Fiscal Year 2013-2015 Special Budget Meeting

HONORABLE MAYOR AND CITY COUNCIL Subject: Proposed FY 13-15 Proposed Policy Budget Date: May 13,2013 Page 17 b. In the last budget process, the City Council directed the City Administrator to implement administrative controls to make sure the reductions were made. What were the controls? i' Since 2011, the City Auditor has not adhered to City Council direction pertaining to FY budget reductions. There is a City Attomey opinion from 2010 which sets the basis for the minimum staffing and resources required for the City Auditor to fulfill her Charter-mandated duties as City Auditor. Most recently, the City Attomey has had to obtain Conflict Counsel for the City Auditor to sort through issues with respect to legal options and Council actions to reduce her budget. In light of this action, no action has been taken on the part of the City Administrator's Office until these legal reviews and outcomes are clearer pertaining to the requirements of the legal opinion. The expenditures of the City Auditor's Office are reported in a quarterly revenue and expenditure report to the City Council. The latest audited Comprehensive Annual Financial Report (CAFR) shows that the City Auditor's Office over spent approximately $447,000 in General Fund. See document in the following link (click on "2012"), page 133. http://wvyw.oaklandnet.com/govemment/fwawebsite/accounting/CAFR.htm The City Administration continues to exercise expenditure controls in all funds within policy guidelines. As such, when vacancies have developed, the Administration has taken steps to freeze and not fill some vacant positions to help manage costs. In addition, the City Administrator issued a firm reminder to departments and budget and finance staff regarding expenditure controls. For non-personnel expenditures, the Oracle financial system does not generate payments if funds are not available. For hiring, position control is used to only permit hiring for authorized positions. 2) What is the true reduction to the Office of the Mayor's budget after the 1 FTE position addition is factored into the proposed 5% and 10% reduction? It is proposed that the Mayor's Office will take 5% and 10% of the baseline budget in the two coming fiscal years respectively. The position proposed to be added will assist the Deputy Mayor in fulfilling his duties. The added position is approximately $120,000 each year, which is approximately 5.36% of the Mayor's annual budget. 3) The Proposed Budget on pg. D-7 states there is a proposed 5% and lOVo reduction to the City Attorney's budget and one Pg. D-13 states that there are "No non-GPF changes" to the City Attorney budget. However, the Proposed Budget on pg. X-4 describes the addition of 3 FTEs in the City Attorney's office to pilot a program. Where in the budget are these 3 new positions reflected? The City Attorney's Office proposed to add these positions in an amount of $615,652 each year for the purpose of providing needed staffing to the City Attomey's Office and to save on costs of utilizing outside counsel to offset the expenditure rate in the Self-Insurance Liability Fund (#1100). If approved by the City Council, this pilot measure will be evaluated after FY 2013- 14. The proposed positions will be added in the Self-Insurance Liability Fund. The positions are