching all potential
options for capital funding from City’s sources, several one- time funding streams were
identified which will support $ 9 million in capital projects over the next two years. Overall,
the Capital Improvement Program reflects $ 255 million in capital projects during the next
five year period, of which $ 120 million will be spent on improvements to streets and
facilities within redevelopment areas and other projects funded by the Oakland
Redevelopment Agency; $ 69 million will fund street, sidewalk and traffic improvements
from Measure B and State Transportation Funds; and $ 45 million will be spent on sewer
replacement projects. A summary of the five year Capital Improvement Program is
included in the “ Capital Improvement Program” section of this budget document. Details
of the five- year Capital Improvement Program projects and funding sources are provided
in a separate budget document, the 2007- 12 Capital Improvement Program.
Conclusion
The FY 2007- 09 Adopted Budget reflects the City’s continued efforts to enhance City
services and programs by leveraging limited resources. This budget incorporates
organizational improvements that are designed to provide operating efficiencies and
allow the City to most effectively implement programs, services and maintain
infrastructure. Closely aligned with the Mayor and City Council goals, this budget not
only serves as a spending plan for the next two years, but also as a management and
communications document that outlines the City’s commitment to providing
accountability, strategic planning, and performance evaluation for all City activities.
The Administration will continue to support the Mayor and the City Council with the
innovation, dedication and diligence necessary to see these goals into fruition.
Respectfully submitted,
Deborah A. Edgerly
City Administrator
FY 2007- 09 ADOPTED POLICY BUDGET i
TABLE OF CONTENTS
TABLE OF CONTENTS
LETTER OF TRANSMITTAL
MAYOR/ COUNCIL PRIORITIES ....................................................................................................................... A- 1
Mayor / Council Goals ............................................................................................................................... ..... A- 1
BUDGET GUIDE ............................................................................................................................... ..................... B- 1
City’s Two- Year Budget ............................................................................................................................... .. B- 1
Five- Year Financial Plan ............................................................................................................................... .. B- 1
Budget Process ............................................................................................................................... ................ B- 3
Format of Budget Document ........................................................................................................................... B- 6
Format of Agency and Department Budgets ................................................................................................... B- 7
CITY FACTS ............................................................................................................................... ............................. C- 1
General Information ............................................................................................................................... ......... C- 1
Statistical Profile ............................................................................................................................... .............. C- 1
Government ............................................................................................................................... ..................... C- 2
Commerial Sectors ............................................................................................................................... .......... C- 2
Labor and Employment ............................................................................................................................... .... C- 3
Demographics ............................................................................................................................... .................. C- 3
History ............................................................................................................................... ............................. C- 4
Transportation and Mass Transit ..................................................................................................................... C- 5
Education ............................................................................................................................... ......................... C- 6
Health Care ............................................................................................................................... ..................... C- 7
Public Safety ............................................................................................................................... .................... C- 7
Parks and Recreation ............................................................................................................................... ...... C- 8
Arts and Attractions ............................................................................................................................... ......... C- 8
Professional / Amateur Sports ....................................................................................................................... C- 10
Miscellaneous Construction Activity .............................................................................................................. C- 11
Demographic Statistics ............................................................................................................................... .. C- 11
Port of Oakland Activity ............................................................................................................................... C- 12
ii FY 2007- 09 ADOPTED POLICY BUDGET
TABLE OF CONTENTS
FINANCIAL SUMMARIES ............................................................................................................................... ... D- 1
Introduction ............................................................................................................................... ........................ D- 1
Introduction to Financial Summaries ................................................................................................................ D- 1
Revenue and Expenditure Forecast Methodology ........................................................................................... D- 1
Basis of Budgeting ............................................................................................................................... .......... D- 5
Planning for Two- Year Budget ........................................................................................................................ D- 5
Summary of Significant Proposed Budget Changes and Revenue Enhancements for FY 2007- 09 ................ D- 8
Summary of Proposed Budget by Fund Group .............................................................................................. D- 13
Fund Balance Summary........................................................................................................................ ........ D- 14
Revenue Tables ............................................................................................................................... ................ D- 17
Revenue by Fund Group: FY 2007- 08 ........................................................................................................... D- 18
Revenue by Fund Group: FY 2008- 09 ........................................................................................................... D- 20
All Funds Revenue by Type........................................................................................................................... D- 22
General Purpose Fund Revenue by Type ...................................................................................................... D- 24
General Economic Overview ......................................................................................................................... D- 26
Summary of the General Purpose Fund Revenues ........................................................................................ D- 27
Expenditure Tables ............................................................................................................................... .......... D- 37
Summary of FY 2007- 08 Proposed Fund Expenditures ................................................................................. D- 38
Summary of FY 2008- 09 Proposed Fund Expenditures ................................................................................. D- 39
Expenditures by Fund Group: FY 2007- 08 ..................................................................................................... D- 40
Expenditures by Fund Group: FY 2008- 09 ..................................................................................................... D- 42
All Funds Expenditures by Agency / Department ......................................................................................... D- 44
General Purpose Fund Expenditures by Agency / Department ..................................................................... D- 46
FY 2007- 08 Budget Summary by Fund ......................................................................................................... D- 48
FY 2008- 09 Budget Summary by Fund ......................................................................................................... D- 58
ORGANIZATION SUMMARIES .......................................................................................................................... E- 1
City’s Organizational Chart .............................................................................................................................. E- 1
Summary of Positions by Agency/ Department ................................................................................................ E- 2
Citywide FTE Change- 10- Year History .......................................................................................................... E- 4
Breakdown of FY 2007- 09 Proposed Budget FTES by Agency/ Department ................................................. E- 5
FY 2007- 09 ADOPTED POLICY BUDGET iii
TABLE OF CONTENTS
AGENCY / DEPARTMENTAL BUDGETS
Mayor ............................................................................................................................... .................................... F- 1
Mission Statement...................................................................................................................... ...................... F- 1
Goals ............................................................................................................................... ................................. F- 1
Organizational Chart by Program ..................................................................................................................... F- 2
