Page 1 of 65
Finance and Management Committee
October 22, 2024
TO: Jestin D. Johnson
City Administrator
FROM: Erin Roseman
Director of Finance
SUBJECT: FY 2023-24 Fourth Quarter Q4 Revenue
and Expenditures (R&E) Report And FY
2024-25 Fiscal Condition and Challenges DATE: October 10, 2024
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Receive An Informational Report On Fiscal Year
(FY) 2023-24 Fourth Quarter (Q4) Revenue and Expenditure (R&E) Results For The General
Purpose Fund (GPF, 1010), and select funds, Preliminary Analysis of the Condition of the
FY 2024-25 Budget, and Information on the City's Fiscal Condition & Fiscal Challenges
EXECUTIVE SUMMARY
This report details the City of Oakland’s (the City) unaudited Fourth Quarter (Q4) financial results
for FY 2023-24 in the General Purpose Fund (GPF) and other select funds. At year end, revenue
collected reflects 85.1% of the adjusted revenue budget and expenditures reflect 94.3% of the
adjusted expenditure budget.
Table 1 below summarizes the FY 2023-24 GPF revenue and expenditures adjusted budget and
the year-end unaudited actuals which resulted in a $79.84 million or 9.2% year-end operating
shortfall.
Jestin Johnson (Oct 11, 2024 05:36 PDT) Oct 11, 2024
Page 2 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 2
Finance and Management Committee
October 22, 2024
Table 1: Summary of FY 2023-24 Q4 GPF Revenues & Expenditures Budget to Year-End
Unaudited Actuals ($ in millions)
FY 2023-24
Adopted Budget
FY 2023-24
Adjusted Budget
FY 2023-24
Year-End Actuals
Year-End $
(Over) / Under Net
Adjusted Budget
Year-End %
(Over) / Under Net
Adjusted Budget
FY 2023-24
Revenues 834.12 863.68 734.68 (129.00) (14.9)%
FY 2023-24
Expenditures 834.12 863.68 814.52 49.16 5.7%
Operating
(Shortfall) /
Surplus
— — (79.84) (79.84) (9.2)%
FY 2023-24 GPF revenue ended the year at $734.68 million, which is $129.00 million or 14.9%
under the FY 2023-24 Adjusted Budget of $863.68 million. Revenue categories in the GPF
sensitive to macroeconomic conditions ended the year below revenue projections. Specifically for
Real Estate Transfer Tax (RETT), the impact of rising interest rates on property demand
contributed to the revenue shortfalls. In addition, the Adjusted Budget assumed a one-time use
of fund balance in the amount of $30.12 million to balance adopted expenditures and $27.97
million to support carryforwards.
FY 2023-24 GPF expenditures ended the year at $814.52 million, which is $49.16 million or 5.7%
under compared to the Adjusted Budget of $863.68 million.
This results in an operating deficit of $79.84 million for the GPF in FY 2023-24.
BACKGROUND / LEGISLATIVE HISTORY
Below is a summary of the Council and administrative actions that have occurred from the
beginning of the fiscal year through Q4 that have modified the FY 2023-24 Budget:
Pursuant to the City’s Consolidated Fiscal Policy - Part G. Criteria for Project Carryforwards and
Encumbrances, the FY 2023-24 Adopted Budget has also been adjusted to include $27.97 million
in prior year carryforwards in the GPF which utilizes available fund balance to cover the cost.
On November 7, 2023, the City Council adopted Resolution No. 89981 C.M.S., amending the
current year FY 2023-24 budget to reallocate $2.5 million of newly available funds from reduced
debt payments to the Oakland-Alameda County Coliseum Authority (OACCA) to fund
improvements to 9-1-1 dispatch and the recruitment and retainment of workers.
On March 27, 2024, the City Administrator released a memo outlining several policies to be
implemented immediately that would help reduce City expenditures, primarily in the GPF. There
was and continues to be a hiring freeze for all non-sworn positions for the remainder of FY 2023-
Page 3 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 3
Finance and Management Committee
October 22, 2024
24. Additionally, a citywide moratorium on professional training and conference requests funded
through the GPF has stayed in effect. All other discretionary spending in the GPF has been limited
as the City attempted to bridge the widening gap between GPF revenues and expenditures.
On June 26, 2024, the City Administrator presented an Informational Report to the City Council
outlining several actions the City could take to reduce the deficit in the GPF. One of the actions
included was the fiscal retrenchment of carryforward funds in the GPF based on the inaction to
utilize the funds and the lack of funding in the GPF fund balance by year-end. Fiscal retrenchment
is defined as the reduction of costs or spending in response to economic difficulty where
jurisdictions take immediate action to begin to stabilize the fiscal situation. This resulted in an
estimated reduction in the Adjusted Budget by about $26.5 million. Additionally, approximately $1
million in CIP Department projects was transferred either into eligible bond funds or the Facilities
Fund.
On August 23, 2024, prior to the closure of FY 2023-24, departments were tasked with moving
eligible labor costs out of the GPF into other eligible funding sources. The goal was to help
alleviate the growing deficit in the GPF. This cost saving measure resulted in about $12.5 million
transferred out of the GPF into other eligible funding sources.
ANALYSIS AND POLICY ALTERNATIVES
This report supports the Citywide priority of a responsive, trustworthy government by providing
timely and up-to-date financial information, it enhances transparency allowing residents,
stakeholders, and decision-makers to be informed of the City’s fiscal health, promoting a culture
of responsible financial stewardship.
General Purpose Fund (GPF)
FY 2023-24 Q4 Revenues
In total, GPF revenue ended FY 2023-24 at $734.68 million, which is 14.94% below the Adjusted
Budget of $863.68 million. FY 2023-24 ended with significant shortfalls in key areas, namely Real
Estate Transfer Tax (RETT), Sales Tax, Fines and Penalties, and Transit Occupancy Tax (TOT).
High interest rates significantly impacted RETT, which accounts for 74.5% of the net revenue
deficit in the GPF. The construction and retail sectors also showed declines, affecting Business
License Tax and Sales Tax. Issues such as under staffing and legal constraints on new revenue
collection methods (like automatic license plate readers that identify vehicles with delinquent
parking taxes) led to shortfalls in Fines and Penalties. Furthermore, the budget anticipated one- time revenues in the form of a land sale that did not materialize during the fiscal year in addition
to optimistic assumptions about business recovery in certain sectors post-COVID. On the positive
side, property values continued to rise, supporting property tax revenues to end above budget.
Page 4 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 4
Finance and Management Committee
October 22, 2024
The most impactful variances are detailed below.
• Real Estate Transfer Tax (RETT): FY 2023-24 Real Estate Transfer Tax collections
ended the year at $57.61 million which is $52.80 million or 47.8% under the Adjusted
Budget of $110.41 million. This level of collections is below the prior year level of $75.55
million by $17.94 million or 23.7%. The decision by the Federal Open Market Committee
(FOMC) to raise interest rates multiple times to combat inflation has had a ripple effect on
the real estate sector. The increase in the federal funds rate has directly influenced
mortgage rates, making borrowing more expensive. This had a cooling effect on the real
estate market as higher interest rates deterred potential home buyers, which reduced the
overall number of transactions. The correlation between rising interest rates and declining
real estate transactions is well-illustrated here, with a significant drop in both the volume
of sales and the value of properties sold, especially in the higher price brackets. High- value property sales contribute disproportionately more to RETT revenue due to their
higher tax yield per transaction, since these taxes are calculated as a percentage of the
sale price. For the City as a whole, there was a reduction in property sales year over year
of about 10.1% when compared to FY 2022-23. The amount decreased is amplified when
considering that sales fell by 19.6% when accounting for the sales prices. This resulting
shortfall in RETT collections significantly affects the GPF, as it accounts for 74.5% of the
net GPF revenue shortfall.
• Miscellaneous Revenue: FY 2023-24 collections of miscellaneous revenues ended the
year at $9.14 million which is $12.08 million or 56.9% under the Adjusted Budget of $21.22
million. One-time revenue from land sales was included in the budget as a miscellaneous
revenue source. This one-time land sale has been delayed and thus represents the
second largest contributor to the shortfall in GPF revenues.
• Business Tax (BT): FY 2023-24 collections of BT ended the year at $123.48 million, which
is $1.77 million or 1.4% under the FY 2023-24 Adjusted Budget of $125.25 million. The
Construction, Utilities, and Rental sectors showed decreased activity and did not meet tax
contributions as anticipated in the budget. Despite these shortfalls there was a general
increase in gross receipts of 1.3% reported by businesses renewing their tax filings in FY
2023-24 compared to the gross receipts reported in the prior fiscal year by the same
accounts across all BT sectors. This year’s growth rate is slightly below the 2.7% average
annual percentage increase in gross receipts reported for account renewals over the
previous four fiscal years. In total, BT collection increased by $8.10 million or 7.0% in FY
2023-24 from the $115.38 million collected in FY 2022-23. The sectors with the highest
year over year increase in BT remitted were led by Professional / Semi-Professional
Services, Admin Headquarters, and Wholesale Sales. The November 17, 2023, report to
the City Council on Measure T's implementation showed that these three categories
accounted for approximately 47.5% of the overall net revenue increase from the amended
business tax structure resulting from Measure T, totaling about $8.3 million in growth
annually.
Page 5 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 5
Finance and Management Committee
October 22, 2024
• Sales Tax: Receipts ended the year at $62.27 million, which is $5.95 million or 8.8% under
the FY 2023-24 Adjusted Budget of $67.69 million. Data available through the third quarter
(Q3) reflects that Oakland’s Sales Tax receipts in FY 2023-24 came in 4.2% below the
level of collection compared to Q3 in FY 2022-23. (Sales Tax is collected by the State and
the corresponding detailed data becomes available to the City in the subsequent quarter.)
The decline reflects broader economic trends influenced by moderating inflation and shifts
in consumer behavior. Inflation, though less aggressive than in previous periods, has left
its imprint on the economy. Its moderation has somewhat stabilized prices, yet the overall
impact has led to a contraction in certain business sectors, led by Fuel and Service
Stations, Autos and Transportation, and the General Consumer Goods industries. Taxes
from jet fuel dropped significantly as airlines sought cheaper locations to fuel aircraft and
cargo outside of the area. New motor vehicle sales absorbed a decline as the cost of
financing increased. Retail declines in General Goods follow a nationwide trend towards
online shopping and a preference for services over goods, which led to decreases in
physical retail, impacting sales tax collections traditionally sustained by in-store
purchases.
• Transient Occupancy Tax ("TOT"): FY 2023-24 collections ended the year at $18.93
million, which is $3.55 million or 15.8% under the adjusted budget of $22.48 million. The
shortfall was mirrored by TOT collections from hotels near the airport area which ended
the year 14.8% below FY2022-23 levels. As of June 30, 2024, the net number of accounts
paying TOT to the City decreased by 2, from 70 in June 2023 to 68. Specifically, accounts
with the land use code for Hotel or Motel fell from 58 to 55. In addition, a nationwide trend
of falling room rates further contributed to lower TOT collections in the City as well.
• Service Charges: Revenues from Service Charges ended the year at $46.98 million,
which is $5.38 million, or 10.3% under the Adjusted Budget of $52.36 million. Reduced
collections in parking meter fees led to the shortfall. Sectors like hospitality and retail,
which often contribute to parking revenue, have not fully rebounded to pre-pandemic
levels. This slower recovery impacts the frequency of parking usage and, consequently,
revenue from parking meters. As a result, collections from parking meters came in at
$10.24 million which is $6.36 million below the $16.60 million estimated in the budget.
