FY 2026-27 Proposed Midcycle Budget

Elizabeth Lake, Acting City Administrator Subject: FY 2026-27 Mayor’s Proposed Midcycle Budget Date: June 5, 2026 Page 5 Special City Council June 12, 2026 Capital Investments While the City continues to face significant operating budget pressures, capital improvement funds are largely restricted for infrastructure and facility investments and generally cannot be used for operating costs or day-to-day City services. This budget continues investment in Oakland’s aging infrastructure, public facilities, parks transportation systems, and neighborhood improvements through Measure U capital funding and ongoing infrastructure investments citywide. The proposed midcycle budget: • Increases the Measure U capital improvement budget by approximately $71 million, for a total Measure U capital program of approximately $206 million • Allocates approximately $37 million in Measure U funding toward additional citywide street resurfacing projects identified in the 2022 Five-Year Paving Plan adopted by City Council. • Invests an additional $8 million toward the Complete Streets projects focused on improving roadway safety, accessibility, pedestrian and bicycle access, and overall street design throughout Oakland. • Maintains existing KK-funded capital projects and infrastructure investments previously approved by voters. • Funds critical facility improvements and replacement projects at City facilities, including roof replacements at various proposed locations (including Malonga Casquelord Center, Jack London Aquatic Center, Lake Merritt Sailboat House, West Oakland Library, and the Municipal Service Center) • Funds elevator replacements and modernization projects at several proposed City facility locations to improve accessibility and public access. • Supports safety and security improvements at proposed City facilities. • Allocates funds for planning and preliminary design work for Brooklyn Basin parks. Planning and design efforts will identify needed improvements, estimate construction costs and support public outreach and engagement. However, another critical category of capital assets – the City’s fleet of vehicles and equipment – does not have an ongoing dedicated funding source for replacement and modernization, which continues to impact the replacement of aging emergency vehicles, public works maintenance vehicles, refuse and cleanup equipment, and other operational fleet assets Maintenance Of Effort – Matching Funds Residents of Oakland have been generous in approving many special local taxes to fund City services. The local measures have often contained maintenance of effort or other provisions that mandated matching spending from existing City resources. While the City has made use of the additional resources provided by these measures in accordance with their legal uses, it has often had to waive the requirements for minimal matching spending from the General Purpose Fund. While these waivers are legally allowable under these measures the City’s lack of matching fund has eroded confidence with Residents. In accordance with the City’s Road Map to Fiscal Health staff presented a report to the Finance and Management Committees in February 2026 that outlined the multi-year process required to