Fiscal Year 2013-2015 Special Budget Meeting

Deanna J. Santana, City Administrator Subject: Proposed FY 13-15 Proposed Policy Budget Date: April 25, 2013 • ' Page 2 The issues of how this could be structured, providing a base amount bonus or a bonus "give back" based on a certain revenue threshold or "trigger," are both policy matters that the City Council can consider to the extent that the City Council eliminates expenditures included in the proposed budget or if additional revenue is recognized. It is important to note that any of the above options would be subject to meet and confer with the labor unions and subject to bargaining, which should be deliberated in the proper venue. Closed Session. However, it should be noted that if the City Council wishes to pursue this option or any other options listed in the Policy Tradeoffs & Service Buybacks portion of the proposed budget (page A- 1) , there will be policy tradeoffs with respect to other City services. 2) Confirm the current estimate of General Purpose Fund revenue for FY 2013-14, specifically S430M and $418M. As noted above, the GPF revenue estimates for the budget years are one of the major parameters defining the budget development process. GPF revenue estimates for FY 2013-15 were first developed in late summer 2012 for the purpose of developing the Five-Year Financial Forecast. Based on the best information available at that time, staff estimated that GPF revenue for FY 2013-14 would total $418 million. As is traditional during the budget development process, the revenue estimate is revised once or more to incorporate the most current information. When the estimate was revised in March 2013, the strength of the , economic recovery had increased, thereby increasing the revenue estimate for FY 2013-14 to $430M. In the proposed budget, the detailed information explaining how projected revenue has increased from $418M to $430M is located in the Budget Highlights section, page 7, Table 4. This is the final estimate upon which the Proposed Policy Budget is based, and the detailed assumptions and calculations underlying this estimate are outlined in the budget document. Please note that any financial projection is conducted under a certain set of assumptions and at a certain point in time. As such, projections often change as new information becomes available. 3) Provide information on evaluations of programs in place, what is the City's strategic plan, and how well we have done on achieving City Council priorities. The City Council's priorities are set by the City Council as part of their legislative authority. As such, the Council may choose to revise your priorities at your discretion. The last instance in which the City Council's priorities were modified was in the FY 2007-09 budget cycle. The City of Oakland does not have a single overarching strategic plan or prioritization of initiatives underway to meter staff resources and measure results. While some performance measures and various plans exist, there is a lack of institutional linkage to assess strategically efficiencies, effectiveness, and overall performance. Many departments and programs do have their own long-range/strategic plans to guide their planning and operations. There are many mechanisms through which these plans and the City's activities more generally are evaluated, including monthly, quarterly and bi-annual reports on programs to the City's various Committees. Outside funding sources, such as the State and federal government, often have performance standards and evaluations or audits required as part of their funding. Some departments' activities are guided by professional association standards. The City's Item: City Council April 30,2013