• Fines & Penalties: Collections of Fines and Penalties ended the year at $19.19 million,
which is $3.89 million or 16.8% under the Adjusted Budget of $23.07 million. Parking
Citations constitute the majority of Fines and Penalties. The Adjusted Budget assumed
increased revenues from an increase in parking fines of 5% for FY 2023-24, with an
additional 5% planned for FY 2024-25 aimed to keep pace with inflation. However,
Revenue from Parking Citations ended the year at $16.77 million, which is $0.98 million
or 0.5% below the $16.87 million collected in FY 2022-23. There was also an anticipated
$1.20 million revenue increase from the deployment of Automatic License Plate Reader
(ALPR) equipped vehicles for the Scofflaw Detail that was not realized due to legal
restrictions, further exacerbating the revenue shortfall. The Parking Enforcement Unit also
experienced staffing shortages, which directly impacted the ability to enforce parking
regulations effectively.
Page 6 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 6
Finance and Management Committee
October 22, 2024
Revenue categories with surpluses at year-end compared to the FY 2023-24 Adjusted Budget in
the GPF are led by the Property Tax, the Utility Consumption Tax (UCT), and Parking Tax.
• Property Tax: Collections of Property Tax came in at $299.15 million, which is $4.98
million or 1.7% above the FY 2023-24 Adjusted Budget of $294.17 million. In comparison
FY 2022-23 ended the year at $281.28 million. The year over year growth mirrors the
overall growth of assessed taxable value for the City of approximately 6.6 % when
compared to FY 2022-23. The year over year growth reflects an increase in assessed
value due to California Consumer Price Index increase of 2%, as limited by Proposition
13, 2.96 % increased valuation due to changes in ownership, and 0.95% increased
valuation due to new construction.
• Utility Consumption Tax: Collections of Utility Consumption Tax ended the year at
$66.22 million which is $4.32 million or 7.0% above the FY 2023-24 Adjusted Budget of
$61.90 million. The increase is attributed to the approval of a 12.8% rate increase in
consumer utility rates, approved by the California Public Utilities Commission (CPUC)
which took effect in the second half of the fiscal year.
• Parking Tax ("PT"): Collections of Parking Tax ended the year at $11.87 million which is
$0.61 million or 5.4% above the FY 2023-24 Adjusted Budget of $11.26 million. Across
the city, PT revenues have now returned to levels seen before the COVID-19 pandemic.
Notably, the Downtown area has experienced significant year-over-year increases in
parking tax collections over the past three fiscal years, with sequential annual rises of
31%, 18%, and 11% of revenue collected respectively. In contrast, there was a 6%
decrease in parking tax collections around the Airport area in FY 2023-24 compared to FY
2022-23, after experiencing two consecutive years of growth in that area.
The Adjusted Budget of $890.07 million as reported in the Q3 R&E was reduced by fiscal
retrenchment, primarily by reducing the amount of appropriations that had been carried forward
from FY 2022-23, due to the inaction to utilize the funds and the lack of funding (the operational
budget deficit) in the GPF fund balance. Fiscal retrenchment is defined as the reduction of costs
or spending in response to economic difficulty where jurisdictions take immediate action to begin
to stabilize the fiscal situation. This in turn reduced the anticipated use of fund balance
proportionally. The updated FY 2023-24 Adjusted Revenue Budget of $863.68 million at year end
still assumed $30.12 million in use of fund balance to support expenditures adopted in the budget
and $27.97 million in use of fund balance to support the remaining prior year carryforwards. Net
of use of fund balance, actual revenues ended the year at $734.68 million, compared to the
$805.59 million estimated in the Adjusted Budget, representing a net shortfall of $70.91 million or
8.8% for actual revenues.
Page 7 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 7
Finance and Management Committee
October 22, 2024
Table 2 below highlights revenue categories year-end actuals when compared to the FY 2023-
24 Adjusted Budget.
Table 2: FY 2023-24 Q4 GPF Revenues Budget to Actuals ($ in millions)
Revenue
Category
FY 2023-24
Adopted
Budget
FY 2023-24
Adjusted
Budget
FY 2023-24 Q4
YTD
Unaudited
Actuals
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Property Tax 294.17 294.17 299.15 4.98 1.7 %
Business License
Tax 125.25 125.25 123.48 (1.77) (1.4) %
Real Estate
Transfer Tax 110.41 110.41 57.61 (52.80) (47.8) %
Sales Tax 67.69 67.69 61.74 (5.95) (8.8) %
Utility
Consumption Tax 61.90 61.90 66.22 4.32 7.0 %
Service Charges 51.60 52.36 46.98 (5.38) (10.3) %
Fines & Penalties 23.07 23.07 19.19 (3.89) (16.8) %
Transient
Occupancy Tax 22.48 22.48 18.93 (3.55) (15.8) %
Miscellaneous
Revenue 21.22 21.22 9.14 (12.08) (56.9) %
Interfund
Transfers 13.08 13.08 13.08 — — %
Parking Tax 11.26 11.26 11.87 0.61 5.4 %
Licenses &
Permits 1.39 1.39 1.44 0.05 3.4 %
Interest Income 0.48 0.48 3.55 3.07 633.3 %
Grants &
Subsidies — 0.82 1.77 0.95 115.5 %
Subtotal 804.00 805.59 734.68 (70.91) (8.8) %
Transfers from
Fund Balance 30.12 30.12 — (30.12) (100.0)%
Project Offsets &
Carryforwards — 27.97 — (27.97) (100.0)%
Total Revenue 834.12 863.68 734.68 (129.00) (14.9)%
FY 2023-24 Q4 Expenditures
At the end of Q4 for FY 2023-24, expenditures ended the fiscal year at $814.52 million, or $49.16
million under the Adjusted Budget of $863.68 million. All but four departments ended the fiscal
year under or at budget. One department is overspending at a much higher rate than can be offset
by the other departments.
Page 8 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 8
Finance and Management Committee
October 22, 2024
By and large, the savings being observed by most departments is due to vacancy savings. The
budgeted vacancy factor assumed in the FY 2023-24 Biennial Budget is 8.00% across most City
Departments, recognizing the trend and capturing vacancy savings. The actual vacancy rate as
of Q4 in the GPF is 15.0%, which is almost twice of that assumed in the budget, resulting in further
savings.
The Biennial Adopted Budget assumed a use of fund balance in the amount of $30.12 million to
balance the expenditures as budgeted. This follows a trend in recent years, during which one- time funding was needed in the balancing of the expenditures. Expenditure monitoring is
heightened as citywide hiring is a large focus, and current inflationary trends and federal monetary
policy are likely to continue throughout the fiscal year and have an impact on spending trends by
year-end.
Table 3 below breaks down the FY 2023-24 Expenditures by Department.
Table 3: FY 2023-24 Q4 GPF Expenditures Budget to Actuals ($ in millions)
Department FY 2023-24
Adopted Budget
FY 2023-24
Adjusted Budget
FY 2023-24 Q4
Year-End
Actuals
Year-End $
(Over) / Under
Adjusted Budget
Year-End %
(Over) / Under
Adjusted Budget
Capital
Improvement
Projects 0.55 1.89 0.59 1.30 68.8 %
City
Administrator 9.81 11.31 8.38 2.93 25.9 %
City Attorney 21.75 23.38 20.56 2.82 12.1 %
City Auditor 3.31 3.60 2.31 1.29 35.7 %
City Clerk 7.85 7.94 5.42 2.53 31.8 %
City Council 7.12 7.26 6.38 0.89 12.2 %
Department of
Transportation 20.54 22.53 22.14 0.39 1.7 %
Department of
Violence
Prevention 10.79 13.08 10.43 2.64 20.2 %
Department of
Workplace and
Employment
Standard 4.31 4.92 4.91 0.01 0.2 %
Economic and
Workforce
Development
Department 11.19 14.01 9.60 4.41 31.5 %
Finance
Department 30.00 33.18 25.78 7.41 22.3 %
Fire Department 199.87 200.37 186.70 13.67 6.8 %
Page 9 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 9
Finance and Management Committee
October 22, 2024
Department FY 2023-24
Adopted Budget
FY 2023-24
Adjusted Budget
FY 2023-24 Q4
Year-End
Actuals
Year-End $
(Over) / Under
Adjusted Budget
Year-End %
(Over) / Under
Adjusted Budget
Housing and
Community
Development
Department 0.24 1.01 2.88 (1.87) (185.5)%
Human
Resources
Management
Department 9.50 9.79 8.72 1.07 11.0 %
Human
Services
Department 44.76 41.92 44.36 (2.44) (5.8) %
Information
Technology
Department 16.97 18.67 15.04 3.63 19.4 %
Mayor 4.60 4.66 4.02 0.65 13.9 %
Non
Departmental
and Port 55.60 60.69 34.82 25.73 42.5 %
Oakland Animal
Services 6.49 6.54 5.84 0.70 10.7 %
Oakland Parks
and Recreation
Department 18.30 19.06 14.91 4.16 21.8 %
Oakland Public
Library
Department 12.31 12.32 10.54 1.77 14.4 %
Oakland Public
Works
Department 1.36 1.84 2.50 (0.66) (35.7)%
Police
Commission 7.96 8.14 6.16 1.97 24.3 %
Police
Department 325.39 332.05 358.57 (26.38) (7.9) %
Public Ethics
Commission 2.25 2.07 1.75 0.32 15.5 %
Race and
Equity
Department 1.29 1.44 1.22 0.22 15.2 %
Total 834.12 863.68 814.52 49.16 5.7 %
The City's number of vacancies is a contributing factor to projected expenditure savings in the
GPF. At Q4, the GPF's vacancy rate (net positions that are frozen as part of the FY 2023-24
Adopted Budget), is 15.00% as shown in Table 4 below. The vacancy rate assumed in the FY
2023-24 Adopted Budget is 8.00% across most City Departments.
Page 10 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 10
Finance and Management Committee
October 22, 2024
Table 4: FY 2023-24 Q4 GPF Filled and Vacant Positions (Percent %)
Status as of Q4 FY 2023-2024 Percent (%)
Filled or Encumbered 85.0 %
Vacant 15.0 %
FY 2023-24 Fund Balance
The City's GPF Fund net obligations, is projected to end FY 2023-24 with a negative fund
balance.Table 5 below shows mandated reserves required by City Ordinances and the City
Charter, as well as other commitments that adjust or draw down on the GPF balance totaling
$30.40 million, decreasing the estimated FY 2023-24 year-end available fund balance to
negative $16.60 million. In addition, there are $55.06 million in additional possible carry
forwards that could further reduce the FY 2023-24 available fund balance to negative $71.66
million. The estimated FY 2023-24 available Fund Balance is the amount of unobligated
funding available to the City in the GPF.
Table 5: Summary of FY 2023-24 Fiscal Situation with GPF Fund Balance ($ in millions)
GENERAL PURPOSE FUND (1010) FY 2023-24 Q4 FYE
Estimated FY 2023-24 Beginning Audited Fund Balance 93.28
FY2023-24 Performance
Revenue 734.68
Expenditures 814.52
FY 2023-24 Operating Surplus / Deficit (79.84)
Obligations Against Ending Fund Balance
Encumbrances (12.9)
Settlement Set Aside (4.4)
Required Carry Forward on to FY 2024-251 (12.74)
FY 2023-24 Maximum Available Ending Fund Balance (16.60)
Additional Possible Carry Forward on to FY 2024-25 (55.06)
FY 2023-24 Minimum Available Ending Fund Balance (71.66)
Composition of the GPF Fund Balance
1 Required Carryforward include funds that are tied to legally binding contracts or agreements, required to meet
legal settlement terms which may be restricted for specific uses, committed to payments that have processed,
matching funds necessary for federal grant programs, and planned used of carryforward funds adopted in the budget.