Programs Included in FY 2007- 09 Budget ....................................................................................................... F- 2
Department Summary........................................................................................................................ .............. F- 3
Historical Revenue and Expenditures by Program ........................................................................................... F- 4
Significant Changes ............................................................................................................................... .......... F- 4
Authorized Positions by Classification .............................................................................................................. F- 5
Authorized Positions by Program ..................................................................................................................... F- 5
Program Detail ............................................................................................................................... ................. F- 6
City Council ............................................................................................................................... ........................ G- 1
Duties and Responsibilities .............................................................................................................................. G- 1
Goals ............................................................................................................................... ................................ G- 1
Organizational Chart by Program .................................................................................................................... G- 2
Programs Included in FY 2007- 09 Budget ...................................................................................................... G- 2
Department Summary........................................................................................................................ ............. G- 3
Historical Revenue and Expenditures by Program .......................................................................................... G- 4
Significant Changes ............................................................................................................................... ......... G- 4
Revenue and Expenditure by District .............................................................................................................. G- 5
Authorized Positions by Classification ............................................................................................................. G- 7
Authorized Positions by Program .................................................................................................................... G- 7
Program Detail ............................................................................................................................... ................ G- 8
City Administrator ............................................................................................................................... .............. H- 1
Mission Statement...................................................................................................................... ..................... H- 1
Business Goals ............................................................................................................................... ................. H- 1
Organizational Chart by Program .................................................................................................................... H- 2
Programs Included in FY 2007- 09 Budget ...................................................................................................... H- 2
Department Summary........................................................................................................................ ............. H- 4
iv FY 2007- 09 ADOPTED POLICY BUDGET
TABLE OF CONTENTS
City Administrator ( continued)
Historical Revenue and Expenditures by Program .......................................................................................... H- 5
Significant Changes ............................................................................................................................... ......... H- 6
Authorized Positions by Classification ............................................................................................................. H- 8
Authorized Positions by Program .................................................................................................................. H- 10
Program Detail ............................................................................................................................... .............. H- 11
City Attorney ............................................................................................................................... ......................... I- 1
Mission Statement ............................................................................................................................... ............. I- 1
Business Goals ............................................................................................................................... .................. I- 1
Organizational Chart by Program ..................................................................................................................... I- 2
Programs Included in FY 2007- 09 Budget ....................................................................................................... I- 2
Department Summary........................................................................................................................ .............. I- 3
Historical Revenue and Expenditures by Program ........................................................................................... I- 4
Significant Changes ............................................................................................................................... .......... I- 4
Authorized Positions by Classification .............................................................................................................. I- 5
Authorized Positions by Program ..................................................................................................................... I- 6
Program Detail ............................................................................................................................... ................. I- 7
City Auditor ............................................................................................................................... .......................... J- 1
Mission Statement ............................................................................................................................... ............. J- 1
Business Goals ............................................................................................................................... .................. J- 1
Organizational Chart by Program ..................................................................................................................... J- 2
Programs Included in FY 2007- 09 Budget ....................................................................................................... J- 2
Department Summary........................................................................................................................ .............. J- 3
Historical Revenue and Expenditures by Program ........................................................................................... J- 3
Authorized Positions by Classification .............................................................................................................. J- 4
Authorized Positions by Program ..................................................................................................................... J- 4
Program Detail ............................................................................................................................... ................. J- 5
City Clerk ............................................................................................................................... ............................ K- 1
Mission Statement ............................................................................................................................... ............ K- 1
Business Goals ............................................................................................................................... ................. K- 1
FY 2007- 09 ADOPTED POLICY BUDGET v
TABLE OF CONTENTS
City Clerk ( continued)
Organizational Chart by Program .................................................................................................................... K- 2
Programs Included in FY 2007- 09 Budget ...................................................................................................... K- 2
Department Summary........................................................................................................................ ............. K- 3
Historical Revenue and Expenditures by Program .......................................................................................... K- 4
Significant Changes ............................................................................................................................... ......... K- 4
Authorized Positions by Classification ............................................................................................................. K- 5
Authorized Positions by Program .................................................................................................................... K- 5
Program Detail ............................................................................................................................... ................ K- 6
Contracting & Purchasing ............................................................................................................................... . L- 1
Mission Statement...................................................................................................................... ..................... L- 1
Business Goals ............................................................................................................................... ................. L- 1
Organizational Chart by Program .................................................................................................................... L- 2
Programs Included in FY 2007- 2009 Budget ................................................................................................... L- 2
Department Summary........................................................................................................................ ............. L- 3
Historical Revenue and Expenditures by Program .......................................................................................... L- 4
Significant Changes ............................................................................................................................... ......... L- 4
Authorized Positions by Classification ............................................................................................................. L- 5
Authorized Positions by Program .................................................................................................................... L- 5
