Fiscal Year 2013-2015 Special Budget Meeting

POLICY TRADEOFFS & SERVICE BUYBACKS 5) Taxicab Vehicle Permit The City’s FY 2011-12 Master Fee Schedule and budget increased the Taxi Vehicle Permit Fee from $25 annually to $1,019 per permit. The City Council currently has before it an ordinance proposing to reduce the fee by half, to $510. According to staff, a fee of $510 will not cover the City’s current taxi program costs. The bulk of the City’s cost is for compliance with the state-mandated taxi administration process, which includes the City Administrator’s Office daily handling of inquiries, requests, complaints and allegations of violations from citizens, drivers, City staff, the news media, and taxi companies. If the program is maintained in its current form, it will require a General Purpose Fund subsidy of $143,602 per year. TOTAL COST $143,602 6) Affordable Housing Until a permanent funding stream of affordable housing funding is identified to replace the 25% Redevelopment Agency Housing set-Aside, Housing’s annual Notice of Funding Availability (NOFA) will focus on preserving the fiscal and structural integrity of the City's affordable housing portfolio. Oakland's affordable housing inventory includes 83 developments comprising more than 4,000 housing units, with an additional 2,000 affordable housing units in the pipeline. Approximate 85% reduced funding for new construction of affordable housing programs, from roughly $13 million to $2 million, due to: dissolution of Redevelopment Agency, operating cost increases, and potential sequestration (impact currently unknown; not yet included in the proposed budget; additional service impacts likely). To maintain the current level of housing program staffing, it is proposed that any one-time dollars received from the City’s claim to the County regarding the extra fee for administering the “triple flip” –a tax transfer resulting in less revenue from vehicle license tax, but more from property taxes—be appropriated for Y1 (2013-14) for supporting affordable housing programs and other quality of life services (e.g., homeless services, graffiti, etc.) and close funding gaps should the Department of Finance deny project management staffing that is currently being disputed through the Recognized Obligation Payment Schedule. The City’s claim for “triple flip” funds paid to the County is about $2.6 million, generally equal to the policy goal of establishing a 20% set aside for affordable housing programs generated through new tax revenue distributed from the dissolution of redevelopment. This policy alternative establishes a funding bridge for the City’s affordable housing needs and allows for more time to establish an on-going program, absent any approved state legislation that may provide funding for this critical need. Alternatively, the City Council could desire to provide an on-going funding stream for affordable housing by designating 20% of future annual tax revenues the City will receive from the distribution of former redevelopment property tax dollars for affordable housing programs. The FY 2013-14 amount is approximately $2.6 million. TOTAL COST Y1: $2,600,000/Y2: $3,400,000 7) Additional Police Sworn Staffing The proposed budget includes two graduating academies per FY, with the funding for one police academy in FY 2013-14 (168th) and two in FY 2014-15 (169th and 170th). The cost to add a fourth academy to the two- year period would require additional expenditures of approximately $4M for the academy itself and $8M in on-going funding for the officers per year (depending on the timing). Alternatively, the cost of if a lateral academy to add 20 new officers would be approximately $2.5M for pre-academy and some Oakland-specific academy training, as well as approximately $4M on-going funding (not including cost escalation) for the officers per year. TOTAL COST $TBD/Various Scenarios A - 6