Page 11 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 11
Finance and Management Committee
October 22, 2024
The GPF fund balance represents the difference between total assets in the GPF and its
liabilities. However not all GPF these assets are of the same type nor are they all immediately
liquid. The GPF fund balance at the end of FY2023-24 shows a significant negative cash
balance of $62 million offset in part by other assets.
A substantial portion of the GPF’s assets are tied up in non-cash items, such as receivables and
land held for resale. These assets, while valuable, do not provide immediate cash flow to
address the City’s operational needs. As such, the GPF borrows against the pooled cash
available from other funds in order to make payments. This arrangement is true for other CIty
funds, most notably grant funds which are reimbursed after expenditures occur, but it has not
historically been true for the GPF and reflects our precarious fiscal condition.
Preliminary Analysis of the Condition of the FY 2024-25 Budget, and Information on the
City's Fiscal Condition & Fiscal Challenges
The FY 2024-25 budget is in a precarious position, with projected overspending in the GPF
based on latest financial data. Preliminary projections indicate that the GPF is anticipated
to exceed the expenditure budget by an estimated $30 million, primarily driven by
spending in public safety departments.
Compounding the situation are required changes to the current year budget based on the
contingency budget, which was adopted to be activated if payment from a land sale did
not arrive according to the schedule outlined in the budget resolution. The conditions for
the contingency budget have been met, and implementation is in progress. Steps are being
taken to minimize impacts to public safety of implementation.
Considering these factors – implementation of the contingency budget, initial projected
overspending, and the accumulated deficit from FY 2023-24 – the City’s fiscal health is at
significant risk. Expenditure reductions and reallocation of resources are necessary to
mitigate the deficit and ensure fiscal stability throughout the remainder of FY 2024-25.
Once revenue and expenditure information is available from the First Quarter of FY 2024-
25 staff recommends that the Mayor and City Council address the totality of the City’s fiscal
challenges though a formal budget amendment process.
Looking ahead, the City’s Fiscal challenges extend beyond the current year. Preliminary
analysis of the FY 2025-27 baseline budget projects a substantial structural deficit of $120
million. This reflects deeper, ongoing imbalances between revenues and expenditures. To
restore long-term fiscal sustainability, the City will need to adopt comprehensive, ongoing
balancing measures, mostly focusing on the strategic reorganization and prioritization of
services to align spending with available resources.
Page 12 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 12
Finance and Management Committee
October 22, 2024
Conclusion
The City faces fiscal challenges related to last year FY 2023-24, the current year FY 2024-25,
and the coming Biennium FY 2025-27. To shore up its finances the City will need to adopt and
implement significant reductions to expenditures and strategically prioritize the services it
provides subject to available resources. The $188 million in one-time federal aid from the
American Rescue Plan Act (ARPA) provided temporary financial relief to the General Purpose
Fund (GPF) for the last three fiscal years, addressing what was a persistent structural budget
deficit. However, as these funds are now depleted, the underlying financial issues have
resurfaced, worsened by a significant decline in Real Estate Transfer Tax (RETT) revenues, which
were $52.80 million below the adjusted budget expectations at year's end. Additionally,
macroeconomic trends including inflation is increasing the pressure on city expenditures, though
this is somewhat mitigated by numerous unfilled positions across city services, which
unfortunately also leads to a reduction in service provision.
PUBLIC OUTREACH / INTEREST
No outreach was deemed necessary for this informational report beyond the standard City
Council agenda noticing procedures.
COORDINATION
This report was prepared in coordination between the Finance Department, the City
Administrator’s Office and various departments.
SUSTAINABLE OPPORTUNITIES
Economic: No direct economic opportunities have been identified.
Environmental: No direct environmental impacts have been identified.
Race & Equity: No direct Race & Equity opportunities have been identified in this informational
report.
Page 13 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 13
Finance and Management Committee
October 22, 2024
Erin Roseman (Oct 10, 2024 16:08 PDT)
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That City Council Receive An Informational Report On Fiscal Year (FY)
2023-24 Fourth Quarter (Q4) Revenue And Expenditure (R&E) Results For The General
Purpose Fund (GPF, 1010), And Select Funds, Preliminary Analysis of the Condition of the FY
2024-25 Budget, and Information on the City's Fiscal Condition & Fiscal Challenges.
For questions regarding this report, please contact Bradley Johnson, Budget Administrator, at
(510) 238-6119.
Respectfully submitted,
Erin Roseman
Director of Finance, Finance Department
Reviewed by:
Bradley Johnson, Budget Administrator
Sherry Jackson, Revenue & Tax Administrator
Prepared by: Revenue Management Bureau &
Budget Bureau:
Agaba, Rogers
Dang, Huey
Mariano, Daniel
Maurer, Chuck
Segura, Jose
Soares, Michelle
Stabler, Rina
Urrutia, Kristin
Attachments:
A: FY 2023-24 Q4 Detailed Report
Page 14 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 1
Finance and Management Committee
October 22, 2024
Attachment A: FY 2023-24 Q4 Detailed Report
TABLE OF CONTENTS
The report has the following major sections:
1. General Purpose Fund Q4 Revenues
2. General Purpose Fund Q4 Expenditures
3. General Purpose Fund Q4 Fund Balance
4. Reserves
5. Select Non-GPF Summaries
Appendixes:
Consolidated Fiscal Policy
Page 15 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 2
Finance and Management Committee
October 22, 2024
Summary of FY 2023-24 Q4 GPF Revenues & Expenditures
FY 2023-24 GPF Revenue came in at $734.68 million, which is $129.00 million or 14.9% under
the Adjusted Budget of $863.68 million. GPF Expenditures came in at $814.52 million, which is
$49.16 million or 5.7% under the Adjusted Budget of $863.68 million. Table 1 below shows the
FY 2023-24 General Purpose Fund Adjusted Budget and year-end actuals for revenues and
expenditures, which ended with a year-end operating shortfall of $79.84 million or 9.2%.
Table 1: Summary of FY 2023-24 Q4 GPF Revenues & Expenditures Budget to Estimated
Year-End Actuals ($ in millions)
FY 2023-24
Adjusted Budget
FY 2023-24 Q4
Year-End Actuals
Year-End $
Over / Under
Adjusted Budget
Projected Year-End %
(Over) / Under Adopted
Budget
FY 2023-24
Revenues 863.68 734.68 (129.00) (14.9)%
FY 2023-24
Expenditures 863.68 814.52 49.16 5.7 %
Operating
(Shortfall) /
Surplus
— (79.84) (79.84) (9.2)%
I. GENERAL PURPOSE FUND FY 2023-24 Q4 REVENUES
The revenue in the General Purpose Fund (GPF) ended the fiscal year at $734.68 million, which
is $129.00 million or 14.9% under the FY 2023-24 Adjusted Budget of $863.68 million. The
Adjusted Budget included the use of $30.12 million from the fund balance to cover adopted
expenditures and $27.97 million in use of the fund balance to cover prior year carry-forwards.
Excluding these one-time funds, actual GPF revenues ended with a shortfall of $70.91 million
compared to the $805.59 million estimated in the Adjusted Budget. Persistent high inflation has
reduced purchasing power, potentially decreasing tax revenue as consumers buy less or opt for
cheaper alternatives. High interest rates are directly impacting Real Estate Transfer Taxes by
cooling the housing market, reducing property sales, and thus lowering tax revenue from property
transactions. Similarly, higher interest rates have also made other financing more expensive,
which decreased automobile sales and reduced spending in general, impacting Sales Tax,
Business Tax, and other consumer-driven revenues. Perceived increased theft and vandalism
further reduced local tax bases by deterring business investment and consumer spending in
affected areas,
Page 16 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 3
Finance and Management Committee
October 22, 2024
FY 2023-24 Q4 REVENUE HIGHLIGHTS
Property Tax: The largest revenue source for the City ended the year at $299.15 million, which
is $4.98 million or 1.7% above the FY 2023-24 adjusted budget of $294.17 million. In comparison
FY 2022-23 ended the year at $281.28 million. The year over year increase is driven by the overall
increase in assessed taxable values in the City of approximately 6.6% according to the most
recent County Property Tax Rolls, which results in a proportional increase in the amount of
property tax assessments. Growth was led by residential assessed values which increased by
7.9% for a total of $4.63 billion, followed by commercial properties which posted an increase in
assessed value of $599 million or a year over year increase of 5.2%, and by industrial properties
which posted gains in assessed value of $302.3 million or 9.6%.
The largest secured roll increase was reported on a developing vacant property owned by CVOW
Parcel J Owner LLC at 37 8th Avenue with a growth of $116.6 million. This is an 8-story residential
building under development as part of the Brooklyn Development in the Brooklyn Basin of
Downtown Oakland. The second largest increase in property value came from an office building
in Downtown Oakland owned by 300 F Ogawa Plaza LP at the same address, which reported an
increase in value of $94.1 million between FY 2022-23 and FY 2023-24. This property
reevaluation was due after the current owner purchased the property in 2021. The third highest
increase in property value came from a vacant site developing into a mixed-use site in downtown
Oakland. Owned by 19 Bdwy Tower Development LLC, at 1920 Broadway, the added
improvements to the property resulted in an increase in assessed value of $62 million.
Business License Tax (BT): The second largest revenue source ended the year at $123.48
million, which is $1.77 million or 1.4% under the FY 2023-24 Adjusted Budget of $125.25 million.
This discrepancy primarily stems from certain economic sectors underperforming compared to
budget assumptions led by the Construction, Utilities, and Property Rental sectors which
experienced a decrease in activity compared to the previous year. However, overall businesses
that renewed their tax filings in FY 2023-24 showed a 1.3% rise in gross receipts compared to the
previous year. This year’s growth rate is slightly below the 2.7% average annual percentage
increase in gross receipts reported for account renewals over the previous four fiscal years. In
total, FY 2023-24 saw an increase of $8.10 million in BT collected compared to the FY 2022-23
year-end total of $115.38 million. This growth was predominantly driven by increases in amounts
collected from Professional Services, Administrative Headquarters, and Wholesale Sales. The
November 17, 2023, report to the City Council on Measure T's implementation showed that these
three categories accounted for approximately 47.5% of the overall net revenue increase from the
amended business tax structure resulting from Measure T, totaling about $8.3 million in growth
annually.
Page 17 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 4
Finance and Management Committee
October 22, 2024
Real Estate Transfer Tax (RETT): The third largest revenue source for the City ended the fiscal
year at $57.61 million, which is $52.80 million, or 47.8% under the FY 2023-24 adjusted budget
of $110.41 million, representing the largest shortfall in the GPF. The significant reduction is
attributable to rising interest rates that impact the affordability factor and consequently the number
of property sales subject to RETT. To combat inflation, the Federal Open Market Committee
(FOMC) raised and maintained the federal funds rate at the 5.25%-5.50% range throughout the
fiscal year. This has led to an increase in mortgage rates, with the 30-year fixed rate being at
6.95% as of June 27, 2024, according to the Freddie-Mac Mortgage Market Survey Archive.
Higher interest rates make home buying more expensive, reducing buyer interest and transaction
volume.
The number of properties sold during FY 2023-24 dropped by 371 properties, compared to the
number of properties sold in the prior year. The notable decrease in transaction volume, dropping
from 3,680 in FY 2022-23 to 3,309 in FY 2023-24, represents a reduction of about 10.1%. The
volume decreased is amplified when considering that the gross sales fell by 19.6% when
accounting for the sales prices. There's been a significant drop in high-value property
transactions. Only 25 properties valued over $5 million were sold in FY 2023-24, compared to 38
in the previous year, representing a 34.2% decline. For properties over $10 million, the numbers
fell from 18 to 13 or by 27.7%.
