As of April 15, 2021
It’s now time to update you on developments on the 2020-21 (current year) budget, what we can look forward to in the development of the 2021-23 biennial budget and the Five-Year forecast. In this post we will summarize:
- Balancing the current year budget.
- The Five-Year Forecast.
- A summary of Council Budget priorities based on a recent retreat.
- The Outlook for the 2021-23 budget.
- The Budget Calendar.
Balancing the Current Year Budget
At a special meeting held on April 12th the Council brought the budget into balance thru the infusion of $66 million from a combination of American Rescue Plan (ARPA) (Federal) Monies, $10 million from the settlement of the Coliseum lawsuit with the Warriors and numerous appropriations to fill holes in various department budget caused principally by Covid-19. It is notable that both the Administration and the independent consultants, Harvey Rose, were in agreement on all of the principal elements in regard to revenue forecasts, program shortfalls and reserve requirements.
The Five-Year Forecast
The Five-Year forecast, which can be reviewed here: Five-Year Financial Forecast, paints a challenging financial future for Oakland. A summary of the forecast is shown here: Financial Forecast Summary. The Forecast shows an all funds shortfall of $141 million for the 2021-23 fiscal year even after the infusion of approximately of $134 million of ARPA funds. For the entire five years it projects a shortfall of $545 million. It is worth noting that the City engaged outside consultants, particularly in regard to revenue projections during the Covid recovery to insure the accuracy of these projections.
The Council held a retreat on March 30th. Based on this retreat Council President Nikki Fortunato Bas submitted the following report to the Council at it’s meeting of April 12th: Council Strategic Priorities for FY 2021 – 2023.
The Strategic Priorities were outlined in the report were “Affordable Housing and Homelessness, Public Safety and Violence Prevention, Good Jobs and a Vibrant Economy and Clean, healthy sustainable neighborhoods.”
The budget which will be coming before the Council is expected to be the vehicle for pursuing these priorities.
The Outlook for the 2021-23 budget
As indicated above in the Five- Year forecast FY 2021-23 is facing a net all funds shortfall of $141 million after ARPA funds of $133 million are used to reduce the projected shortfall. It is expected that during the coming months there will be numerous suggestions for reducing expenditures and increasing revenues. We will be reporting on these as they are more defined.
The Budget Calendar
At its meeting of April 12th, the Council received the following proposed detailed budget calendar from the City Administrator: Budget Calendar (PDF).
Following are the important proposed dates:
- May 1- Release of Mayor’s Proposed Budget.
- May 6- Presentation of Proposed Budget to Council
- May 8-30- Community Budget Forums -Dates TBD.
- June 1-FY 2020-21 3rd quarter revenue estimates presented to Council
- June 1- Budget Advisory Commission report submitted
- June 10- Council President Proposed budget amendments presented to Council.
- June 17- Council special meeting on budget.
- June 24- Proposed date for Adoption of Budget.
- June 30- Final date for budget adoption
We will be reporting to you as there are further budget developments Remember you can keep up to date by reviewing the following link at the City Budget Bureau: Fiscal Year 2021-2023 Budget.
May 8, 2021 to May 30, 2021 (Various Days) *
Community Budget Forums
District 1 – TBD
District 2 – May 12 5:30pm (Wednesday) District 3 – TBD District 4 – TBD
District 5 – TBD
District 6 – TBD
District 7 – TBD
May 10, 2021 (Monday)
Budget Proposal Costing Template Sent to Councilmembers for Amendments to Mayor’s Proposed Budget
Master Fee Schedule Ordinance presented to the Finance & Management Committee
May 18, 2021 (Tuesday)
City Council consideration and 1st Reading of the Master Fee Schedule Ordinance
City Council Hearings on Local Measures Ordinance 1st Reading LLAD Confirmation Resolution Approved by City Council
* Indicates a statutory timeline.
June 2, 2021 (Wednesday)*
June 17, 2021 (Thursday) June 24, 2021 (Thursday)
June 30, 2021 (Tuesday)*
* Indicates a statutory timeline.
Councilmember Budget Amendment Requests for Costing Due to Budget Bureau (Statutory Deadline 6 Days before Hearing)
Special Session to Consider Council Budget Amendments and Additional Deliberations (Staff Proposed Date)
Target Date for City Council Adoption of the Biennial Budget
(Staff Proposed Date)
Final Date for Budget Approval
June 1, 2021 (Tuesday)
FY 2020-21 3rd Quarter Revenue & Expenditure Report Delivered to the City Council
Appropriations Limit Resolution presented to the City Council
Budget Advisory Commission report regarding the Proposed Budget published to the City Website*
City Council Hearings on Local Measures Ordinance 2nd Reading
June 10, 2021 (Thursday)
Council President’s Proposed Amendments Presented at Special Session (Staff Proposed Date in Consultation with Council President, Statutory Deadline of June
Budget Advisory Commission report re: Budget