Fiscal Year 2013-2015 Special Budget Meeting

ATTACHMENT FY 2013-2015 BUDGET HIGHLIGHTS Page 1 FY 2013-2015 BUDGET HIGHLIGHTS I. BUDGET-BALANCING PRINCIPLES The following budget-balancing principles were used to develop budget proposals and present the City Council with a proposed Policy Budget: essentially, they guide expenditure priorities and impacts. These budget- balancing principles are largely the same as presented in the past (January 2012) and have worked to stabilize our limited public funds and investment in essential services: 1. Develop a budget that balances the City's delivery of the most essential services to the community with the resources available. 2. Comply with Court rulings and orders, such as the dissolution of Redevelopment and Negotiated Settlement Agreement. 3. Resolve shortfalls with ongoing revenue to fund ongoing expenditures. Align one-time resources with one- time costs for programs or projects. To the greatest extent possible, one-time resources should not be used for ongoing costs. 4. Minimize the negative impact of service reductions/eliminations on Oakland residents, businesses, and employees. 5. General Purpose Fund revenues shall not be earmarked for any particular purpose, unless required by law or generally accepted accounting principles (GAAP). 6. All Enterprise Funds shall work to become fully self-supporting from revenues generated by rates, fees and charges. 7. Ensure that services address the diverse community and preserve efforts that the City Council has put in place to address social equity and access to quality of life services. 8. Rates, fees and charges should become fully cost recovering and the General Purpose Fund should not provide subsidies, unless authorized by the City Council and funds are appropriately allocated/appropriated. 9. Ensure that budget-balancing approaches have no negative impact, or minimal impact, on future budgets to ensure high standards of fiscal integrity and management, along with the goal and interest of preserving the City’s credit ratings. 10. Focus on services for both the short- and long-term that are unique to what a full-service local government should offer. As a goal, analyze all existing services and target service consolidations, reductions, or eliminations in areas where service is less essential. 11. Explore personnel services cost savings, subject to the meet-and-confer process where applicable. 12. Make every effort, if operationally feasible, to eliminate vacant positions, rather than filled positions, to minimize the number of employee layoffs while at the same time being mindful of the services that the community demands and/or needs. As programs are consolidated, reduced or eliminated, ensure that management and administration are reduced as appropriate. 13. Defer any new program commitments and initiatives or program expansions, unless those programs reduce crime, stimulate the local economy, create jobs, are cost neutral, generate new revenues, are required by law, have a significant return on investment for the General Purpose Fund, and/or are funded through redeployment of existing resources. 14. Explore interdepartmental/interagency partnerships to leverage service delivery models.