The FOMC made a significant move by cutting interest rates by 50 basis points in September
2024, bringing the federal funds rate target range to 4.75% to 5.00%. This was the first rate cut
since 2020, signaling an aggressive approach to stimulate economic activity amid signs of
economic slowdown or to prevent a steeper downturn. Looking into 2025, there are expectations
for additional cuts, which could lead to a gradual recovery for the market as financing for
properties becomes less expensive over time.
Table 2 below provides the year over year variance in gross sales and volume by sales price tiers.
Table 2: RETT Growth Rate ($ in millions)
FY 2022-23 FY 2023-24 Year-Over-Year
Variance
Sale Price Gross Sales Volume Gross Sales Volume Gross Sales Volume
$300,000 or below $ 37.44 229 $39.28 225 4.9 % (1.7) %
$300,001 to $2 Million $ 2,877.48 3,168 $2,597.53 2,880 (9.7) % (9.1) %
$2 million to $5 Million $ 674.24 245 $474.03 179 (29.7)% (26.9)%
$5 -10 Million $ 139.54 20 $79.17 12 (43.3)% (40.0)%
$10 - 50 Million $ 293.32 14 $217.85 11 (25.7)% (21.4)%
$50.01-100 Million $ 212.65 3 $126.28 2 (40.6)% (33.3)%
Over $100 Million $ 163.29 1 $0.00 $ — — % — %
Total $ 4,397.96 3,680 $3,534.14 3,309 (19.6)% (10.1)%
Page 18 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 5
Finance and Management Committee
October 22, 2024
Sales Tax: The fourth largest revenue source for the City ended the year at $62.27 million, which
is $5.95 million, or 8.8% under the FY 2023-24 Adjusted Budget of $67.69 million. FY 2023-24 for
Oakland has been marked by a significant downturn in Sales Tax receipts. This decline reflects
broader economic trends influenced by moderating inflation and shifts in consumer behavior.
Inflation, though less aggressive than in previous periods, has left its imprint on the economy. Its
moderation has somewhat stabilized prices, yet the overall impact has led to a contraction in
certain business sectors, directly affecting sales tax revenue. Sales Tax is collected by the State
and the corresponding detailed data becomes available to the City in the subsequent quarter.
Oakland’s receipts through the third quarter in FY 2023-24 were on average 6.2% below the third
quarter mark in FY 2022-23 across the various Sales Tax categories as shown on Table 3 below.
Leading the shortfall were Fuel and Service Stations which declined by 23.0% compared to the
FY 2022-23 Q3. Service station revenues were slightly up and right in line with the statewide
average. However, taxes from jet fuel declined as airlines sought cheaper locations to fuel aircraft
and cargo outside of the area. New motor vehicle sales also absorbed a decrease as buyers
steered toward affordable models and stayed away from luxury brands, as prices and the cost of
financing increased. As a result through Q3, the Autos and Transportation sector declined by
11.3% year over year. General Consumer Goods posted a decrease in receipts and the
decadence was furthered by a large store closure resulting in a 12.2% year over year decline for
this category. Retail declines follow a nationwide trend towards online shopping and a preference
for services over goods, which led to decreases in physical retail, impacting sales tax collections
traditionally sustained by in-store purchases. Despite declines in all sales tax sub-categories, a
significant decrease in another agency's receipts increased the City's share of the County pool,
boosting the State/County Pool & Transfers category by 8.9% year over year through Q3.
Table 3 below provides a year over year comparison of Sales Tax by Category through Q3.
Table 3: Sales Tax Comparison by Category FY2022-23 and FY 2023-24 ($ in millions)
Category
Thru Q3
FY 2022-23
Thru Q3
FY 2023-24 Inc/Dec
Autos & Transportation $ 7.68 $ 6.89 -11.3%
Building & Construction $ 4.56 $ 4.42 -3.2%
Business & Industry $ 4.55 $ 4.14 -9.7%
Food & Drugs $ 4.05 $ 3.60 -12.7%
Fuel & Service Stations $ 6.26 $ 5.09 -23.0%
General Consumer Goods $ 4.12 $ 3.67 -12.2%
Restaurants & Hotels $ 8.08 $ 7.87 -2.7%
State/County Pools & Transfers $ 8.41 $ 9.23 8.9%
Average $ 5.96 $ 5.61 -6.2%
Page 19 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 6
Finance and Management Committee
October 22, 2024
Utility Consumption Tax: This fifth largest revenue source for the City ended the year at $66.22
million which is $4.32 million or 7.0% above the FY 2023-24 Adjusted Budget of $61.90 million.
The increase is attributed to the approval of a 12.8% rate increase in consumer utility rates,
approved by the California Public Utilities Commission (CPUC) which took effect in the second
half of the fiscal year.
Interfund Transfers & Transfers from Fund Balance: The adjusted budget assumes $30.12
million in use of fund balance to balance budgeted expenditures and $27.97 million in use of fund
balance to support carryforward expenditures. Additionally, there is $13.08 million budgeted in
anticipated interfund transfers.
All Other Revenue Sources:
Table 4 below summarizes the FY 2023-24 Adjusted Budget to actuals performance by revenue
category in the GPF. Other notable GPF revenues in FY 2023-24 include:
Miscellaneous Revenues: FY 2023-24 ended at $9.14 million, a shortfall of $12.08 million or
56.9% under the $21.22 million budget, mainly due to a delayed land sale.
Transient Occupancy Tax (TOT): Collected $18.93 million, $3.55 million or 15.8% under budget.
Decline attributed to reduced hotel collections near the airport and fewer TOT accounts, down
from 70 to 68.
Service Charges: Revenues were $46.98 million, falling under the Adjusted Budget by
$5.38million or 10.3% due to lower collections in parking meter fees.
Fines and Penalties: Achieved $19.19 million, $3.89 million or 16.8% under budget. Parking
fines did not increase as expected, and an Automatic License Plate Reader (ALPR) vehicle
deployment for enforcement was hindered by legal issues.
Parking Tax: Reached $11.87 million, exceeding the Adjusted Budget by $0.61 million or 5.4%.
Downtown areas saw significant increases, while the airport area experienced a 6% decline in
collections.
All revenue categories as summarized on Table 4 below.
Page 20 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 7
Finance and Management Committee
October 22, 2024
Table 4: FY 2023-24 Q4 Adopted Budget to Actuals and Year End Estimate ($ in millions)
Revenue Category FY 2023-24
Adopted Budget
FY 2023-24
Adjusted Budget
FY 2023-24 Q4
YTD Unaudited
Actuals
Year-End $ Over /
Under Adjusted
Budget
Year-End % Over /
Under Adjusted
Budget
Property Tax 294.17 294.17 299.15 4.98 1.7 %
Business License Tax 125.25 125.25 123.48 (1.77) (1.4) %
Real Estate Transfer
Tax 110.41 110.41 57.61 (52.80) (47.8) %
Sales Tax 67.69 67.69 61.74 (5.95) (8.8) %
Utility Consumption
Tax 61.90 61.90 66.22 4.32 7.0 %
Service Charges 51.60 52.36 46.98 (5.38) (10.3) %
Fines & Penalties 23.07 23.07 19.19 (3.89) (16.8) %
Transient Occupancy
Tax 22.48 22.48 18.93 (3.55) (15.8) %
Miscellaneous
Revenue 21.22 21.22 9.14 (12.08) (56.9) %
Interfund Transfers 13.08 13.08 13.08 — — %
Parking Tax 11.26 11.26 11.87 0.61 5.4 %
Licenses & Permits 1.39 1.39 1.44 0.05 3.4 %
Interest Income 0.48 0.48 3.55 3.07 633.3%
Grants & Subsidies — 0.82 1.77 0.95 115.5%
Internal Service Funds — — — — N / A
Subtotal 804.00 805.59 734.68 (70.91) (8.8) %
Transfers from Fund
Balance 30.12 30.12 — (30.12) (100.0) %
Project Offsets &
Carryforwards — 27.97 — (27.97) (100.0) %
Total Revenue 834.12 863.68 734.68 (129.00) (14.9) %
Page 21 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 8
Finance and Management Committee
October 22, 2024
II. GENERAL PURPOSE FUND FY 2023-24 Q4 EXPENDITURES
GENERAL PURPOSE FUND EXPENDITURE HIGHLIGHTS
Unaudited GPF expenditures ended the year at $814.52 million, or $49.16 million under the
Adjusted Budget of $863.68 million. The Adjusted Budget required a use of fund balance in the
amount of $30.12 million to balance the expenditures as budgeted. This follows a trend in recent
years, during which one-time funding was needed in the balancing of the FY2019-20, FY2020-
21, FY2021-22 and FY2022-23 expenditures in the budget by programming CARES dollars
($36.99 million), ARPA dollars ($188 million), and use of VSSF ($14.65 million) for a total of
$239.64 million, which would equal 27% of FY 2023-24 GPF budgeted expenditures. The
budgeted personnel expenditures also assume a vacancy factor of 8.00%, it is expected that the
actual vacancy factor will be higher with the hiring freeze in effect.
On March 27, 2024, the City Administrator released a memo outlining several policies to be
implemented immediately that would help reduce City expenditures, primarily in the GPF. A hiring
freeze went into effect for all non-sworn positions for the remainder of FY 2023-24. Additionally,
there was a citywide moratorium on professional training and conference requests funded through
the GPF. All other discretionary spending in the GPF was limited as the City attempted to bridge
the widening gap between GPF revenues and expenditures.
On June 26, 2024, the City Administrator presented an Informational Report to the City Council
outlining several actions the City could take to reduce the deficit in the GPF. One of the actions
included was the fiscal retrenchment of carryforward funds in the GPF based on the inaction to
utilize the funds and the lack of funding in the GPF fund balance by year-end. This resulted in a
reduction in the Adjusted Budget and realized savings of approximately $26.5 million. Additionally,
approximately $1 million in CIP Department projects was transferred either into eligible bond funds
or the Facilities Fund. This cost saving measure resulted in a few departments to slightly exceed
their budget during the fiscal year.
On August 23, 2024, prior to the closure of FY23-24, departments were tasked with moving
eligible labor costs out of the GPF into other eligible funding sources. The goal was to help
alleviate the growing deficit in the GPF. This cost saving measure resulted in about $12.5 million
transferred out of the GPF into other eligible funding sources.
Overall, the increase in the appropriations level compared to previous years merits further
consideration as it reflects the current global inflationary trend affecting the economy.
Page 22 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 9
Finance and Management Committee
October 22, 2024
Table 5 below reflects the GPF expenditures at $816.96 million, which is $46.72 million or 5.4%
under the adjusted budget of $863.68 million.
Table 5: Summary of FY 2023-24 Q4 GPF Expenditures Budget to Actuals ($ in millions)
FY 2023-24
Adopted Budget
FY 2023-24
Adjusted Budget
FY 2023-24
Q4 Year-End
Actuals
Year-End $
(Over) / Under
Adjusted
Budget
Year-End %
(Over) / Under
Adjusted
Budget
FY 2023-24
Expenditures 834.12 863.68 814.52 49.16 5.7 %
Page 23 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 10
Finance and Management Committee
October 22, 2024
Department Level Spending Trends
Table 6 below reflects department level spending and year-end GPF expenditures. As a result,
City-wide GPF departmental expenditures came in below the Adjusted Budget by $49.16 million.
.
