2025-city-of-oakland-acfr_final-123025.pdf

The City’s fiscal outlook is also influenced by broader macroeconomic conditions. During FY 2024 25, the U.S. economy experienced moderating but generally stable growth, with inflation continuing to ease and the Federal Reserve signaling a shift toward monetary easing. While national growth remained slow and some forecasts highlighted elevated recession risks, the economy avoided a broad downturn. Following these national trends, local economic growth in Oakland was also slow, shaped by long-term post-pandemic structural shifts. Downtown office utilization remained low as hybrid and remote work arrangements reduced demand for traditional office space, placing pressure on commercial property values and surrounding economic activity. Residential market dynamics also evolved, as remote work expanded housing options beyond the City. Collectively, these conditions continue to influence the City’s revenue base and underscore the importance of maintaining fiscal discipline in a post-pandemic economic environment. Despite the long-term structural challenges shaped by post-pandemic shifts, Oakland’s geographic location, diverse economy, and strong regional connections provide a foundation for resilience. The City’s proximity to major employment centers, ports, transportation corridors, and innovation hubs positions it to benefit from regional economic activity and attract businesses and residents over time. While certain revenue streams continue to face pressure, these inherent advantages support the City’s ability to adapt, pursue strategic investments, and navigate uncertainty in the years ahead. Significant Events and Accomplishments During FY 2024-25, the City advanced several organizational and policy initiatives focused on public safety, housing and homelessness, fiscal stabilization, and long-term community investments. In the area of public safety, the City emphasized interagency coordination, targeted enforcement efforts, and operational improvements. The City continued its collaboration with the California Highway Patrol as part of a regional joint law enforcement operation focused on vehicle theft, organized retail crime, sideshow activity, and gun violence. These efforts were supported by expanded use of enforcement technology, including automated vehicle identification systems that enhanced investigative capacity and real-time coordination. In parallel, the City advanced complementary public safety investments, including continued funding for police academies, expansion of the Ceasefire gun violence reduction program through federal funding, deployment of the Mobile Assistance Community Responders of Oakland (MACRO) program to address non-violent, non-emergency calls, and approval of speed safety pilot program at high-risk locations to reduce traffic-related injuries and fatalities. With respect to housing and homelessness, the City continued to prioritize the delivery of housing-related services through a range of programs and actions. Notable activities in support of these goals in FY 2024-25 included the following: • The City successfully transitioned residents from Lake Merritt Lodge—a former dormitory converted to housing during the COVID-19 pandemic—into alternative housing placements, following the lease expiration. The transition supported a strategic shift from City-leased shelter sites to partner-operated housing and shelter models. • The City acquired a hotel property, formerly operated as Extended Stay America, to provide interim housing and supportive services for individuals relocating from three large encampments, including East 12th Street, Mosswood Park, and the Martin Luther King Jr. Way corridor. This acquisition, supported by state and grant funding, expanded the City’s capacity to transition unsheltered residents into indoor settings. • The City completed the closure of a long-standing encampment along East 12th Street, successfully relocating 70 residents to Mandela House, the interim housing program established in the recently acquired Extended Stay America property. iv