Program Detail ............................................................................................................................... ................ L- 6
Information Technology ............................................................................................................................... ... M- 1
Mission Statement...................................................................................................................... .................... M- 1
Business Goals ............................................................................................................................... ................ M- 1
Organizational Chart by Program ................................................................................................................... M- 2
Programs Included in FY 2007- 2009 Budget .................................................................................................. M- 2
Department Summary........................................................................................................................ ............ M- 3
Historical Revenue and Exenditures by Program ........................................................................................... M- 4
Significant Changes ............................................................................................................................... ........ M- 5
Authorized Positions by Classification ............................................................................................................ M- 6
Authorized Positions by Program ................................................................................................................... M- 7
Program Detail ............................................................................................................................... ............... M- 8
vi FY 2007- 09 ADOPTED POLICY BUDGET
TABLE OF CONTENTS
Finance and Managment ............................................................................................................................... ... N- 1
Mission Statement ............................................................................................................................... ............ N- 1
Business Goals ............................................................................................................................... ................. N- 1
Organizational Chart by Program .................................................................................................................... N- 2
Programs Included in FY 2007- 09 Budget ...................................................................................................... N- 2
Department Summary........................................................................................................................ ............. N- 3
Historical Revenue and Expenditures by Program .......................................................................................... N- 4
Significant Changes ............................................................................................................................... ......... N- 5
Authorized Positions by Classification ............................................................................................................. N- 7
Authorized Positions by Program .................................................................................................................. N- 10
Program Detail ............................................................................................................................... .............. N- 11
Police Services ............................................................................................................................... ................... O- 1
Mission Statement ............................................................................................................................... ............ O- 1
Business Goals ............................................................................................................................... ................. O- 1
Organizational Chart by Program .................................................................................................................... O- 3
Programs Included in FY 2007- 09 Budget ...................................................................................................... O- 4
Department Summary........................................................................................................................ ............. O- 5
Historical Revenue and Expenditures by Program .......................................................................................... O- 6
Significant Changes ............................................................................................................................... ......... O- 7
Authorized Positions by Classification ............................................................................................................. O- 8
Authorized Positions by Program .................................................................................................................. O- 10
Program Detail ............................................................................................................................... .............. O- 11
Fire Services ............................................................................................................................... ........................ P- 1
Mission Statement ............................................................................................................................... ............ P- 1
Business Goals ............................................................................................................................... ................. P- 1
Organizational Chart by Program .................................................................................................................... P- 3
Programs Included in FY 2007- 09 Budget ...................................................................................................... P- 3
Department Summary........................................................................................................................ ............. P- 5
Historical Revenue and Expenditures by Program .......................................................................................... P- 6
Significant Changes ............................................................................................................................... ......... P- 7
FY 2007- 09 ADOPTED POLICY BUDGET vii
TABLE OF CONTENTS
Fire Services ( continued)
Authorized Positions by Classification ............................................................................................................. P- 8
Authorized Positions by Program .................................................................................................................... P- 9
Program Detail ............................................................................................................................... .............. P- 10
Museum ............................................................................................................................... ............... Q- 1
Mission Statement...................................................................................................................... ..................... Q- 1
Business Goals ............................................................................................................................... ................. Q- 1
Organizational Chart by Program .................................................................................................................... Q- 2
Programs Included in FY 2007- 09 Budget ...................................................................................................... Q- 2
Department Summary........................................................................................................................ ............. Q- 3
Historical Revenue and Expenditures by Program .......................................................................................... Q- 4
Significant Changes ............................................................................................................................... ......... Q- 4
Authorized Positions by Classification ............................................................................................................. Q- 5
Authorized Positions by Program .................................................................................................................... Q- 6
Program Detail ............................................................................................................................... ................ Q- 7
Library ............................................................................................................................... ................................. R- 1
Mission Statement...................................................................................................................... ..................... R- 1
Business Goals ............................................................................................................................... ................. R- 1
Organizational Chart by Program .................................................................................................................... R- 2
Programs Included in FY 2007- 09 Budget ...................................................................................................... R- 3
Department Summary........................................................................................................................ ............. R- 4
Historical Revenue and Expenditures by Program .......................................................................................... R- 5
Significant Changes ............................................................................................................................... ......... R- 5
Authorized Positions by Classification ............................................................................................................. R- 6
Authorized Positions by Program .................................................................................................................... R- 7
Program Detail ............................................................................................................................... ................ R- 8
Parks and Recreation ............................................................................................................................... ......... S- 1
Mission Statement...................................................................................................................... ...................... S- 1
Business Goals ............................................................................................................................... .................. S- 1
Organizational Chart by Program ..................................................................................................................... S- 2
viii FY 2007- 09 ADOPTED POLICY BUDGET
TABLE OF CONTENTS
Parks and Recreation ( continued)