Table 6: Summary of FY 2023-24 GPF Projected Expenditure Variance ($ in millions)
Department FY 2023-24
Adopted Budget
FY 2023-24
Adjusted Budget
FY 2023-24 Q4
Year-End Actuals
Year-End $
(Over) / Under
Adjusted Budget
Year-End %
(Over) / Under
Adjusted
Budget
Capital
Improvement
Projects 0.55 1.89 0.59 1.30 68.8%
City
Administrator 9.81 11.31 8.38 2.93 25.9%
City Attorney 21.75 23.38 20.56 2.82 12.1%
City Auditor 3.31 3.60 2.31 1.29 35.7%
City Clerk 7.85 7.94 5.42 2.53 31.8%
City Council 7.12 7.26 6.38 0.89 12.2%
Department of
Transportation 20.54 22.53 22.14 0.39 1.7%
Department of
Violence
Prevention 10.79 13.08 10.43 2.64 20.2%
Department of
Workplace and
Employment
Standard 4.31 4.92 4.91 0.01 0.2%
Economic and
Workforce
Development
Department 11.19 14.01 9.60 4.41 31.5%
Finance
Department 30.00 33.18 25.78 7.41 22.3%
Fire Department 199.87 200.37 186.70 13.67 6.8%
Housing and
Community
Development
Department 0.24 1.01 2.88 (1.87) (185.5)%
Human
Resources
Management
Department 9.50 9.79 8.72 1.07 11.0%
Human Services
Department 44.76 41.92 44.36 (2.44) (5.8)%
Page 24 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 11
Finance and Management Committee
October 22, 2024
Department FY 2023-24
Adopted Budget
FY 2023-24
Adjusted Budget
FY 2023-24 Q4
Year-End Actuals
Year-End $
(Over) / Under
Adjusted Budget
Year-End %
(Over) / Under
Adjusted
Budget
Information
Technology
Department 16.97 18.67 15.04 3.63 19.4%
Mayor 4.60 4.66 4.02 0.65 13.9%
Non
Departmental
and Port 55.60 60.69 34.82 25.73 42.5%
Oakland Animal
Services 6.49 6.54 5.84 0.70 10.7%
Oakland Parks
and Recreation
Department 18.30 19.06 14.91 4.16 21.8%
Oakland Public
Library
Department 12.31 12.32 10.54 1.77 14.4%
Oakland Public
Works
Department 1.36 1.84 2.50 (0.66) (35.7)%
Police
Commission 7.96 8.14 6.16 1.97 24.3%
Police
Department 325.39 332.05 358.57 (26.38) (7.9)%
Public Ethics
Commission 2.25 2.07 1.75 0.32 15.5%
Race and Equity
Department 1.29 1.44 1.22 0.22 15.2%
Total 834.12 863.68 814.52 49.16 5.7%
The following section details Q4 GPF savings or overspending by Department, as compared to
the FY 2023-24 Adjusted Budget.
Capital Improvement Program (CIP)
The Capital Improvement Program has savings of $1.30 million, or 68.8% of the CIP Adjusted
Budget.
City Administrator (CAO)
The City Administrator’s Office has savings of $2.93 million, or 26% of their budget, due to
vacancies. $1.9 million of the total savings is from unspent O&M. In the General Purpose Fund,
CAO has a vacancy rate of 15%, with six vacant positions.
Page 25 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 12
Finance and Management Committee
October 22, 2024
City Attorney (OCA)
The City Attorney has savings of $2.82 million, or 11% of their budget, due to vacancies. $1.5
million of the total savings is from unspent O&M. In the General Purpose Fund, OCA has a
vacancy rate of 10%, with six vacant positions.
City Auditor
The City Auditor has savings of $1.29 million, or 36% of their budget, due to vacancies. In the
General Purpose Fund, City Auditor has a vacancy rate of 25%, with three vacant positions.
City Clerk
The Office of the City Clerk has savings of $2.53 million, or 32% of their budget, due to
vacancies. $2.0 million of the total savings is from unspent O&M. In the General Purpose Fund,
City Clerk has a vacancy rate of 17%, with two vacant positions.
City Council
The City Council has savings of $0.89 million, or 12% of their budget, due to vacancies. In the
General Purpose Fund, the City Council has a vacancy rate of 3%, with one vacant position.
Department of Transportation (DOT)
The Department of Transportation has savings of $0.39 million, or 4% of their budget, due to
vacancies. In the General Purpose Fund, DOT has a vacancy rate of 11%, with ten vacant
positions.
Department of Violence Prevention (DVP)
The Department of Violence Prevention has savings of $2.64 million, or 21% of their budget,
due to vacancies. $700,000 of the total savings is from unspent O&M. In the General Purpose
Fund, DVP has a vacancy rate of 19%, with six vacant positions.
Department of Workplace & Employment Standards (DWES)
The Department of Workplace & Employment Standards has savings of $0.01 million, or 0.24%
of their budget. In the General Purpose Fund, DWES has a vacancy rate of 12%, with two
vacant positions.
Economic & Workforce Development (EWD)
Page 26 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 13
Finance and Management Committee
October 22, 2024
Economic & Workforce Development has savings of $4.41 million, or 32% of their budget, due
to vacancies. $3.0 million of the total savings is from unspent O&M. In the General Purpose
Fund, DWES has a vacancy rate of 27%, with six vacant positions.
Finance Department
The Finance Department has savings of $7.41 million, or 22% of their budget, due to vacancies.
$3.4 million of the total savings is from unspent O&M. In the General Purpose Fund, Finance
has a vacancy rate of 12%, with 14 vacant positions.
Fire Department
The Oakland Fire Department has savings of $13.67 million, or 8% of their budget. In the
General Purpose Fund, Fire has a vacancy rate of 17%, with 96 vacant positions which results
in savings in the amount of $26.59 million. However, these estimated savings from the
vacancies are partially offset by $15.43 million in over-time overspending resulting in a net
personnel year-end underspend in the amount of $11.16 million.
Housing & Community Development (HCD)
Housing & Community Development overspent by $1.87 million, or 185.5% of their Adjusted
Budget. The overspending is due to grants related to the Homeless Prevention Pilot Program
and legal services for prisoners with children, and unreimbursed federal FEMA expenditures for
residents of the Coliseum Connections housing development.
Human Resources Management (HRM)
Human Resources Management has savings of $1.07 million, or 11% of their budget, due to
vacancies. In the General Purpose Fund, HRM has a vacancy rate of 9%, with three vacant
positions.
Human Services Department (HSD)
Human Services Department overspent by $2.44 million, or 5.8% of their budget. This is
primarily due to unreimbursed Federal FEMA Expenditures related to homelessness. In the
General Purpose Fund, HSD has a vacancy rate of 11%, with four vacant positions.
Information Technology (ITD)
Page 27 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 14
Finance and Management Committee
October 22, 2024
The Information Technology Department has savings of $3.63 million, or 19% of their budget,
due to vacancies. $1.5 million of the total savings is from unspent O&M. In the General Purpose
Fund, ITD has a vacancy rate of 21%, with twelve vacant positions.
Mayor’s Office
The Mayor’s Office has savings of $0.65 million, or 14% of their budget, due to vacancies. In the
General Purpose Fund, Mayor's Office has a vacancy rate of 9%, with one vacant position.
Non-Departmental
Non-Departmental has savings of $25.73 million, or 38% of the Adjusted Budget. The savings
were primarily from $9 million in savings that were intended for the replacement of City vehicles
and about $5 million in prior year carryforward funds. Additionally, there was about $2 million in
savings from unspent funds for long-term liabilities.
Oakland Animal Services
The Department of Animal Services has savings of $0.70 million, or 11% of their budget, due to
vacancies. In the General Purpose Fund, Animal Services has a vacancy rate of 19%, with six
vacant positions.
Oakland Parks, Recreation and Youth Development (OPRYD)
Oakland Parks, Recreation and Youth Development has savings of $4.16 million, or 22% of their
budget, due to vacancies. In the General Purpose Fund, OPRYD has a vacancy rate of 25%,
with 26 vacant positions.
Oakland Public Library (OPL)
Oakland Public Library has savings of $1.77 million, or 14% of their budget, due to vacancies. In
the General Purpose Fund, OPL has a vacancy rate of 10%, with four vacant positions.
Oakland Public Works (OPW)
Oakland Public Works overspent by $0.66 million, or 35.7% of their Adjusted Budget.
Police Commission
The Police Commission has savings of $1.97 million, or 24% of their budget, due to vacancies.
In the General Purpose Fund, the Police Commission has a vacancy rate of 24%, with six
vacant positions.
Page 28 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 15
Finance and Management Committee
October 22, 2024
Police Department
The Police Department overspent by $26.38 million, or 8% of their budget, primarily due to
overtime overspending. A detailed explanation of this overage can be found in the "Public Safety
Costs & Analysis" section below.
Public Ethics Commission (PEC)
The Public Ethics Commission has savings of $0.32 million, or 16% of their budget. In the
General Purpose Fund, PEC has a vacancy rate of 0%, with no vacant positions.
Race & Equity
The Department of Race & Equity has savings of $0.22 million, which is 15% of their budget. In
the General Purpose Fund, Race & Equity has a vacancy rate of 0%, with no vacant positions.
Public Safety Costs & Analysis
Table 7 below shows the personnel expenditures, including overtime, for Public Safety in the
GPF. Once all other personnel costs are accounted for, Oakland Police Department shows the
personnel budget over spent by $21.76 million in the General Purpose Fund at year end. Details
are provided on Table 7 below.
Table 7: FY 2023-24 Public Safety GPF Personnel Expenditures ($ in millions)
Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q4 Year-End
Actuals
Year-End $
Over / Under
Adjusted
Budget
Year-End % Over
/ Under Adjusted
Budget
Police Department
Overtime (OT) 24.19 55.25 (31.05) (128.3)%
Reimbursable OT (Special Events, (5.71) 5.71
All Other Personnel (non-OT) 262.50 259.83 3.58 1.4 %
OPD Total Personnel 286.69 309.37 (21.76) (7.6)%
Fire Department
Overtime (OT) 13.80 29.24 (15.43) (111.8) %
All Other Personnel (non-OT) 163.79 137.68 26.59 16.2%
OFD Total Personnel 177.59 166.91 11.16 6.3%
In Fiscal Year (FY) 2023-24, the Oakland Police Department (OPD) overtime budget was
$24,190,510 and actual total overtime expenditures reached $55,247,289 (excluding salary
savings and reimbursable overtime), which exceeded the overtime budget by $31,056,779.
However, OPD recovered $6,512,910 through a combination of $805,667 in salary savings and
$5,707,243 in reimbursable overtime that reduced overall overtime spending. As shown in
Page 29 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 16
Finance and Management Committee
October 22, 2024
Table 8, a monthly breakdown of overtime expenditures, along with offsetting salary savings and
reimbursable overtime amounts, is provided. After accounting for these offsets, the total net
overtime expenditures were $48,734,379, resulting in a net overspend of $24,543,869.
Table 8: Breakdown of OPD Overtime by Month
Month Overtime
Expenditures
#of
Vacancies
Salary
Savings
Reimbursable
Overtime
Total (Salary
Savings +
Reimbursable
OT)
Adjusted
Overtime
Expenditures
(Net Salary
Savings +
Reimbursable
OT)
July 4,728,493 -2 -48,828 455,306 406,478 4,322,015
August 4,600,311 2 48,828 557,292 606,120 3,994,191
September 5,324,585 2 48,828 547,652 596,480 4,728,105
October 4,308,380 5 122,071 419,549 541,619 3,766,761
November 4,913,592 10 244,141 386,690 630,831 4,282,761
December 4,426,225 -13 -317,384 319,653 2,270 4,423,955
January 4,340,559 -1 -24,414 256,894 232,480 4,108,079
February 4,200,458 1 24,414 317,131 341,545 3,858,912
March 5,045,833 3 73,242 587,281 660,523 4,385,310
April 4,679,230 8 195,313 563,868 759,181 3,920,049
May 5,212,349 13 317,384 680,558 997,942 4,214,407
June 4,810,992 5 122,071 615,369 737,440 4,073,552
Total 55,247,289 33 805,667 5,707,243 6,512,910 48,734,379
Table 9 below provides an overview of the FY 23-24 overtime budget and expenditures,
including the allocated budget, total annual overtime expenses, variance from the budget, total
recovered savings, and net overtime costs after accounting for these savings.
