Fiscal Year 2013-2015 Special Budget Meeting

FINANCIAL SUMMARIES BASIS OF BUDGETING The City of Oakland’s basis of budgeting for its major fund groups (General Funds, Special Revenue Funds, Enterprise Funds, Internal Service Funds and Capital Project Funds) are the Generally Accepted Accounting Principals (GAAP), and the modified accrual basis of accounting. Revenues are budgeted according to when they are both measurable and available. Revenues are considered to be available when they are collected within the current year, or soon enough thereafter to pay liabilities of the current period. The City considers property tax revenues to be available for the year levied if they are collected within 60 days of the end of the current fiscal year. All other revenues are considered to be available if they are collected within 120 days of the end of the current fiscal year. Expenditures are budgeted according to when the liability is incurred, regardless of the timing of related cash flows. The exceptions are debt service, compensated absences, claims and judgments, which are budgeted as expenditures according to when the payments are due. The City’s basis of budgeting is the same as the basis of accounting used in the City’s audited financial statement, the Comprehensive Annual Financial Report (CAFR). PLANNING FOR THE CITY OF OAKLAND’S TWO-YEAR BUDGET Planning for the Two-Year Budget The City’s budget development process begins over a year in advance of the actual adoption of the two-year budget. During this advance planning process, the City identifies factors (known or anticipated) that may have a significant effect on future revenues, expenditures, or staffing levels. The staff’s two-year budget projections are also aided by p. The analysis is based on actual City revenue and expenditure trends, general and relevant economic trends and outlooks, input from the City Departments who oversee those specific expenditure and revenue streams, and input from outside economists and revenue experts. Staff’s budget forecast was presented to the City Council at a budget workshop (held for the FY 2013-15 Budget on April 2nd 2013). At the workshop, the Council was provided with information regarding the City’s financial situation, including the five year financial forecast and FY 2012-13 second quarter Revenue& Expenditure report D - 3