Programs Included in FY 2007- 09 Budget ....................................................................................................... S- 3
Department Summary........................................................................................................................ .............. S- 4
Historical Revenue and Expenditures by Program ........................................................................................... S- 5
Significant Changes ............................................................................................................................... .......... S- 6
Authorized Positions by Classification .............................................................................................................. S- 6
Authorized Positions by Program ..................................................................................................................... S- 9
Program Detail ............................................................................................................................... ............... S- 10
Human Services ............................................................................................................................... .................. T- 1
Mission Statement ............................................................................................................................... ............. T- 1
Business Goals ............................................................................................................................... .................. T- 1
Organizational Chart by Program ..................................................................................................................... T- 2
Programs Included in FY 2007- 09 Budget ....................................................................................................... T- 2
Department Summary........................................................................................................................ .............. T- 4
Historical Revenue and Expenditures by Program ........................................................................................... T- 5
Significant Changes ............................................................................................................................... .......... T- 6
Authorized Positions by Classification .............................................................................................................. T- 7
Authorized Positions by Program ..................................................................................................................... T- 8
Program Detail ............................................................................................................................... ................. T- 9
Public Works ............................................................................................................................... ....................... U- 1
Mission Statement ............................................................................................................................... ............ U- 1
Business Goals ............................................................................................................................... ................. U- 1
Organizational Chart by Program .................................................................................................................... U- 2
Programs Included in FY 2007- 09 Budget ...................................................................................................... U- 3
Department Summary........................................................................................................................ ............. U- 4
Historical Revenue and Expenditures by Program .......................................................................................... U- 5
Significant Changes ............................................................................................................................... ......... U- 6
Authorized Positions by Classification ............................................................................................................. U- 7
Authorized Positions by Program .................................................................................................................... U- 8
Program Detail ............................................................................................................................... ................ U- 9
FY 2007- 09 ADOPTED POLICY BUDGET ix
TABLE OF CONTENTS
Community and Economic Development ........................................................................................................ V- 1
Mission Statement...................................................................................................................... ..................... V- 1
Business Goals ............................................................................................................................... ................. V- 1
Organizational Chart by Program .................................................................................................................... V- 3
Programs Included in FY 2007- 09 Budget ...................................................................................................... V- 4
Department Summary........................................................................................................................ ............. V- 8
Historical Revenue and Expenditures by Program .......................................................................................... V- 9
Significant Changes ............................................................................................................................... ....... V- 11
Authorized Positions by Classification ........................................................................................................... V- 12
Authorized Positions by Program .................................................................................................................. V- 16
Program Detail ............................................................................................................................... .............. V- 17
Non- Departmental................................................................................................................... .......................... W- 1
Overview ............................................................................................................................... ........................ W- 1
Programs Included in FY 2007- 09 Budget ..................................................................................................... W- 1
Historical Revenue and Expenditures by Program ......................................................................................... W- 3
Significant Changes ............................................................................................................................... ........ W- 3
Program Detail ............................................................................................................................... ............... W- 5
Debt Burden and Debt Capacity .................................................................................................................. W- 14
City’s Debt Issuances ............................................................................................................................... ... W- 15
Debt Service Schedule ............................................................................................................................... . W- 22
Rebalancing Plan for Negative Funds .......................................................................................................... W- 24
CIP ............................................................................................................................... ........................................ X- 1
Definition ............................................................................................................................... ......................... X- 1
Categories ............................................................................................................................... ........................ X- 1
Capital Improvement Program 2007- 12 Summary by Source ......................................................................... X- 3
Capital Improvement Program 2007- 12 Summary by Program ...................................................................... X- 6
Capital Improvement Program 2007- 12 Summary by Category ..................................................................... X- 7
Capital Improvement Program 2007- 12 Projects by Category ........................................................................ X- 8
Capital Improvement Program 2007- 12 Unfunded Projects by Department/ Agency ................................... X- 12
SUPPLEMENTAL ............................................................................................................................... ............. Y- 1
x FY 2007- 09 ADOPTED POLICY BUDGET
TABLE OF CONTENTS
GLOSSARY....................................................................................................................... ................................. Z- 1
Abbreviation Guide ............................................................................................................................... .......... Z- 1
Budgetary Terminology ............................................................................................................................... .... Z- 3
Fund Descriptions ............................................................................................................................... ............ Z- 7
LEGISLATION ............................................................................................................................... ............... AA- 1
INDEX ............................................................................................................................... .............................. AB- 1
FY 2007- 09 ADOPTED POLICY BUDGET A - 1
MAYOR / COUNCIL PRIORITIES
MAYOR/ COUNCIL PRIORITIES
The City’s Mission
The City of Oakland is committed to the delivery of effective, courteous, and responsive services citizens and
employees are treated with fairness, dignity, and respect.
Civic and employee pride are accomplished through constant pursuit of excellence and a work force that
values and reflects the diversity of the oakland community.
Strategic Planning and the Budget
Strategic planning is a vital process that allows cities to
take control of and shape their futures. Strategic plan-ning
is proactive: it is about thinking, planning, and antici-pating
the kinds of things we will need to do in order to
achieve our vision and goals. Effective strategic planning
involves an understanding of what business we are in,
who our customers are, and how well we are meeting
their expectations and needs. Strategic planning allows
the city organization to better align its services with the
Mayor/ City Council and community priorities. Through the
strategic planning process, we collectively formulate goals,
expectations, and strategies for improving life in the City.