Table 9: OPD Overtime Calculation Summary
FY23-24
Overtime
Budget
FY23-24
Overtime
Expenditures
Variance
(Over) / Under
Budget
FY 23-24
Salary Savings
&
Reimbursable
OT Total
Net Overtime
Expenditures
for FY23-24
(Over) /
Under
Budget
24,190,510 55,247,289 (31,056,779) 6,512,910 48,734,379 (24,543,869)
Table 10 below provides a breakdown of the FY 23-24 budgeted overtime (July 1, 2023, through
June 30, 2024) by organization number and name and the variance in the Department's
overtime based on Q4 payroll data, covering the period.
Page 30 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 17
Finance and Management Committee
October 22, 2024
Table 10: Breakdown of OPD Overtime by Organization
Organization Number and Name FY 23-24 Budget
(OT)
Total
Overtime
(Over) / Under
Budget
101110 - Office of Chief: Administration 13,346 128,275 (114,929)
101112 - Public Information 45,747 - 45,747
101120 - Internal Affairs 525,062 1,013,228 (488,166)
101130 - Office of the Inspector General 105,570 93,309 12,261
101140 - Intelligence Unit 70,380 287,724 (217,344)
102120 - Property and Evidence 130,035 168,442 (38,407)
102130 - Special Victims Section 501,675 1,491,642 (989,967)
102140 - Research, Planning and Crime
Analysis 7,918 39,881 (31,963)
102280 - Crime Analysis Section - 3,904 (3,904)
102310 - Criminal Investigation 143,068 249,058 (105,990)
102320 - Homicide 391,404 3,605,901 (3,214,497)
102321 - Misdemeanor Crimes and Task Forces 194,490 1,021,698 (827,208)
102324 - Felony Assault and Gang Section - 144,187 (144,187)
102330 - Robbery and Burglary Section 200,306 1,666,642 (1,466,336)
102331 - Assault - 1,699 (1,699)
102341 - Field Support 12,917 29,401 (16,484)
102342 - Violent Crime Operations Center - 1,184,271 (1,184,271)
102350 - Youth and School Services Section 40,619 77,272 (36,653)
102610 - Criminalistics 17,510 7,502 10,008
103110 - Bureau of Services: Administration 1,030 32,604 (31,574)
103240 - Records - 384 (384)
103242 - Records and Warrants 529,420 760,179 (230,759)
103310 - Communications 2,631,199 2,853,236 (222,037)
103430 - Training Unit 2,357,315 2,969,082 (611,767)
106210 - Police Personnel 47,230 123,612 (76,382)
Page 31 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 18
Finance and Management Committee
October 22, 2024
Organization Number and Name FY 23-24 Budget
(OT)
Total
Overtime
(Over) / Under
Budget
106410 - Police Information Tech 217,150 8,003 209,147
106510 - Budget Accounting 20,600 56,813 (36,213)
106610 - Background and Recruiting 357,050 957,126 (600,076)
106810 - PAS Administration 138,299 60,006 78,293
107010 - Bureau of Field Operations-Admin 1,759 567 1,192
107110 - Bureau of Field Operations 1 - 27,302 (27,302)
107210 - Bureau of Field Operations 2 - 3,317 (3,317)
107410 - Support Operations 3,519 24,500 (20,981)
107510 - Traffic Operations 593,342 412,173 181,169
107710 - Special Operations 4,224,081 11,272,865 (7,048,784)
108010 - District Command Administration 77,311 377,813 (300,502)
108110 - District Area 1 2,100,378 5,825,623 (3,725,245)
108120 - District Area 2 1,913,471 3,109,517 (1,196,046)
108130 - District Area 3 1,974,503 3,982,935 (2,008,432)
108140 - District Area 4 2,052,314 3,156,419 (1,104,105)
108150 - District Area 5 2,145,698 3,829,264 (1,683,566)
108160 - District Area 6 - 2,822,997 (2,822,997)
108630 - Ceasefire 404,794 1,366,915 (962,121)
Grand Total 24,190,510 55,247,289 (31,056,779)
Table 11 below highlights the five areas within OPD with the highest overspending in Q4.
Page 32 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 19
Finance and Management Committee
October 22, 2024
Table 11: Top 5 OPD Organizations Overtime Overspending
Top 5 Units to Overspend
FY 23-24 Budget
(OT) Total Overtime Variance
107710 - Special Operations 4,224,081 11,272,865 (7,048,784)
108110 - District Area 1 2,100,378 5,825,623 (3,725,245)
102320 - Homicide 391,404 3,605,901 (3,214,497)
108130 - District Area 3 1,974,503 3,982,935 (2,008,432)
108150 - District Area 5 2,145,698 3,829,264 (1,683,566)
The Department's primary goals are to reduce violent crime and enhance public safety.
Achieving these objectives required overtime and increased spending in the Homicide Section,
Special Operations Division (SOD), and Areas 1, 3, and 5.
Special Operations Division: The Special Operations Division (SOD) plays a critical role in the
Department's law enforcement efforts and is comprised of 11 sergeants, three lieutenants, and a
captain. Increased overtime expenditures were driven by substantial administrative
responsibilities, including preliminary investigations, division-level inquiries, use of force
investigations, and risk management-related tasks.
In Q4, SOD's overtime costs exceeded its budget primarily due to numerous special events
requiring operational staff to work overtime. While these events were reimbursable, the funds
were directed back into the general-purpose fund rather than offsetting SOD's operational costs.
Additionally, the Air Unit within SOD was essential to the Department's crime reduction
strategies and operated nearly seven days a week. Despite having six members, one was on
long-term modified duty and unable to pilot. The limited number of trained pilots required
qualified personnel to work overtime to meet operational demands. Overtime costs were
covered by the 'Restore' fund, which is specifically designated for overtime expenses.
Area 1: In Q4, Area 1 undertook several targeted overtime deployments authorized by the
captain to address specific safety and crime issues. These initiatives included a Violence
Suppression detail consisting of one sergeant and four police officers, a Chinatown detail staffed
with four police officers, and a Night Club detail, typically active on weekends with one sergeant
and three to five police officers. Additionally, the Big Four Detail was funded by third-party
reimbursable overtime. As a long- term strategy for weekend nights was being developed,
overtime officers provided a visible downtown presence, supported by shifting resources from
patrol units.
From late March to mid-April 2024, the Chinatown detail was temporarily understaffed but was
fully operational by mid-April with the authorized personnel. The officer's presence had a strong
Page 33 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 20
Finance and Management Committee
October 22, 2024
deterrent effect, correlating with a significant reduction in robberies and thefts in Area 1, which
had previously seen an increase in such crimes. This strategic deployment of resources
highlights Area 1's proactive approach to effectively managing and reducing crime.
Homicide Section: The Homicide Section maintains a 68% clearance rate. In 04, 15 sworn
personnel were responsible for investigating 68 homicide cases and handling hundreds of
unexplained deaths. Their extensive responsibilities included following up on older cases with
the Cold Case Unit, mandatory training, and managing numerous outstanding witness and
suspect warrants. This frequently involved overnight interviews and off-hour work.
Despite the demands, the Homicide Section continued to meet its goals while also managing
court appearances, which have become more demanding with the increased use of video and
digital forensic evidence. Investigators were responsible for analyzing the evidence, as OPD
does not have a dedicated team of evidence analysts. Thus, in any given case, the investigator
will serve as the detective, evidence recovery specialist, digital forensics expert, interviewer,
legal analyst, administrative professional, and court testifier. Staffing challenges in the Homicide
Section have led to ongoing overtime usage to maintain the quantity and quality of
investigations.
Area 3: In Q4, Area 3's overtime expenditures were driven by various initiatives, including
deploying Violence Suppression officers in the San Antonio/Saigon Area, addressing human
trafficking along International Boulevard, and managing large gatherings at Lake Merritt during
summer weekends. Mandatory overtime was required to backfill positions for officers on
training, sick leave, or vacation and to address administrative deadlines amid investigation
backlogs.
Early in 2024, Area 3 experienced an initial 80% surge in robberies, which was reduced to a
28% increase by April. The consistent, seven-day-a-week operations of the Violence
Suppression unit played a crucial role in addressing these issues. Most of the violence in Area 3
is linked to human trafficking activities along International Boulevard, where the OPD's Vice Unit
conducts two to four operations each month. These operations are partially reimbursable by the
FBI, ranging from $7,000 to $10,000 annually, while OPD's portion ranges between $80,000 and
$120,000 annually.
The summer months saw heightened activity at Lake Merritt, requiring an increased police
presence funded by a $200,000 budget to ensure weekend safety. Following a mass shooting
on Juneteenth 2024 at Grand Avenue and Bellevue, Area 3 significantly increased police
presence during Lakefest 2024, leading to substantial overtime costs to ensure public safety.
Area 5: In Q4, Area S's violence suppression teams were actively deployed, primarily funded by
the area itself, to address rising crime rates. These units significantly aided the Bureau of Field
Operations 2, contributing to an 18% reduction in assaults involving firearms and a significant
52% decrease in homicides, with only ten incidents during the reporting period compared to 21
at the same time last year.
Page 34 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 21
Finance and Management Committee
October 22, 2024
Area 5 implemented five violence suppression overtime assignments, each focused on a
specific sector. Teams were instructed to remain within their designated sectors, ensuring high
visibility and conducting necessary enforcement and security checks. These sectors were
chosen based on a comprehensive analysis of crime statistics and ShotSpotter activations,
identifying areas with the highest levels of violent crime. Weekly evaluations of these sectors
allowed for tactical adjustments in response to shifting crime trends. Due to the presence and
effectiveness of these units, the Crime Reduction Team (CRT) East allocated minimal resources
to Area 5, allowing for more concentrated efforts in Areas 4 and 6.
Table 12: Year-Over-Year Comparison of Public Safety GPF Personnel Expenditures ($ in
millions)
Police Department
Overtime (OT) FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Adjusted Budget 16.56 15.39 33.36 30.90 24.08
Actuals 35.07 29.18 34.35 51.16 55.24
(Over)/Under (18.51) (13.79) (0.99) (20.26) (31.16)
All Other Personnel (non-OT) FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Adjusted Budget 232.95 239.29 245.01 252.38 262.47
Actuals 242.01 244.23 234.29 182.02 263.46
(Over)/Under (9.06) (4.94) 10.71 70.36 4.09
Total Personnel FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Adjusted Budget 249.51 254.68 278.37 283.28 286.55
Actuals 277.08 273.41 264.27 233.18 313.62
(Over)/Under (27.57) (18.73) 14.09 51.57 (27.07)
Fire Department
Overtime (OT) FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Adjusted Budget 2.37 4.22 19.83 11.19 13.80
Actuals 20.63 24.22 29.83 29.96 29.24
(Over)/Under (18.26) (20.00) (10.00) (18.77) (15.43)
All Other Personnel (non-OT) FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Adjusted Budget 142.70 144.73 132.44 143.28 163.79
Actuals 123.59 126.99 119.50 129.85 137.19
(Over)/Under 19.11 17.74 12.94 13.44 26.59
Total Personnel FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Adjusted Budget 145.07 148.95 152.27 154.47 177.59
Actuals 144.22 151.21 149.33 159.80 166.43
(Over)/Under 0.85 (2.26) 2.94 (5.33) 11.16
Page 35 of 65
Jestin Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 22
Finance and Management Committee
October 22, 2024
III. GENERAL PURPOSE FUND - FUND BALANCE
The City's GPF Fund net obligations, is projected to end FY 2023-24 with a negative fund
balance. Table 13 below shows mandated reserves required by City Ordinances and the City
Charter, as well as other commitments that adjust or draw down on the GPF balance totaling
$30.40 million, decreasing the estimated FY 2023-24 year-end available fund balance to
negative $16.60 million. In addition, there are $55.06 million in additional possible carry
forwards that could further reduce the FY 2023-24 available fund balance to negative $71.66
million. The estimated FY 2023-24 available Fund Balance is the amount of unobligated
funding available to the City in the GPF.
