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

Governmental activities: Net position for governmental activities increased by $398.3 million during fiscal year 2024-25. Total revenue increased by 4.2 percent and total expenses decreased by 2.3 percent. For comparison, during fiscal year 2023-24, revenues increased at a rate of 0.7 percent and expenses increased by 15.9 percent. Changes in net position for governmental activities are attributed to the following significant elements: • Several factors contributed to the increase in total revenues. Operating grants and contributions increased by $85.3 million or 62.7 percent, supporting ongoing affordable housing programs. Real estate transfer tax increased by $35.6 million, or 61.8 percent, due to a one-time boost from PG&E property transfer. Other revenues increased by $9.3 million, due to a one-time Coliseum payment and legal settlements. Voter-approved special tax increased by $6.4 million, due to increase in assessed values. Other increases in revenue include $6.2 million increase in business license tax due to the City's enhanced recovery efforts targeting past-due business tax delinquencies and $4.5 million increase in utility consumption tax due to driven by rate increases approved by the California Public Utilities Commission (CPUC). Offsetting these gains, property taxes decreased by $70.8 million, or 12.9 percent, due to a lower PFRS liability rate, reflecting reduced property tax levy requirements to fund the City’s PFRS obligations. Interest and investment income decreased by $12.8 million, due to lower investment yields. Transient occupancy tax decreased by $3.2 million, primarily due to lower hotel operations. • Community and Human Services expenses decreased by $76.0 million, or (41.5)% due to reduced personnel spending, discretionary spending reductions, and deferral of certain costs including contracts, as part of actions taken to address the City's budget deficits. CITY OF OAKLAND Management’s Discussion and Analysis (Unaudited) Year Ended June 30, 2025 12