This guarantees that we are harnessing the best resources
possible in planning our future, as well as providing an all
important forum for civic participation, ownership, and en-gagement.
Finally, strategic planning ensures a wise and
effective utilization of City resources, mainly through the
annual budget process. Because we have identified our goals
and expectations, we can now concertedly allocate resources,
where necessary, to ensure that we are positioned to meet
these goals. The City Council met in November of 2006 and
March of 2007 to develop and reconfirm their strategic pri-orities,
and to develop action plans for departments in order
to achieve their priorities. These goals, along with the
Mayor’s stated priorities ( task force goals), are illustrated
below. Together, these strategic goals will assist in focusing
the organizations attention on achieving the results the com-munity
seeks.
Mayor/ Council Goals
Healthcare
Economic
Development
Youth and
Seniors Public Safety
Sustainable
City
Efficiency &
Responsiveness
to Residents
Infrastructure
STRATEGIC
GOALS
A - 2 FY 2007- 09 ADOPTED POLICY BUDGET
MAYOR / COUNCIL PRIORITIES
PROGRAM STRUCTURE BY STRATEGIC GOALS
ECONOMIC DEVELOPMENT
City Administrator Community &
Economic Development
Marketing Broadway/ MacArthur/
San Pablo
Business Creation,
Attraction, Retention
& Expansion of Services
Central City East Coliseum
Commercial Lending Downtown Development
Oakland Army Base Workforce Development
EFFICIENCY & RESPONSIVENESS TO RESIDENTS
Mayor
Oakland Assistance Center
City Council City Administrator City Auditor Police Services
Constituent Affairs Public Ethics
Commission
Citizens Police
Review Board
Auditing Internal Affairs
Research,
Planning &
Crime Analysis
FY 2007- 09 ADOPTED POLICY BUDGET A - 3
MAYOR / COUNCIL PRIORITIES
PROGRAM STRUCTURE BY STRATEGIC GOALS
HEALTHCARE
Fire Services Human Services
Emergency Medical
Services
Fostering Safe &
Healthy Communities
Strengthening Children,
Youth & Families
Parks & Recreation
Adult & Community
Sports Aquatics - Boating
Aquatics - Pools Ballfields
Davies Tennis &
Citywide Tennis
Recreation Centers &
Programs
INFRASTRUCTURE
City Administrator Public Works
Public Art Trees
Parks, Grounds &
Medians
Keep Oakland Clean
& Beautiful
Community & Economic
Development
Development Permit
Processing & Engineering
Approval
Development Permit &
Code Enforcement
Inspections
Development
Review / Zoning
Engineering, Planning
& Design
Street Sidewalk
Management & Maintenance
Sanitary & Storm Sewer
Management & Maintenance
A - 4 FY 2007- 09 ADOPTED POLICY BUDGET
MAYOR / COUNCIL PRIORITIES
PROGRAM STRUCTURE BY STRATEGIC GOALS
PUBLIC SAFETY
City Administrator
Measure Y
City Attorney Police Services Fire Services Community &
Economic Development
Neighborhood Law Corp
911 Dispatch
Criminal Investigations Communications
Criminalistics
Communications
Patrol
Records
Emergency Response
Support Services
Emergency Services /
Homeland Security
Transportation &
Pedestrian Safety
Port Security
Special Operations
Fire Department Safety
Education & Training
Fire Prevention Bureau
Fire Suppression /
Field Operations
Special Operations –
Emergency Response
Training
Traffic Operations
Vice Narcotics
FY 2007- 09 ADOPTED POLICY BUDGET A - 5
MAYOR / COUNCIL PRIORITIES
PROGRAM STRUCTURE BY STRATEGIC GOALS
SUSTAINABLE CITY
Mayor
Mayor’s Support
City Council City Administrator City Attorney City Clerk
Policy Analysis Administration Advisory Services
Americans with
Disabilities Act
Budget Analysis &
Operations Support
Cultural Funding
Equal Employment
Opportunity
Legal Support &
Operations
Litigation Services
Agenda Management
Equal Access
Customer Services
& Public Relations
Elections & Political
Compliance
Records Management
Contracting & Purchasing Information Technology
Administration
Contract Compliance &
Employment Services
Purchasing & Contract
Administration
Administrative &
Reprographic Services
Application Development
& Database Development
Customer & Project
Support
Desktop Support
Server Maintenance
& Support
Network Engineering &
Telecommunications
Support
A - 6 FY 2007- 09 ADOPTED POLICY BUDGET
MAYOR / COUNCIL PRIORITIES
PROGRAM STRUCTURE BY STRATEGIC GOALS
SUSTAINABLE CITY
Finance & Management
Financial Management
Police Services Fire Services Library Museum
Agency- wide
Administration
Library Systemwide
Support
Fire Department
Administration
Personnel, Safety
& Liability
Museum Oversight
Community & Economic
Development Non- Departmental
Parks & Recreation Public Works Central
Administration
Central Reservations
Contract Management
Administration
Electrical & Energy
Efficiency
Environmental
Compliance &
Remediation
Human Resource
Management
Parking Management
CEDA Director’s Office
Historic Preservation
Home Ownership &