Table 13: FY 2023-24 Year-End Available GPF Fund Balance
GENERAL PURPOSE FUND (1010) FY 2023-24 Q4 FYE
Estimated FY 2023-24 Beginning Audited Fund Balance 93.28
FY2023-24 Performance
Revenue 734.68
Expenditures 814.52
FY 2023-24 Operating Surplus / Deficit (79.84)
Obligations Against Ending Fund Balance
Encumbrances (12.9)
Settlement Set Aside (4.4)
Required Carry Forward on to FY 2024-252 (12.74)
FY 2023-24 Ending Maximum Available Fund Balance (16.60)
Additional Possible Carry Forward on to FY 2024-25 (55.06)
FY 2023-24 Ending Minimum Available Fund Balance (71.66)
2 Required Carryforward include funds that are tied to legally binding contracts or agreements, required to meet
legal settlement terms which may be restricted for specific uses, committed to payments that have processed,
matching funds necessary for federal grant programs, and planned used of carryforward funds adopted in the budget.
Page 36 of 65
Jestin Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 23
Finance and Management Committee
October 22, 2024
IV. RESERVES
On December 9, 2014 Council Ordinance No. 13279 amended the City’s Consolidated Fiscal
Policies to include designated reserves for both the Vital Services Stabilization Fund and for the
acceleration of long-term obligations, in addition to the mandated 7.5% GPF Emergency
Reserve (refer to the City of Oakland Consolidated Fiscal Policy, Section I, Part C: Use of
Excess Real Estate Transfer Tax). It is important to note that while these balances are
designated each fiscal year, reserve appropriations adopted in subsequent fiscal years may
include any prior year true-ups.
Emergency Reserve
The City’s GPF Emergency Reserve, was calculated by multiplying 7.5% by the FY 2022-23
Adopted Budget amount of $872.07 million, plus accrued interest. The reserve is approximate to
one month of FY 2023-24 Adopted Budget in the GPF. This reserve is held in Fund 1011 as
directed by Council in Resolution 88717 C.M.S. The reserve requirement, pursuant to the CFP
has been met.
However, the emergency reserve policy level of 7.5% is inadequate to sustain city services in an
economic downturn as evidenced by the events of the last 2 years. The recommended policy
level is 16.7% or two months of operating expenditures. This recommended level is supported
by best practices outlined by the Government Finance Officer's Association's (GFOA).
Vital Services Stabilization Fund
The Vital Services Stabilization Fund (VSSF) was established in 2014 by City Council after the
Great Recession to serve as the City's "Rainy Day" fund. Per the Consolidated Fiscal Policy,
25% of excess RETT revenue is intended to go into the VSSF. The FY 2022-23 ending available
balance of $10.27 million was assumed in its entirety in the FY 2023-24 Adopted Budget to
balance expenditures as City Council declared that the City is experiencing a severe financial
event and state of extreme fiscal necessity. The target funding level per the City's Consolidated
Fiscal Policy is $125.22 million, or 15% of the GPF revenues.
Table 14 below shows the estimated FY 2023-24 year end reserve balances.
Table 14: FY 2023-24 Q4 Reserve Balances ($ in millions)
Description
FY 2023-24
Beginning
Balances
FYE Estimated
2023-2024
Balances
Mandated Emergency Reserves FY 2022-23* 65.41 70.16
Vital Services Stabilization Fund 10.27 0.50
OMERS Reserves (Reso. No. 85098 C.M.S) 2.36 2.36
Total Reserves 78.04 73.02
*The 7.5% GPF reserve is not a cumulative balance
Page 37 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 24
Finance and Management Committee
October 22, 2024
V. SELECTED FY 2023-24 Q4 NON-GPF
This section of the Q4 report contains additional analysis on selected non-GPF funds. For
additional fund descriptions, please visit
https://stories.opengov.com/oaklandca/published/_dhbklVRjPB.This Q4 report discusses
selected funds that are of special interest to the City because the revenue comes from a special
tax or local measure, or because of the particular revenue or expenditure restrictions. For these
funds, the revenue and expenditure tables below will show year-end actuals compared to the
FY 2023-24 Adopted Budget.
The fund balance tables compare the FY 2023-24 beginning fund balance to the FY 2023-24
unaudited ending fund balance for these funds. Please note that some of the fund tables below
show a budgeted transfer from fund balance for FY 2024-25. These amounts represent dollars
designated to balance the Adopted Budget.
All other funds are summarized in Table 46.
Measure HH - Sugar Sweetened Beverage Distribution Tax (SSBT) Fund (1030)
Measure HH - SSBT Fund (1030) is a City of Oakland ballot initiative approved by voters on
November 8, 2016, that established a general tax of one cent per fluid ounce on the sugar
sweetened beverage products. The tax is imposed upon the first non-exempt distribution of
sugar-sweetened beverage products in the City. While this revenue is not restricted by State
statute, City Council has elected to restrict it by policy and separate it into its own fund because
the primary purpose of the tax is to raise revenue to support programs designed to discourage
sugar consumption and to reduce the growing burden of obesity and non-communicable
diseases.
The measure formed a nine-member Community Advisory Board, appointed by the Mayor, and
approved by City Council. The Board is responsible for:
1. Making recommendations to City Council on use of funding/programs that will reduce the
health consequences from consuming sugar-sweetened beverages (final allocations are
still determined by City Council).
2. Publishing an annual report regarding the implementation of the Board's
recommendations and the impact on the use of these funds.
Revenues - Measure HH revenues ended the year at $5.72 million which is $10.55 million or
64.8% under the FY 2023-24 Adjusted Budget of $16.27 million. The Adjusted Budget includes
$9.09 million in use of fund balance to support the FY 2023-24 carryforwards. Net of use of fund
Page 40 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 27
Finance and Management Committee
October 22, 2024
1. Measure BB, passed by voters in November 2014, authorized collection of the initial
half-cent transportation sales tax by the Board of Equalization. Collection began on April
1, 2015 and extended through March 31, 2022 as a compliment to Measure B which
sunset in March 2022. The full one-cent sales tax authorized by Measure BB took effect
April 1, 2022 and will extend through March 31, 2045. Starting in July 2015, Alameda
CTC began making monthly direct local distribution payments to local jurisdictions and
transit agencies, per the 2014 Transportation Expenditure Plan, for the following
programs: local streets and roads (including county bridges), bicycle and pedestrian,
transit, and paratransit.
2. Measure F, approved by voters in November 2010, authorizes the collection of $10 per
year per vehicle registration fee to fund the Local Road Improvement & Repair Program
and other congestion relief, transportation technology, and pedestrian/bicyclist safety
programs in Alameda County.
Revenues - Measure BB and Measure F revenues ended the year at $38.21 million which is
$40.97 million or 51.7% under the FY 2023-24 Adjusted Budget of $79.18 million. The Adjusted
Budget assumes $4.67 million in use of fund balance to balance the Adjusted Budget as
adopted, and $35.74 million in use of fund balance to support FY 2022-23 carry forwards. The
actual Sales Tax for Measure BB came in at $33.46 million which is $3.50 million or 9.5% under
the $36.96 million Adjusted budget estimate.
Table 18: FY 2023-24 Measure BB & F Fund Revenues ($ in millions)
Revenue Category
FY 2023-24
Adjusted
Budget
FY 2023-24
Q4 YTD
Actuals
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Sales Tax 36.96 33.46 (3.50) (9.5)%
Project Offsets &
Carryforwards 35.74 — (35.74) (100.0)%
Transfers from Fund
Balance 4.67 — (4.67) (100.0)%
Grants & Subsidies 1.81 — (1.81) (100.0)%
Interest Income — 2.29 2.29 — %
Service Charges — 0.13 0.13 — %
Miscellaneous Revenue — 2.32 2.32 — %
Total Revenue 79.18 38.21 (40.97) (51.7)%
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are at $34.88 million, which is a savings of
$44.30 million, compared to the Adjusted Budget of $79.18 million. The savings is primarily due
to underspending in personnel costs.
Table 19: FY 2023-24 Measure BB/F Funds Expenditures ($ in millions)
Page 41 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 28
Finance and Management Committee
October 22, 2024
Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q4 YTD
Actuals
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 33.36 4.35 29.01 87.0 %
City Administrator 0.39 0.35 0.04 9.8 %
City Attorney 0.05 0.05 — (2.9)%
Department of
Transportation 36.66 25.65 11.01 30.0 %
Finance Department 0.01 — — 2.6 %
Human Resources
Management
Department 0.24 0.06 0.18 75.3 %
Human Services
Department 5.31 2.45 2.85 53.8 %
Information Technology
Department — — — — %
Mayor 0.23 0.23 — 0.4 %
Non Departmental and
Port 0.52 — 0.52 100.0 %
Oakland Public Works
Department 2.12 1.73 0.39 18.5 %
Police Department — — — — %
Total Expenditures 79.18 34.88 44.30 55.9 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue ended the year at $38.21 million. Expenditures ended the
year at $34.88 million. As a result, the estimated available fund balance in the Measure BB/F
Funds increased from $54.39 million to $57.71 million in FY 2023-24.
Table 20: FY 2023-24 Measure BB/F Funds Year-End Available Fund Balance ($ in
millions)
Measure B/BB and Measure F Funds (2211, 2212, 2213, 2215, 2216, 2217,
2218, 2219, 2220)
FY 2023-24 Q4 Year- End Actuals
Beginning Fund Balance - Audited $ 54.39
Revenue 38.21
Expenditures 34.88
Estimated Current Year Surplus/(Shortfall) 3.33
Estimated Ending Fund Balance 57.71
State Transportation Gas Tax Funds (2230, 2232)
The State of California imposes a per-gallon excise tax on gasoline and diesel fuel, sales taxes
on gasoline and diesel fuel, and registration taxes on motor vehicles with allocations dedicated
There was a problem loading this page.
Page 43 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 30
Finance and Management Committee
October 22, 2024
Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q4 YTD
Actuals
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 5.54 0.10 5.44 98.2 %
City Administrator 0.18 0.12 0.06 33.3 %
Department of
Transportation 25.86 22.60 3.26 12.6 %
Economic and
Workforce
Development
Department 0.01 0.01 — 20.0 %
Finance Department 0.09 0.01 0.09 91.7 %
Human Resources
Management
Department 0.24 0.06 0.18 75.3 %
Oakland Public Works
Department 0.02 0.01 — 22.9 %
Total Expenditures 31.94 22.91 9.03 28.3 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue ended the year at $23.19 million. Expenditures ended the
year at $22.91 million. As a result, the estimated available fund balance in the State
Transportation Gas Tax Funds increased from $11.56 million to $11.79 million in FY 2023-24.
