FY 2026-27 Proposed Midcycle Budget

3 WHEREAS, the City was experiencing General Purpose Fund shortfalls prior to the balancing actions contained in this budget; and WHEREAS, the reductions in revenues available to the City due to economic circumstances warrant the declaration of a state of extreme fiscal necessity; and WHEREAS, pursuant to City Council resolution No. 89803 C.M.S, a state of extreme fiscal necessity is currently defined as: "An intervening step of fiscal austerity, such as when total projected General Purpose Fund revenues will be less than the current year's revenues, it is the lessor of a catastrophic situation where the City entity would need to suspend provisions of local laws related to enhanced public services, such as Maintenance of Effort provisions or to prevent a dramatic decrease in essential services, such as layoffs, relating to health, safety, and welfare; may include using Vital Services Stabilization Fund “Rainy Day Funds”, suspension of Use of One- time Revenues policy, or suspension of accelerated liability repayments, in order to sustain City Services but short of accessing emergency reserve monies.”; and WHEREAS, City Charter section 603(g)(2) mandates a minimum staffing budget for the Public Ethics Commission and section 603(g)(3) provides that the Council may reduce the minimum staffing budget set-aside for a fiscal year or a two-year budget cycle, upon a finding in the budget resolution that the City is facing an extreme fiscal necessity, as defined by City Council resolution, provided that the suspension is part of general reduction in expenditures across multiple departments; and WHEREAS, Section 3.15.060(E) of the Oakland Fair Elections Act (codified as Oakland Municipal Code Chapter 3.15), which the voters passed at the November 2022 election, mandates a minimum budget set aside for the Oakland Democracy Dollars Fund (“Fund”) and for non-staff costs for the Public Ethics Commission to administer the Fund, and allows the Council to suspend the aforesaid minimum budget set-asides for a fiscal year or two-year budget cycle, upon a finding in the budget resolution that the City is facing an extreme fiscal necessity as defined by City Council resolution, provided that the suspension is part of general reduction in expenditures across multiple departments; and WHEREAS, in light of the extreme fiscal necessity the City is facing, the Council has determined it will be necessary to suspend the mandated minimum budget set-asides for the FY 2026-2027 budget cycle for the Public Ethics Commission and the Democracy Dollars Fund and non-staff costs for the PEC to administer the Democracy Dollars Program; and WHEREAS, the City Council has carefully considered the proposed midcycle budget for Fiscal Year 2026-27 as set forth in the FY 2026-27 Proposed Policy Budget document, included as Attachment A to the Agenda Report accompanying this resolution; and WHEREAS, the City Council has noted any modifications or amendments to the FY 2026-2027 Proposed Policy Budget in Exhibit 1; now therefore be it RESOLVED: That the City Council hereby adopts the FY 2026-2027 Proposed Policy Budget as modified by Exhibit 1 as the City of Oakland FY 2026-2027 Adopted Policy Budget