Rehabilitation
Citywide Activities
Community Promotion
Debt/ Lease
Payments
Cultural Arts Fleet Management &
Maintenance
Recycling &
Solid Waste
Safety & Liability
Housing Development
Major Projects &
Strategic Planning
Project Delivery
Fiscal Management
Watershed &
Waterways Project Implementation
Real Estate
Residential Rent
Adjustment
FY 2007- 09 ADOPTED POLICY BUDGET A - 7
MAYOR / COUNCIL PRIORITIES
PROGRAM STRUCTURE BY STRATEGIC GOALS
YOUTH & SENIORS
Library Museum Human Services Parks & Recreation Community & Economic
Development
After School Programs
Empowering Seniors
& People With
Disabilities
Measure Y
Prevention
Oakland Fund for
Children & Youth
Camps
Community Development
Block Grant
African American
Museum & Library
At Oakland
Branch Library
Literacy Programs
Main Library Services
Curatorial & Exhibition
Museum Education
Services
Museum Visitor
Services
A - 8 FY 2007- 09 ADOPTED POLICY BUDGET
MAYOR / COUNCIL PRIORITIES
NOTES
FY 2007- 09 ADOPTED POLICY BUDGET B - 1
BUDGET GUIDE
BUDGET GUIDE
CITY’S TWO- YEAR BUDGET
THE FIVE- YEAR FINANCIAL PLAN
Local governments use budgets for a variety of
reasons, but most importantly for accountability,
planning, information and evaluation. The City
of Oakland is on a two year budget cycle, with
FY 2007- 09 being Oakland’s sixth biennial
budget. The two- year budget is intended to
improve the City’s long- term planning and
enhance funding stability, as well as to
contribute to operational efficiency.
The City of Oakland adopted a program- based
budget format in FY 2003- 05. The advantage
of a program- based budget is that it focuses
on the product of the budgeting effort rather
than the line items that go into those programs. At a
program level, not only is the budget developed and
The City also develops a Five Year Financial Plan
for the General Purpose Fund. The Five- Year
Financial Plan is an indication of management’s best
assessment of future revenues, expenditures and
operating results over the five- year forecast period.
The compilation and review of the Plan provides an
opportunity to put current funding decisions in context
with longer- term economic conditions while affording
City management a realistic projection of the ongoing
financial information captured ( for revenues, expenditures
and positions), but also performance measures and targets
are set and actual performance is tracked.
The City’s budget is adopted for a 24- month period;
however, the appropriations are divided into two
one- year spending plans. During the second year
of the two- year budget cycle, the Mayor and
Council conduct a Midcycle budget review
considering significant variances in estimated
revenue, expenditures and / or revised mandates
arising from Federal, State or Court actions. The
Mayor, Council and staff also use the first year of
the two- year budget cycle to review, refine, and enhance
the utility of agency/ departmental performance measures.
financial impact of policy decisions. Major goals of the
Five- Year Financial Plan include the following:
1. To put the City’s two- year budget making
process into a five- year planning horizon to
facilitate prudent financial management.
2. To provide an environment for setting revenue
and expenditure targets and for evaluating budget
priorities in light of projected fiscal conditions.
B - 2 FY 2007- 09 ADOPTED POLICY BUDGET
BUDGET GUIDE
THE FIVE- YEAR FINANCIAL PLAN ( Continued)
3. To present a picture of the longer- term strategic
financial issues facing the City, while highlighting
funding priorities for budget planning.
4. To identify potential structural budget imbal-ances,
surpluses or shortfalls.
5. To demonstrate to the policy- makers the likely
impact of the short- term capital investment and
financing decisions on the City’s longer- term fi-nancial
capacity.
6. To provide a useful framework for reviewing and refin-ing
the City’s financial forecasts, as well as its financial
management goals and priorities.
In preparing the Plan, City staff takes into account histori-cal
experience, as well as the economic uncertainties un-derlying
the revenue outlook and growth in expenditures
during the five- year period. The Plan also accounts for
major demographic and legislative changes.
FY 2007- 09 ADOPTED POLICY BUDGET B - 3
BUDGET GUIDE
THE BUDGET PROCESS
The budget process is the formal method through which the City establishes its goals, program priorities and desired
service levels for the upcoming fiscal period, and identifies the resources necessary to achieve them. Essentially, it is a
process through which policy is made, programs are articulated and resources are identified in order to put them into
effect. The chart below summarizes the process, with details provided on the following pages.
