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 32 Revenues were revised upward from the five year financial plan to the proposed budget, yet continue to lag growth in expenditures. Due to the rapid rate growth in health care and retirement expenditures, it is unlikely that even a very robust recovery will produce sufficient ongoing revenue to keep pace with anticipated expenditures. Further information on key economic indicators is provided in the Budget Highlights Section (which resides in the Letter of Transmittal) in the Proposed Budget. 4) The Proposed Budget has continuing reductions in City FTEs in both budget years; we need estimates of the average revenue per City FTE and estimated lost revenues per recommended reduced PTE's and those estimates need to show the on-going if any loss of revenues due to force reductions. In other words, all reductions need to be net reduction and not simply cost avoidance estimations. The Proposed Budget does not propose reductions in any revenue generating positions within the City. Positions such as parking enforcement officers, tax enforcement officers, and tax auditors were preserved. Thus, there are no lost revenues associated with positions recommended for reduction in the Proposed Budget. 5) Further explain the revenue changes listed on Pg. D-7 of the Proposed Budget. A comprehensive analysis on the GPF revenue by category will be presented in the 3^*^ Quarter Revenue & Expenditure Report in May. It is estimated that approximately $4M in revenue will be realized in FY 2014/15 as a result of implementation of the Asset Management Program. Below is an explanation of the detail listed in the Significant Revenue Changes for the General Purpose Fund in the Proposed Budget (pg. D-7): One-time parking citation revenues from proposed booting intergovernmental partnership: Booting is a method the City currently utilizes for staff to collect parking citations from parking patrons with more than 5 outstanding tickets as provided by State Law. State law provides that a vehicle may be booted if it has 5 outstanding tickets in Califomia; however currently our enforcement personnel can only proactively search for tickets issued in Oakland. The proposed intergovernmental partnership would allow the City to view tickets from other jurisdictions substantially increasing the number of boot eligible vehicles. Both jurisdictions would benefit from increased revenue and more efficient collection of outstanding parking citations. Credit Card Convenience Fees: There will be a proposal in the forthcoming Master Fee Schedule to charge convenience fees for the use of credit cards to offset the City's credit card servicing costs. RD Pass Through: The Treasury Division is in the process of restructuring a bond series of the former Redevelopment Agency. The $400,000 represents the City's pro-rata share of reduced debt service to the Successor Agency, which will result in additional next tax