Table 23: FY 2023-24 State Transportation Funds Year-End Available Fund Balance ($ in
millions)
State Transportation (Gas Tax) Funds (2230, 2232) FY 2023-24 Q4 Year- End Actuals
Beginning Fund Balance - Audited $ 11.56
Revenue 23.19
Expenditures 22.91
Estimated Current Year Surplus/(Shortfall) 0.28
Estimated Ending Fund Balance 11.84
Measure Q - OPR Preservation, Litter Reduction, Homelessness Support Act Fund (2244)
Measure Q, the 2020 Oakland Parks and Recreation, Preservation, Litter Reduction, and
Homelessness Support Act Fund (2244), is a City of Oakland ballot initiative approved by voters
on March 3, 2020, that established an annual special parcel tax for 20 years. This measure,
which passed by more than a two-thirds majority, imposes a special parcel tax for the purpose
of raising revenue to provide services for parks, landscape maintenance, and recreational
services; to address homelessness and enable unsheltered and unhoused residents to access
Page 44 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 31
Finance and Management Committee
October 22, 2024
temporary shelters, transitional, supportive, and permanent housing; and to address water
quality and litter reduction, including the maintenance and cleaning of stormwater trash
collection systems.
Revenues - Year-end revenues came in at $32.41 million, which is $15.19 million or 31.9%
under the FY 2023-24 Adjusted Budget of $47.60 million. The Adjusted Budget assumes $2.53
million in use of fund balance to balance the Adjusted Budget as adopted, and $14.28 million to
support carryforward expenditures. The actual Measure Q Tax, net of use of fund balance, came
in at $31.18 million, which is $0.39 million or 1.3% over the Adjusted Budget estimate. This local
measure is collected through property tax bills and is a consistent revenue source.
Table 24: FY 2023-24 Preservation, Litter Reduction, Homelessness Support Act Fund
Revenues ($ in millions)
Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q4
YTD Actuals
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Local Tax 30.78 31.18 0.39 1.3 %
Project Offsets
& Carryforwards 14.28 — (14.28) (100.0)%
Transfers from
Fund Balance 2.53 — (2.53) (100.0)%
Interest Income — 1.01 1.01 — %
Miscellaneous
Revenue — 0.22 0.22 — %
Total Revenue 47.60 32.41 (15.19) (31.9)%
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are at $26.99 million, which is a savings of
$20.47 million, when compared to the Adjusted Budget of $47.46 million. The savings are
primarily due to underspending in personnel costs.
Page 47 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 34
Finance and Management Committee
October 22, 2024
Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q4 YTD
Actuals
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
City Administrator 0.23 0.14 0.09 38.6 %
Finance Department 0.81 0.64 0.17 21.1 %
Human Services
Department 0.17 — 0.17 100.0 %
Oakland Public Works
Department 4.90 4.08 0.82 16.8 %
Total Expenditures 6.12 4.86 1.26 20.5 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue ended the year at $6.37 million. Expenditures ended the
year at $4.86 million. As a result, the estimated available fund balance in the Vacant Property
Tax Fund (2270) increased from $1.01 million to $2.51 million in FY 2023-24.
Table 29: FY 2023-24 Vacant Property Tax Fund Year-End Available Fund Balance ($ in
millions)
Vacant Property Tax Fund (2270) FY 2023-24 Q4 Year- End Actuals
Beginning Fund Balance - Audited $ 1.01
Revenue 6.37
Expenditures 4.86
Estimated Current Year Surplus/(Shortfall) 1.50
Estimated Ending Fund Balance 2.51
Landscaping and Lighting Assessment District (LLAD) Fund (2310)
The Landscaping and Lighting Assessment District (LLAD) Fund (2310) revenue is generated
through a direct benefit assessment, or special assessment and is restricted by statue to be
used for street lighting, landscaping, and public parks and recreation facility maintenance, and
multi-use fields.
Revenues - The FY 2023-24 year-end revenues came in at $19.43 million, which is $0.19 million
under the FY 2023-24 Adjusted Budget of $19.62 million. The Local tax came in at $19.32 million
which is $0.24 million over the $19.08 million estimated in the Adjusted Budget. The Adjusted
Budget also assumed FY 2023-23 carryforwards in the amount of $0.26 million that will be
supported with use of fund balance.
Table 30: FY 2023-24 Landscaping and Lighting Assessment District (LLAD) Fund
Revenue ($ in millions)
Page 48 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 35
Finance and Management Committee
October 22, 2024
Revenue
Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q4
YTD Actuals
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Local Tax 19.08 19.32 0.24 1.3 %
Project Offsets
& Carryforwards 0.26 — (0.26) (100.0)%
Service
Charges 0.21 — (0.21) (99.8)%
Licenses &
Permits 0.08 0.12 0.04 48.8 %
Interest Income — 0.01 0.01 — %
Grants &
Subsidies — — — — %
Miscellaneous
Revenue — (0.01) (0.01) — %
Total Revenue 19.62 19.43 (0.19) (1.0)%
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures are at $20.02 million, which is an overage of
$0.40 million, when compared to the Adjusted Budget of $19.62 million.
Table 31: FY 2023-24 Landscaping and Lighting Assessment District (LLAD) Fund
Expenditures ($ in millions)
Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q4 YTD
Actuals
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Department of
Transportation 2.60 2.53 0.07 2.7 %
Finance Department 0.03 0.01 0.03 74.6 %
Non-Departmental and
Port 2.94 2.75 0.20 6.7 %
Oakland Parks and
Recreation Department 5.00 5.00 — — %
Oakland Public Works
Department 9.04 9.74 (0.70) (7.7)%
Total Expenditures 19.62 20.02 (0.40) (2.0)%
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue ended the year at $19.32 million. Expenditures ended the
year at $20.02 million. As a result, the estimated available fund balance in the Landscaping and
Lighting Assessment District (2310) decreased to negative $0.70 million in FY 2023-24.
Table 32: FY 2023-24 Landscaping and Lighting Assessment District (LLAD) Fund
Balance ($ in millions)
Page 50 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 37
Finance and Management Committee
October 22, 2024
Agency / Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q4 YTD
Actuals
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Information Technology
Department 0.11 0.13 (0.02) (18.3)%
Police Department 1.33 0.90 0.44 32.7 %
Total Expenditures 1.44 1.03 0.42 28.8 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - FY 2023-24 revenue ended the year at $0.79 million. Expenditures ended the
year at $1.03 million. As a result, the estimated available fund balance in False Alarm
Reduction Program Fund (2411) decreased from negative $3.66 million to negative $3.91 million
in FY 2023-24.
Table 35: FY 2023-24 False Alarm Reduction Program Fund Balance ($ in millions)
False Alarm Reduction Fund (2411) FY 2023-24 Q4 Year- End Actuals
Beginning Fund Balance - Audited (3.66)
Revenue 0.79
Expenditures 1.03
Estimated Current Year Surplus/(Shortfall) (0.24)
Estimated Ending Fund Balance (3.91)
Development Service Fund (2415)
The Development Service Fund (2415) was created on June 20, 2006 by Ordinance No. 12741
C.M.S. This fund collects revenues from licenses, fees, and permits from housing and
commercial planning and construction-related activities to support planning and zoning services,
construction inspections and permit approvals, building code enforcement, plan checks and
engineering services. This fund is required to keep a minimum 7.5% reserve of annual budgeted
revenues for its balance, which would be $5.48 million in FY 2023-24.
Table 36: Historical Revenue for Fund 2415
Page 51 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 38
Finance and Management Committee
October 22, 2024
Fiscal Year Budgeted Revenue Projected Year End Revenue
FY 2023-24 73.02 66.94
FY 2022-23 52.24 65.32
FY 2021-22 63.98 73.94
FY 2020-21 47.33 50.25
FY 2019-20 61.5 60.7
FY 2018-19 49.92 63.20
FY 2017-18 45.14 90.13
FY 2016-17 38.03 77.15
Revenues - Year-end revenues came in at $66.94 million, which is $77.81 million or 50.3%
under the Adjusted Budget of $134.75 million. The FY 2023-24 $134.75 million Adjusted Budget
assumes $31.27 million in use of fund balance to balance the FY 2023-24 Adjusted Budget and
$30.46 million in use of fund balance to support FY 2022-23 carryforward expenditures.
Table 37: FY 2023-24 Development Service Fund Revenues ($ in millions)
Revenue Category
FY 2023-24
Adjusted
Budget
FY 2023-24 Q4
YTD Actuals
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Licenses & Permits 41.91 25.45 (16.46) (39.3)%
Transfers from Fund
Balance 31.27 — (31.27) (100.0)%
Project Offsets &
Carryforwards 30.46 — (30.46) (100.0)%
Service Charges 30.11 30.23 0.12 0.4 %
Fines & Penalties 0.62 2.53 1.91 306.0 %
Miscellaneous
Revenue 0.38 2.72 2.34 618.9 %
Interest Income — 5.48 5.48 — %
Grants & Subsidies — 0.53 0.53 — %
Total Revenue 134.75 66.94 (67.81) (50.3)%
*The adjusted budget includes Council Budget Amendments and Carryforwards
Expenditures - FY 2023-24 year-end expenditures came in at $84.02 million, which is a savings
of $50.73 million, compared to the adjusted budget of $134.75 million. The projected savings
are mainly attributed to vacancies.
There was a problem loading this page.
Page 52 of 65
Jestin D. Johnson, City Administrator
Subject: FY 2023-24 Q4 R&E Report and FY 2024-25 Fiscal Condition and Challenges
Date: October 10, 2024 Page 39
Finance and Management Committee
October 22, 2024
Table 38: FY 2023-24 Development Service Fund Expenditures ($ in millions)
Agency /
Department
FY 2023-24
Adjusted
Budget
FY 2023-24
Q4 YTD
Actuals
Year-End $
Over / Under
Adjusted
Budget
Year-End %
Over / Under
Adjusted
Budget
Capital Improvement
Projects 0.06 1.38 (1.32) (2309.4)%
City Administrator 3.48 3.12 0.37 10.6%
City Attorney 3.59 3.75 (0.16 (4.6)%
City Auditor 0.05 0.05 — (9.3)%
City Council — 0.03 (0.03) — %
Department of
Transportation 20.03 9.71 10.33 51.6%
Economic and
Workforce
Development
Department 2.62 2.32 0.30 11.4%
Finance Department 1.81 1.31 0.50 27.5%
Fire Department 14.45 6.51 7.95 55.0%
Human Resources
Management
Department 2.03 1.46 0.57 28.3%
Information
Technology
Department 5.40 3.75 0.59 10.9%
Mayor 0.35 0.28 0.07 19.7%
Non Departmental
and Port 2.68 1.41 1.27 47.2%
Oakland Public
Works Department 3.22 1.66 1.56 48.3%
Planning and
Building Department 74.96 47.26 27.70 37.0%
Total Expenditures 134.75 84.02 50.73 37.6 %
*The adjusted budget includes Council Budget Amendments and Carryforwards
Fund Balance - The large fund balance has accumulated over the life of the fund due to
revenues exceeding the budget as well as longstanding underspending or delays in
expenditures attributed to a high number of vacancies within the Planning and Building
Department. This fund is required to keep a minimum 7.5% reserve of annual budgeted
revenues for its balance, which would be $5.48 million in FY 2023-24.
FY 2023-24 revenue ended the year at $66.94 million. Expenditures ended the year at $84.02
million. As a result, the estimated available fund balance in the Development Service Fund
(2415) decreased from $122.38 million to $105.30 million in FY 2023-24.
There was a problem loading this page.
There was a problem loading this page.
There was a problem loading this page.
There was a problem loading this page.
There was a problem loading this page.
There was a problem loading this page.
There was a problem loading this page.
There was a problem loading this page.
There was a problem loading this page.
There was a problem loading this page.
There was a problem loading this page.
There was a problem loading this page.
There was a problem loading this page.