Budget process flowchart - FY 2007- 09
Mayor / Council Outline
Budget Priorities, Set Goals
for FY 2007- 09
NOV 2006 Budget Office Provides
Training to Agencies /
Departments on FY 2007- 09
Budget Development
NOV 2006
Agencies / Departments
Develop FY 2007- 09
Budget Proposals
DEC 2006 - JAN 2007
Budget Office Reviews
Agency / Departmental
Budget Proposals for FY
2007- 09, Provides Program
/ Funding
Recommendations to City
Administrator/ Mayor
City Administrator Holds
Internal “ Budget Hearings”
With Agencies /
Departments, Makes
Program / Funding
Recommendations to
Mayor
MAR - APR 2007
Mayor Follows Up with
City Administrator, Budget
Office and Departments;
Makes Final Decisions on
FY 2007- 09 Proposed
Budget
APR 2007
Mayor’s / City
Administrator’s FY 2007-
09 Proposed Budget
Finalized, Budget
Document Printed
APR 2007
Mayor’s / City
Administrator’s FY 2007-
09 Proposed Budget
Document Submitted to
Council / Public
MAY 2007 MAY 2007
Council Deliberates on FY
2007- 09 Proposed Budget,
Makes Adjustments
MAY - JUN 2007
Council Makes Final
Budget Decisions, Adopts
FY 2007- 09 Budget
BY JUN 30, 2007
Council Makes Midcycle
Adjustments to
FY 2008- 09 ( Second Year)
Budget
MAY- JUN 2008
( BUDGET IMPLEMENTATION)
( BUDGET IMPLEMENTATION)
NEXT BUDGET CYCLE
START
FINISH
Council Members Hold
Community Meetings for
Input from Constituents on
FY 2007- 09 Budget
B - 4 FY 2007- 09 ADOPTED POLICY BUDGET
BUDGET GUIDE
The budget process consists of several important stages: 1) Budget Development, 2) Budget Adoption, and 3) Budget
Amendment.
BUDGET DEVELOPMENT
Nov 2006:
Priority Setting The Budget Development process for the FY 2007- 09 cycle began in the fall of
2006, when the City Council established their goals for FY 2007- 09 at the Novem-ber
Budget workshop. Also at that meeting, staff presented to the Mayor and
Council the City’s preliminary revenue and expenditure projections for FY 2007- 09,
with the emphasis on key anticipated issues.
Nov 2006:
Departmental Training During November 2006, comprehensive training was provided to all Agencies /
Departments on the development of the FY 2007- 09 budget. The key components
of the budget instructions provided to Agencies / Departments at the training ses-sions
were: a) budget development by program, with built- in performance informa-tion;
and b) two- year financial outlook and actions necessary to balance the FY
2007- 09 budget.
Dec 2006- Jan 2007:
Departmental Budget
Development Agencies/ Departments began the development of their budget proposals for FY
2007- 09 in December, following budget training in November. Budget proposals
were developed in programmatic terms, with anticipated revenues and requested
appropriations presented by programs, with linkages to Mayor/ Council Goals. In
addition, throughout the budget document, revenues, expenditures, and positions are
reflected by program.
Feb- Mar 2007:
Budget Office Analysis Upon receipt of Agency / Departmental budget submittals, the Budget Office pro-vided
an in- depth analysis of each budget request. Based upon the initial analysis
and subsequent follow- up with departments to resolve issues and answer questions,
recommendations were provided to the Mayor and City Administrator regarding
the proposed programs, new initiatives, new funding requests, and budget balancing
measures.
Mar- Apr 2007:
Internal Budget Hearings Internal budget hearings were held by the City Administrator, City Administrator
staff, Mayor staff and the Budget Office with Agency Directors and their program
/ fiscal staff. At these internal meetings, discussions occurred about program priori-ties
and resource requirements for the next two years; budget recommendations
and questions from the Mayor, City Administrator and Budget Office were also
discussed. Based on the outcomes of the internal budget hearings, follow- up dis-cussions
with Agencies / Departments when necessary and additional analysis by
staff, preliminary budget decisions were made by the Mayor and City Administra-tor.
Apr 2007:
Proposed Budget Finalized Based on the decisions following the internal budget hearings, subsequent discus-sions
with the Agencies / Departments, additional analysis by the Budget Office,
and a series of wrap- up meetings with the Mayor and City Administrator, the FY
2007- 09 Proposed Budget was finalized in April 2007. The Budget Office then
prepared the Proposed Budget document for presentation to the City Council in
May.
FY 2007- 09 ADOPTED POLICY BUDGET B - 5
BUDGET GUIDE
May- June 2007:
Council Budget Deliberations Following the May 3rd release of the FY 2007- 09 Proposed Budget, City Council
members held community meetings to obtain input from constituents on the FY
2007- 09 budget priorities, and to respond to questions and concerns pertaining to
the budget proposal.
On May 15, 2007, the Mayor and City Administrator presented their FY 2007- 09
Proposed Budget to the City Council. Upon presentation of the Proposed Budget,
the City Council conducted a series of public hearings to review each Agency /
Department budget.
BUDGET ADOPTION
June 21 2007:
Council Budget Adoption As required by the City Char ter, the City Charter requires that the City Council
adopted a balanced budget by June 30, preceding the start of the fiscal year com-mencing
July 1. The Adopted Budget provides two- year appropriation authority for
all funds and first- and second- year appropriations for the Five- Year Capital Im-provement
Program. The appropriations are outlined in two annual spending plans
for FY 2007- 09.
BUDGET AMENDMENT
May- June 2008:
Midcycle Budget Amendment During the second year of the two- year budget cycle, the Mayor and Council will
conduct a Midcycle budget review considering significant variances in estimated
revenue, expenditure and/ or revised mandates arising from Federal, State or Court
actions. For the FY 2007- 09 budget cycle, the Midcycle Review will take place in
May- June 2008, and will pertain to revenues and expenditures for FY 2008- 09 ( i. e.
the second year of the biennial budget).
Year- Round
Budget Amendments The budget is a flexible document that provides a comprehensive framework of
resource allocations for implementation of the City’s goals, priorities and program
activities covering the two- year fiscal period. Amendments to the budget may be
made throughout the two- year period. Appropriation of new money or transfers
between funds and Agencies/ Departments requires formal action through Council
resolution. Transfers between divisions within an agency, accounts or projects may
be made at the administrative level. These transfers can be authorized by the City
Administrator, Budget Office or Agency Directors, depending on the nature of the
transfer.
B - 6 FY 2007- 09 ADOPTED POLICY BUDGET
BUDGET GUIDE
This section provides the reader with a brief explanation of the format and contents of the FY 2007- 09 Adopted Policy
Budget document. A description of major sections of this document, with an explanation of contents, is provided below.
Letter of Transmittal This section includes the Mayor’s and City Administrator’s budget message. It outlines
the FY 2007- 09 overall budgetary plan of the City, including major budget / program
changes and anticipated challenges.
Table of Contents This outlines the order and page number of each section of the budget document.
Mayor/ Council Priorities This section summarizes goals and priorities of the Mayor and City Council and illustrates
linkages to departmental programs.
Budget Guide This section contains an overview of the budget process. In addition, it outlines the
organization of the budget.
City Facts This section provides the reader with general information about the City, including a
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 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.
Organization Summary This section presents the citywide organization chart and a summary of historical and
current staffing levels by agency and department.
The agency and department programmatic budgets are one of two major components
of the City’s total budget. The other major component is the Capital Improvement
Program budget. Each agency/ department budget contains both summaries and detailed
budgets, including details by program.
This section provides a summary of planned capital projects and cost estimates, however
the project detail are published in a separate document called the FY 2007- 2012 Capital
Improvement Program.
Supplemental Information This section includes budget and financial policies, including the city’s policy on balanced
budgets, reserves, long- term planning, investment, debt management and charges for
services.
Glossary This section serves as a reference guide.
Index This section serves as a reference guide.
Legislation Copies of legislation approved by the City Council to adopt the FY 2007- 09 Budget are
included in this section.
FORMAT OF BUDGET DOCUMENT
Capital Improvement
Program
Agency Programmatic
Budgets
FY 2007- 09 ADOPTED POLICY BUDGET B - 7
BUDGET GUIDE
The budget of each agency/ department 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.
Mission Statement Each agency/ department budget begins with its Mission Statement, which should
support one or more Council Goals.
Business Goals The second section lists the agency/ departmental goals for FY 2007- 09. Typically,
these goals represent the business purpose of an agency/ department, in support of
its mission statement. Each department in the City fulfills particular needs of the
community, and this section outlines those responsibilities.
Organization Chart This section provides the organization chart by Program and its authorized full- time
equivalent positions for each program.
This section lists all programs, along with their descriptions, for each agency/ de-partment.
Department Summary This section illustrates spending distribution by Program, Personnel
Summary and Expenditure Summary for each agency/ department.
Appropriations The next several pages display summary information for revenue, expenditures,
and positions, both historical and for FY 2007- 09, associated with operating the
agency/ department.
Historical Budget by Program summarizes revenue and expenditures by pro-gram.
This table displays appropriations by program for all funds.
Significant Changes to Budget is a table highlighting major changes to the agency/
department’s appropriations included in the FY 2007- 09 Adopted Policy Budget.
Significant changes are presented for the General Purpose Fund and all other funds.
Authorized Positions by Classification lists all positions within the agency/ de-partment
by classification title, and provides the number of full time equivalent
positions ( FTEs) appropriated for the classification.
Authorized Position by Program summarizes all positions by program.
Program Budget Detailsprovides a description of each program. A financial table
displays information on FY 2007- 09 revenues and appropriations and FTEs. Lastly,
performance measures for the program are articulated along with performance
targets.
FORMAT OF AGENCY AND DEPARTMENT BUDGETS
Programs Included
in the FY 2007- 09 Budget
B - 8 FY 2007- 09 ADOPTED POLICY BUDGET
BUDGET GUIDE
NOTES
C - 1
CITY FACTS
FY 2007- 09 ADOPTED POLICY BUDGET
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 and international trade for the Bay Area.
Oakland is the eighth largest city in the State of California,
with a 2006 estimated population of 411,755*, and a wealth
of resources and opportunities. It is home to the Port of
Oakland, which is the fourth busiest maritime port in the
U. S. and among the top 25 in the world. Over the past
five years, Oakland has experienced unparallel investment
and development, with 122 major development projects
completed, under review in pre- application mode or
otherwise in process. Oakland International Airport has
undergone a $ 300 million Terminal Improvement program
including construction of a new concourse with seven
boarding gates/ waiting areas, centralized food/ beverage
and retail shopping areas, as well as expanded ticketing,
security, and baggage claim facilities. The former Oakland
Army Base is engaged in a $ 400 million revitalization and
redevelopment process; and $ 115 million of new
construction and improvements have recently been
completed in Oakland City Center.
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 links major historical
landmarks with new developments. Major corporate
headquarters include Clorox and Kaiser Permanente, which
are in close proximity to many new businesses and various
small retail shops that have sprung up in the downtown
area.
Oakland is a mature city that has been able to preserve its
abundant natural beauty and resources. The City has over
100 parks ( totaling over 2,500 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 1